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Former fed guy says go negative on interest rates
https://www.bloomberg.com/opinion/a...acebook-view&sref=fIqbqIlF&mod=article_inline
https://www.bloomberg.com/opinion/a...acebook-view&sref=fIqbqIlF&mod=article_inline
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I guess I don’t quite understand the principles here. We are not looking at a pure economic meltdown. This one has a non economic catalyst in the covid virus. I can tie together ways a negative rate could help the government with more handouts. Not sure you can create demand,were it has been erased by fear, with lower rates.
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I got this in my inbox, it was a pretty interesting read not agreeing with it just dropping it in for conversation. There’s actually merit but there’s a huge risk as well.
The Fed won’t say anything on this unless they actually decide to address it, as yet this hasn’t been on the table. Unless someone is looking to lose their seat at the table you won’t get anything or at most it’ll be, anonymous sources, say.
What I find even more interesting is that the PPP is in fact a negative interest loan (for the borrower) so the SBA is already doing this.
The Fed won’t say anything on this unless they actually decide to address it, as yet this hasn’t been on the table. Unless someone is looking to lose their seat at the table you won’t get anything or at most it’ll be, anonymous sources, say.
What I find even more interesting is that the PPP is in fact a negative interest loan (for the borrower) so the SBA is already doing this.
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