Today the Fed acted to cut the Fed Funds rate to 1%. As I've expressed in the past, at best, this will likely be ineffectual.
I agree with economist Bernard Baumohl who said:
"The latest Fed move is not going to hasten the economic recovery by a single day or accelerate the cleansing of bank balance sheets, what is needed more than anything else at this stage is simply patience."
I agree with him that the problem lies not with the cost of obtaining a loan (the demand side), but with the inability / unwillingness of banks to lend (the supply side) in this time of great debt and uncertainty.
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Prepare for the New World Economic Order
Interest Rates [Credit] are the Cause and Consequence of the Explosion of Income/Wealth Disparities and, Hence, of the Inherent Instability of this Economy:
The Ominous Keynes' Liquidity Trap.
The Origin of Economic Chaos.
Everyone Need an Economy, Don't They?
There Is One Solution That Works:
A Credit Free, Free Market Economy:
The New World Economic Order.
The Only Goal of 1776 - Annuit Cœptis is to Implement It.
They Can Transfer Their Assets & Forget Their Liabilities.
Anyone Can Join But Still Needs to Ask for It.
http://www.17-76.net/
The Purpose Is to Provide Both a New Deal and a New Game.
It is NOT to Fix This Economy Which is Already Beyond Repair.
The Intention Is to Create a New Economy
With the Assets of the Old One Without its Liabilities.
Why Not Insure Against the Worst Case Scenario?
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