Quote from Daal:
If you believe in fed bashing, you believe in a religion created by free market extremists, bloggers and perma government bashers
http://online.wsj.com/article/SB123672965066989281.html
Quote from Cutten:
Obviously the Fed didn't cause the housing bubble, since numerous other countries had housing bubbles outside the USA.
However, the Fed definitively did *nothing whatsoever* to stop the housing bubble accelerating for years, following Greenspan's "don't stop the bubble in advance, clean up the mess afterwards" policy i.e. the exact opposite of the traditional "take away the punch bowl" strategy for central banks.
Daal, do you think that Greenspan's hands-off policy towards bubbles has worked well?
Let me guess: "Yes it's worked perfectly, and anyone who disagrees is a religious fundamentalist Austrian nutcase".
Like makloda recently, you are sounding more and more like a politician trying to score points through debating tricks, assertions, straw man arguments and ad hominem attacks, rather than someone interested in trying to find out the causes of economic problems by looking at facts and evidence. There seems no shades of grey, no partial agreement or disagreement, everything in your recent posting is black and white. All that will do is bias your trading and cause people to lose respect for your posting.
Quote from Cutten:
And Greenspan himself said that a dovish rate policy to try to smooth the cycle could sow the seeds for future bubbles & instability - so the former Fed chairman actually *agrees* that being too easy with monetary policy can contribute to bubbles.
Quote from Cutten:
"a monetary policy that is successful in inducing stability may inadvertently be sowing the seeds of instability associated with asset bubbles."
- Alan Greenspan, December 2002
"It seems improbable that a surge in innovation in the near future would generate a new bubble of substantial proportions."
- Alan Greenspan, December 2002
That's right folks - Greenspan at the end of 2002 said that it was improbable there would be a substantial new bubble in the near future. The next 3-4 years saw the spectacular blowoff of the biggest housing and credit bubble in western economic history. And Greenspan himself said that a dovish rate policy to try to smooth the cycle could sow the seeds for future bubbles & instability - so the former Fed chairman actually *agrees* that being too easy with monetary policy can contribute to bubbles.
Yet according to Daal, if you point out any of this or criticise the Fed for that, you're a religious fundamentalist. Excuse me while I go say my kumbayas.
Quote from Daal:
Read his book. He raised rates in particular to slowdown housing yet due global forces that was not possible. You want to blame a policeman without a gun for not stopping a bank robbery
Quote from Daal:
Greenspan explains in a simple way why fed funds decoupled(as shown by breakdown of correlation) from mortgage rates and why the 'greenspan conundrum' occured. If you believe in fed bashing, you believe in a religion created by free market extremists, bloggers and perma government bashers
http://online.wsj.com/article/SB123672965066989281.html