Tuesday, December 16, 2008
HOW CAN SMART PEOPLE BE Soooooo STUPID??
The problem, we are told, is that banks are unwilling to loan out money, so the economy is collapsing. (I, personally, believe that the problem is really mega-inflation). Regardless, why did the Federal Reserve just lower the interest rate? They want to create a situation where banks make no profit at all if they loan money?! If the interest rate is now 1/4 percent or less, as declared by the Fed just hours ago, WHO IN THE WORLD WILL LOAN MONEY AT THAT RATE???? They should have RAISED the interest rate--an action that would not exacerbate the inflation problem, by the way. (he shakes his head sadly and stumbles numbly away)
The problem, we are told, is that banks are unwilling to loan out money, so the economy is collapsing. (I, personally, believe that the problem is really mega-inflation). Regardless, why did the Federal Reserve just lower the interest rate? They want to create a situation where banks make no profit at all if they loan money?! If the interest rate is now 1/4 percent or less, as declared by the Fed just hours ago, WHO IN THE WORLD WILL LOAN MONEY AT THAT RATE???? They should have RAISED the interest rate--an action that would not exacerbate the inflation problem, by the way. (he shakes his head sadly and stumbles numbly away)
Labels: absolute stupidity, economy, federal reserve
# posted by dan and cheryl forbes @ 11:45 AM 
