The Fed's Interest Rate Fallacy

The interest rate fallacy is actually as money becomes tighter because returns on credit decrease, the diminishing marginal revenue product of debt. That's why interest rates go down because you're narrowing the pool of potential borrowers. So no, the Fed did not take this away. This game is not rigged in that way. I mean, yeah, it was rigged as in life's not fair, but it's not rigged by the Fed.

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