Then we'll be paying for it in the not so distant future when inflation raises it's ugly head. A very wise man said so here http://video.google.com/videoplay?docid=-6046520409389956642
Lowering the federal funds target rate to 0% will have no impact on jumpstarting the economy. The FFTR is not the problem.
Just my 2 cents, but I doubt that we will see another rate cut this time around...infact, I expect an increase. Why? People in general, are upset with the price of oil, and increased inflation. To win the election, the republicans have to show some leadership in this area.
Absolutely agree 150%. The Fed gov's are all academics that read the textbooks. It's like going to the doctor with a sore throat, the doctor doesn't ask how you got it, he just takes a guess that it is bacterial or viral based on Textbook criteria, and prescribes an antibiotic in most cases whether he think's it's bacterial or not. Well, we all know antibiotics don't do shit for a virus BUT the over-prescribing of antibiotics are creating big problems in super-bugs that are resistant. Guess what Bernanke, it isn't bacterial, it's viral this time and your antibiotic rate cuts are not doing any good. In fact, just like over-presribing, they are doing harm in creating a superbug known as inflation. Use your head Dr. Bernanke!
The idea that government can stimulate the economy is ridiculous. Lowering interest rates has only a short term affect. Sometimes just one day where stocks rise and correct the next day. Eventually the bubble will burst! Keynesian economics is equally outrageous. Austrian school of economics is the best in my opinion. Government intervention is horrible. Let the markets do what they do. For a history lesson, the FED is supposed to stabilize the market, although the biggest bubbles have occured during its existence (1929, 1987)
The author of this article is insincere, at best, and a fraud, at worst. He accurately speaks of Shiller's views on housing, and then uses that to launch into a tirade about how gold, silver and oil should be 'hung on to,' in the (according to Shiller himself) 'unlikely' event we have another depression. I have news for him: If we have another depression, oil demand will drop precipitously, and silver will be good for what??? Also, what will gold be worth? Silver and gold are not the be all and end all 'must have' items if we have another 'Great Depression.' Oil will fall in value dramatically, as it will follow demand. Means of production of things of real worth will be worth something, such as fertile land, but everyone will be in relatively bad shape. This guy is very deceptive to misuse Shiller's words to pump the goldbug case.