So why was money so cheap for so long? Because when inflation gets very low, there is the threat of deflation, and the deflationary spiral is much more difficult to manage than the inflation spiral. If the velocity of money goes negative, which the economy was trending towards, and had a few months of it, that very dangerous.. . .
But don't fall into the trap of resulting, which is what a lot of people do when high probability strategy is successful for a long time, and then hits the low probability outcome. People will describes the entire strategy as bad, because there is a period of the low probability negative outcome. Binary thinking, as well as dunning kruger effect. The banking system and managing an economy this size is a lot more complex with all the political influences and the uncertainties of outcomes with long and variable lags.
So the avoidance of a really disastrous outcome, which can't be proven as there is no A/B testing reality on the economy. . . for many years, always has the potential for a future mistake. Its easy to blame the goverment for all the mistakees, but there are other more subtle, barely visible long term trends which are increasing the risk of economic instability, and that's all in the corporate world, which the government is trying so manage the unfortunate social effects. . .
I just try to invest / trade to take advantage of the results, without judging the difficulty of the jobs with always incomplete information about the future, which is always uncertain.
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