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[Econ/Dumbass] A serious question...

 
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Aske
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[Econ/Dumbass] A serious question...
« on: December 17, 2008, 08:20:14 AM »

http://www.bloomberg.com/...kfojOw.JOM&refer=home

so since I don't know the answer, I hope someone does....

FTFA
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U.S. Stocks Fall on Concern Fed Is Running Out of Ammunition

is running out  Umm, I thought they already ran out.  Is a Negative fed funds rate even possible from a legal/policy sense? (as dumb as it is to begin with)
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Spanky
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Re: [Econ/Dumbass] A serious question...
« Reply #1 on: December 17, 2008, 10:11:21 AM »

Don't look at me. I don't understand my own bank statement.
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spacey
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Re: [Econ/Dumbass] A serious question...
« Reply #2 on: December 17, 2008, 10:27:37 AM »

My understanding is that this only affects the overnight rate, and that there is still some ability to manipulate longer-term rates. But my understanding could be totally baseless.
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