For example? Spreads between asset returns might be compressed, but I have a hard time coming up with assets that are no longer viable.
Nobody is entitled to "set it and forget it" returns. Loanable funds operate on the principles of supply and demand like anything else. When money is abundant - as it becomes when the Fed is easing - the risk premium shrinks. You don't get rewarded for money under the mattress or lent to the government. Instead, investors are incentivized to grease the wheels of capitalism by risking that money. That's our system.
For example? Spreads between asset returns might be compressed, but I have a hard time coming up with assets that are no longer viable.
Nobody is entitled to "set it and forget it" returns. Loanable funds operate on the principles of supply and demand like anything else. When money is abundant - as it becomes when the Fed is easing - the risk premium shrinks. You don't get rewarded for money under the mattress or lent to the government. Instead, investors are incentivized to grease the wheels of capitalism by risking that money. That's our system.