Summers And Roubini Talk Negative Interest Rates, Sound Logic But Uncharted Waters
Summers And Roubini Talk Negative Interest Rates, Sound Logic But Uncharted Waters By Gary Anderson First Posted at Talkmarkets. Let me say that Larry Summers certainly holds to the Democratic Party mantra of job creation through monetary policy. However, he really could care less about jobs, in my opinion, when push comes to shove. Larry Summers cares about banks. And low interest rates insures that banks remain functioning, as they skate on thin ice , like Will Rogers once said about the state of banks in the Great Depression. You cannot have a 25 basis rate hike without putting the banks on thin ice these days. That is the Summers' message. And China just cut their funds rate .25 percent and our stock market in the United States rejoiced for a while. Talk about thin ice. Back in 2013, Summers talked about how the natural interest rate sans a bubble economy is negative. Ye