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.

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

The URI to TrackBack this entry is: https://pccapitalist.wordpress.com/2008/03/26/mccains-screwy-economics/trackback/

RSS feed for comments on this post.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: