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| Bullitt Bourbon says don't use money (Photo credit: ellesmelle) |
Central banks keep pulling their one lever to fix the economy, but nothing is fixed. Monetary easing only compounds the problems. Stripped of acronyms and pseudo-economics, Central banks have one lever: monetary easing. Whatever the name offered for creating money electronically and suppressing interest rates, it boils down to making money abundant and cheap to borrow, at least for banks and other favored players, such as buyers of homes using 3% down-payment FHA mortgages.
The problem is that easy money doesn’t fix what’s broken. We can state this simply:
1. One primary problem with the real economy is there is too much debt, too much leverage and too little collateral.... Continue to read.
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