Marc Faber 未日博士

PacificPlace

Leverage Is A Symptom Of Artificially Low Interest Rates

But why is there leverage? It is a symptom of artificially low interest rates - essentially zero interest rates - that force everybody to be a speculator because you're not earning anything on your money. This volatility won't disappear anytime soon, because it has little to do with the problems in Europe and everything to do with excessive liquidity that is being created in the system. Unless there is a general collapse of liquidity - in other words, a credit-market collapse - the volatility will continue, perhaps for five or 10 years.

It drives the small investor away from the market. He doesn't understand it. He doesn't trust Wall Street, and rightly so, and he finds the whole system corrupt and dominated by people with inside information.