Tuesday, August 16, 2011

Zero Interest Rates Until 2013?


Hmm, now that the Fed has made the unusual announcement that they were going to keep the interest rates at near zero until mid 2013, that might be enough to buy the banks some time to get rid of their US debt.  That may mean there may not be as severe a crash as last time.  Plus, now that I think about it, since banks have been receiving bail out money and still are not lending and even calling back loans.....  that probably means they are in much better shape and not as over leveraged as they were in 2008.    If that's the case, then this recent downturn may not be as bad as the 2008 crash because the banks aren't as desperate to raise cash to stay in business.  I wonder....   I really hope there is a another "mini" crash though so I can buy more stuff.

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