Question for the Board about public finance ...

PSUEngineer89

Well-Known Member
Aug 14, 2021
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it's happening now. If you weren't following the moves all along, it's not possible to go over it all here. But it suffices to say that many people thought the policies in response to the financial crisis represented the Fed going into major experimental mode. The rates were kept far too low, for far too long. it is unbelievable, really, that they kept the plates spinning as long as they did. But now they have no good way out.
They (the fed) kept nothing afloat or spinning.

The huge head start given our current class of “leaders” allowed them to not be exposed til now.

But now, except for the morons who just refuse to see, it’s all coming out.
 

Catch50

Well-Known Member
Feb 5, 2003
36,260
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it's happening now. If you weren't following the moves all along, it's not possible to go over it all here. But it suffices to say that many people thought the policies in response to the financial crisis represented the Fed going into major experimental mode. The rates were kept far too low, for far too long. it is unbelievable, really, that they kept the plates spinning as long as they did. But now they have no good way out. The downturn hasn't really even gotten to the 2nd inning yet
You made a claim about Bernanke.
 

fairfaxlion2

Well-Known Member
Oct 12, 2014
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You made a claim about Bernanke.
and? IMO there is a direct line from his policy ideas to the problems right now. Yellen continued what he started and Powell is just ineffectual, hoping he can chase really high inflation with wimpy moves
 

pioneerlion83

Well-Known Member
May 29, 2001
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SouthernMD, by way of NJ and PSU
We will have to agree to disagree on that. The fed got it right until Bernanke came in and imposed his graduate school thesis on the entire economy. This actually happened. I don't think history will look back kindly on 10+ years of essentially zero interest rates. This is just the beginning of the aftermath
10+ years of essentially zero interest rates was begged for/cheered on by the entire business community, institutional investors, the blessed ****ing SHAREHOLDERS, the banking community, and home-builders, that said "I MUST HAVE CHEAP MONEY TO BORROW AND LEND, and CHEAP COST OF CAPITAL!!!!!"..."SO I CAN MAKE MORE AND MORE AND MORE MONEY, AND GET HIGHER AND HIGHER RATES OF RETURN, AND CHEAPLY EXPAND, AND MAKE MORE MONEY, BY CHARGING HIGHER PRICES AND HIGHER INTEREST RATES TO MY BORROWERS, AND MAKE MORE MONEY!!!". Bernacke and the politicians were just giving big business what big business wanted, despite the crash and chaos that would eventually happen in the end.
 

junior1

Well-Known Member
May 29, 2001
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But isn't it dishonest and/or misleading?

It's a fact.

Isn't the truth that we are set to run trillion dollar deficits for as far as the eye can see?

If that what is needed to achieve full employment and price stability then so be it.
So, I don't understand all of your logic...on the one hand you take the position that reducing the deficit is deflationary. Then in this post you are OK with trillion dollar deficits as far as the eye can see. So on the one hand the fed is taking money out of the economy and the Biden administration is putting $trillions into the economy.
Prices are high on goods because the supply chain was mucked up by the holes created through easy money. Some of it was cause by ridiculous government mandates. You should know this. People that produce things or deliver things quit, retired, or moved on.

We have trouble with simple mail delivery where we live. I can find no one to repair our house. It will be expensive now because government created the holes in the supply of labor. It created inflation, which is destructive.

The value of a job (what a person gets paid) should be totally based on what someone is willing to pay for the good or service provided by the employee. This produces the greatest wealth. There are only a few things that are really required to be worked through government.

Your labor, at any level, is a market commodity like anything else. It's a cost to business. Your worth is what people are willing to pay you. If you ignore this principle then you have socialism. If government mandates pricing then you have communism. It is what it is.

Sadly, not every job can provide a living wage. The worker in many cases must migrate. In a very real way I did this myself. The company essentially ordered me to work where the work was needed. I could go, quit, or destroy my future earnings with the company by refusing. Early in my career I rented a maid's quarters. The area was expensive. It was my choice, and my employers choice.

No business should be forced to pay or retain an employee that they do not want, or an employee that does not provide value commensurate with services rendered. It's a market.

Companies retain good employees, through retirement, because it's good for business. Good employees come behind them as they finish their careers.

I bet you've spent very little time in a private company. Certainly not decades like most of us.
you don't have to worry about supply chain...secretary pete is on the case