The Sears bankruptcy, and the Schumpeteran creative destruction in the shopping mall sector that will follow, feels like it has been coming for a long time – and it has. Ever since the Fed went off track from sound monetary policy in February 1995, ultra-low interest rates have created new unproductive investment and postponed necessary bankruptcies. In 2019, if the Fed stays on its current path, we will enjoy 24 years of Schumpeteran creative destruction – all at once. With good management the experience should be highly invigorating.

 

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