inthemoney

Wall Street Breakfast: Must-Know News

> ".....the research suggests the Fed should use unconventional policies to create the equivalent of a minus 5 percent interest rate."

Basically, it means we have to pay people 5% to take a loan? So, is it really a credit crisis ( i.e. not enugh credit) or borrower crisis (not enough qualified / able borrowers)? If people are too much in debt, they don't need anymore credit/ free money. And the quantative easing is the wrong prescription. The cure is to somehow decrease debt levels. The only poltically expedient solution seems to be inflation. That is what the quantative easing is about, creating inflation, not easing the credit.