Thats the problem, when things are great they let the bubble expand and pop. Any threat of a recession or slow down in gdp and they stimulate it as quick as they can do it, they will do anything and everything to keep the economy from stalling, thats the problem, after the dot com bubble they took rates down to historical lows and pumped the economy up with cheap liquidity creating the next credit bubble and crisis were in right now. The only thing that fixes this problem is to let the free markets take care of it, and that means if unemployment rates have to skyrocket or gdp fall off a cliff, let it be. Feeding this economy stimulus is just the wrong way to fix this crisis. All were doing is creating significant problems ahead for our economy, stocks can go up as high as they want but that wont put millions of people back to work or get 45 million people out of poverty. These markets are out of line right now, between the dollar just dropping and commodities rising how long can this last, the carry trade is the next thing that worries me. But no one cares until the next crisis comes, then everyone wakes up. As long as markets continue to rise everyone will look the other way. Bubble ben bernanke better get ready for is invitation to capitol hill because he is going to be there a lot over the next 2-3 years being questioned how he fucked up.
Fed to buy $500 billion in US debt
- Thread starter bearice
- Start date
Thats the problem, when things are great they let the bubble expand and pop. Any threat of a recession or slow down in gdp and they stimulate it as quick as they can do it, they will do anything and everything to keep the economy from stalling, thats the problem, after the dot com bubble they took rates down to historical lows and pumped the economy up with cheap liquidity creating the next credit bubble and crisis were in right now. The only thing that fixes this problem is to let the free markets take care of it, and that means if unemployment rates have to skyrocket or gdp fall off a cliff, let it be. Feeding this economy stimulus is just the wrong way to fix this crisis. All were doing is creating significant problems ahead for our economy, stocks can go up as high as they want but that wont put millions of people back to work or get 45 million people out of poverty. These markets are out of line right now, between the dollar just dropping and commodities rising how long can this last, the carry trade is the next thing that worries me. But no one cares until the next crisis comes, then everyone wakes up. As long as markets continue to rise everyone will look the other way. Bubble ben bernanke better get ready for is invitation to capitol hill because he is going to be there a lot over the next 2-3 years being questioned how he fucked up.
Absolutely, if the Fed goes down this road which obviously is an option. This would be far far worse than anything seen in the US. It would far exceed the great depression due to amount of leverage the average US citizen has. Not to mention the current service orientated economy in which we live, in a sense everybody relies on everybody else.
You must watch this!!!
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That's because (and I know you already know this but it's worth mentioning on this thread) the Fed isn't the least bit interested in the consumer or the unemployed. Their sole purpose is to protect the banks and the best way to rescue the banks is to inflation those millions of assets they will be foreclosing on in the coming months. The Fed was founded by the banks to police the banks. That's a like pistol whipping, store robbing, ho beating inmate at San Quentin naming his "celly" as the prison warden.
You touched on an important point which need repeating. America is an instant gratification society with a very myopic view.
The best thing Ron Paul and Libertarians can do is to address concerns about Austrian Econ. I am willing to support and try it but I am concerned about Mad Max I admit it. I know it won't be MM but it could get real bad. Look at gun purchases they are going up. Look at Goldman Sachs get CCW in NYC, which aren't easy to get there. Under a Libertarian system you would need to teach people financial responsibility. I fear that a lot of people can't handle that much responsibility growing up in the "Matrix". They will spend all of their money and come after ours when the are desperate.
Fine, but what would you do were you in his shoes? It is very easy to be critical of Fed policy, and it is fair and reasonable to scrutinize their actions. I don't, however, agree with those who would say Bernanke is a fool -- not suggesting you said that, but others have. He has an extremely difficult situation on his hands, brought on by government fiscal irresponsibility and a former Fed Chairman who, although he was the chief regulator, did not believe in regulation. Greenspan clearly was mistaken to believe that market forces alone would prevent financial crises.
So far, I have been fairly impressed with Bernanke. He is an expert on the Great Depression and it seems that background makes him ideally suited to lead the Fed at present. The Fed does not determine Federal fiscal policy but nevertheless is expected to accommodate it, just as the IRS does not determine tax code but is charged with enforcing it -- no matter how complex, absurd, unreasonable or difficult to enforce.
It seems much of the venom spewed out against Fed policy is misdirected. It should be, in my opinion, directed at those responsible for fiscal policy, primarily the legislative branch of the Federal Government.
Bernanke clearly believes that the alternative of letting the economy slip into deflation, with little or no Federal leveraging up in compensation for de-leveraging in the private sector, to be worse than the present policy. He is between a rock and a hard place. He has said plainly and repeatedly that current deficits are not sustainable.
If the US economy completely collapses at some point in the future I doubt it will be because of Federal reserve policy. Rather I would think it far more likely to occur because there is no possible way that monetary policy can correct and compensate for an untenable fiscal policy, and a misguided regulatory policy.
Very well said! The FED are left to deal with it alone. They are doing the only thing they can do. More QE.
If the government were to act by lowering taxes or providing monetary incentives to stimulate the economy, then the FED can hold on. The government can lower corporate taxes, remove red tape, offer duty free zones, remove labor protection etc. Etc.
The 2 programs that worked so far were cash for clunkers and the housing stimulus package. Why not do more of it?
I still haven´t heard about Giselle Buendchen throwing around $100 notes at The Walldorf Austoria.
So, I can definitely exclude that there is any inflation and money velocity is "under control"...
http://www.france24.com/en/20101020...s-retirement-sarkozy-pension-hortefeux-petrol
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It is up to you Citizens. Either we face the fate of FRANCE or we get the shit under control and throw out the Liberals, Obama politcs, the Fed and take back the Future of America.
If we continue down this path....America will face the same "Population" of Freeloaders that France has delt with for decades.
_______________________________________________________
It is up to you Citizens. Either we face the fate of FRANCE or we get the shit under control and throw out the Liberals, Obama politcs, the Fed and take back the Future of America.
If we continue down this path....America will face the same "Population" of Freeloaders that France has delt with for decades.