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FNLN_taken t1_jdotkb7 wrote

Reply to comment by plumquat in Too big for Switzerland? Credit Suisse rescue creates bank twice the size of the economy by Kl--------k

The fed can't raise taxes. They have said, pretty explicitly, "If noone else is going to do anything useful, we are going to have to do what we can".

Biden has proposed increasing capital gains tax, but for one congress moves too slow, and secondly the republicans will block it anyways.

Raising interest rates does affect large borrowers more, and most large-scale transactions are debt financed. It's not ideal for specific problems, like the housing market, but it will achieve the goal of cooling the economy.

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[deleted] t1_jdpe2pk wrote

[deleted]

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FNLN_taken t1_jdpeypn wrote

I'm just another wage slave who's spending power has decreased by 10% in half a year, I am just going off what can be learned from what economists say and what seems reasonable to expect from past experiences. Pretty much just as you do.

I just don't see, specifically regarding the fed rates, what else they could have done; because pumping trillions more into the banks is exactly what ended us up here.

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Fake_William_Shatner t1_jdrutla wrote

The Fed— the outfit that is always run by the most successful crooks at Goldman Sachs. Oh darn, they can’t raise taxes but they can increase interest rates— that did not stop the buying of property because those big investors don’t need to take out loans.

They are either clueless or part of the problem.

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