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FSN: The Federal Reserve vs. Small Business
Be prepared for the next great transfer of wealth. Buy physical silver and storable food.
by Steve Hanke
Financial Sense
Given all the attention that the Federal Reserve has garnered for its monetary “stimulus” programs, it’s perplexing to many that the U.S. has been mired in a credit crunch. After all, conventional wisdom tells us that the Fed’s policies, which have lowered interest rates to almost zero, should have stimulated the creation of credit. This has not been the case, and I’m not surprised.
As it turns out, the Fed’s “stimulus” policies are actually exacerbating the credit crunch. Since credit is a source of working capital for businesses, a credit crunch acts like a supply constraint on the economy. This has been the case particularly for smaller firms in the U.S. economy, known as small and medium enterprises (“SMEs”).
Continue Reading at FinancialSense.com…
Source: http://silveristhenew.com/2013/06/05/the-federal-reserve-vs-small-business/
