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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?


To: J_Locke who wrote (22736)2/3/2005 5:43:46 AM
From: Elroy Jetson  Respond to of 116555
 
Your suggestion is right on the mark if the Fed wanted to raise interest rates. I don't think they do. I think they just want to look like they're raising rates.

Instead of raising the fed funds rate the fed should raise the bank reserve rates back to the 1990 levels - 12% for overnight and 3% for time deposits. The rates are currently 10 and 0 (which is actually higher than they are in "sound money" Europe.)