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Reply #6: The ROI has to be higher than the interest rate [View All]

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AllentownJake Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jun-01-10 07:30 AM
Response to Reply #4
6. The ROI has to be higher than the interest rate
Edited on Tue Jun-01-10 07:31 AM by AllentownJake
If it isn't, it was a foolish venture.

Theoretically with the record low interest rates, there should be tons of investing going on...however businesses are evaluating future growth prospects and are saying no thanks.

Classic deflationary debt crisis scenario, which is why we need to get banks lending again was bad medicine.

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