“If we don’t act, that is the most certain fiscal or economic crisis we will have,” said Paulson, who chairs his own institute in Chicago. “It will slowly strangle us.” bloomberg.com/news/articles/…
"The enlarged deficits and debt also mean that the government has less room to pump up demand than it did during the last crisis."
"The Fed, too, has less scope to act as interest rates are lower, Geithner said. The central bank’s benchmark rate target is now 1.75 to 2 percent. It was 5.25 percent in July 2007."
"Bernanke though noted that the U.S. central bank is better positioned to respond than other advanced economies. The European Central Bank, for instance, has a benchmark interest rate of zero."
The global financial markets are going to get interesting in the years to come, especially w/ the backdrop of a parallel financial system being concurrently built.
All quotes via Rich Miller @business bloomberg.com/news/articles/…
