Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP Posting-Version: version B 2.10.3 alpha 4/15/85; site leadsv.UUCP Path: utzoo!watmath!clyde!burl!ulysses!gamma!epsilon!zeta!sabre!bellcore!decvax!decwrl!greipa!pesnta!amd!amdcad!cae780!leadsv!sas From: sas@leadsv.UUCP (Scott Stewart) Newsgroups: net.invest,net.misc Subject: Re: Re: Re: "World Banking Crisis" -- what is it? Message-ID: <491@leadsv.UUCP> Date: Thu, 27-Jun-85 15:29:44 EDT Article-I.D.: leadsv.491 Posted: Thu Jun 27 15:29:44 1985 Date-Received: Mon, 1-Jul-85 07:11:54 EDT References: <11154@brl-tgr.ARPA> <2287@sun.uucp> <161@idsvax.UUCP> <173@idsvax.UUCP> Distribution: net Organization: LMSC-LEADS, Sunnyvale, Ca. Lines: 29 Xref: watmath net.invest:698 net.misc:8180 In article <173@idsvax.UUCP>, steiny@idsvax.UUCP (Don Steiny) writes: > > > > > Note that the policies of the current administration > > > are modern day brinksmanship. By keeping the interest rates > > > high in the US, inflation has been subdued. > > > > Not correct. > > > > Banks are being cautious about lowering their > > rates too low. When the prime is lowered too low (and if at > > some later time it shoots up) the banks could get stuck > > with too many low interest non-profitable loans. Thus, > > the prime will come down slowly, as it has. > > > The banks have to borrow their money from the Federal > Reserve. The interest rates are under the control of the Federal > Reserve, specifically Paul Volker, they have been for many years. Isn't the Federal Reserve seperate from any branch of the Federal Government. I thought Congress and the President may apoint members, but after that, they had little control of the policies. The administration (as mentioned above) I take to mean the Executive Branch or Reagan. I thought I remember him criticizing Volker and the Federal reserve for keeping interest rates higher than neccesary and thus keeping interst rates and unemployment up as well. Scott A. Stewart LMSC