Friday, September 24, 2010

Thomas Hoenig Is Fed Up - BusinessWeek

Thomas Hoenig Is Fed Up - BusinessWeek: "Another reason Hoenig wants to end super-low interest rates is that Wall Street banks and large corporations are currently able to borrow for almost nothing and either hoard cash, make acquisitions, or invest in long-term Treasuries for a guaranteed profit. Retirees and other bank depositors effectively subsidize this borrowing and earn almost nothing on their savings. 'It's a distortion, and it favors the large institutions over the smaller ones and Wall Street over the saver,' Hoenig says in an interview. 'I just don't like it. It's not fair.'"

Serf Warning !

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