I hate to say this.
But these hearings on capitol hill are not helping. Ben Bernanke opening his mouth does not help. Keep your mouth shut and give us an emergency rate cut.
What good is a rate cut when so few lenders are in a position to lend money?
A rate cut is the wrong direction!
The ones in need of a loan are of such high risk they should have to pay at least 20% if they get one at all!
I think that Ben Bernanke wants the markets to tank. I don't know why - but every move he has made recently just makes the matters worse.
Also, be careful about your desire for a rate cut. It will hurt us instead of helping us. The only reason for a rate cut should be when there is too little money in the economy. We have too much money in our economy right now. Bernanke is confusing the "amount of money" with the "circulation of money". These are two different problems - and a substantial rate cut will hit us upside the head with inflation.
A rate cut does nothing when the person who wants to borrow can’t pay back the loan.
What you are witnessing s a deflationary spiral. At some point it will stop, but I’d say there’s a long way yet to go. Study up on the Law of Mean Reversion.
http://www.generationaldynamics.com/cgi-bin/D.PL?d=ww2010.weblog
“But these hearings on capitol hill are not helping. Ben Bernanke opening his mouth does not help.”
Watching Bernanke and Paulson is a lot like watching Ren and Stimpy.