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To: expat_panama

.25 per cent is not going to crash anything.


36 posted on 12/03/2015 6:35:43 AM PST by CPT Clay (Hillary: Julius and Ethal Rosenberg were electrocuted for selling classified info.)
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To: CPT Clay
.25 per cent is not going to crash anything.

One option had been a miniscule token hike --maybe 0.00025%?  The thinking now is that we really no longer have to worry if a hike would crash anything because the economy already is crashing.   Once again that doesn't matter either becuase the Fed works w/ inflation and they can and will tank the economy if inflation's a problem.  It isn't; most serious metrics (meaning we'll ignore the FR whining arm-wavers) are seeing price indexes wandering back down like it was 2008 all over again.

Let's not think the Fed can't lower the overnight bank rate below zero --if they really want they can go and pay banks to borrow. The reason they don't (as far as I can see) is that this is no longer a technical problem but rather a political one and a negative move would be too much of a political blast for an election year.

41 posted on 12/03/2015 6:58:02 AM PST by expat_panama
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