Barron's: More Quantitative Easing By Fed Is Needed - Barrons.com
The comment "to lower interest rates..." would seem rather meaningless in the light of the Administration's ongoing efforts to vilify and punish the banking system.
Whether it is the large banks with regulatory and legal attacks to contend with or the smaller banks that would logically help to fun smaller businesses, the banks aren't going to be lending! (See the article in the last few weeks on the small Texas bank giving back its charter because of the putative nature of regulatory excess.)
This is the apparent delusion of Democrats and liberals - i.e. that they can regulate their vision of a better world and that it has no consequences in the real world.
The fallacy is that there are consequences and none of the liberal establishment's effort to blame anyone but government and to have regulations to protect consumers but not encourage investors or business is blatant. Yet, the media is giving Obama and his pals a veritable 'free ride'.
Liberal policies are a heavy foot on the brake. Their accelerator efforts can't easily overcome the foot on the brake and to try and change the monetary fuel mix is going to have long-term deleterious consequences on the economic engine.
We saw this in the 1970s in the US. An ultimate extreme has been Zimbabwe. Moderate cases exist in Venezuela and an in-your-face case is Greece.
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