An MMT site bringing you dogma-free economics without the pleadings of self interest
...one thing is looking more certain day by day: The Fed should have been hitting their own panic button six weeks ago when it became clear their forecasts were well off the mark.
He wants more "Fed easing". What do you think he means by this? Can the Fed encourage more private debt in the current economic climate? What is wrong with conventional macroeconomic discourse when meaningless terms such as "Fed easing" are tossed about as the obvious solution to our economic woes?
The only sense I can make of it is to lower rates further along the yield curve. The idea is to encourage spending on investment, and housing falls into the category of investment. Housing is creating a huge drag.Otherwise?
But surely he knows that the effect of any further lowering of mortgage interest rates will be trivial. Just today, 30-year mortgage rates fell to a new record low of 3.49 percent, fergodsakes...
These guys seem to think when you release the drag on the fishing reel it pushes the fish back into the water.
Post a Comment