Are we going to have a credit squeeze?
If you belive all economists and financial reporters, it's already happening.
But, in reality, things are looking quite different.
Just consider latest Federal Reserve's interest rate's cut by 0.5%...
What does it do to the economy?
Certainly, puts some huge profits into Wall Street traders.
Also, encourages borrowers to borrow more; even those with a history of defaults and bad credit scores.
Worse still, it will fuel the inflation, as prices rise because of the supposedly better money supply.
What happens then? The interest rates must go up!
That's definitely not what Bernanke wishes for... for it'll lead to the credit squeeze we should have been able to avoid, in the first place.
