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A Whole Lotta Nothing
“But Maybe Nothing Is
Better Than Something”
As expected, the Federal Reserve kept its key interest rate near 0% and claimed it stands ready to take additional steps such as purchasing longer-term Treasury bonds if such a move will help get credit flowing once again.
It seems their logic is that lowering the yield on government bonds will spur other lenders to lower their own yields. Hmmm, isn’t the mantra of cheaper money everywhere sounding familiar? Why, of course it is.
Cheaper money is exactly what helped inspire the crisis in the first place.
With reasoning like this, we’re glad they decided to do…
29Jan2009 | Oxbury Research | 0 comments | Continued
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