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During the financial crisis it could have been worse if the federal reserve did not step in to stabilize the economy, I for one would not have liked to experience a great depression era. Many people's retirement is tied to the stock market and having them lose it all would have been a unpleasant experience as they reach retirement age.
Other countries have tried to replicate the federal reserve policies and have had worse result than the US.
The FED policy experiment is a total disaster. The history will mark this time period as a greatest theft of public money in the history of the world. The FED didn't fix anything, deflation hasn't been avoided, just postponed for a few years and the FED has stolen trillions of dollars from the taxpayers to do this.
Deflation can't be avoided, deflation is part of our economic system, inflation and deflation work like a day and night, you can't have one without the other. The Fed would like to eliminate the Night Cycle (deflation).
The FED wants to deprive us from the sleep, the nature and economy doesn't work that way, you have growth period and then you have the rest period. No such thing as a perpetual growth. Only Cancer grows forever, and it does kill you at the end.
Deflation is still coming to America and the World. God Bless the Strong US Dollar!!!
i think they did a good job sparing us from a 1929 depression when things collapsed .
things ain't great but they are a whole lot less bad .
think what you want , but so far i think they did a decent job navigating us .
no political party has ever influenced my life with the exception of vietnam . for 40 years i put my pants on daily , went off to work , invested as best as i could and tried to make a better life for us regardless of what the gov't , the fed or any political party did or promised . . .
ultimately it was i that was responsible for my own success or failure .
Last edited by mathjak107; 12-20-2015 at 09:18 AM..
No Paul Krugman is an idiot and I don't read the NYTimes. Wsj had an article about why low interest rate is a problem. Stop the snarky comment. It's not necessary.
The party is over!!!!!!!!
God Bless the strong US Dollar. Let the strong US dollar bring deflation to the world and destroy the biggest debt bubble in the history!!!!
Is raising the rates the only thing that affects the strength of currencies? How many points did they actually raise it ?
The only reason I can think of for this rate hike is to give some kind of credibility to the Fed. Maybe because they talked about raising for so long, and never did it, they figured that they better do it or no one will ever believe their forward guidance again. It could also be that raising the rates indicates that the economy is getting better. Maybe they're playing with people's minds, telling them that the economy actually is getting better, so that people go out and spend their money. IMHO, there is a boat load of money in cash, and the govt. is trying to get more people to spend it which would help stimulate the economy.
But I agree, in logical terms, this rate hike makes no sense, unless they're trying to help revive the European economy.
Isnt most of the cash in the hands of banks and a few people? How will raising rates get them to spend?
Is raising the rates the only thing that affects the strength of currencies? How many points did they actually raise it ?
Higher interest rates make our currency stronger. The FED needs to keep raising interest rates and I welcome interest rates as high as 30%. The Strong Dollar is the only thing that can save us from the horrible manipulations of the central banks. Weak Dollar inflates; strong Dollar deflates.
There can be no real economic growth where there is massive debt. The debt must be destroyed (through massive default) before economic growth is possible. We should have begun deflating our huge debt bubble in 2001. Instead we decide to build it even larger. We are still trying to build it larger, the worst disease prognosis in the history of medical monetary policy -- the Debt Bubble must come down like the Hindenburg. Until then, no real economic growth is possible!!!
i think they did a good job sparing us from a 1929 depression when things collapsed .
things ain't great but they are a whole lot less bad .
think what you want , but so far i think they did a decent job navigating us .
no political party has ever influenced my life with the exception of vietnam . for 40 years i put my pants on daily , went off to work , invested as best as i could and tried to make a better life for us regardless of what the gov't , the fed or any political party did or promised . . .
ultimately it was i that was responsible for my own success or failure .
Well I think they sucked. There was a very simple solution to punish creditors and borrowers while not punishing people for simple market instability. At the fundamental level nearly all creditors were spared and borrowers were punished across the board.
That is an idiotic argument and you know it. If you were at my house and where thirsty, and I told you to go outside and eat snow....well you ain't thirsty no more right.?
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