Discussion in 'Economics' started by thomfergu, Dec 13, 2007.
Conundrum; irrational exuberance meets the fed.
I mean really can the FED
1) make the banks lend more, NOPE !
2) boost incomes, NOPE !
3) stop house prices falling,NOPE !
The scream for lower interest rates during a time of current inflation levels is ONLY about helping certain (idiot) banks make more money to cover there losses.
1) Let the idiot banks go bust, the will be purchased and broken by those wanting to make the 'buy of the century'..
2) The banks that have clean balance sheets may/will enter the richer market of more speculative loans ( the banks from 1 have stopped there lending of the types). All be it very slowly.
Let the capitalistic system play out, NO STATE INTERVENTION REQUIRED.
So forget the FED stopping a recession, its coming down the highway...
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