The High Costs of Very Low Interest Rates

My former Needham & Company colleague, John Michaelson, makes a compelling argument in the WSJ Op-Ed column on “The High Costs of Very Low Interest Rates“.   While the benefits of low interest rates are clear:  lower mortgage rates, lower borrowing costs, the damage to ones saving and retirement accounts are real.  Those depending on interest funds for living expenses have to eat into capital to make ends meet, and this is true for large institutions such as Harvard and corporate retirement funds as well as the ordinary retiree.  It also encourages increased borrowing–for those who can obtain the credit.