BK(>>  MM> I think a full employment policy would be beneficial with
BK(>>  MM> inflation gradually raised.

BK(>>  In the long run, I think it's the only answer.

 MM> I know some conservatives want the market to determine
 MM> interest rates instead of bankers/economists. But I would
 MM> support gradual easing of interest rates so they dont hit
 MM> us hard.

 The market does tend ot determine interest rates. It is true the
 Fed sets rates for federal funds and interbank rates, and bank
 rates follow the Fed rates. How closely they follow is the key
 point.

 Used to be the prime rate followed the fed rate within two
 points. Then it went up to three points then up to four.

 Which is why the Fed is practically giving money away but you
 are still going to pay 4% and up for a loan. Though lending is
 going so badly right now I am seeing loans at prime minus some
 percentage. Used to be it was prime plus.





BOB KLAHN bob.klahn{at}sev.org   http://home.toltbbs.com/bobklahn

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