I don't buy this analogy. Bankruptcy isn't the only market discipline. If a firm is underperforming, then it will be bought up and sold for parts. This happens all the time, and low interest rates only make it easier.

Anyway, the article's main mistake is in thinking that the Fed controls interest rates. It can only control nominal interest rates, not real interest rates (adjusted for inflation).

Like any other competitive market, real interest rates are set by supply and demand. If companies, entrepreneurs, and investors see few ways of investing cash to increase revenue or improve efficiency, then interest rates must be low. Better investment (real) returns can come from new technologies and innovations, or from demographic surges.

Yes, we all want better investment opportunities, in real dollars. But the Fed can't control this.