They are doing it for 33 years non stop
is it some moronic feature to become the Fed member - they get Nobel prizes for wealth effect. They print money like insane and still every bubble they blow bursts
Just a year or 2 ago Yellen said we will never see crisis like 2008 in our lifetimes.
With such morons we gonna have such crisis every 2 years
Did you notices collapses started to come more often?
Aug 2016, Feb 2018, Dec 2018, Mar 2020
Instead of allowing market forces to deflate valuation they like autistic children repeat and repeat and repeat their interventions and try to suppress volatility
I don't mean to be argumentative or disrespectful, but my personal belief is that this is wrong. The Fed does not create market "bubbles". Bubbles are a feature of capitalism. The first economist to recognize this formally was Keynes. A mention of this is included in his "General Theory.." in the chapter where he discusses some of the defects in capitalism.
While, generally speaking, the Fed does not create bubbles, they often have done little to calm "irrationally exuberant" markets, even though they might have. In the Greenspan era, I attribute this insouciance to Greenspan's belief that markets out of whack would correct themselves harmlessly and move spontaneously back toward equilibrium, Adam Smith style. Soros, however, has made the point that markets out of whack, if they are left alone, are more likely to move further out of whack than they are to spontaneously seek equilibrium. I happen to be a devotee' of Soros. I think there is plenty of evidence that Soros is right. [see for example, the "Soros Lectures at The Central European University.]
The Central Bank which works hand in glove with the U.S. Treasury, has many tools in their tool kit, but by themselves they are not all powerful. However the Treasury, in conjunction with the C.B. -- these are really one operation made to look like two -- and together with the U.S. Congress, is, in fact, all powerful. They can create and destroy money at will, they can tax, they can side-track money in the form of bonds, they set the interest rate and they make the rules. They can spend without borrowing and borrow without spending. These entities have all of the tools they need. They are technically constrained by productivity. They are practically constrained, however, by the wisdom and fallibility of those who administer these agencies of government.
