Asbytec

The Race to Zero Interest Rates

Thank you for your comment, puddytat (LOL...nice nic, BTW. Gave me a chuckle...)

"DO NOT push down rates in the hope this will stimulate people to get into MORE DEBT."

Unfortunately, that's the problem. Debt is money and money is debt. I suspect you mean excessive money/debt. I'd agree. Our debt to GDP is scary, and probably means collapse. It's impossible to actually repay the immense consumer debt. The system must default.

In this case, reducing interest rates just prolongs the inevitable. A soft landing is the best possible outcome, in my view. But, the markets will have to correct, either now in Bush's waning months or on Obama's watch. At the least, I hope Obama works to maintain what little wealth we still have.

By the way, for those who argue with Kathy on her dollar outlook, one should realize she actually crunches the numbers. Many of the rest of us form opinions based on our economic knowledge and from market performers like Mr. Buffet and Mr. Rogers. Nothing wrong with that, surely. Just, one should listen to the data, too, as Kathy does.

My two cents or one euro's worth, whichever...