Why Fed solve problem of people spending too much money by giving them more money to spend?
Why stimulus packages? Why reduce interest rates? People are sitting on big debt and many had already spent all their future money. Are we repeating the same assumption --house prices can go up forever and now consumer spending can too?
Public Comments
- The fed is trying to collapse the dollar and turn Americans into serfs just like the rest of the world.
- there is nothing wrong with debt. it is beneficial. investment leads to growth in the future. and debt allows people to smooth consumption over their life cycle. no. consumer spending can go up further. so can investment. reducing rates lowers the amount people need to pay for interest on debt. they can spend more elsewhere. people spending too much was never the problem. the problem is people now spending too little. they've lost wealth, they're unconfident about the future and their losing jobs. the fed is attempting to encourage spending.
- the fed's instruments are blunt and options are limited. I do sympathize with the fed sometimes.....i am not sucking up to anyone, seriously...
- The Fed is not and has never been a govt institution. It is a privately owned banking system that is in the hands of a few ruthless banking cartel families. THEY are major players in the whole NWO conspiracy, that some like to erroneously call theories. THEY want nothing short of total dominion over every man woman and child on this planet. THEY are, and have been, destroying our economy by design. THEY engineered the Great Depression and THEY are engineering the upcoming Greater Depression so that THEY can consolidate all of the world's wealth and property into THEIR own hands. If you would research such banking families such as the Rothschild, Rockefeller, Morgans, and even the family history of George W. Bush, you will see this centuries old scheme for what is truly is. It all depends on whether you want to take the red pill or the blue pill.. The rabbit hole goes deeper than most people can imagine in their wildest dreams. RESISTANCE IS FERTILE...IT ALLOWS REVOLUTION TO GROW!~THOM DANIELS
- Yes, you can't solve the problem of big government by making an even bigger government.
- First, stimulus packages come from the Treasury department and not the Federal Reserve. Why the reduction in interest rates, it's to encourage investment and loaning of money by the banks. Cheaper rates for the banks mean cheaper rates for everyone else. Are repeating the same assumption; I don't think anybody made that assumption. Housing prices had to come down sometime and consumer spending is what it is and depends on consumer confidence. A proactive government will help aid in recovery and confidence.
Powered by Yahoo! Answers