QUESTION: Marty, thank you so much for your article on Larry Summers. I am starting to understand why you do what you do. You actually care. This is obviously not about money for you. I never thought rates could go negative. You have opened my eyes to the way these people actually think. They are greedy people who only think about money and will sell their soul to save a dime. Thank you so much for your honesty and work. There are a lot of us out here who you have helped so much. So does Summer’s Solution have any traction?
ANSWER: Unfortunately, yes. My phone has been ringing ever since I landed back in the States. The Fed cannot control anything despite what the conspiracy theorists argue. The Fed has only indirect tools being raising or lowering rates. If they really wanted to force banks to lend, they should impose a NEGATIVE rate of return on their reserves. Make rates negative for people is pointless unless you want the banks to make more money. Charge banks for funds they do not lend rather than penalize people for saving.
I do what I do because I am trying to give back. What I have learned came from my clients – not books. So many people try to steal whatever they can from me be it money or technology. They will sell their soul for a dime as you say. They can roll around in their money, but what will they do when the money becomes worthless? I feel sad for people who are so cheap they are afraid to live because it might cost them something. This is the sad part of humanity. No ethics.
