02/21/10 Stockholm, Sweden – Bernanke’s been scrambling to bring the current record-low interest rates to levels that are more sustainable. Last week he took a first small step, and the Federal Reserve raised the discount rate by 25 points. It’s the first tiny tug before the whole Band-Aid gets ripped off… which is going to hurt a whole lot more.
The problem is that the Band-Aid was applied to an economy suffering from an illness better resembling Ebola than a paper cut. The cure, if you can call it that, never fit the condition. Finally getting a look at the true state of the economy, underneath the shoddy government propping, is bound to drag the nation down again.
Rocky Vega
Rocky Vega is publisher of The Daily Reckoning. Previously, he was founding publisher of UrbanTurf and RFID Update, which he operated from Brazil, Chile, and Puerto Rico, and associate publisher of FierceFinance. He specialized in direct marketing at MBI, facilitated MIT Sloan School of Management programs, and has been featured on CBS. Vega graduated with honors from Harvard University, where he was on the board of Let’s Go Publications and directed business programs involving McKinsey, Goldman Sachs, and Harvard Business School faculty. He is also enrolled at the Stockholm School of Economics.
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