Central Bankers Gone Wild

http://investing.meetup.com/21 - New York Investing meetup organizer Daryl Montgomery discusses the Fed's panic rate cuts in January 2008 and how Ben Bernanke recommended in his doctoral thesis that the fed needs huge rates cuts to avoid a Depression. However, the impact on the U.S. dollar and the inflationary implications weren't considered. Recorded at our February 13, 2008 meeting. For more on this topic, please read our blog, "The Helicopter Economics Investing Guide", at: http://nyinvestingmeetup.blogspot.com.

Category:

News & Politics

Tags:

• federal
• reserve
• inflation
• recession
• depression
• presidential
• election
• 2008
• stock
• market
• interest
• rate
• cuts
• monetary
• policy
• deficits
• Weimar
• Germany
• gold
• oil
• dollar
• Bernanke
• Greenspan
• national
• consumer
• debt
• investing
• economy
• money
• supply

[tommylodz2004]

Well, Bernanke follows Keynes' theories, which as far as i remember didn't say much about the inflation.

He basically cures an alcoholic with an alcohol. Good luck with that:)

Maybe in a short time we'll see negative intrest rates:) Who knows:D

[NYInvestingMeetup]

Economic stimulation will not work this time for just the reason you cited. The economy needs to sober up from overstimulation. The last thing it needs is more stimulation. That's only going to make then hangover worse.

Thanks for your commment. I hope you will subscribe to our videos.

[barbaglia111]

Very well said Daryl!

[NYInvestingMeetup]

Glad you liked it. Hope you saw, "Pump and Dump: The Fed's Interference in the Stock Market" as well. Wheelbarrow Economics should be out on Monday, March 3rd.

[bleupeony2]

thanks for this, I just found it.

google for: fuzzy numbers inflation



[imanselmo]

fuckin' greed. Ain't it a bitch?

[carlfinkle]

The last depression was deflationary, Inflation got us out of it, and will get us into the next one. The solution has become the problem.

[RedArm1200000000]

ABout time some one knows the turth to wall steet dam it took that long......

[BrightAnarchist]

Agreed. The mistakes that really matter were made in the past. Now there's nothing left to prevent a depression. The Fed can only make it worse, because there is a principle that Bernanke doesn't understand: meddling in the free market can only disable it.

[sirbadman]

Thank you for pointing out the problem with 'core inflation'. The world is suffering from major inflation because of the new money pumped into the system through the Fed TAFs and the ECB's similiar euro injections to solve liquidity problems, the Fed rate cuts, plus rising and energy and vital food commodities (eg. wheat,corn).

[InTheSticks1881]

Thanks for sharing