Wonderful article!

I've also been concerned about the distortions in the market of the essentially free money provided by a 0 prime rate.

I have one idea I'd like to get your opinion on..

One thing I think that is happening here is a perception that deep troubles will follow an increase in the prime rate based on the raw amount of debt held by the US Government. The more raw debt we have, the larger macro effect an increase in rates will bring, since rolling over those instruments to buy new ones will increase the service load for all outstanding debt. I wonder if we've crossed a 'point of no return' regarding this.. and this is yet another incentive to keep prime at 0. If this is the case, then only tough love will do at the government level (and honestly, I don't think that will happen..).

Again.. wonderful article.. glad I stumbled onto this site! :)