Published: Thursday, Feb. 28 2013 12:00 a.m. MST
"We're at the limits of our understanding of how monetary policy
affects the economy."Isn't it great that we give these
elite and brilliant people so much power? Centrally-controlled economies are
awesome! Except when they're not."Ambiguity, he says,
breeds expectations that the Fed will act as rescuer, and these expectations are
incentives for risk-taking...."Expectations such as these are
what destroyed the housing market. Past bailouts and implied promises of
taxpayer backing had created these expectations, which led to risky behavior,
which led to collapse. Can we not learn something from this? Why must we go on
repeating the same mistakes?
Actually the great recession came about because of regulation changes and a lot
of dishonest lenders, realtors and buyers. The culprit is greed, not
Lets look at the Federal Reserve in a more specific light.The
Federal Reserve was designed and created in 1913 with the specific mission to
handle monetary policy to prevent future recessions and depressions. How many
recessions have we had over the past 100 years? The system is a failure and has
grown beyond its original intended purpose. Why continue with it?
@dobberdobber "The culprit is greed, not 'expectations'."Greedy people don't just throw away money. In this case, they were
led to believe that they could take foolish risks and still not lose anything,
because the taxpayers would have their backs. Federal Reserve and government
policies played a role in setting these expectations.
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