scobbydube

TARP Is Just the Beginning - Barron's

Just what we need lower interest rates.. Isn't that what Greenspan did and look where we are today.. Lower interest rates will not solve this crisis right now.. Banks won't lend each other because they are scared who is next to collapse. Hey if a bank can't make money with overnight money at 2.0%, money at 1.0% isn't going to help.. Banks need to rebuild capital and that takes time and also honesty on what is actually on their balance sheet.. Lowering rates will hurt Main Street savers, you know the people who actually are doing what everyone else should have been doing.. What do they get on their savings now - almost zilch - now that is a great reward.. Whoops that is right, the government would rather have you spend spend spend..

But if I was a betting man, I would say that the Fed will probably lower interest rates as this article mentions - you know why - because they haven't learned a DAMN thing in this crisis..