That's not really speculation is it? Somehow I thought these guys borrow at 0% and then trade pork bellies.
On 2/28/12, Doug Henwood <dhenwood at panix.com> wrote:
>
> On Feb 25, 2012, at 11:29 PM, nathan tankus wrote:
>
>> Second, I would dispute that setting the federal funds
>> (internationally, and more accurately, referred to as the interbank
>> lending rate) at zero is an "easy money" policy. I think the
>> relationship between interest rates and the rate of money creation is
>> weak at best.
>
> It's manna to speculators (see: the Greenspan years). Borrow at 0%, buy
> T-bonds at 2% (or higher, if inflation picks up). You'd have to regulate all
> kinds of other things to compensate.
>
> Doug
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