soc.veterans

On Mar 15, 2:11=A0pm, Jerry Kraus wrote:
> On Mar 15, 3:05=A0pm, "Sid9" wrote:
>
> > March 15, 2008
> > More Rate Cuts From Fed Expected Tuesday
> > By THE ASSOCIATED PRESS
> > Filed at 3:27 p.m. ET
>
> > WASHINGTON (AP) -- Desperate to aid an economy in crisis, the Federal
> > Reserve is ready to deliver yet another big interest rate cut.
>
> > How big? One-half of a percentage point, some economists say. Investors =
and
> > others hope for even more, a three-quarters cut or perhaps a full point,=

> > given the turmoil on Wall Street. It will be a close call, Fed watchers =
say.
>
> I will take a one trillion dollar loan out, when interest rates become
> negative. =A0I'd be good for it.

Its a nice theory. The problem is, loans don't work that way. Consider
the "0% interest loan"
often offered by automobile manufacturers and places like computer
stores or furniture stores.
All they are doing is giving you more time to pay back the loan, they
aren't removing it. A
negative interest rate would simply be a payback on the part of the
gov't for loans, something
that already occurs in the form of legal kickbacks.

In fact, every time the gov't offers a tax loophole, they are
essentially loaning money to corporations
in the form of subsidies (or negative interest loans). Think about
that the next time people want to
cut taxes on corporations.

Matt