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Re: Stock post# 55808

Wednesday, 12/12/2007 9:56:58 AM

Wednesday, December 12, 2007 9:56:58 AM

Post# of 69601
That is what I always have difficulty with. Increasing liquidity lowering rates to offset\minimize a recession\disinflation.

All that extra liquidity gets into the market and credit is made available for consumption. Who buys that liquidity? If the consumer is wracked with a high mortgage, energy and food costs why would borrowing more money alleviate that?

Will a strapped consumer put them selves in more pain for the need to consume? How does that benefit the economy and create growth? Or to be more specific how does that create long term growth?

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