Rattner on Income Inequality

http://www.futureofcapitalism.com/2010/11/rattner-on-income-inequality

Former auto tsar Steven Rattner has an op-ed piece in the Financial Times warning that American "income inequality has reached pandemic proportions." In the same piece, he writes:

The Federal Reserve's decision to embark on a second tranche of quantitative easing, known as QE2, was similarly well-founded.

In just the last few days, a number of blue-chip corporations such as Coca-Cola have launched large bond offerings to take advantage of low rates. That augurs well for capital investment, which was already on an upward trajectory in spite of business's stated fears.

If Mr. Rattner is so worried about income inequality, he should be criticizing the Fed rather than lauding it. After all, the low interest rates help big corporations with access to the bond markets such as Coca-Cola, in which Berkshire Hathaway, controlled by one of the richest men in the world, Warren Buffett, has a large stake. But they hurt small savers or retirees who have money in bank savings accounts, CDs, or money market accounts.

by Ira Stoll  |  Nov 8, 2010 at 9:29 am Related Topics:  Auto Industry, Federal Reserve, Steven Rattner, Warren Buffett receive the latest by email: subscribe to the free futureofcapitalism.com mailing list