tag:blogger.com,1999:blog-8515247115132134144.post1703404325277877338..comments2024-02-17T12:34:01.400-08:00Comments on Illusion of Prosperity: Escape Velocity Failure (Musical Tribute)Stagflationary Markhttp://www.blogger.com/profile/04568993350246477976noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-8515247115132134144.post-21093192529076774192014-09-23T08:09:43.474-07:002014-09-23T08:09:43.474-07:00Sustainable Gains,
Surely our lean, mean, resilie...Sustainable Gains,<br /><br />Surely our lean, mean, resilient, and strong economy could handle a tiny after dinner mint sized rate hike. It's only wafer thin, lol. Sigh. :(Stagflationary Markhttps://www.blogger.com/profile/04568993350246477976noreply@blogger.comtag:blogger.com,1999:blog-8515247115132134144.post-91641932900467740022014-09-22T20:46:16.502-07:002014-09-22T20:46:16.502-07:00There is no escape velocity.
Hussman's analys...There is no escape velocity.<br /><br />Hussman's analysis shows that to simply get interest rates back up to about 0.5% on the short end, the Fed would have to "reverse QE" (that is, actually tighten) by something like 2 trillion dollars. Even if they wanted to do that, it would take years.<br /><br />The alternative they floated as a trial balloon is to boost interest on excess reserves. But that would literally amount to giving banks handouts - welfare payments - for nothing. I haven't heard more about that but do not know if it's because (a) the idea died a suitable death or (b) they know it's politically toxic but they want to do it anyway, so they're keeping it quiet...Sustainable Gainshttp://i4sg.comnoreply@blogger.com