The Zombie Money Tap

“…central banks’ monetary policies had become a kind of financial doomsday device.

Hold the button down too long and it is almost impossible to stop. Because the longer the Fed hands out the cheap credit, the more zombies get in line to take advantage of it.

As time goes on, more and more people want to see the program continue… and fewer can survive if it doesn’t.

Some rely on ZIRP to roll over their debt.

Some count on low mortgage rates to build, sell, or buy houses.

Some depend on the Fed to finance government deficits and keep money flowing to the growing zombie class — including banks, Wall Street, disabled people, food stamp recipients, military contractors, retirees, and chiselers, layabouts, and schemers of all sorts.

Almost nobody wants to turn off the tap.

Read more

Advertisements
This entry was posted in Commentary & Analysis. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s