You Can’t Taper a Ponzi Scheme: Time to Reboot

At one time, manipulating interest rates was the Fed’s stock in trade for managing the money supply; but that tool too has lost its cutting edge. Rates are now at zero, as low as they can go – unless they go negative, meaning the bank charges the depositor interest rather than the reverse. That desperate idea is actually being discussed. Meanwhile, rates are unlikely to be raised any time soon. On July 23rd, Bloomberg reported that the Fed could keep rates at zero through 2015.
The post You Can’t Taper a Ponzi Scheme: Time to Reboot appeared first on BSNEWS.

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