Ammo For Sale

« « The Grind | Home | But they don’t have any » »

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.

3 Responses to “One Trick Pony”

  1. Kathy K Says:

    Lower it a few more times and we’ll be conforming with the Quran, which forbids charging interest. 😉

  2. SayUncle Says:

    Lower it more and they’ll be paying you to borrow their money. I like that idea.

  3. Kathy K Says:

    Good point! I like it too.

Remember, I do this to entertain me, not you.

Uncle Pays the Bills

Find Local
Gun Shops & Shooting Ranges


bisonAd

Categories

Archives