Economics 101, or See if You Can Spot How the Federal Government Helped to Screw the American Economy: "The Fed Funds rate was only 3 percent. Since that was equal to the rate of inflation, banks were effectively BORROWING FOR NOTHING. As with any commodity, money is used wisely only when it is rationed. The plenitude of credit encouraged people to borrow. Just as importantly, cheap money fostered...a sense that one could borrow any amount because the sum, if need be, could always be repaid with fresh borrowings." - from "The End of Wall Street" by Roger Lowenstein
Posted on: Mon, 15 Jul 2013 16:23:53 +0000
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