Fed sets up U.S. for long dreadful slog
Lewis DiuguidThe Federal Reserve action Thursday to continue to hold down interest rates and buy $40 billion a month in mortgage bonds is the wrong action for the country.
The Fed’s response to the poor economy feeds the credit addiction in the U.S. instead of encouraging people to live within their means and save for the future.
The action builds on about 10 years of terribly low interest rates for people who value creating their own nest eggs and encouraging their children to save. For people on fixed incomes who depend on interest earnings from federally insured bank deposits, the Fed’s action is depressing news.
They have borne a large cost of federal fixes to the economy. The stock market, on the other hand, is drunk with jubilation that the easy credit party and low rates will go on.
Mark Hastert
8 months agoThe Great Depression lasted what, 11-12 years and took the “stimulus” of WWII to end it? Yes, it’s going to be a long slog. The housing bubble took ten+ years to build. The MBS and credit default swaps that exploded all over the banks, and Wall St, and global markets were an ever frailer house of cards. We’re not going to have a full recovery until housing get’s on firmer ground which slowly it is. Cheap interest rates will encourage people to buy and make it easier to get people right side up in their mortgages. The Fed is right to focus there.
George Hunsucker
Northland
8 months agothe big 0 and his followers, here Bernake, are great for gold, terrible for America.
Keep up the good work jimmy II, what a “leader”….
Mark Hastert
8 months ago“Keep up the good work jimmy II, what a “leader”….”
Keep up the insightful commentary GH, what a follower..
The Fed is doing it’s job. It’s clear that the Republicans would rather see the country suffer than re-elect the President. They obviously hate Obama more than they love America.