Cost of capital in the 21st century

Where I make the case that costs have gone down, encouraging more risk taking

Takeaway

The reduced cost of capital now implies a wealth transfer from savers to borrowers, and that it's optimal for a person to be taking more risk today than before.

Implications of low cost of capital

I want to take a look at cost of capital today. I've been wondering what the implications are of our current low cost environment, plus Michael Pettis r…