[Toddsterpatriot]

But now that is led by morons like Greenspan or myopic eggheads like Bernanke, we've been heading to hell, one boom and bust at a time.

What would you have done differently than Bernanke? Be specific.

[palmer]

Let interest rates rise to a market level. I can't say specifically what that market rate would be, but I would guess at least 10% for long term rates based on risk factors and potential inflation. Rates would drop once it is clear inflation is not a threat. I don't think short term and variable rates would rise much based on risk and the current lack of inflation.

There are clearly better ways to deal with the pain of deleveraging than creating more leverage. The main problem is that the borrowed money is going to malinvestment (e.g. real estate, speculation) and not business (which can't get loans at ANY interest rate). The pain will have to be dealt with through tax policy not monetary policy. For starters, eliminating long term capital gains taxes would gree up a lot of money. Corporate taxes would need to be decreased too to free up money.