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To: Steelfish

You have it backwards, it isn’t consumer spending that matters in a healthy economy, it is investment.


31 posted on 08/12/2011 11:10:38 PM PDT by fortheDeclaration (When the wicked beareth rule, the people mourn (Pr.29:2))
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To: fortheDeclaration

Why would firms invest in building homes etc, if prospective buyers cannot get a loan? or in boat construction or light aircraft or autos........? By holding rates at a guaranteed low both firms and consumers have access to cash and this is what makes the private economy grow. Again, all this is subject to external forces that may impact the international economy. Bernanke got this one right. It’s the last ace in the deck of cards.


36 posted on 08/12/2011 11:19:56 PM PDT by Steelfish (ui)
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