This is not economics

Larry Elliot:

"Since only cheap money can persuade consumers to spend and businesses to invest, interest rates come down. Liquidity is pumped into the banking system; our doormats are once again carpeted with unsolicited mail extolling the benefits of taking out fresh lines of credit at "unbeatable" rates. Debt levels go up as the cheap money fuels a new bout of speculation. And when the speculation reaches fever pitch, central banks hose things down for a while.

Perhaps I'm missing something here but it seems that this way of regulating economies is just as crude and inefficient as the old system of direct controls on credit - and potentially far, far more destabilising. This is not economics, it is bubble-onomics."