lol I hear you, but they would have to drop interest rates into the negatives to prop it up this time and they simply can't prop it up much longer. They dropped it 5.5% after the recession and that would bring them far into negative territory now, not to mention it would take far more of a drop in interest rates this time around. I don't think they'll be able to do it.
You are viewing a single comment's thread from:
I agree but as I stated, my faith in them remains strong. I thought the Fed was cooked 5 years ago and somehow they managed to keep churning along. When the rest of the world went negative, they held to zero. Of course, Yellen questioned whether the Fed has the legal right to go negative. We know she is out the door soon. I bet the new Fed chair wont have the same question.
Another interesting aspect of what they are doing, they are presently raising rates. I dont see that stopping any time soon (until it is too late as always). There is still a lot of stimulus provided world wide which, since the US makes up just shy of 25% of the world economy, ends up in that economy.
I would bet on Janet's printing press being turned on in a big way before they go negative interest rates. Japan hasnt fared well with it and the Fed knows that. It will be a last resort in my opinion.