184. Alexander Green on Money & Why It Matters
The Michael Shermer Show
00:00
Can the Fed Control Long Term Rates?
The Fed controls short term rates, the market generally sets longer term rates. Thet banks borrow from the fed, and then they can loan out at a higher rate of interest ta earn the spread. It's hard to believe, michael, but back in 19 82, government bonds yielded over 16 %. So for for forty years almost, we've had declining interest ratesand i think it's going to surprise a lot of people what happens when interest rates turn and go back up.
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