[sleepysysadmin]

>In conclusion, one can theorize that falling interest rates can be indicative of tight monetary conditions in the economy in the sense that demand for credit is falling (due to explanation one) and/or access to debt funding/financing is limited to just the largest and most creditworthy businesses (due to explanation two).2

Boomers are retiring or getting damn close. They are moving their investments to 'safe' options like bonds. In reverse the system has to match up those bonds with someone issuing a bond. This is typically cars and houses. So for a boomer to invest in a bond, someone had to have bought a house. If interest rates were high, then people wouldnt be buying houses. So interest rates must drop so that the investments can happen.

Furthermore, it's also those same boomers who are selling their large house to 'downsize' or whatever. They cant sell unless someone is buying.

The even crazier thing, the real yields on bonds are negative right now. Interest rate is 0.25% in Canada while inflation is at 4.7%.

So retirement funds are effectively losing the difference. The boomers thought they could retire because they have some nice big numbers but it's double edged. They might have a big number but it doesnt grow much at 0.25% and their costs to buy things is 4.7% higher. So in a few years many boomers who retired may find out they cant afford to be retired anymore.