The US Federal Reserve has now lowered interest rates to below 0.25% and will keep it hovering between 0% and 0.25% for the foreseeable future in order to counter the deflationary pressures countering that nation.
Do you think we should experiment with lowering our interest rates to 0% too to see if that's enough before bailing out the auto industry? It would seem to be worth a try before we just start spending like crazy. Lower interest rates would make it cheeper to borrow so maybe that alone would be enough to get more money out there. Granted, if this recession is going to go into depression, then even that might not be enough, but even then it might mean at least that we won't need to bail them out as much as otherwise.
Do you think we should experiment with lowering our interest rates to 0% too to see if that's enough before bailing out the auto industry? It would seem to be worth a try before we just start spending like crazy. Lower interest rates would make it cheeper to borrow so maybe that alone would be enough to get more money out there. Granted, if this recession is going to go into depression, then even that might not be enough, but even then it might mean at least that we won't need to bail them out as much as otherwise.