Which rates?
Capitalism requires creative destruction to burn off the deadwood.
Bear Stearns, Lehman, Merrill, Countrywide, Wamu, IndyMac.....I could go on and on.
While I have issues with the Fed, it seems to me that they’ve been between a rock and a hard place, trying to design monetary policy to support the lunatic spending and crazy legislation emanating from elected representatives. CRA, then the POS act that permitted creation of financial weapons of mass destruction by loosening derivative regulation. Derivatives wouldn’t have gone wild if banks weren’t forced to lend to higher risk individuals who had little to no skin in the game. Lenders needed a means to offload the hot potato, IMO. Then implementation of mark to market and permitting wild short selling in May/June 2007 were the Jinga blocks which were removed from the financial tower, leading to its collapse.
Tell me where I’m wrong, folks. Happy to learn.
>Which rates?
You know EXACTLY “which rates” we’re talking about!
You just mentioned them, as did the Bloomberg article!
If you have something to say, spit it out.
Save the pedantic Socratic method for someone that hasn’t already passed Econ 1.
The partial controlled burn we’ve done so far obviously isn’t cutting it. Don’t make me post Peter Schiff at you!