It was not used this time, even though it was debated in Fed circles -- Greenspan opposed it.
More Quotes from Lacy Hunt:
I don't think any benefit of the dividend tax elimination is worth the increase in the deficit.Lacy Hunt
When you have a large debt buildup and a lot of excess capacity, that's not corrected very quickly.
Lacy Hunt
The ratio of corporate debt to gross domestic product (GDP) is at an all-time high, ... And we don't know exactly what corporate debt is because so much has been parked off the balance sheet and hidden. But, even without knowing what the off-balance-sheet debt is, corporations have too much.
Lacy Hunt
When we came out of the recession in March of 1991, GDP started rising very feebly, while the unemployment rate continued rising for another year and a half, ... The press called it a 'jobless recovery,' and it was one of the reasons President Bill Clinton was able to defeat former President George Bush. The average person on the street judges the economy by the job market.
Lacy Hunt
The problem is, the private sector doesn't have the balance sheet capacity to take on more debt, and the banking system is not in a position to extend more credit. So monetary policy may not work at all.
Lacy Hunt
To have an effective monetary policy, you have to have a robust borrowing and lending cycle, ... The problem is that households and businesses are both overextended, while banks have problems with their current loan base. So we don't have a viable borrowing and lending cycle, which means that monetary policy is not working effectively.
Lacy Hunt
Readers Who Like This Quotation Also Like:
Based on Topics: Time QuotesDo you think that when they asked George Washington for ID that he just whipped out a quarter?
Steven Wright
Act as if the maxim of your action were to become through your will a be general natural law.
St. Jerome
Of what use were the arts if they were only the reproduction and the imitation of life?
Alfred de Vigny