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Advisor

Krugman, Did the Fed Save the World?

Catching up. I have to agree- probably more a matter of (still insufficient?) fiscal stimulus than monetary policy.

 

http://krugman.blogs.nytimes.com/?_r=0

9 Replies
Honored Advisor

Re: Krugman, Did the Fed Save the World?

The Fed delayed the inevitable and they never seize to amaze me how long they can keep it going.  Congress doesn`t act, no leadership from the executive branch, all that`s left is for the fry cooks to operate the bilge pumps to keep it on the top side of the surface.

 

Bailing out houses and banks only compounds the problem.  If banks, car companies and houses go broke and get sold 10¢ on the dollar, that is what needs to happen to clear the books.  if a $300,000 house sells for $50,000, that`s good it`s affordable for a young family, as it is now proping up $300,000 houses only makes them unaffordable and wouldn`t be sold at all were it not for zero % prime rates.

 

But that`s pain up front and congress doesn`t want the blame, neither does the white house.  So all that`s left is for the Fed to drop interest to zero have JP Morgan naked short gold to keep gold below $1200 and the Dow above 16,000...they don`t want the blame either, I wouldn`t either if I was them. 

Advisor

Re: Krugman, Did the Fed Save the World?

Your boyTrump wants those policies and actions IN SPADES!  He's hawking endless deficits and debt. With nothing in return but to line pockets. At least Sanders, who also wants more spending, is touting upgraded infrastructure, education and health care for the rest of us.

Veteran Advisor

Re: Krugman, Did the Fed Save the World?


@bruce MN wrote:

Your boyTrump wants those policies and actions IN SPADES!  He's hawking endless deficits and debt. With nothing in return but to line pockets. At least Sanders, who also wants more spending, is touting upgraded infrastructure, education and health care for the rest of us.


Why do the choices always have to be bad or badder? Smiley Frustrated Smiley Mad

Veteran Advisor

Re: Krugman, Did the Fed Save the World?

What is bad about wanting to fix crumbling roads, bridges and railways?  Certainly what is bad about more and better health care for EVERYONE???  Your vote goes to make the rich richer yet you aren't any closer to that than I am!!

Honored Advisor

Re: Krugman, Did the Fed Save the World?

I wouldn`t say that Trump supported the bank bailouts in spades, no more so than the Democrats.  It isn`t a `black and white issue`, if you choose door #1 it`s a pride of hungry lions, if you choose door #2 it`s a streak of hungry tigers.  As global as the economy and fragile is, any choice is a bad one, I understand why the fed is doing what they`re doing, it`s seen as the safest route.

 

To go down the Ron Paul route and "just pull out of Iraq and let banks fail" I was okay with that Libertarian ideology, but to go down that road, you have to buy the whole package and as we see in the case of the M.E. that might entail turning back refugees and letting even more anti-Amercan forces fill vacuums that are left.  Letting big banks fail and car companies fail, would entail some people`s pensions and 401Ks go belly up...all that will happen eventually anyway, but no one wants to have their fingerprints on it when it does.

 

http://www.politifact.com/florida/statements/2015/sep/15/club-growth/did-donald-trump-support-wall-s...

 

Senior Advisor

Re: Krugman, Did the Fed Save the World?


@schnurrbart wrote:

What is bad about wanting to fix crumbling roads, bridges and railways?  Certainly what is bad about more and better health care for EVERYONE???  Your vote goes to make the rich richer yet you aren't any closer to that than I am!!


The rich have never prospered more than under Barack Obama and why after nearly seven years of record deficit spending do we STILL have crumbling roads and bridges and the smallest labor participation rates since the 1970s?

Veteran Advisor

Re: Krugman, Did the Fed Save the World?

The "record spending" has gone one since the early 2000s and if you don't know what the answer to your question is, you are the problem!!

Senior Advisor

Re: Krugman, Did the Fed Save the World?


@schnurrbart wrote:

The "record spending" has gone one since the early 2000s and if you don't know what the answer to your question is, you are the problem!!


And we still have crumbling roads and Bridges?

Veteran Advisor

Re: Krugman, Did the Fed Save the World?