Flavor of the Month: the Double Dip
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.
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