If spending too much money, buying too many houses, too many cars, etc., and not saving or producing enough to balance our trade deficits along with an inflationary monetary policy got us into this mess, then why would the answer be for Americans to buy more houses, cars, etc. whilst the Fed inflates the currency more and the government stifles business and makes us unproductive? That's more of the problem, not the solution. Credit is not the "lifeblood of the economy", it's the cancer.
"People's home equity shot up and it made them feel wealthier than they were." Exactly! This was all due to the inflation/manipulation of interest rates by the Federal Reserve, regulations, and congressional pressure on banks to make risky loans. Wall Street/banks (and borrowers) were culpable too, but none of this activity (or the resulting crises) would have been possible without the Fed's policy. This is the problem but now we're doing the same thing all over again and calling it stimulus.
If spending too much money, buying too many houses, too many cars, etc., and not saving or producing enough to balance our trade deficits along with an inflationary monetary policy got us into this mess, then why would the answer be for Americans to buy more houses, cars, etc. whilst the Fed inflates the currency more and the government stifles business and makes us unproductive? That's more of the problem, not the solution. Credit is not the "lifeblood of the economy", it's the cancer.
mjhonsun 2 years ago
"People's home equity shot up and it made them feel wealthier than they were." Exactly! This was all due to the inflation/manipulation of interest rates by the Federal Reserve, regulations, and congressional pressure on banks to make risky loans. Wall Street/banks (and borrowers) were culpable too, but none of this activity (or the resulting crises) would have been possible without the Fed's policy. This is the problem but now we're doing the same thing all over again and calling it stimulus.
mjhonsun 2 years ago