Thread: Any thoughts about "Who needs money?",
Jan 22 issue of the Economist--page 78.
If Fed 1/4 point interest rate raises are meaningless
and you can argue that the economy is mostly run with
e-money (we all have e-money, a balance of mortgage loans,
stock gains, credit card debt*) then the Fed really has
no way to slow down the economy.
I'd suggest that if Greenspan would like to slow down
the economy, or the stock market, he should convince
Congress to encourage saving over speculation (investing).
I for instance have little incentive to keep my greenbacks
at the credit union where they earn 5%, and for which I'm taxed.
Can anybody help me sort this out. I raised cash back in
January, fearing a 1/2 point rise--and then I decided just
to throw it all back into stocks. So far it that choice
has paid off, but I'm always grappling with the choice.
(*no, I do not really have CC debt, but most folks do...) |
