Well, the market isn't impressed by this. Morning news was all like "Rally! Rally! We have ignit...uh...*fail*" ...and now the rocket is lying on the ground.
B-b-but the people who oppose low interest rates and easy loans are crazy tinfoil hatters! CRAZY I SAY!!!!
That's not what we're saying and you know it.
Have you not noticed the tinge of irony in my posts?
Besides, I need to rephrase myself: I do oppose easy loans per se - I have serious doubts regarding the very need for a central bank in its current form.
You know enough about economics to know the hows and whys of an elastic money supply. Credit availability is collapsing all around us and, as a result, the supply of money available to the economy is shrinking sharply. Circumstances like these are exactly why we have a mechanism to expand the money supply. By buying commercial paper, the Fed is trying to increase liquidity in the markets (or, rather, to undo the decrease of liquidity caused by collapsing credit). It's exactly what we need right now. It might be an unorthodox method, but it makes sense given the circumstances.
So, again, would someone please tell me what the problem with this is?