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Ben Bernanke: Someone pay him to go & study the Great Depression or do anything else
- Thread starter ByLoSellHi
- Start date
Quote from ByLoSellHi:
Let me break it down to the simplest elements for you, HB:
What, precisely, good did cutting rates do today? Who did it benefit? Do you see consumer lending pick up? Do you see consumer interest rates dropping? Do you see the dollar strengthening?
Yes, the dollar is +1% against the Euro today.
And consumer spending for March was +0.4%, DOUBLE the increase that economists had forecast, so it would appear that the Fed's monetary policy over the past quarter or so is starting to work.
You keep ranting and raving about how poorly the Fed and Ben Bernanke have "responded" to this crisis in the banking system, yet your lack of patience to see the fruits of the Fed's efforts is quite ironic.
The fact that it has been so incredibly difficult to turn this huge "oil tanker" around in the ocean ( given all of the highly deflationary trends in the banking system ) EVEN WITH THE TREMENDOUS EASING BY THE FED, should indicate to you just how serious this banking crisis has been.
Yet, there are people on ET that think that it just has to do with a couple of banks going under and that the dollar should be defended at all costs . . .
Go figure.
Quote from Landis82:
And consumer spending for March was +0.4%, DOUBLE the increase that economists had forecast, so it would appear that the Fed's monetary policy over the past quarter or so is starting to work.
Well, I know MY spending is up.
With higher gas and food prices, how could it not be?
Quote from Landis82:
You don't understand.
The FED "contracted" the money supply by one-third and wiped-out purchasing power in an unprecedented fashion. A series of cummulative mistakes by the FED literally caused the Great Depression.
I thought the Treasury controlled the money supply.
Is it the Fed or the Treasury?
Quote from Landis82:
You are far too simplistic in your "analysis" of the current banking system crisis. You act as if the inflation rate should be the ONLY priority, and nothing else, as if the economy works in some sort of perfect little theoretical model from ACADEMIA.
I will ask this question one more time ( since no one seems to be able to answer it on this thread ):
Given that the savings rate of Americans is the lowest out of any industrialized country ( and was ZERO for the entire 2005 year ), where do you believe CAPITAL FORMATION comes from in the U.S. economy?
The problem is the economy is not being allowed to work. The fed refuses to let us have orderly contractions to set the stage for the next HEALTHY boom. This constant propping and prodding only postpones the inevitable. Let me ask you, do you believe at some point we need to pay the piper for all the excesses? If you do, when do you think the right time would be? Or do we keep inflating in perpetuity and just hope for the best?
exactly.
Quote from Landis82:
Yes, the dollar is +1% against the Euro today.
And consumer spending for March was +0.4%, DOUBLE the increase that economists had forecast, so it would appear that the Fed's monetary policy over the past quarter or so is starting to work.
You keep ranting and raving about how poorly the Fed and Ben Bernanke have "responded" to this crisis in the banking system, yet your lack of patience to see the fruits of the Fed's efforts is quite ironic.
The fact that it has been so incredibly difficult to turn this huge "oil tanker" around in the ocean ( given all of the highly deflationary trends in the banking system ) EVEN WITH THE TREMENDOUS EASING BY THE FED, should indicate to you just how serious this banking crisis has been.
Yet, there are people on ET that think that it just has to do with a couple of banks going under and that the dollar should be defended at all costs . . .
Go figure.
Please tell me you didn't just point to the +.4% consumer spending figure as some sort of positive. Lets raise the prices on gas and food some more and we can have +8% next month. Will that mean the consumer is healthy and out splurging? You and I will probably never agree but lets not act like everyone is totally brain dead.