News With Interest

The Fed has continually cut interest rates in an attempt to stabilize the economy. All that rate cutting lead to more lending and a further destabilized economy. What would be the logical next move?

NPR

The Federal Reserve is expected to cut interest rates Wednesday by at least a half-percentage point to 1 percent. Economists believe the Fed will cut rates because of the current financial turmoil and fears that there might be a prolonged recession...

'And the markets are expecting they'll keep going and cut them further, perhaps' to 0.5 percent, by year's end,

I've got a better idea. I've said it before and I'll say it again. Let's get rid of the Federal Reserve.

And then we can put a ban on lending at interest. When I lend a pal $10, I expect to get $10 back in a reasonable amount of time. I don't expect or want him to pay me $20 back over ten years. I give him the ten spot and say, "I know you're good for it." If I'm wrong, I never lend him money again. I've lent money to countless numbers of people this way and only ever cut off one person.

Too simple?