Historically, the Fed has lowered interest rates to spur spending and investment.
Well, the Fed has already cut interest rates to banks down to essentially zero. The media are screaming about potential inflation due to the trillion dollars the Fed put into the system, but that trillion has simply replaced the trillion written down by the banks, which have another trillion and a half in write-downs to go.
What's more, the banks are hoarding cash to rebuild broken balance sheets rather than lending it to people. This will continue in 2010 and beyond.
In the meantime, here are seven ways you can hedge against inflation.
Next: Reason #10: Take a good look around
Closing Bell: When We All Love the PIIGS (NBG, SQNM, PG, ERTS, KO)
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Chasing Value: Hasbro Earnings Makes My Point
Reader Comments (Page 1 of 1)
10-24-2009 @ 1:00PM
benedict arnold said...
This is hilarious, now Uncle Sam is on welfare. I'm glad, You can't keep giving away other ppl's money. I can't wait till the day the fed government goes completely broke. Then we can begin the healing. Stick to the constitution and everything will be fine. The federal government has 17 enumerated powers, nothing more. I realize ppl are hurting, but bringing everyone else pain and suffering is not the answer. Go ahead and flame me, this country was founded on individual rights which we are losing more of on a daily basis. If the dims think they're gonna rule this country by buying all they're votes they got another thing coming. Go ahead and raise taxes and I'll bet your revenues will shrink even more.
10-24-2009 @ 10:59PM
william wallace said...
I agree, maybe after they are finished rapeing us, and sneak out like the cowards they are we can heal, long live the Republic