Economic Future Discounted

““As you move out on that spread, what you do is you create a definite bias towards producing and purchasing only those capital assets with short life expectancies. So what we’re seeing now is software is doing well; non-residential building isn’t doing well at all.”

What’s valued is a quick turnaround. There’s no faith in the future. At the heart of this is the Fed’s failed monetary policy of low interest rates and quantitative easing. Printing more money (i.e. causing inflation) to stimulate the economy comes at a cost. In this case, the cost is under speculation in the future and less long term strategy.”