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View Diary: Krugman: Dwindling Deficit Disorder (135 comments)

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  •  You have hit upon something (1+ / 0-)
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    elwior

    in your first paragraph.  There is plenty of cash sitting around doing nothing -- three to four trillion on the books of large corporations for starters.  Lending this money at current low interest rates could turn out to be disasterous for the lenders in the long run.  Pushing so much money into the economy would triger a boom, precipitating an increase in interest rates.  The value of the loans will decline proportionately to the rise in rates, so the big boys sit on the cash, and we are all left with a bag full of air.

    Bene Scriptum, Bene Intellectum.

    by T C Gibian on Mon Mar 11, 2013 at 09:24:15 AM PDT

    [ Parent ]

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