Posted on 06/03/2010 1:39:45 PM PDT by blam
Fed Governor Calls For MASSIVE Rate Hikes
Joe Weisenthal
Jun. 3, 2010, 4:29 PM
It's well known that Kansas City Fed Chief Thomas Hoenig is the one major voice of dissent on the Federal Reserve.
He's called for a change to the dovish language, a rate hike in short order, while warning that cheap money would inevitably create another bubble.
But he doesn't want to just stop at a 1% hike he said at a business lunch in Bartlesville Oklahoma today.
Reuters:
Thomas Hoenig, president of the Kansas City Federal Reserve Bank, has called for a modest increase in borrowing costs before, but he went further on Thursday by before, but he went further on Thursday by suggesting it should happen over the next several months and by calling for an increase in borrowing costs to 3 percent in rapid order.
Is that going to happen? Heck no.
BUT it does show just how far he is out of the mainstream. And if this is what it's going to take to kill the next bubble, the help us all.
[snip]
(Excerpt) Read more at businessinsider.com ...
Somebody needs a copy editor.
Hoenig is right, but it simply will not happen. Can you imagine the cost to the government if interest rates were hiked by 3%? Additionally, you’d tank the economy big time.
About time.
3% is massive? Old Ben remembers when the Prime Rate was 20%
Interest rates have been held artificially low for far too long. When I bought my first home in 1990 home interest rates for a VA loan were 10% and that was LESS than the market rate. Right now if the Fed Reserve wasn’t printing money and handing it out like Halloween candy, rates would be about 12% or higher.
Everyone knows that what patriotic Americans are supposed to do is piss all their money away on stuff they don't need.
...like big government?
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