Monday, November 18, 2013

Still Stuck in ZIRP?

Click to enlarge.

Still stuck in ZIRP.

Big shocker. Where does the time go?

The good news is that we're making good progress on getting back to the trend line and that the Japanese have been studying this monetary problem for more than two decades (ever since their epic housing bust).

The bad news is that the trend line continues to come down to meet us, the Japanese are still stuck, and we are too more than likely. Even if we were to miraculously temporarily extract ourselves, then we'd probably just get stuck even more severely in the aftermath of the next recession.

Many talk about how Janet Yellen will offer easy money in an attempt to solve our long-term structural problems. They aren't factoring in the difficulty of the job though. We need someone who can wake up with a positive attitude each and every morning and exclaim with the utmost confidence, "Let's keep interest rates at zero and see what happens next!"

Nothing but good things from here! I assure you!

Source Data:
St. Louis Fed: Effective Federal Funds Rate

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