With U.S. rates now in a zero to 0.25 percent range, the Fed said it would employ “all available tools,” echoing Japan’s policy of nearly a decade ago when it flooded banks with money to promote lending.

The U.S. is mired in a recession and has dragged much of the world with it, following the meltdown of its housing market in 2007 and the crippling bank losses that resulted.

The Fed has tried and tried to head this recession off at the pass and so far nothing is working.  If this latest attempt is a dismal failure what has the Fed got up its sleeve next month?  The Fed rate is near zero, T bills are near zero, what else can the Fed destroy?

Nothing is working, Mr. Bernanke.  All your attempts are doing nothing for the economy. it is helping investors a bit, but as far as the rest of us, we are doomed with this band of lunatics.

Lunatics?  Yes I said it,  I meant it!  They keep doing the same thing over and over and expecting a different outcome.  That is a sure sign of stupidity!  They are most concerned with liquidity, as I have said on numerous occassions, they should be concerned with the creation of demand.  Why?  Without demand, liquidity is not worth the time it takes to talk about it.

These ongoing interest rate cuts are obviously achieving nothing, so why persist with them? People who are in debt and feel insecure about spending their money are not suddenly going to rush to the shops to buy things that are not essential, and certainly not with borrowed money, at any interest rate. In fact, anyone sensible person enjoying an interest rate cut will continue with the same repayments and clear their debt quicker.

Bernanke and the Fed have been masturbating the economic all year and I think that they have gotten their last wad.

copyright:  CHUQ/Info Ink