This is like pushing on a string. The Fed is trying to stimulate the economy by keeping interest rates low, especially for mortgages, but many borrowers aren’t qualifying for loans. If banks don’t want to lend or can’t find qualified customers, it doesn’t really matter how low interest rates go. It’s a remarkable spectacle in a way: the Fed is printing money that nobody wants.
Comment:
Besides the obvious, it is remarkable that this quote comes from a self-described Democrat. Via Meadia has a number of such articles, which is even more remarkable. If only the Soviet Union type mass media was like this.
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