washingtonpost.com— Faced with a spreading mortgage crisis, the Federal Reserve is expected to cut interest rates for a third time and hint that even more rate cuts could be forthcoming.
Dec 11, 2007View in Crawl 4
Keynesian economics = running on empty...The Federal Reserve might lower interest rates (by targeting a low federal funds rate). Business firms are led nonetheless to take advantage of cheap credit. Production activities, particularly in interest-sensitive sectors of the economy, APPEAR more profitable. The economy is steered by low interest rates onto an unsustainable growth path. The cheap-credit policy, though ultimately harmful to the economy, is politically attractive. A seemingly strong economy always makes an attractive backdrop for office holders. If the timing is right, the votes can be harvested before the (fraudulent) strength is revealed by the market itself to be an actual weakness. *Roger GarrisonThe sea of inflationary credit is the core problem behind the falling dollar, the subprime crisis, the housing meltdown, not to mention the rise in the national debt and a thousand other problems. *Rockwell
blitzerDec 12, 2007
Borrowing stimulates the economy. More borrowing means more business. It could lead to inflation, but not a recession.
duconihilumDec 12, 2007
This only helps in the short term- in the long term we're screwed.
siszamDec 12, 2007
They do realize it. They are forcing a collapse of the dollar so they can bring in North American Union and Amero.
bratpack8Dec 12, 2007
It is a slight benefit for those with fixed rate mortgages, but it doesn't offset how much they get hurt otherwise, such as rising prices, etc.
bratpack8Dec 12, 2007
There's one candidate that talks about this intelligently, and his initials are RP.
seubsamranDec 12, 2007
decrees interest rates
pssdoffDec 12, 2007
<a class="user" href="http://tinyurl.com/27stbw">http://tinyurl.com/27stbw</a>You don't need to be an economist to understand the big picture.<a class="user" href="http://lewrockwell.com">http://lewrockwell.com</a>
richnessDec 12, 2007
Keynesian economics = running on empty...The Federal Reserve might lower interest rates (by targeting a low federal funds rate). Business firms are led nonetheless to take advantage of cheap credit. Production activities, particularly in interest-sensitive sectors of the economy, APPEAR more profitable. The economy is steered by low interest rates onto an unsustainable growth path. The cheap-credit policy, though ultimately harmful to the economy, is politically attractive. A seemingly strong economy always makes an attractive backdrop for office holders. If the timing is right, the votes can be harvested before the (fraudulent) strength is revealed by the market itself to be an actual weakness. *Roger GarrisonThe sea of inflationary credit is the core problem behind the falling dollar, the subprime crisis, the housing meltdown, not to mention the rise in the national debt and a thousand other problems. *Rockwell