The Fed has continually, and I believe mistakenly, focused on interest rates rather than reserves. The Fed just announced a July increase in bank reserves at the Fed. That should put upward pressure on stock prices and lift consumer spending. That is where I think the programs should be focused on increasing reserves. Lending helps the economy grow but not reckless lending.
Tuesday, August 18, 2009
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment