Free Republic

Roubini: Europe Should Cut Interest Rates to Zero Thursday, June 10, 2010 05:04 PM By: Julie Crawshaw The European Central Bank should slash its benchmark interest rate to zero and expand government bond purchases to offset the recessionary effects of euro-area austerity measures, says New York University economist Nouriel Roubini. “That has to be the policy mix: tight fiscal, but much more easy money, looser monetary policy, more quantitative easing and also a weakening of the euro,” says Roubini, who predicted the financial crisis. “Going to zero alone is not going to be enough, it’s 100 basis points,” says Roubini....

Fed unleashes greatest bubble of all: John Kemp Wed Dec 17, 2008 7:08am EST -- John Kemp is a Reuters columnist. The views expressed are his own -- By John Kemp Like the sorcerer's apprentice, Federal Reserve Chairman Ben Bernanke and his predecessor Alan Greenspan have unleashed a series of ever-larger asset bubbles they cannot control. Now the Fed's decision to cut interest rates to between zero and 0.25 percent, coupled with a promise to keep them there for an extended period, and the threat to conduct even more unconventional operations in the longer-dated Treasury market risks the biggest bubble...