Fed study says Bush and the banks didn’t cause the Great Recession. The Fed did.

[fuckwaffle]

Fed study says Bush and the banks didn’t cause the Great Recession. The Fed did

But a book by Robert Hetzel, a senior economist at Federal Reserve Bank of Richmond, says it wasn’t Bushonomics or greedy bankers or broken markets that caused the Great Recession. In The Great Recession: Market Failure or Policy Failure, Hetzel pins the blame squarely on the Federal Reserve and Team Bernanke.

 

[JAMESBJOHNSON]

No. Read Michael Lewis' book, THE GREAT SHORT. Wall Street gambled with debt, and the banks used debt as the basis for more debt (loans). The hedge funds bet the house of cards would collapse, and it did.

 

[RobDownSouth]

There are two distinct schools of thought on the Bush Recession of 2008:

• The "market" theory (pushed by JamesBJohnson and others), which promotes the traditional boom/bust theory of macroeconomics...
  
• and the "monetary" theory (pushed by fuckwaffle), which promotes the idea that any bust/recession/downturn is the direct result of inappropriate fiscal policy promulgated by the Fed.

The "monetary" theory has enormous appeal to the tin-foil hat "Ron Paul" demographic (which sees shadowy conspiracies at the Fed) and also among Glibertarians, who have long believed that teh "magic of the market" cannot fail, it can only be failed.

 

[fuckwaffle]

There are two distinct schools of thought on the Bush Recession of 2008:

• The "market" theory (pushed by JamesBJohnson and others), which promotes the traditional boom/bust theory of macroeconomics...
  
• and the "monetary" theory (pushed by fuckwaffle), which promotes the idea that any bust/recession/downturn is the direct result of inappropriate fiscal policy promulgated by the Fed.

The "monetary" theory has enormous appeal to the tin-foil hat "Ron Paul" demographic (which sees shadowy conspiracies at the Fed) and also among Glibertarians, who have long believed that teh "magic of the market" cannot fail, it can only be failed.

So you vote for the Monetary theory then.

 

[VaticanAssassin]

Nouveaux Principes d'économie by Jean Charles was the first to suggest the economy runs in cycles back in the early 1800's. This theory has been modified but still holds true. The fed and the government have the ability to smooth these cycles and shorten or extend them through policy. What it comes down to is who's policy helped and who's policy hurt.

 

[mercury14]

Nouveaux Principes d'économie by Jean Charles was the first to suggest the economy runs in cycles back in the early 1800's. This theory has been modified but still holds true. The fed and the government have the ability to smooth these cycles and shorten or extend them through policy. What it comes down to is who's policy helped and who's policy hurt.

I thought you blamed Obama for it.

 

[VaticanAssassin]

I thought you blamed Obama for it.

No...I blame his policy for extending it and making it worse.

Unless you think billions and abused and waisted stimulus is a good thing?

 

[JAMESBJOHNSON]

There are two distinct schools of thought on the Bush Recession of 2008:

• The "market" theory (pushed by JamesBJohnson and others), which promotes the traditional boom/bust theory of macroeconomics...
  
• and the "monetary" theory (pushed by fuckwaffle), which promotes the idea that any bust/recession/downturn is the direct result of inappropriate fiscal policy promulgated by the Fed.

The "monetary" theory has enormous appeal to the tin-foil hat "Ron Paul" demographic (which sees shadowy conspiracies at the Fed) and also among Glibertarians, who have long believed that teh "magic of the market" cannot fail, it can only be failed.

Dont put words in my mouth.

Our situation is the direct result of irresponsible conduct, immoral conduct, and few viable new technologies to create new industries and jobs. That is, how many cell phones do you really need? How many gay grief counselors can schools afford?

The moneys all gone, and Obama/Wall Street are pawning your tea service and weed whacker to keep the cigarette nazis in the government working.

 

[RobDownSouth]

Nouveaux Principes d'économie by Jean Charles was the first to suggest the economy runs in cycles back in the early 1800's. This theory has been modified but still holds true. The fed and the government have the ability to smooth these cycles and shorten or extend them through policy. What it comes down to is who's policy helped and who's policy hurt.

Top marks, 007.

Now, for extra credit, what policies can the Fed and/or the government enact to shorten a "bust" cycle?

And if you really want to impress me, what policies can the Fed and/or the government enact to shorten a "bust" cycle if interest rates are at near-historic lows?

This is your moment to shine!

 

[VaticanAssassin]

Top marks, 007.

Now, for extra credit, what policies can the Fed and/or the government enact to shorten a "bust" cycle?

And if you really want to impress me, what policies can the Fed and/or the government enact to shorten a "bust" cycle if interest rates are at near-historic lows?

This is your moment to shine!

Discretionary fiscal policy can be used to expand the economy by increasing spending and or decreasing taxes in a low interest rate environment. Doing the right thing, but executing it poorly does not give someone high marks in my book.......

 

[KingOrfeo]

Fed study says Bush and the banks didn’t cause the Great Recession. The Fed did

That book is not a "Fed study."

 

[KingOrfeo]

There are two distinct schools of thought on the Bush Recession of 2008:

• The "market" theory (pushed by JamesBJohnson and others), which promotes the traditional boom/bust theory of macroeconomics...
  
• and the "monetary" theory (pushed by fuckwaffle), which promotes the idea that any bust/recession/downturn is the direct result of inappropriate fiscal policy promulgated by the Fed.

The "monetary" theory has enormous appeal to the tin-foil hat "Ron Paul" demographic (which sees shadowy conspiracies at the Fed) and also among Glibertarians, who have long believed that teh "magic of the market" cannot fail, it can only be failed.

Oh, there are many more theories than that.

 

[subwannabe]

I would just like to say that GB and the Republicans took a lot of heat for their policies, causing the Great Recession. The truth is that they did not iniate any policies or law changes that brought this on. Did it happen under their watch? Sure did but the fact is that all of the policies which led up to this were the same ones which had been in place for decades, under leaderships of both parties. I guess you could argue that they should have seen it coming but you could also argue that Bill Clinton should have seen it coming also under his eight years. As far as I can remember no Democrats in power saw it coming under GB. It snuck up on everyone. Obama would like us to believe, incorrectly, that it was the policies of the Republicans which brought this on and still campaigns to this day that we don't want to return to these same policies. Hopefully we now have "policies" and laws in place which can help prevent this from happening again but I seriously doubt we do. We got in trouble mostly by banks issuing loans to those that should have never had them and the way we get out of the recession is to institue policies to loosen up credit again? Really? Also, we are going to eventually go the way of Europe when we have a 16 trillion dollar debt which increases by a trillion dollars every year and the democrats in power have absolutley no plan to correct that, other than let's tax the rich more and continue spending money like never before. It doesn't take a genious to know that even the rich can't afford to come up with a trillion dollars a year more and, even if they could, it would cause the economy to crash as it is the rich who generate the jobs. For the record, I am an independent and am royally pissed off at both parties. Really waiting to see if a legitimate third party candidate comes forward.

 

[eyer]

END
THE
FED

 

[Sean Renaud]

I'm just marking this so I can laugh at future stupid comments. The things leading this disaster had been in place for decades. Priceless. End the Fed. Pure Gold.

 

[KingOrfeo]

END
THE
FED

That would be a very, very bad idea.