tahoe58
Well-Known Member
a commentary provided to me towards the end of the day yesterday...
In the aftermath of the Fed's decision to only drop short-term rates by a quarter percent, they announced Wednesday that they are going to increase the money supply by 3 percent over the next week. It will be the largest one-time admitted injection since 9/11/01. By loaning it, there will be a velocity of money growth logarithmic impact, meaning M-3 will rise much more than just 3 percent. Hyperinflation to the rescue.
The banks are going to get this money, at below market interest rates, so they can lend it and make a bunch of money. Why? It means the Fed is worried about bank earnings, about bank capital levels, and is going to give them a lay-up to earn billions of losses back. Again, this does nothing for mom and pop, who are getting killed by a dead real estate market, job losses, fixed incomes, a doubling of the cost of living, and debt up to their ears. This will accomplish nothing other than to increase inflation, increase the cost of living. More for Wall Street and nothing for Main Street. This recession requires direct help to Main Street. Another "F" for the Master Planners. Good luck with that.
In the aftermath of the Fed's decision to only drop short-term rates by a quarter percent, they announced Wednesday that they are going to increase the money supply by 3 percent over the next week. It will be the largest one-time admitted injection since 9/11/01. By loaning it, there will be a velocity of money growth logarithmic impact, meaning M-3 will rise much more than just 3 percent. Hyperinflation to the rescue.
The banks are going to get this money, at below market interest rates, so they can lend it and make a bunch of money. Why? It means the Fed is worried about bank earnings, about bank capital levels, and is going to give them a lay-up to earn billions of losses back. Again, this does nothing for mom and pop, who are getting killed by a dead real estate market, job losses, fixed incomes, a doubling of the cost of living, and debt up to their ears. This will accomplish nothing other than to increase inflation, increase the cost of living. More for Wall Street and nothing for Main Street. This recession requires direct help to Main Street. Another "F" for the Master Planners. Good luck with that.
