The Fed is Shockingly Clueless
by What exactly would it take for the Federal Reserve to finally do what Congress created it to do and furnish an elastic currency?
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What exactly would it take for the Federal Reserve to finally do what Congress created it to do and furnish an elastic currency?
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Post CommentIreniaPehuajo
On January 29, 2009 at 9:42 am
Good article!
Bye
Yovita Siswati
On January 30, 2009 at 5:54 am
Interesting read! Great work!
K O
On January 30, 2009 at 6:47 am
You have failed to integrate the effect that an $800 billion TARP plus an $800+ billion stimulus plan have to losses experienced in the capital and real estate markets. Further, with respect to deflation, there must co-exist both falling prices and employment. While unemployment levels are rising, the average rate of inflation over the past year is about 4%. The Fed is not only not “clueless,” as you purport, but is headed by one of the most respected world scholars of the Great Depression who helps assure that the mistakes made at that time will not be repeated.
Joe Dorish
On January 30, 2009 at 7:06 am
The TARP and Stimulus money is borrowed money. Borrowed money cannot replace lost money in the economy as I explain in the two last articles listed at the bottom of this article, Why TARP Doesn’t Work and How to Make the Obama Stimulus Plan Work. If inflation was actually 4% over the last year people would be spending their money rapidly and not hoarding it. Who cares what Bernanke’s pedigree is? It’s his record that counts and so far his record is abysmal. If he had bought enough long term Treasuries back in November of 2007 he would have replaced the lost money from bank write-offs in the economy and the crisis would have ended. Instead he has continually tried to re-invent the wheel by adding square corners to it. The US economy is in the worst shape since the Great Depression brought to you by “one of the most respected world scholars of the Great Depression”.
Shari86
On January 30, 2009 at 7:13 am
This is definitely an interesting article, and if the situation is as bad as you say, then it’s not just Americans that should be worried about the Federal Reserve’s next move. The entire global economy is in dire straits because of the US lending and banks crisis, including here in Ireland where we’re also dealing with the death of the famous Celtic Tiger.