wait…they can just print more money?!
Well, if that’s the case, I’m running out to Kinko’s right now! Admittedly, I’m no economist, but it has never made a lot of sense to me that the federal government can just generate more cash. It’s kind of like 3rd grade money logic – Out of money? Just go to the cash machine and presto! According to this article, this round of Quantative Easing (or QE2, which is fancy words for print more money), could result in lower interest rates. Which is where this blog comes in. Lower interest rates, of course, means making borrowing money and buying houses a little easier. However, the QE2 could also backfire and cause inflation to rise. Hmmmmm. I hope the real economists know what they’re doing.