The Fed lowered interest rares to 1% in 2004-2005. Housing was going up 14-15$ per year. Then the FED increaded rates abruptly. Due to mark-to market rules after Enron, the housing bubble burst. TARP and QE did not help the economy. Only ending mark-to market in March 2009 did by Barney Frank. Mark to market caused panics and crisis in 18-1900’s due to fractional reserves.
Other Posts:
Correct is mark-to-market with full reserves.
No comments:
Post a Comment