The Fed began a two-day meeting yesterday to discuss the economic crunch and came up with a solution to stimulate the economy.
“Our economy is like a dying patient,” said Federal Reserve Chairman Ben Bernanke, “so we’re going to try drastic experimental surgery to see if we can save its life.”
Interest rates dropped to an all-time low of one-percent during the Great Depression, and that coupled with FDR’s jobs programs worked, he noted.
“We’re going to take that idea a step further into the great beyond of an economy on life support,” said Federal Reserve Assistant Money Counter John Cash, III. “We’re going to take the interest rate into uncharted territory and see what happens.
Later today, Bernanke will announce that the Fed will lower the interest rate to minus 0.05 percent.
“I know it’s a whacky idea, but what hasn’t been complete whacked out basackwards during the last eight years?” said a cynical source who demanded to remain anonymous.
“Who knows. It might work. Nothing else seems to, at least not while George Bush is in office,” he added.
It would be ironic if for a change, the rich, who no matter what will be rich, and banks and Wall Street-types who just got themselves a whopping bail out with no strings attached were forced into coughing up a little payback.
By cutting the interest rate to -0.05 percent, at the end of the loan they will owe the borrower money?
You know, just like happened to T-bills last week.