Lowering the funds rates increases money supply. That's why they do it.

Flame » in reply to Yes.

alcaray — 10/2/2012 9:45:51 PM (archived)

It is a normal function of the fed (along with raising rates, when called for) under all administrations.

The whole thread (32 posts)

The economy is not consumer driven? - RobVG - 9/30/2012 4:06:58 PM
- Property is merely a euphemism used to justify violence. Ask the Indians. - ER - 10/3/2012 1:44:41 AM
  - "All property is theft" - TB - 10/3/2012 2:43:26 AM
    - Maybe I can't integrate... - ER - 10/3/2012 3:15:38 AM
- I see what you mean - Robert - 10/1/2012 1:57:09 AM
  - No, you just didn't get it. Or didn't want to. - TB - 10/1/2012 7:26:51 PM
    - Barking mad - Robert - 10/2/2012 6:17:28 AM
    - In other words... - SDAI-Tech - 10/2/2012 3:19:34 AM
      - When the economy is bad, you increase the money supply. When you have inflation, you tighten it. - alcaray - 10/2/2012 6:07:26 PM
      - Vorticial economics - Robert - 10/2/2012 6:02:13 AM
        
        I heard this somewhere: - TB - 10/2/2012 4:29:39 PM
        
        "A conservative is somebody who knows the price of everything, and the value of nothing." - Robert - 10/2/2012 6:08:18 PM
        
        No, you've drifted off into the ditch. - TB - 10/2/2012 6:39:47 PM
        
        Many people (in this economy, especially).. - alcaray - 10/2/2012 8:01:35 PM
        
        You can't be this obtuse. - TB - 10/2/2012 8:21:54 PM
        
        So all those times the Fed moved to increase the money supply to improve the economy... - alcaray - 10/2/2012 8:45:15 PM
        
        Yes. - TB - 10/2/2012 9:38:54 PM
        
        Lowering the funds rates increases money supply. That's why they do it. - alcaray - 10/2/2012 9:45:51 PM
        
        And let me expand a bit on the housing example. - TB - 10/2/2012 6:58:54 PM
        
        Value - SDAI-Tech - 10/2/2012 8:00:02 AM
        
        The more things change, the more they stay the same - Robert - 10/3/2012 5:21:45 AM
        
        The Claim - TB - 10/3/2012 4:36:11 PM
- "Consumers" don't buy housing. - TB - 9/30/2012 4:46:44 PM
  - This was a draft but I'm not going to bother finishing it. - RobVG - 10/2/2012 1:53:20 AM
    - I give up. - TB - 10/2/2012 4:59:05 AM
      - If anyone was serious about the deficit they'd be talking about raising taxes. - RobVG - 10/2/2012 5:13:42 AM
        
        Which ones? - TB - 10/2/2012 5:41:13 AM
        
        Looks like just about all. - RobVG - 10/2/2012 6:15:59 AM
        
        That's not policy. - TB - 10/2/2012 4:21:45 PM
      - One more for the road... - TB - 10/2/2012 5:05:25 AM
  - Consumer - alcaray - 10/1/2012 10:18:44 PM
  - The English language getting the best of you again? - bowser - 9/30/2012 10:56:02 PM

Recent posts

On this day in Flame

The whole thread (32 posts)

Related discussions