Wait a second I thought BUBBLE ben bernanke said there wasnt inflation!!!!!

[S2007S]

Where are the free markets, all they know how to do is intervene every time their is a collapse which leads to just more future economic collapses.

Bubble ben bernanke has just started the next crisis with his easy money policies, its too late to change it back now, the asset bubbles have arrived and will collapse just like they always do!

 

[AK100]

Quote from Kassz007:

How do you know this? Are you able to give any specific examples of a central bank staying out of a financial collapse, taking the pain, and then seeing the economy emerge in far better shape?

For what it's worth, I agree with you on the pain part. But I am not so sure the economy would be in far better shape than it is now.

Common sense tells me that would have been the case because there are few times in history when central government planners get it right unless you're in the old Soviet Union where the next 5 year Plan was deemed a massive success before it had even started

Believe me, when the history books are written the Fed will a) be no more and b) will be known as the real villain in all of this mess.

As another good example, do you think Japan (ex earthquake) would be in a better economic shape now if it had left the economy to sort itself out naturally after the 1990s bust or would it be in worse shape if the central planners hadn't done everything in their power to help their stricken financial sector, ie their zombie banks.

Summary: Governments rarely get it right, but the market always gets it right........

 

[Bob111]

Quote from Kassz007:

Indeed. Fed doing their part to assist congress in cleaning up their mess. The real question - why do USA citizens blame the Fed, when they should be blaming congress?

just got a quarterly letter from our township- in last 4 years there is no increase in spending. not at all. they spend same 12 M year over the year,running on surplus..benefits of the employees are been renegotiated and reduced,some people been fired,annual salaries increases been reduces from 4.25 to 2% for next few years and so on. why federal gvt can't do same? why it's so fucking hard for them to do same? why fed budget and deficit literally ballooned in those years? where is the money go?

 

[Scataphagos]

Quote from Bob111:

"... why federal gvt can't do same? why it's so fucking hard for them to do same? why fed budget and deficit literally ballooned in those years?

Public employee unions "negotiate" (that's a laugh) with elected officials for "absurdly-generous-at-the-public's-expense" pay and benefit packages. In exchange, the unions contribute to officials' reelection campaign coffers.

Can you think of anything more self-serving and corrupt??

 

[dtan1e]

a crook will tell u he's not a crook

 

[denner]

Quote from AK100:

Common sense tells me that would have been the case because there are few times in history when central government planners get it right unless you're in the old Soviet Union where the next 5 year Plan was deemed a massive success before it had even started

Believe me, when the history books are written the Fed will a) be no more and b) will be known as the real villain in all of this mess.

As another good example, do you think Japan (ex earthquake) would be in a better economic shape now if it had left the economy to sort itself out naturally after the 1990s bust or would it be in worse shape if the central planners hadn't done everything in their power to help their stricken financial sector, ie their zombie banks.

Summary: Governments rarely get it right, but the market always gets it right........

Agree with all of the above. Guys like Kassz are the typical braindead central planning fanboys. They argue for continued intervention, but never admit to the fact that all of the intervention is required by the same institution that caused the majority of the problems in the first place. Again, the arsonist walks around the block and appears as the firefighter. It plays well to the fools who cry uncle about "deflation" in every other post.

All of this constant intervention just creates permanent misallocation of resources, human and otherwise. As we can readily see in the present, the F.I.R.E. economy is now the tail wagging the dog. Instead of being relegated to a secondary role in a developed economy (which they should be), we are killing off the productive aspects of our economy to prop them up for an indefinite period of time.

 

[Scataphagos]

Quote from dtan1e:

a crook will tell u he's not a crook

Just like Nixon. Just like Odumbo!

 

[Martinghoul]

Quote from AK100:
Common sense tells me that would have been the case because there are few times in history when central government planners get it right unless you're in the old Soviet Union where the next 5 year Plan was deemed a massive success before it had even started

Isn't the most important contemporary economic success story all about the central govt planners getting it right? I mean, of course, Deng Xiaoping and China...

Summary: Governments rarely get it right, but the market always gets it right........

What do you mean by this? Wasn't it the mkt that was valuing subprime RMBS at par in 06/07? Was it right then?

 

[denner]

Quote from Martinghoul:

Isn't the most important contemporary economic success story all about the central govt planners getting it right? I mean, of course, Deng Xiaoping and China...

What do you mean by this? Wasn't it the mkt that was valuing subprime RMBS at par in 06/07? Was it right then?

That's an obtuse statement Martin. The market does not exist in a vacuum, most of the distortions are the direct result of central bank intervention. Hence, we can not conclude the "market is always right" without the pretext of the central banks influence in distorting the market's ability to fairly price risk assets.

When I hear that "the market is always right" I've begun to attribute that to "things" outside the influence of central banks. More along the lines of barter or E-Bay auctions.

 

[Kassz007]

Quote from AK100:

Common sense tells me that would have been the case because there are few times in history when central government planners get it right unless you're in the old Soviet Union where the next 5 year Plan was deemed a massive success before it had even started

Believe me, when the history books are written the Fed will a) be no more and b) will be known as the real villain in all of this mess.

As another good example, do you think Japan (ex earthquake) would be in a better economic shape now if it had left the economy to sort itself out naturally after the 1990s bust or would it be in worse shape if the central planners hadn't done everything in their power to help their stricken financial sector, ie their zombie banks.

Summary: Governments rarely get it right, but the market always gets it right........

I don't necessarily agree with everything you're saying, but I respect your opinion It could indeed be correct, we'll never know.

As long as you recognize that what you're saying is indeed your opinion, and not necessarily backed up by any hard facts.