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 Agora Financial International, where he advances the growth of Agora Financial publishing enterprises outside of the US. Previously, he was publisher of The Daily Reckoning, and founding publisher of both UrbanTurf and RFID Update -- which he ran from Brazil, Chile, and Puerto Rico -- as well as associate publisher of FierceFinance. Rocky has an honors MS from the Stockholm School of Economics and an honors BA from Harvard University, where he served on the board of directors for Let’s Go Publications, Harvard Student Agencies, and The Harvard Advocate.
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