FED´s Bullard:U.S. is closer than ever to a threat of Japan-like deflation
- Thread starter ASusilovic
- Start date
For QE II to work you have to directly hand a check to anyone making 100K or less annual income.
They will spend it.
Giving a check to anyone making more is not going to be as effective, they will hoard it or use it to invest.
You want to target the big spenders which are usually people with no net assets.
They will spend it.
Giving a check to anyone making more is not going to be as effective, they will hoard it or use it to invest.
You want to target the big spenders which are usually people with no net assets.
One thing we have to stop doing is giving money to banks at a cost to tax payers.
If we are going to give money away it should go to the people directly not that banks.
The banks lent money on overpriced homes and commerical real estate. They were stupid. They need to collapse. They have proven they can not be trusted with capital.
Let a new group of banks and bankers rise from the ashes.
If we are going to give money away it should go to the people directly not that banks.
The banks lent money on overpriced homes and commerical real estate. They were stupid. They need to collapse. They have proven they can not be trusted with capital.
Let a new group of banks and bankers rise from the ashes.
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A central bank is a lender of last resort. In a deflation, one needs a borrower of last resort as well, and a lender of last resort. Who would be the borrower of last resort: The Fed or the government?