Imagine my joy when I read the headline, Zero Rate World May Lie Ahead.
The age of free money may be at hand.
As major central banks slash interest rates with unexpected speed, benchmark borrowing costs are now below core inflation for the first time since the early 1980s, and policy makers are signaling they will go deeper.
But then it dawned on me, that's not for credit cards now is it!
Where is working America's free money in all of this?
So between banks the trend is going to zero interest, but where is the incentive for them to lend in this case?
Off Topic....sorta....
Amazingly there are still dim bulbs out there advocating the 'conservative' Reich Wing economic agenda. You know....
'trickle down'...hey, is that stuff yellow...
'A rising tide lifts all boats'....ya gotta be able to afford a boat to take advantage of this myth...Ahnuld's 'Yacht Tax Exemption' will help if you live in CA.
And so on.
Look, the warped minds, bad math and self-interest which created the fabulous progress we've made economically for the last fifty years are still with us.
Be prepared to shoot the wounded when you visit other economics blogs.
There are still lots of zombies roaming the 'net. I recommend 'silver bullets' like Greenspan's admission that he doesn't know shit and quoting St. Ronnie about how 'government is the problem...'
Good hunting.
'When you see a rattlesnake poised to strike, you do not wait until he has struck to crush him.'
trickle upon
economics, or supply-side economics does have it's place in a few instances but as a cure-all, obviously doesn't work.
I don't think this is conservatives. Conservatives have had their title bastardized just as much as liberals have for multinational corporate agenda purposes.
Even the term middle class and working families is being corrupted to really mean illegal immigrants. I've seen that as a tread recently.
Government can be the problem when government is corrupt, full of cronyism and inefficient.
Think about the Populist conservative. Now think about what has really been done with Taxpayer money, especially in the Bush administration. Can one blame them for thinking they don't want to hand over their hard earned money to go to no bid contractors or have billions disappear in Iraq and $750 billion go to feed executive bonuses and lord knows where?
If we had a concept of public service that was a high moral value again in the United States and they saw the United States actually getting something for their money, the attitude would probably change.
No interest applies to our savings,
but not our loans. Instead, we get interest rates on loans that make mob loan sharks look like Cleo, the sweet little goldfish in Pinochio.
Reagan rounded up the crooks. Clinton opened the door to let them in. Bush and crew destroyed the place and stole everything in site.
sums it all up
I agree, the loan sharking going on under the guise of credit cards....what a surprise people default. Who won't get completely pissed off with a 30% interest rate.