Fed Reserve Fails to Reflate the US Banking System

For decades central banks set monetary policy according to nonsensical beliefs about credit expansion. The inability of the Fed to stop the current crisis via emergency lending to banks demonstrates that Fed policies are a failure. This movie reveals the scale of this disaster.

Category:

News & Politics

Tags:

• banking
• crisis
• fail
• federal
• reserve
• itulip.com

[Rofocales]

So inflation wise in the 1930s $1 dollar is around $13 dollars today, so no more than $16 billion was borrowed. In the 1980s inflation wise it's around 2.5x. Correct me if I'm wrong as I'm a bit out of it today, but @ our peak, including inflation, no more than around 30ish billion (being generous) has ever been borrowed before.

[itulipdotcom]

That is correct, $30 billion max in 2008 dollars previous borrowing vs $700 billion 2008 dollars in 2008. If you inflation adjust the scale appears the same, so does not add anything to our point, plus this way we get to use the Fed's own charts. (They do not inflation-adjust.)

[gigglybeast]

Yawn. Adjusted for inflation?

[itulipdotcom]

We tried it. It doesn't make much difference. A 2x inflation in a 80x scale is noise.

[singas30]

If you lower rates today or provide tax cuts or economic stimulation - the lag before the effect hits the hip pocket is between 3 and 6 months. That places us back in June 2008. If you have only mortgage debt - a secure job ( ie teacher ) the change your perspective - 1. Home rates are falling dramatically, Fuel costs are falling as is virtually every other aspect of the Consumer price index. Not such a bad outlook now is ot ? We needed to deflate the bubble, fortune now favours the bold.

[itulipdotcom]

Agree with the last line, but falling home prices have placed one in six houses below the value of the mortgage. The tax rebate checks were largely saved, used to pay down debt. Few are borrowing anew because they can't even pay their existing debts.

[wwwdotLPdotorg]

DjetGlea

Better idea, why not sell Washington DC, that way we can get rid of the problem.

[Rofocales]

The great fall of the 21st century paradoxically has a beautiful soundtrack.

[makeiteasyable]

good info .

[HaveAGingerAle]

um - I like this video - but as for the end - central bankers know EXACTLY what they are doing!

[x11115]

I don't like what the government is doing by increasing the debt - they have done a horrible job and will eventually bankrupt the country / people. But you can't say money isn't what it's worth in 1929 because there was also a population boom and when there's more people there has to be more money to go around. Make sense? More people = less resources = less value no matter how you look at it. So if you equally divide everything of value and there are suddenly 10x more people to divide by -$

[FordPintoRed]

New World Order mentioned 1967 film

watch?v=GPB98MC3PVo

[BoxGuy1951]

dj- Maybe get rid of them ? Thats EXACTLY what is necessary ! Consider this for a remedy to our present day financial " crisis ". End the Feds role in governmental banking & audit it ASAP to determine its past errors & who benefitted from them. Consider our present debt as " A Wash " . Paid in full ! Pull out of both wars & close half our worldwide bases ! Deport ALL illegal aliens ASAP including ALL anchor babies. All of a sudden we look healthy again dont we? In the black about 14 trillion !

[stang661]

Great thing is giant banks will never fail and never have to perform. No need for big bankers to even try. Just get on that federal welfare.

[romanianskill]

Fake... you can see the strings

[mandatum1979]

Holy crap!

[ld80061]

These are the lowest rates we will see for a generation. BUT, you must be able to maintain payments for at least 5 years, no matter what.

You have a job, friends, and family. You are right not to give them up - that kind of invisible wealth is pure gold in hard times.

Seriously, get out of as much debt as you can - especially credit card (and other hgh-interest) debt. Consolidate your debt, and get it on a low-interest account. See if you can renegoitate payment terms.