[appleshore]

Low interest rates certainly lead to non-optimal housing development. I completely support massive government funding of energy, nuclear, technology and research.

But I don't support the NY Fed and the bank CEOs controlling the open markets, setting the interest rates and flooding dumb "elite" investors with cheap money so they can build bad systems. Having 1 of 12 FRBs dominate the monetary system is a flawed idea, especially when that 1 is Wall Street. Financial engineering is dangerous and antithetical to real research, development and progress.

[md_]

That's an argument. But it seems to me still a far cry from arguing that cheap capital leads to less innovation--in effect, that dumb money drives out the smart.