Monday, December 22, 2008

Credit Crisis of 2015

Lets see what caused the current credit crisis:
1. Low interest rates
2. Greedy people

Now, we should examine the solution that our policymakers have come up with to tide over the current crisis:

Give people not billions but trillions of dollars of free money.

And these are not normal people, it is the best of the best, the investment bankers who get this money to play with while the government charges them nothing for this free paper (0-25bps does not count). Previous attempts at 0% interest and similar fiscal stimulus have been have so successful, that it took Japan 15 years to get out of a recession.

The next crisis is probably going to be bigger and better than this one...I just hope I've made my millions by then and have retired and have cash strapped behind my toilet not is some s***t backed security.

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