Discussion in 'Economics' started by gwac, Sep 4, 2008.

  1. gwac


    Nice job raising rates in June, I think that had to be the stupidest move by any central bank in a very long time.
  2. Daal


    the hike in itself probably wont do much harm the problem is that now it might take a long time for an ease because they dont want to lose face
  3. 1998 Fed lowers rates to save LTCM but creates the fuel for the tech bubble.

    2001 Fed lowers rates to absurd levels and we get a housing and lending bubble.

    2007 Fed lowers rates and commodities shoot to the moon with gasoline hitting over $4, food prices soar, etc.. The economy is still getting worse.

    The ECB may not have to lower rates much as the currency market has readjusted the Euro. Growth in an economy should come naturally, not from fooling around with liquidity injections. The Americans on the other hand will, at some point in time in the next million years, learn how to run a central bank correctly.