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Profits Are Booming. Why Aren’t Jobs? Low Interest Rates To Blame?

Sunday, January 9, 2011 - 8:23 AM
New York Times article looks into the question of why the unemployment rate has been slow to fall as corporate profits have been rising. It's interesting to see one possible reason relates to the low interest rates:
Interest rates are so low that traders can pile up profits by exploiting the spread between a near-zero funds rate and rates on Treasury bonds. This allows some corporations to mark profits without selling much or hiring anyone.

Ken TuminKen Tumin5,471 posts since
Nov 29, 2009
Rep Points: 125,634