The Fed has just fueled the treasury bubble even more….just like they fueled the housing bubble after the stock bubble burst They keep trying to fix the wrong problem. Instead of letting risk get priced back into the economy, they just keep trying to shift the excess risk around. They are robbing Peter to pay … Read more Fed Wearing Blinders
Greenspan WAS the flaw in his free market model…because he altered free markets by lowering rates to boost the economy after the stock bubble burst. Plain and simple. Had free markets been allowed to correct after the bubble burst, we would have unwound the excess risk and leverage much sooner and with much less pain. … Read more Greenspan’s Flaw in Free Market Model
The FOMC should have left interest rates alone as the housing bubble started to burst, and let home prices fall back to historic trend-lines. Granted there may have been defaults, but they were necessary. These people didn’t deserve to be in these homes in the first place, they bought overpriced assets with no equity up … Read more FED: Finance & Economics Disability or FOMC: First to Originate Make-believe Crisis
If Einstein were asked to solve the wrong problem, even he would come to the wrong conclusion. It is my opinion that this is what is happening to the powers that be in the U.S. Federal Reserve and Treasury. Yes, there was a housing bubble, which preceded the current economic problems, but it is NOT … Read more The problem with the current economic solutions