Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Skeeter Bug who wrote (247694)	5/11/2010 10:55:28 AM
From: neolib	Read Replies (1) \| Respond to of 306849

I completely agree that the FED has screwed up. In any system, the people running it can do a poor job. That does not per se mean the system is bad. AFAIK, the fundamental problem with the FED & credit was that Greenspan was a devote of Ayn Rand and was sure that there really was no such thing as a bubble, because the prophetess had assured him that markets are magical. But your system is structurally screwed and might be run by an idiot to boot. Any job that has a lot of power requires careful selection of people given the responsibility, and oversight of what they do. It does not matter what the mandate of the job is, or what the tools are if you don't actually work effectively with what you have. Greenspan has more or less admitted this about himself. How do you think one should determine the price of RE & stocks using a government committee? Do you really think that is a good idea? I think it is fine, even desirable to have some active attempts at squishing bubbles, and also smoothing out recessionary dips. But this is much different than thinking the government can determine the "true" long term trends.