"The Fed, scheduled to next meet on Jan. 29 and 30, is now expected to cut half a percentage point off its benchmark rate to 3.75 percent. Most expect the Fed to continue cutting, to 3 percent or even lower by summer, to prevent — or at least mitigate — a recession. The goal would be to get people to borrow and spend more." - NYT, 1/10/08
I'm sorry, we need a f#@king recession, so people get their heads out of their asses and stop spending $5 for every $1 they make. It makes me absolutely sick to see this crap. You know what happened to Japan when they cut interest rates to zero for pretty much the entire 1990's? The great threat that they posed as a 'category killer' to the world's developed economies pretty much evaporated. A whole lot of totally inefficient business and enterprises were able to get and stay funded no matter how inept they were. In times of 0% interest, getting a 4% return is pretty viable. If you are getting a 4% ROI in the real world, you are dead.
Has anyone even stopped to consider that easy credit is what started the whole housing crisis? A little easy money caused a huge mess, so a little more easy money is going to get us out of it. That makes perfect sense.
America, and specifically Wall Street, is like a baby that cries out for its pappy and the Fed is like the indulgent parent that just can't put up with a crying baby. You know what those babies grow up to be? Well, do you?
Sometimes I hate us.
For being the greatest country on the planet, sometimes we really suck.