If the Fed just raises interest rates it will be catastrophic in this economy with this President, Congress and Cabinet full of radical left wing activists. I think it would be great to have a rate floor that is something above zero, but right now I have no idea how we could get there.
We need a cogent plan from the Fed and the Administration that makes sense, along with a modest (1/4 point?) increase in interest rates to begin repairing things; but I don’t see any kind of deep thinking along those lines coming out of Ben Bernancke or Premier Hussein any time soon.
The cogent plan is this:
- End regulations that make no sense
- End subsidies that make no sense
- Repeal Obamacare, which makes no sense
- Avoid tax hikes; Extend all the tax cuts
- Drill here, drill now
- replace corp income tax with business transfer tax and import tax
- allow for full expensing of R&D and investment
- eliminate any interest mortgage deduction
- tort reform
- jaw bone businesses to buy American and find out ways to keep production in the USA
the economy will rebound and with it, demand for credit.