Basically in 1929 the Fed did nothing and the market crashed. What the Fed is trying to do is raise the interest rate for money that is to be borrowed. So far this hasn’t been working too well, 16 raises and only 3/4 of a point on home loan interest rates. It kind of looks like they are pushing on a string. 16 raises would be an increase of 4%, didn’t happen did it.
There is an invisible problem here. The BOJ (bank of japan) is only paying about .025% interest. So every astute banker in Japan is buying our T-Bills.
I wonder why!
