Tuesday, November 24, 2009

What's The Second Time Called Again?

All that money's gotta go somewhere...

Nov. 24 (Bloomberg) -- Federal Reserve officials said record-low interest rates might fuel “excessive” speculation in financial markets and possibly dislodge expectations for low inflation, according to minutes of their meeting released today.

The way it's supposed to work is that banks borrow money cheap from the Fed and then lend it to people who are going to build factories or other productive things. Instead the big banks are borrowing cheap and using it to gamble on financial assets. Heckuva job.