One Trick Pony
Alan Fucking Greenspan and company announced an interest rate cut to 1%. Is this all he can do? Back in the 90s boom, he was cutting interest rates. Now that the economy is supposedly going to hell in a hand basket (gratuitous sarcasm), he’s doing the same thing.
Seems to me lowering rates in times of plenty encourages people to purchase things while discouraging interest rate based investments (bonds and such). This would serve to promote investing in the stock market, I would think but I’m no economist.
It is widely believed Greenspan wasn’t a fan of the stock market boom in the 90s (and rightly so since it tanked hard and fast) because it was overvalued. But why did he lower rates? To encourage spending or discourage other low risk, low return investments. It seems the actions don’t fit the motives. And he’s doing the same thing now when the economy is not as good. And by not good, I mean the stock market is no longer overvalued.
Kind of curious to me.
June 25th, 2003 at 5:05 pm
Lower it a few more times and we’ll be conforming with the Quran, which forbids charging interest. 😉
June 25th, 2003 at 5:10 pm
Lower it more and they’ll be paying you to borrow their money. I like that idea.
June 27th, 2003 at 11:52 am
Good point! I like it too.