[4Liberty]

Right. And when banks loan "more" and more money, it should happen at HIGHER interest rates -- they already loaned to the safer, low risk, borrowers at a low rate. More loans - will then go to the higher risk borrowers -- but that added risk needs to be covered by a HIGHER Interest rate, not lower!!!!

This insane move will cause an over-extension of credit - or mal-investment, as Austrian Economists call it - this is REALLY OUTRAGEOUS

[Fury]

This insane move will cause an over-extension of credit - or mal-investment, as Austrian Economists call it - this is REALLY OUTRAGEOUS

And... suggestion on what they should have done?

[palmer]

This insane move will cause an over-extension of credit - or mal-investment, as Austrian Economists call it - this is REALLY OUTRAGEOUS

It is an act of desperation and the malinvestment that you correctly point out will retard recovery the way low rates kept the economy from recovering quickly after 2008. I don't consider it outrageous at this point, but it has to be temporary otherwise it will be outrageous.