An interesting development in the USA concerning public dissatisfactio
#6
Quote:Well lowering of interest rates is technically also a bailout of companies...and it happens all the time.
Um, I don't see it that way. The Federal Reserve Bank, is a quasi-public entity with many private sector components. The President gets to choose the chairman of the board of governors of the Federal Reserve Banks. They are a lender of last resort, and so set a "discount rate" by which the Feds lend to banks, and banks lend money to each other, which determines the "Prime Rate" (which is about 3% above the federal funds rate). They also control the fluidity of the money supply. My view of the Fed is that they try to exert the tools at their disposal to keep the system stable, and predictable, meaning inflation is low, the value of a dollar remains consistent week by week, and interest rates on loans remain as low as possible. So, in that Capital is relatively easy to get and has a low cost, then yes, the Fed does help all capitalists from Morgan Stanley, to a person trying to start a new business or buy a car or a house.
”There are more things in heaven and earth, Horatio, Than are dreamt of in your philosophy." - Hamlet (1.5.167-8), Hamlet to Horatio.

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An interesting development in the USA concerning public dissatisfactio - by kandrathe - 10-10-2008, 06:04 PM

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