Steve Martin: "What you need is a good "bleeding!""

Patient:  "But I'm already Bleeding!"

Steve Martin: "Hey, who is the Barber here, anyway?"

 

 

Banks being exhorted to "lend" to each other with money they have been forced to borrow from the Government, and NOW, at a cheaper rate!  The solution to our current condition that was created by lending money to people and institutions that couldn't pay back the money is being medicated with more loans that will never be repaid!  Brilliant!  This is akin to the SNL skit where Steve Martin plays a medieval Barber / Surgeon and his remedy for an injured man who is bleeding to death is "blood-letting."

If we believe blood-letting, (rate cuts) maybe the "faith" will be enough to turn things around.  I don't think so...but I'm wrong a lot of the time.

 
Post is included in group: All About Mortgages/Mortgage Networking
Post is included in group: Mortgages

3 Comments on Fed Funds Cut Analogy...

OCT
29
2008
226,662 Points 1 Featured Post Outside Blog

Good analogy.  It is sort of like an SNL skit!

12:42pm • #1
351,550 Points 22 Featured Posts Localism Sponsor Outside Blog

We'll see.....The problem is that even if the Fund Rates go down to zero, the problem is that the banks still aren't lending money.  Such a catch 22.

10:04pm • #2
OCT
30
2008
124,452 Points

Rich: Thanks. We'll see what happens. I don't think credit will ease up anytime soon. The banks are still in dire straits.

12:11pm • #3

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Rich Sweum

Everett, WA

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