My comment: (Yamamoto) Benanke forgets that Japanese had lots of savings into their bank accounts before interest rates went down to zero. They could pass through a decade of recession without suffering much more than unavoidable. The average savings in USA are negative, the average American householder cannot resist a decade of recession.
Also, once we have the opportunity to jump out of the crisis to a growth path we need to cut interest rates. If it is zero, how can they cut them? And finally, it means that real interests are negative. Less savings in an economy without savings. They hide the real financial drought, they do not fix it. I mean, all these actions, once again, sounds to inject funds into banks and into the Federal deficit, not into the real economy, or Main Street as you call it. It could be fine if the deficit would be to create real wealth not to fund military expenses, but, right now, the real wealth that is planned by states with Federal help is just 200bn (1) while US economy would need every year 5 times that amount or above. USA is not Japan. Peace and best wishes. Xi ‘Bernanke-san’ Signals Policy Shift, Evoking Japan Comparison http://www.bloomberg.com/apps/news? pid=20601087&sid=aziecc.MkO28&refer=home (1) States Seek Aid as Budget Gaps May Hit $200 Billion http://www.bloomberg.com/apps/news?pid=20601087&sid=aziecc.MkO28&refer=home --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "World-thread" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [EMAIL PROTECTED] For more options, visit this group at http://groups.google.com/group/world-thread?hl=en -~----------~----~----~----~------~----~------~--~---
