Bernanke and the Fed are a Bit ConfusedDecember 16, 2008
Tell me if this seems a bit illogical to you.
Via Michelle Malkin:
- American’s borrowed more than they could afford
- Consumers could not repay their loans
- Banks lost money and had to write-off billions in losses
- Debtor companies could not make their payments either, furthering the cycle of write-offs
- Fed reduces Federal Funds Rates to 0% so banks can lend money to the broke. This is after giving many of them part of the $700 billion TARP fund.
I am going to go with Stupid on this one. Where is John Taylor when we need him? Professor Taylor has it right, and the Government should be enticing the majority to save their money, not spend it excessively.