[sangnoir]

A definition of Excessive consumption would be in order, because it suggests that there's a "right" level of consumption other than what the market settles on, gp did not quantify what counts as excessive, or why. This concept is new to me and warrants more than a single parenthetical example that raises more questions.

[lazide]

So high that it bankrupted a huge number of producers. What is so confusing?

[sangnoir]

On what basis can the bankruptcies be blamed solely/mostly on consumer behavior, versus the viability of many fracking companies being staked on an impermanently high oil prices? The oil industry is notorious for boom-and-bust cycles.

Who's culpable for the bankruptcy of businesses that were only viable under a Zero Interest Rate regime? Should we blame consumer exuberance - or excessive consumption - for pushing up interest rates and causing bankruptcies?

[Red_Leaves_Flyy]

The Fed dropped the ball by keeping rates low. Their choice to keep them artificially low created mountains of problems that we’re still suffering from.

[lazide]

Notably at least partially due to political pressure from Trump - including threats to fire the chairman of the Fed - to avoid higher interest rates and even defaults on his and his families extensive real estate holdings.

[https://apnews.com/article/2a21e92ed9129e91e713495c9ef50050] [https://www.hindustantimes.com/business-news/kushner-compani...]

[Red_Leaves_Flyy]

In the Antithesis of a trump supporter but don’t make it seem like Obama couldn’t have done anything when he benefited from the low rate environment too.

[lazide]

Did Obama threaten to fire the head of the Fed if he raised rates? Or say anything, actually? Because I don’t remember any of that.

Because if he had, then he’d be easy to blame. If he hadn’t then it’s squarely on the fed isn’t it?

Since Trump explicitly did take action, why should he not get blamed for his part in it?

[lazide]

What does that have to do with the original statement?

[sangnoir]

Consumers are not responsible for macro-economic changes that make a subset of businesses unviable. I was likening Shale Oil companies that could only be profitable at >$95 a barrel to companies that were only viable when capital was cheap - both groups should have known and planned for the respective numbers changing.

[lazide]

Again, what does that have to do with the original statement?

[sangnoir]

This entire thread is interrogating whether consumer behavior (excessive consumption ) is to blame for business failures as suggested, but never explained by the original statement.