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Politics : President Barack Obama -- Ignore unavailable to you. Want to Upgrade?

To: tejek who wrote (136560)	9/1/2013 4:13:16 PM
From: RetiredNow	Read Replies (1) \| Respond to of 149317

You are not getting your root causes correct. The root cause of the crushingly bad downturns are the effect of the Fed applying too much stimulus during the upturns. It's a rubber band. If someone pulls it very far away from you, it's going to hurt when it snaps back in your face. This is the problem with Fed interventions. It's very hard to get right. We're better off responding to depressions with deficit spending (fiscal stimulus), than we are with monetary and interest rate (monetary stimulus) manipulations. The former help people get out the other side intact. The latter creates bubbles that will most certainly burst and leave people far worse off. The root causes of our calamities are not due to Capitalism. THey are due to Fed meddling and a laxity in enforcing regulations and laws and a slow erosion of good laws like Glass-Steagall.