Yes. And when something costs very little, what does that say about its value? ;)
Pension funds were in a world of hurt during and right after the GFC. The only thing that saved them was the re-inflation of the asset bubble, which got bigger (and thinner walled) that it has ever been. That asset bubble inflation was possible due to the artificially low interest rates that had been maintained ever since. It should have been obvious that this was unsustainable and would have to end at some point.
" Interest rates are the cost of money."
Yes. And when something costs very little, what does that say about its value? ;)
Pension funds were in a world of hurt during and right after the GFC. The only thing that saved them was the re-inflation of the asset bubble, which got bigger (and thinner walled) that it has ever been. That asset bubble inflation was possible due to the artificially low interest rates that had been maintained ever since. It should have been obvious that this was unsustainable and would have to end at some point.