Have you ever heard the saying, "if half a spoonful will kill you, then why not a whole cup"?

It means that if the Fed were to buy every asset that the banks have, with constantly increasing prices until the banks had trillions additional of profits, that it might be good for the economy as the banks used all this high powered money to make loans to the non- banks.

Vince Fulco writes: 

Reminds one of the Dr. Doolittle story re: the push-me-pull-you but this one may have a very unhappy ending. Monetary pulls in one direction, Fiscal yanking in the other…Everyone can't be right. 

David Hillman writes: 

One might have much more faith that the bankers would instead find creative ways to the additional trillions off the table in the form of bonuses instead of lending to us business chumps. of course, that is good for the economy as they would use it to create jobs by building personal castles and buying stuff from Bulgari…..





Speak your mind

1 Comment so far

  1. Andre Wallin on January 30, 2013 11:46 pm

    The problem people here have is that they insist that market fundamentalism is the best course of action. Incentives are not the key ingredient. Have you been to a small restaurant with many Jesus paintings around? The people that work there have a shared philosophy of what life is about. There’s chemistry between everyone working there and the product is THE BEST. A zen approach is the optimal for a group where each individual is in tune with a kind of ego less destiny. You can see this very clearly in balancing postures in a yoga class. Those that can balance have more mental clarity.


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