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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: TigerPaw who wrote (287356)	8/15/2002 8:58:11 PM
From: Lazarus_Long	Read Replies (1) \| Respond to of 769667

That interest policies are limited? Yeah, I know that. So does the Fed. It been called "pushing on a string". It works great when the string is taut- -the economy is really revving and demand is high. Then raising rates can KO the economy better than Mohammed Ali. Oh. Do you know that's what happened starting back in 1997? And that's what KOed the economy? Not GWB? Or does that blow your whole rant? But richie said: Interest rates are low because NO ONE WANTS TO INVEST How about: Interest rates are low because the Fed has lowered interest rates- -and increased money supply to make sure they stay down? They don't actually make banks willing to loan to companies who are losing money at great rates. What makes you think the banks aren't willing to lend? They can get cheap money now if they need it. The Fed will see to that. How about: in the face of crappy demand, companies aren't willing to pile on debt they have to pay back out of non-existent revenues? Now you can argue this is precisely the situation the Fed intended to create. They thought they were fighting inflation, remember? Back on Slick Willie's watch? (Seeing that you are so willing to blame things on the current occupant of the WH, I think that's fair.) Now you can argue they were seriously deluded, but they got what they wanted. I suspect they got more than they wanted, though. They stood on the brakes too long. Back on Slick's watch. They don't give loans to consumers whoes credit cards are maxed. Oh. Well, part of the Fed wanted to do was dampen consumer demand. They did that. On SLick's watch. Again, probalby better than they wanted. But tell me, why should I pay off your credit card? Or give you a loan to do so? Why don't you just exercise good sense and not run up debts you can't pay? I didn't.