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


To: DuckTapeSunroof who wrote (671682)2/8/2005 8:24:58 PM
From: DavesM  Read Replies (1) | Respond to of 769670
 
Buddy,

During financial crashes, banks don't like to make speculative loans, and investors don't like to make speculative investments. The Federal Reserve easing interest rates do not automatically lead to mild, shallow recessions. Interest rates approached zero during the Great Depression here in the United States. After Japan's financial crash, a few years ago, Japanese interest rates dropped to very, very low rates - its just that no average person (or company) could get a business loan.

re:"The Fed's efforts were orders of magnitude greater then the fiscal changes, in their immediate impact."