the idea of money is crazy

[bu villain]

Cheap money

So if someone gives you a cheap loan and you blow it on blow and hookers, that's the lenders fault?

So , what is the perfect amount of lending then? LEND too much= BAD, lend too little= BAD Why do people lend? What affects it? What causes it? I dont think you understand the concept.

The perfect amount of lending is the amount where the demand for money at a given interest rate meets the borrowers ability to pay it back. There are too many details to get into the minutiae of risk and markets.

Spending is what the problem is, we need high interest rates , not lower. Saving is what is needed, not spending. ECON 101

I'm not sure which ECON 101 course you took that told you spending = bad, savings = good. It very much depends on the circumstances. The circumstances now are very different than the circumstances that got us into this mess.

WHO allowed the banks to leverage 80 times that of their deposits?

LOW INT rates= problems

Solution= LOWER INTEREST RATES

LEGIT

As I said before, the Fed certainly has made mistakes. No one is arguing against that. When an institution makes mistakes, do you destroy the whole institution or try to learn from the mistakes? Also, lower interest rates can cause problems, just as higher interest rates can. Anyone who thinks there is one monetary policy that is best in every economic condition is a simpleton.