UnThreaded | Threaded | Whole Thread (7) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: mjcalab Two stars, 250 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35357  
Subject: Re: Post's Samuelson on low rates Date: 3/3/2005 2:12 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 6
Why clueless?

Could it be that Greenie is not clueless but putting politics first? If interest rates are looked at as the cost to barrow money then they are determined by supply and demand. The Fed and banks create the supply. The private and public sectors create the demand. Interest rates are low because the supply of money has been growing at a much faster rate then demand for money. The Fed's own data demonstrates this: pages 13 and 14 at http://research.stlouisfed.org/publications/mt/20050301/mt_20050302.pdf

Guess Greenie doesn't read for many people have described how unprecedented public and private spending has created excessive demand for cheap Asian goods. The Asians have not in turn used that money to purchase what we produce, which would in kind have stimulate our economy, but instead purchased our bonds which caused and increase in the price of those bonds which lowers the interest rate. It is very sad to see a man with his power and responsibility fake ignorance.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (7) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

Post of the Day:
Berkshire Hathaway

Starting a Small Business
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement