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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?


To: Perspective who wrote (239605)2/27/2010 11:36:00 AM
From: neolibRead Replies (2) | Respond to of 306849
 

The problem of course is that the Fed doesn't buy things, it buys securities, and it can't possibly force income growth, which is what is truly necessary to get us out of this mess.


Agreed!

The Fed (and Keynesian economics in general) tries to function as a shock absorber in a cars suspension. A shock absorber can't make your car climb a hill, but it can make the ride more comfortable.

Problems arise when people think the shock absorber can be used to propel the car up a hill.