http://www.bankaholic.com/finance/would-higher-interest-rates-increase-lending/ Blogging about personal finance and economic policy Wed, 08 Feb 2012 15:02:04 +0000 http://wordpress.org/?v=2.9.2 hourly 1 http://www.bankaholic.com/finance/would-higher-interest-rates-increase-lending/comment-page-1/#comment-28035 AC Thu, 24 Dec 2009 01:27:15 +0000 http://www.bankaholic.com/finance/?p=1564#comment-28035 What the administration is trying to do is to re-inflate the real estate market. Unfortunately for the administration, banks are not about to lend money to people who can’t pay back. All that no interest money is doing is creating bubbles in precious metals and the stock market. Wall Street wins again. What the administration is trying to do is to re-inflate the real estate market. Unfortunately for the administration, banks are not about to lend money to people who can’t pay back. All that no interest money is doing is creating bubbles in precious metals and the stock market. Wall Street wins again.

]]> http://www.bankaholic.com/finance/would-higher-interest-rates-increase-lending/comment-page-1/#comment-28033 CJ Wed, 23 Dec 2009 23:17:31 +0000 http://www.bankaholic.com/finance/?p=1564#comment-28033 Point well taken. Driving rates this low to help spur lending and provide a "saftey net" for this sluggish economy will have a back-lash in the near-distant future. What the gov't should be doing is educating consumers to save, gently push up the rates. This will cuase the econmoy in the short run to flat line, but long term this will be better for teh country. By extending the credit the gov't is giving to banks they are proloning this cycle; problem is that no one in the Whitehouse wants to take the reposnsibility to drive the market down in the short term only to help the econmy recover in the long term. Keep feeding the fat man more ice-cream rather than putting him on a diet is the logic that our government is taking. Point well taken. Driving rates this low to help spur lending and provide a “saftey net” for this sluggish economy will have a back-lash in the near-distant future. What the gov’t should be doing is educating consumers to save, gently push up the rates. This will cuase the econmoy in the short run to flat line, but long term this will be better for teh country. By extending the credit the gov’t is giving to banks they are proloning this cycle; problem is that no one in the Whitehouse wants to take the reposnsibility to drive the market down in the short term only to help the econmy recover in the long term. Keep feeding the fat man more ice-cream rather than putting him on a diet is the logic that our government is taking.

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