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To: Box-By-The-Riviera™ who wrote (85217)3/25/2001 6:07:27 PM
From: UnBelievable  Read Replies (1) | Respond to of 436258
 
It Sounds Like It Might Not Be A Real Good Incentive For Saving

I wonder what happens when people have no savings, and have no money left because they spent it to avoid the ravages of inflation, and can't borrow any more because they have already borrowed as much as anyone who is at all concerned about being repaid, even if its only the principal, is willing to lend them?

And if such a situation can exist, how do we know that we are not very close?

And if such a situation can exist what can The Federal Reserve, or the government do that is going to change anything one wit.



To: Box-By-The-Riviera™ who wrote (85217)3/25/2001 9:10:11 PM
From: NOW  Read Replies (1) | Respond to of 436258
 
Here is what he says:"Of course the best thing that Japan could do today would be to raise rates
to world levels and compete for funds - not very Keynesian. This would drive money out of savings and into spending. "
He is not talking prices but rates: so I repeat my question...


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