Are Higher Rates Worse Than ZIRP? (EP. 486)

Carlson argues current rate levels, via a GFC-level-dead housing market, are more economically damaging than 2010s ZIRP ever was.

• Concentration persists but broadens: Top 5 S&P stocks now equal the bottom 434 (up from bottom 282 in 2018), yet small caps (+15% YTD), mid caps (~12%) and equal-weight (~13%) are also up double digits, and trailing-12-month net income of the top 5 roughly matches the bottom 436.
• AI crowds out the real economy: Real data-center construction spending is up 65% YoY while manufacturing (-24%), multifamily, offices, and lodging all declined, per a Jason Furman chart.

Themes, sentiment and reasons are AI-written paraphrases, checked so they never quote an episode. They may contain errors. Not investment advice. Episodes remain the property of their creators.