With the Fed meeting today there is a very remote chance that there could be negative interest rates. That would mean that we are going from zero percent interest to something like minus .25. That is not likely to happen because of a myriad of factors the least being that there still has to be some incentive for banks to make money unless things get completely nationalized. I doubt that everything will get nationalized despite what some over-the-top pundits are saying. A lot of the steps that the Obama Administration are taking now (and the Federal Reserve) are trying to make an atmosphere that is conducive to business. Low interest rates should at a point spur more business development.
The bigger problem and elephant standing in the room despite the reports of more consumer spending is that we have way too many people out of work. If you want more consumer spending, you need consumers working to make money so they will have money to spend. It doesn’t matter how low interest rates are if people can’t get to them or if it doesn’t impact their ability to put bread on their plate.
Mr. President, Governor and members of state and national Congressional seats – please get more business programs going like restoration of roads, buildings, job creation at a fundamental level. Just saying that “things will get worse before they will get better” isn’t going to help everybody who is out of work, losing their home and hungry or sick.
April 29 2009 Mid Day
Kim Isaac Greenblatt
Negative Interest Rates Doubtful
Tags: Business
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