ST Alpha - "I really don't think it would matter at this moment. We're just looking at a massive shock to the economy no matter how you look at it. 0% interest " (Reading a Post)

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In response to "Would have been nice if they were at, say, 3.5 and could be dropped just to 2. -- nm" by Reagen

I really don't think it would matter at this moment. We're just looking at a massive shock to the economy no matter how you look at it. 0% interest

Posted by pmb (aka pmb) Mar 16 '20, 07:06

rates are actually needed. Business bailouts are going to be necessary. Massive payments going out to individuals is going to be necessary. We are going to have to blow up the budget. The interest rate going to 0 is less an issue I think than the massive debt built up with stupid tax cuts. That's the chamber that they already emptied.

Responses:

Well no, they can unempty the tax cut chamber by just, you know, raising taxes--borrowing rates are relative. A change from 1.5 to .5 is not the same - JackDawson Mar 16, 07:10 4
- They can't raise taxes now. Ultimately yes, but not now. They can also raise interest rates eventually, but now it makes sense. Pretty much the - pmb Mar 16, 07:20 3
  - I agree it makes 100% to lower rates, what I'm saying is that because the rates were already artificially low to begin with, that quiver is much less - JackDawson Mar 16, 07:23 2
    - Yes, I agree. - pmb Mar 16, 07:25 1
      - Right, and this is really a carry over from the financial crisis/Bush pressure on the Fed - JackDawson Mar 16, 07:27

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I really don't think it would matter at this moment. We're just looking at a massive shock to the economy no matter how you look at it. 0% interest

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