Who establishes the interest rates and keeps them artificially low? Also, the bonuses come back to Bloomberg in the form of campaign contributions from New York Financiers.
Congresspeople make money from investments from insider information determined in part by the stimulus monies directed to favored corporations. There is too much easy cash in the system. Americans were looking the other way because over 50% of us had money in the stock market in one form or another (usually 401K or annuities) and we were seeing those values increase dramatically in the 90's. Also we were seeing our home values skyrocket. Why would we have wanted anything to change that? It was an overheated economy fueled by easy credit. I think it is non-systemic to write as if one can locate blame in either the private sector or the public sector. There is a corrupt consolidation of power in the relationship between both entities. Kevin The current period of artificially low interest rates mirror eerily the period ten years ago when Alan Greenspan held down interest rates at very low levels for an extended period of time. It was this that set off the creative juices of the financial sector to find “creative” new ways of getting higher returns. Why should we not expect the financial sector to be dreaming up the successor to sub-prime mortgages and credit-default swaps? What is to stop them? The regulations of the Dodd-Frank are still being written. Efforts to undermine the Volcker Rule are well advanced. Even its original author, Paul Volcker, says it has become unworkable. And now front men like Bloomberg are busily rewriting history to enable the bonuses to continue. -- Centroids: The Center of the Radical Centrist Community <[email protected]> Google Group: http://groups.google.com/group/RadicalCentrism Radical Centrism website and blog: http://RadicalCentrism.org
