atman
Madmaxista
El mismísimo Steve Forbes se moja:
Top Central Bankers Gather in Jackson Hole, Wyo.: Why This Is Bad News - Forbes
Economies just about everywhere are performing in a sub-par fashion. China’s bank-lending plummeted in July, a sign things are cooling off as the mini government stimulus program winds down. Japan is in recession. Germany is stalling, and Italy and much of Europe are contracting or about to do so. The U.S. is doing better but is still moving at a fraction of its potential pace; incomes for most people remain stagnant, this in the sixth year of an alleged recovery.
Many worry the low interest rates they’re employing to encourage borrowing and spur growth could spark a new financial bubble. In places such as London and Vancouver, real-estate prices have soared, and Fed[eral Reserve] officials are uncomfortably watching a boom in U.S. leveraged-loan issuance and junk bonds.
When a central bank does something right, it is to undo previous errors.
Manipulating interest rates is like controlling prices—it doesn’t work. Interest rates are the price we pay to borrow money. Suppressing them, as the Fed and other similar institutions are doing, has damaged credit markets. In the U.S. it has reduced the availability of credit to new and small businesses, just as rent controls reduce the availability of affordable housing. Markets should set prices for products and services, including loans.
Monetary policy can’t cure an economy’s structural flaws. Excessive taxation, which is the reality of all too many countries today, will hinder commerce no matter how much money a central bank prints. Ditto suffocating regulations and labor laws.
Top Central Bankers Gather in Jackson Hole, Wyo.: Why This Is Bad News - Forbes
Economies just about everywhere are performing in a sub-par fashion. China’s bank-lending plummeted in July, a sign things are cooling off as the mini government stimulus program winds down. Japan is in recession. Germany is stalling, and Italy and much of Europe are contracting or about to do so. The U.S. is doing better but is still moving at a fraction of its potential pace; incomes for most people remain stagnant, this in the sixth year of an alleged recovery.
Many worry the low interest rates they’re employing to encourage borrowing and spur growth could spark a new financial bubble. In places such as London and Vancouver, real-estate prices have soared, and Fed[eral Reserve] officials are uncomfortably watching a boom in U.S. leveraged-loan issuance and junk bonds.
When a central bank does something right, it is to undo previous errors.
Manipulating interest rates is like controlling prices—it doesn’t work. Interest rates are the price we pay to borrow money. Suppressing them, as the Fed and other similar institutions are doing, has damaged credit markets. In the U.S. it has reduced the availability of credit to new and small businesses, just as rent controls reduce the availability of affordable housing. Markets should set prices for products and services, including loans.
Monetary policy can’t cure an economy’s structural flaws. Excessive taxation, which is the reality of all too many countries today, will hinder commerce no matter how much money a central bank prints. Ditto suffocating regulations and labor laws.
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