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Politics : American Presidential Politics and foreign affairs -- Ignore unavailable to you. Want to Upgrade?

To: RMF who wrote (61982)	2/1/2013 1:25:12 AM
From: LLCF	Read Replies (1) \| Respond to of 71588

Agreed, I didn't mean to ply that a prudent Fed and Govt would have necessarily meant global disasters couldn't happen regardless... Just that (for example) the current (zero interest rates, massive balance sheet, and massive debt) environment absolutely makes possible negative outcomes that could have been averted (say 15 years ago) under more "normal" circumstances. There was absolutely no reason for the fed to keep rates so low during the Clinton and Bush Years... It lead to mal investment and underestimation of cost of credit to the entire economy including the Federal gives debt. Both parties cheered the fed on. And it was completely avoidable... Just a few short years earlier Cater appointee Volker ramed rates through the roof with the recognition of where "real rates" should be rather than dither abou enemployment or GDP. IMO Greenspan (and "mini-me" Bernanke) are responsible in large part for the boom and ensuing bust... Which at that point was unavoidable. DAK