[lbo-talk] Doug cited in this week's Barron's

[Marvin Gandall]

Doug writes:
>
> I don't think the BIS is circulating a scare story at all. I think 
> they're very serious about the urgency of putting an end to business  as 
> usual - meaning what I've been calling the cycle of boom, bubble,  bust, 
> and bailout. I suspect they're reflecting the thinking of ECB  types - but 
> it's going to be hard to get the Fed to go along. As a  friend says, it 
> seems like the American elite is afraid of seeing a  single negative 
> quarter on GDP. The Volcker years were about  disciplining the working 
> class. Now, austerity would be about  disciplining our profligate upper 
> class, since the working class is  hardly living high on the hog. That's a 
> totally different story.
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But how would raising interest rates - which the BIS, worrying more about 
inflation rather than deflation, appears to emphasize - not affect the 
working class as well as shaking out the weaker banks and corps?