“Marks (Howard Marks co-chairman of Oaktree Capital Management) said that we are not in a free market environment…he does not believe that market conditions have changed enough to warrant the interest rate reduction on the 10-year government bond from 6% eight years ago to 2% today. He said the interest rate is artificially low due to the Federal Reserve intervention…
…but he does not believe conditions are bad enough or inflation low enough to warrant in the current 2% rate. This is an artificial rate, and Marks said it is difficult to predict what the natural rate should be if it were left alone or whether it will be left alone…Since the 2008 financial crisis, you cannot get paid for safety and liquidity, according to Marks…”, Justin Kermond, “Howard Marks on Luck and Skill in Investing”, March 3, 2015
Posted on March 4, 2015, in Postings. Bookmark the permalink. Leave a comment.
Not Too Big To Fail 
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