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Old 10-31-2018, 03:36 PM
Sam Stone is online now
Charter Member
Join Date: Jun 1999
Posts: 28,163
I don't think you have a good grasp of how intertwined and cross-industry supply chains are. If you set interest rates differently for real estate and aerospace, and I make steel brackets that are used in both real estate and aerospace, what is the cost of borrowing for me?

I also think this would open the door to massive corruption and massive arbitrage schemes. I also only think that 'bubbles' and 'overheated' economies are obvious in hindsight. I remember people saying that Google stock was clearly in bubble territory a decade ago when it was a fraction of its current price. It is still an ongoing bubble? Should we raise interest rates on internet companies to 'slow them down'?

In the real world, eventually monied interests in those industries will be the ones deciding what interest rates should be. Just like how bankers are heavily involved in what banking regulations there should be. Regulatory capture is a thing, and a system where the government was responsible for setting the price of capital for every industry would be a nightmare of corruption before you could blink.

This is just a really, really bad idea.