Seeking Alpha

whidbey » Comments » Single Comment |

  • Bringing Fed Funds Rate to Zero May Not Be the Best Idea [View article]
    Reminds one of the Japanese chase doesn't it? Will, no one ever believed that the FFRate was anything but a tell tail. The effective rate will tend to attract the target rate downward.

    The implications of this are something else altogether. The Fed has ceased to have much effect on money and credit (if it ever had much), and we are now in the clutch of the consumption/demand path . It has already fallen 4-6% which means that aggregate demand in the US is down 2-4% and will decline further as consumers spend less and less and the economy declines.

    The FFRate will end a zero and quant easing will start, followed by the Ice Age. This is the Japanese model and it is working here just as it has there.
    Dec 09 13:41 pm |Rating: 0 0
All Comments by whidbey »
Comments by Ticker
AA, AAPL, ABB, ABK, ABT, ABX, ACAS, ACH, ACWI, ACWX, ADBE, ADE, ADM, ADP, ADRA, AEE, AEM, AEO, AET, AFL, AGG, AGN, AGU, AHBIF.PK, AHL, AIA, AIG, AIG.PA, AIRN, AIV, AKP, AKR, AKS, ALIAF.PK, ALSK, ALTH, ALTI, ALTR, ALU, ALVR, ALX, AMAT, AMB, AMD, AMGN, AMLN, AMR, AMTD, AMZN, ANF,
whidbey is a
Top 50 Commentor
1674 comments
Rating: 1935 (2661 - 726 )