Record Low Interest Rates Must Stay for Now: Yellen Record Low Interest Rates Must Stay for Now: Yellen Record Low Interest Rates Must Stay for Now: Yellen Record Low Interest Rates Must Stay for Now: Yellen Record low interest rates are still NEEDED to ENERGIZE the economic recovery????? Reminds me of the greenspan era with record low rates, a high flying real estate market and credit crisis to follow, go Yellen, keep thinking low interest rates are going to help more than harm the economy going forward. At this point why not just make it mandatory to keep rates at 0% forever, no need to raise them when the market is high flying and the economy gaining ground with a 6% GDP rate. Record Low Interest Rates Must Stay for Now: Yellen Reuters | March 23, 2010 | 03:59 PM EDT A Federal Reserve official says record-low interest rates are still needed to energize the economic recovery. Janet Yellen, head of the Federal Reserve Bank of San Francisco and President Barack Obama's top pick to be vice chair of the central bank, says the sluggish recovery she anticipates means unemployment will stay high for years. The jobless rateânow at 9.7 percentâwill dip only to 9.25 percent by the end of this year and then to 8 percent by the end of 2011, she predicts. Despite encouraging signs late last year, the housing market now "seems to have stalled," she says. Yellen says the Fed was right last week to keep a pledge to hold rates at record lows for an "extended period." The decision drew one dissent.
Even Nouriel Roubini knows the bubble is growing right now. Nouriel Roubini: 'We Are Building The Foundations Of The Next Bubble' (VIDEO) First Posted: 05-11-10 08:26 AM | Updated: 05-11-10 09:19 AM Despite the EU's newly announced trillion-dollar backstop, Nouriel Roubini, the president of RGE Monitor and the author of the new book "Crisis Economics: A Crash Course in the Future of Finance," hasn't altered his characteristically gloomy outlook on the world economy. Roubini sat down with Aaron Task and Henry Blodget on Yahoo's Tech Ticker recently and argued that the world is facing a dangerous -- and virtually unprecedented -- near-zero interest rate environment that may precipitate the next bubble. Reiterating a line of argument he's long-held, Roubini said that the global financial system is becoming increasingly prone to meltdowns: "In practice, we have seen that things that things should have happened once every one hundred years are becoming much more frequent and are much more virulent. The economic cost, job losses, and the fiscal cost of these crises have become larger and larger." Roubini, however, did acknowledge that there are some indicators of a rallying global economy. Asset prices, however, may very well be significantly overvalued. Here's more from Roubini: "There is a global economic recovery, I'm not saying its all a bubble," Roubini said. "But when you can borrow everywhere in the world at a zero rate, and you can take leverage, the risk of creating the next asset bubble...that significant risk is rising." Near-zero interest rates are "defying the laws of gravity" for asset prices around the world. "We are building the foundations of the next bubble that could lead -- not next year, but down the line in the next two or three years -- to the next crisis." Roubini said.
Who cares? Perhaps if you were as smart as you think you are you would profit from all this and actually look forward to it. The last 10 years have probably been one of the best periods in American history to get rich and yet all you've done since I can remember is cry and whine about bubbles. Go make some money and you'll relish all this trumoil and pray it never ends.