If I had known how cool economics was as a highschooler, I would have gotten an mba......
This is such an amazing time to be living in.
First off, Sometimes I think that Sierra is right that somehow the U.S. has set themselves up as the Weimar republic, an economic power going into Trying economic times, Convinced that they have the power to take the world down economically with them.
Only as Hubris dictates, unaware of the True nature of their situation, as all the countries line up against us...
Bad news if ...
- the ECB raises rates
- oil is traded in euros
- chinese start dumping our currency for euros(which could be the reason for the new weakness)
- ..
It's a huge risk to keep cutting rates, in my opinion the fed has to save it's bullets to.
I'm dying to figure out if the banks writing this stuff down, use it as part of their reserve requirement, and if they don't have enough surplus cash to cover the overage, then they can't maintain their reserve requirement... Which would then force them to the discount window even more.
I'm glad to see the market sell off, it's a much better option, than if it is an option, than taking us to hyperinflation.
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