The Fed has made it official.
The Federal Open Market Committee decided today to establish a target range for the federal funds rate of 0 to 1/4 percent.
And so with that, it's time to go retro 80's.
The Economic Populist
Speak Your Mind 2 Cents at a Time
How do you eat your sushi? Raw????
are they going to pay to lend money next? I think someone is going to pay for this, ah the ghost of Greenspan as well as the Japanese.
From Bloomberg:
And so why do we need to repeat their mistakes?
We've effectively been at ZIRP for some time and now we're really at ZIRP and the Fed has flooded the system with cash resulting in...suprise!...a 30 fold expansion of excess reserves at the Fed. I guess the reasoning was that if a policy fails on a large scale in Japan, it should work on a gargantuan scale in the US. Wow, who wouldathunk that wasn't going to work. So do we conclude that the geniuses at the Fed are not just corrupt but intellectually handicapped? At the same time, Japan engaged in a decade long effort of public works infrastructure projects, building bridges to nowhere among other things and exapnding their debt to 150% GDP. That didn't work so well either. But guess what we're going to do. Yes, we are the new Japan. I suppose we'd better sharpen our skills with chopsticks. As for the sushi, in the US you'd better be ready to ask, "Does that come with melamine?".
very good question
It seems Sweden for one is a better response model.
In listening to a lot of lefty radio on my new....
....Logitech Squeezebox, what a total gas that thing is, you hear a lot of whining about how, 'the banks are not lending....', 'the credit freeze is still on... and,
'It seems there is nothing we can do, nor is there any institution we populists can use push things in the proper direction for all stakeholders: Prosperity.
You are gonna hear a lot of this CW B.S. the truth is we just took the first big step towards getting the most effective institution we have moving. That would be the...
...Government.
Even populists have bought off, in some cases, on the 'conservative' right wingers lie that...
'The Government is the problem, not the solution.' Well, look how well that mindset worked. Great for St. Ronnie...the rest of us; not so much.
Robert's comment is a timely one as those who want to make debt slaves of us will in the coming months double and redouble their efforts to distract us from the power we now have. The government can mandate that banks start loaning money. Simple as that.
Socialism, communism...
If you think that you really don't understand the last 3000 years of civilization nor the serious problem we face right now.
'When you see a rattlesnake poised to strike, you do not wait until he has struck to crush him.'
So how long until the execs at AIG
commit sepuku?
good question
Can I ask a favor and request you and others post, as in "a lot"? I'm working on an under the gun project at the moment and can't get to the blog as much as I need to.
There is so much shit happening and who is this new SEC chair woman and Obama spending $1 trillion well that's great but what about the $8 trillion in fed pledges and what's this going to do to the deficit and the list goes on and on.