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Feds Keynes policy of QE and ZIRP does not work any more, Stockman 11/2

Both of these effects are aimed at inducing businesses and households to borrow more than they would otherwise, and to then spend more than they produce.

But now those household and business balance sheets are all used up because we are at Peak Debt, along with most of the rest of the world.

The stimulative effect of low and ultra-low interest rates never really leaves the canyons of Wall Street. And when it does, it trickles its way into credit extensions to the weakest borrowers left in the land. That is, students and subprime auto borrowers. 


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