To: Moonman62
Well therein lies the problem. The Bank of Japan already has the rate at .50%. Lowering it 0.00% is all they can do and it may not correct the situation. After they take it to 0.00% then what?
8 posted on
02/10/2008 6:07:57 AM PST by
Pamlico
(Fred's the real deal)
To: Pamlico
After 0% they would have to go to -0.5% I guess. This would mean if I lend you $100, you would only have to pay me $95 back.
This is great for liquidity but the margin is pretty thin. Maybe they can make up for it on volume?
9 posted on
02/10/2008 6:33:38 AM PST by
Sender
(Approach love and cooking with reckless abandon.)
To: Pamlico
There are ways to expand the money supply at 0%, so they should go ahead and lower them.
10 posted on
02/10/2008 8:13:11 AM PST by
Moonman62
(The issue of whether cheap labor makes America great should have been settled by the Civil War.)
To: Pamlico
After they take it to 0.00% then what? subsidies.
13 posted on
02/10/2008 11:02:45 AM PST by
the invisib1e hand
(anyone can be a soldier in peacetime.)
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