.comment-link {margin-left:.6em;}

Wednesday, October 31, 2007

Uncertain Economic Times in the future, and the fed prepares for prosparity????

The price of essentials such as gas and others are on the rise. People are stuck in debt, and the fed plans to stop lowering rates. This seems inconsistant. The future seems highly speculative whether 2008 will be prosperous or perilous. This is not a good time to tighten money. Uncertain times necessitate easily borrowable times, either to get people out of choking loans, or to facilitate the buying of necessities. In the face of what might be a reccession, we need to have investable funds at the ready, in order to stimulate activity. The worse case scenario with increasing rates is that we do in fact face prosparity and some inflation occurs, in which case, the fed-determined-low-rate loans will be easier to pay off at the high inflated price levels.

Comments:
I think you are being very short-sighted with your comments. Look at the international financial markets and you see the dollar being dumped in favor of the Euro. The Feds can only lower the rate so much till the dollar loses all of it value.
 
Post a Comment

Links to this post:

Create a Link



<< Home

This page is powered by Blogger. Isn't yours?