And low interest rates also stop the trickle (or flood) up of wealth: they are rents, after all.

Low interest rates raise the price of higher yielding assets. QE shows that, share prices rose because of QE as Spudder oft complains.

So, low interest rates stop the flood up of wealth, do they? Even though Spudda complains about how low interest rates have raised asset prices?

10 thoughts on “Spuddo”

  1. Maybe the Wren Lewis and Portes method of dealing with the portly and persistent Prof is the best one? [and, like an unpleasant fart, he was gone]

    Richard Murphy says:

    February 4 2019 at 9:57 pm

    I raised this with them on Twitter this evening. There was no response, at all. The comment was completely ignored, even when repeated.

  2. I guess Snippa doesn’t know the difference between the Mute and Block functions on twitter.
    Why anyone would choose the 2nd over the 1st is a mystery if you want people to notice you but not to bother you. And attention seeking is his best skill, so it doesn’t say much for everything else he claims to know.

  3. He’s a sad fuck, isn’t he? I can quite believe he thinks everyone else also spends their evenings sitting in front of a computer in their underpants, Twattering.

  4. The man who has blocked the second most users on Twitter has the temerity to criticise people for ignoring him – truly he is a subject for study by psychologists….

  5. “I wonder what he thinks this implies about capital allocation”

    I suspect that Spud’s thinking today would be as follows.

    “Capital is a word

    Allocation is a word

    Capital Allocation are two words put together”

    This doesn’t really matter as by tomorrow he will be an expert on capital allocation, by Thursday he will have developed most of the theory surrounding it and by Friday he will have invented it in the first place.

  6. @Andrew C and by Saturday he’ll be slagging off every other Expert on the subject saying they don’t understand it.

  7. Murphy is more right than usual – a couple of percent! People who cannot yet afford to pay for a house are borrowing at negative real interest rates while those with a cash surplus are watching the value of that cash erode like the North Sea coastline. And the stupid young women who choose to spend more than they earn pay less interest to their lenders reducing dividend payments (if any) to the shareholders of the banks, a large proportion of whom are well-off pensioners who were formerly savers in Building Societies or the TSB. Asset price inflation only helps those who are net sellers of assets during the asset price bubble (basically heirs of south-eastern houseowners). The price of our house doesn’t matter until we die – its value as a place in which to live is unaffected thereby.

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