It’s not that complicated. Low interest rates tend to keep monetary inflation down, but cheap debt encourages speculative bubbles, especially if you bail out those whose wager got caught in the bubble’s collapse. Speculation is just a fancy name for gambling. When bankers rig the game, everyone else loses. We need the pain of watching “too big to fail” fall, to drive home the message that it is, in fact gambling. I kind of like beans & rice.
annamargaret1866 almost 13 years ago
Pi divided by Infinity? Hm.
ChukLitl Premium Member almost 13 years ago
It’s not that complicated. Low interest rates tend to keep monetary inflation down, but cheap debt encourages speculative bubbles, especially if you bail out those whose wager got caught in the bubble’s collapse. Speculation is just a fancy name for gambling. When bankers rig the game, everyone else loses. We need the pain of watching “too big to fail” fall, to drive home the message that it is, in fact gambling. I kind of like beans & rice.
CorosiveFrog Premium Member almost 13 years ago
This sounds like my condescending but alcoholic sister talking to me about self-respect and serenity.
vwdualnomand almost 13 years ago
the only people understanding this are econ grad students.
pirate227 almost 13 years ago
End the FED!