Raising the Bar

John K. Taber jktaber at onramp.net
Fri Sep 4 05:55:34 PDT 1998

DICKENS, EDWIN (973)-408-3024 wrote:
> Max,
> Your policy of spending the surplus can
> "help people...spend even more, yum, yum)"
> without using a temporary interest rate cut to bail out hedge funds and
> the banks etc. that financed them, no? Why socialize Wall Street's
> losses?
> Edwin Dickens

Max, I don't see lowering rates either. In addition to "why bail out the speculators?", wouldn't lowering rates make it easier for the speculators to continue their game, getting us ever closer to a real meltdown?

I think I read in Doug's book that money goes into speculation when speculation promises a better return than investment in the "real" economy. So, easy money isn't going to improve the real economy. I would just make "financial" (rentier?) investments easier.

No? Yes?

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