Skip to main content

View Diary: No sugar high, voters are hardening against Romney (247 comments)

Comment Preferences

  •  Basically it floods banks with a lot of liquidity (4+ / 0-)
    Recommended by:
    sydneyluv, bear83, sethtriggs, riverlover

    so that they can make more loans.  This and interest rates held very low, make expansion and investment as cheap as can be.  The idea is that people start to feel pressure to act now if they were considering acting at all as far as investments for which they will need to borrow. This sends a ripple of demand through the economy.  It is mildly effective and runs a risk of hyper-inflation down the road.  I am not crazy about it, but it will likely have a short term effect of boosting confidence and increasing demand a little.  Since the election is only a few weeks away, it is likely that the positive effects on confidence and market liquidity will last between now and then.

    Picture a bright blue ball just spinnin' spinnin' free. It's dizzy with possibility.

    by lockewasright on Fri Sep 14, 2012 at 03:27:46 AM PDT

    [ Parent ]

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site