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Market Watch Excess debt and too much money
Market Watch Excess debt and too much money 
Market Watch
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Historical Chart of RSX We’ve been hearing it for years: “You’ve got to be in emerging markets.” Although they’ve had an incredible run, we’ve got to remember there’s a reason we still call them emerging markets. |
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| Excess debt and too much money |
| Wednesday, 26 September 2007 | ||||||||
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The Fed sycophants are salivating all over themselves with recent interest rate cuts. It’s never enough, though, and one cut begs another. Let the good times roll. Maybe, on the other hand, it would be better to query exactly why interest rates are being lowered. When excess debt and too much money is sloshing around in the system, that’s the time to be raising interest rates. Lowering rates at such a time amounts to throwing expensive gasoline on the fire. Watch the result to the U.S. dollar. In the Federal Reserve’s ongoing boom and bust cycles, we’re now once again looking at really ugly times. Interest rates are being cut exactly at a time when they should have been raised. Wringing out recent excesses was the order of the day.
These cuts are designed out of sheer desperation. Banks and debtors are in historic trouble. It’s easy money “rescue time” once again. Al was easy, but Madame Ben’s a big spender. Source : Investors Daily Edge
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