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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: PKRBKR who wrote (940128)	6/16/2016 8:55:48 AM
From: RetiredNow	Read Replies (1) \| Respond to of 1574589

Think about it this way. Why was there such a financial feeding frenzy in real estate to begin with, which lead to all the fraud and excesses that you describe, which ultimately lead to the bubble bursting? The answer is that the Fed was holding interest rates too low for too long, which made investing in real estate a highly lucrative endeavor. But the Fed's manipulation always employs the misallocation of capital from other profitable ventures with more sustainable returns to the momentum plays that most benefit from low rates. It became tulip mania. This is the problem with central government planning. It is all about pulling demand forward from the future. The problem now is that they are out of bullets. They've pulled so much demand forward that there's no future growth left to pull forward. So we are mired in a lingering malaise. It's a catch-22 of the Fed's own making. As long as we persist in thinking wealth comes from government manipulation of the currency through interest rates, QE, and other shenanigans, then we will always be doomed to massive disruptions in the economy and low to no growth. It's time for us all to remember that wealth comes from individual's and their efforts in private industry. The government only consumes wealth or manipulates it from one group to another. They don't create wealth.