McCain’s Screwy Economics

Today John McCain said this:

"Recall that immediately after September 11, 2001 General Motors stepped in to provide 0 percent financing as part of keeping the economy growing. We need a similar response by the mortgage lenders. They’ve been asking the government to help them out. I’m now calling upon them to help their customers, and their nation out. It’s time to help American families."

He is basically calling for a zero percent interest rate which is just moronic. He has done this in the past in debates and believes that it is great whenever the feds cut the interest rate.

This will just encourage more and more bad loans and investors will pull their money out of America and go somewhere else.

The move would probably cause a huge credit market expansion and in the short-term it would seem like it is doing great. What actually is happening is huge malinvestment. This will cause for an even bigger crash.

God Save the U.S.A if this policy is implemented.

For you conservatives that still aren’t sure this is just a stones throw from Hillary Clinton’s interest rate freeze.

Published in: on March 26, 2008 at 4:18 am  Leave a Comment  

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