What is Digg?233 Comments
- CMaff24, on 10/10/2007, -3/+43Recessions are normal. If the Fed interfered too much there would be serious, and much worse, consequences when the laws of economics push back.
- Stryder81, on 10/10/2007, -10/+39Aside from me stating the obvious that the FED needs to be abolished, this was inevitable.
- They f-ed up with the Sub-Prime mortgage market more than anything ( except the funds that goto the war )
Giving money away to people without a backround check and expecting them to pay 4 grand + a month when they don't make more than 50 grand a year was very very naive and stupid of them.
When the market went bellyup ( I'm an Agent by the way ) everything got knocked like a domino effect, The war was doing its damage but the housing market flop was that 1 little piece ontop of a building that didn't need to be there and caused all the rest to topple.
There was a whole documentary on this scenario ( The Late Aaron Russo's Documentary: Freedom To Fascism ) that explained on this occurring and how it will end up with us going through such an event that will be worse than the great depression.
Are we heading there? Looks like it to me from all corners.
Put it this way, We are borrowing money from China to keep us afloat. - rarson, on 10/10/2007, -6/+33Yes, but in attempting to prevent recessions, the Fed has only delayed the effects and it is building up so that, when it finally does happen, it'll probably be a depression.
- spyd3rweb, on 10/10/2007, -0/+24its time to cut spending.
- supyonamesjosh, on 10/10/2007, -14/+37LEAVE THE MARKET ALONE
seriously,everything will go back to normal eventually, the last thing we need is for the government to step in and **** up the market some more - geekee, on 10/10/2007, -1/+22Housing prices are long overdue for a correction. People have been buying houses with no money down and paying low monthly payments for too long, with the expectation of a 20% yearly increase in the value of their house bailing them out. The market is overdue for a correction, and if this means people stop buying other things and cause a recession so be it. You can't have good times and then erase the bad. Some one has to pay for it. And we shouldn't make those who saved their money pay for it by causing double digit inflation. Suck it up.
- orxor, on 10/10/2007, -3/+21Just a suggestion, how about we stop calling it the fed or the federal reserve. Let's just call it "The Bank Cartel" from now on. Just so there's no confusion about it somehow being federal and somehow being a reserve. Digg me down if you wish, I just think the name "Federal Reserve" is deceitful.
- rocket777, on 10/10/2007, -3/+19People really don't understand money. You ask the average person "Is money wealth" and nearly all will say yes. They just don't get it. So, naturally, the FED will bamboozle nearly everyone in the country. And there's an army of financial advisers that make money telling people what they want to hear.
Ok, it's really this simple. The FED causes all inflation, recessions, depressions, and doesn't have a clue or doesn't care. The FED controllers make out either way, since they have a license to counterfeit. They blame everything on other groups (greedy businessmen, fearful consumers, etc.) and they really are the wizards behind the curtain.
This is why nobody understands Ron Paul on the gold standard. He's not only a doctor of medicine, he has the equivalent of a doctorate in Austrian theory economics. The Austrian school explained the workings of the business cycle and who causes it way back before the 29 crash. The mathematical economists are as much a scam as there are WMDs in Iraq. - thcobbs, on 10/10/2007, -3/+19You mean since Carter.
- vault, on 10/10/2007, -2/+18That's what Cmaff just said.... i hate repeaters who just want extra diggs....
- inactive, on 10/10/2007, -2/+17Is it Clinton's fault yet? I just got here
- Philodox, on 10/10/2007, -4/+18You don't know much about your country, do you? The Fed is not a government agency, it's a private bank.
- sarazen, on 10/10/2007, -13/+27For the most part the Fed doesn't need to stop recessions. It is the depressions that they are really there to prevent. Even so, recession is not a done deal yet. Hopefully the next year or two will just be a relatively mild reset, then we can go wildly spendy crazy and start the cycle again.
- spyd3rweb, on 10/10/2007, -2/+15WRONG: the fed was created in 1913, and CAUSED the great depression, and has since devalued the dollar to almost nothing.
just incase you cant do math, the great depression happened in 1928, a full 15 years after the federal reserve act. - spyd3rweb, on 10/10/2007, -0/+13it causes the boom bust cycle... and it is congress who has the constitutional authority to print money, not some bank of elites.
- letsgopens2006, on 10/10/2007, -7/+20Shutdown the Federal Reserve!
- funkytaco, on 10/10/2007, -2/+141. The government can't limit spending because of the war in Iraq.
2. They shouldn't cut interest rates. But they will because it will help lower foreclosures which were spurred on by bad lending.
3. Cutting interest rates is supposed to encourage spending and make home buying more affordable, but it also creates inflation because the dollar is weakened.
The most logical thing to do would be to pull out of Iraq before they start cutting government programs.
In other news, Bush is an idiot. - known, on 10/10/2007, -0/+12In macroeconomics, the definition of RECESSION is a decline in any country's Gross Domestic Product (GDP), or negative real economic growth, for two or more successive quarters of a year
A severe or long recession is referred to as an economic DEPRESSION. - Philodox, on 10/10/2007, -2/+14Except that housing issue is just a symptom of a larger problem, and that is there's a lot of bad credit going around. Bad credit applies to far more things than just housing. People/companies have been relying on ass cheap loans to finance crazy investment schemes. As soon as the easy credit goes away you're going to see the amount of investment go down as well.
- geronimo, on 10/10/2007, -0/+11In 2001, the recession was relegated to the tech industry. This time around, the tech industry is very strong, but housing is going to take a beating, which means many will be affected.. title companies, mortgage loan officers, real estate agents... many are going the way of the dodo. I noticed that real estate agents are extra nice right now. But I am very glad to be in tech, the money is flowing in for most of us.
- letsgopens2006, on 10/10/2007, -7/+18Shutdown the Federal Reserve!
- Marmot, on 10/10/2007, -4/+14Guess it's time to cut taxes again!
- arunforce, on 10/10/2007, -8/+18I hate idiots who post stupid *****. Bush has... what... to do with the recession on the housing market?
I'm a democrat too. - letsgopens2006, on 10/10/2007, -1/+11If you really want to know when/why and how the Fed started watch The Money Masters
http://video.google.com/videoplay?docid=-515319560256183936 - inactive, on 10/10/2007, -1/+11Restarting the cycle again? Can't wait! :) Then we'll be able to blame it on Obama.
- Raizesr, on 10/10/2007, -2/+12Congress created the Federal Reserve System on December 23, 1913, with the signing of the Federal Reserve Act by President Woodrow Wilson.
- Stryder81, on 10/10/2007, -0/+9The country was created and run way before the F.E.D. was even around. It was against our constitution to have a centralized banking system. The purpose of the Central bank ( and why we have one now ) is because the Big Bankers manipulated some members of congress in 1913, had a meeting of a few in the house and got the law to pass for them.
We are to believe that our money is held in Fort Knox but it isn't. The FED has it as collateral. Mind you, the Federal Reserve Bank is not " Federal " and has nothing to do with the Government. It is a " Private " bank in which not even the government knows what goes on behind the closed doors.
I don't mean to throw in a name for tryin to keep politics out of this but money does control our system so for that I have to mention Ron Paul here. Just read on what he says exactly on how the Fed is illegal and against our constitution.
All of this can be found in the movie I mentioned in my previous post.
Also, take this into thought. What you said right there is basically saying " You are all so stupid that you need a corporation to run your financing. " That is exactly what has been going on since the creation of the FED. Since 1913 our dollar is worth 4 cents. and Today, the dollar is at a record low under the Euro.
That is why the " real republican conservatives " preach about a free market. Let the people decide on how things go and run. 300+ million minds compared to 5 or 10...big difference don't you think? - Ghoztt, on 10/10/2007, -1/+10The Federal Reserve isn't Federal at all ;)
- vault, on 10/10/2007, -2/+11Stop boring the 15 year old economic strategists with your logic and reason.
- tao52nyc, on 10/10/2007, -0/+9It's also time to stop borrowing.
- waynetheman, on 10/10/2007, -2/+10There shouldn't even BE a Fed, folks. The People should be the ones deciding what is and is not money--and they will always overwhelming choose precious metals, not unbacked paper. Have the government print your money, and borrow more at will, and this is what you get. Great Depression II, here we come.
- spyd3rweb, on 10/10/2007, -3/+11theres nothing federal about the reserve, no whackjobiness about it
- billmccartney, on 10/10/2007, -0/+7right... and everyone forgets how they pissed all over the constitution to do it...
Everyone forgets how the most of the bizarre 'package' laws which are common today were prevented by the supreme court.. until the great depression - rarson, on 10/10/2007, -2/+9You fail to realize that there are a ton of subprime mortgages that are going to default tied up in the stock market.
- chipnuts, on 10/10/2007, -1/+8Which is exactly the reason why it's good that he's on the House Committee on Financial Services, Joint Economic Committee and founder of the Foundation for Rational Economics and Education. The man knows his money and its history.
- WikiEasy, on 10/10/2007, -0/+7To all you guys blaming the government, take a good hard look at yourselves and those around you. The reason politians love to borrow and spend money the country can't afford is because of US, the CITIZENS. Too often we become easy victims of guilt, greed, and stupidity.
"Left no child behind" act? Sure let's spend a few billion."
"What? The rich get richer? Let's make our tax code even more convoluted."
"Old people not getting their benefits? Let's vote to give it to them."
"Net neutrality? Sure let's legislate and increase internet costs to a non-existent problem."
"Kids taking drugs? Ok let's dump billions into a bottomless pit called the war on drugs. It won't solve anything, but it sure does make us feel better!"
Politicans are just a part of the act, hardly the sole villians in this blame game. If we the citizens didn't fall so easily to stupid things like the above, they wouldn't be offering such irresponsible spending bills. Wanna blame someone? Blame yourselves! We all want to feel good now, and think about the consequences later. - rarson, on 10/10/2007, -1/+7Print money out of existence? Like, by printing too much of it? Because that's what the Fed is currently doing.
The Federal Reserve gets interest from the government on the money it prints for them. - yodaj007, on 10/10/2007, -0/+6I wholeheartedly believe the Fed is *responsible* for causing the recession. Before the Fed was established in 1913, how many recessions / depressions did the US have? How many since?
- kuragami, on 10/10/2007, -1/+7You quite litterally have no concept what so ever of how the banking system works. Not even on the most basic level. Please research the subject before you try to stomp people.
- DeFex, on 10/10/2007, -0/+6Soon someone might realise that kicking everyone who used to make decent stuff out of work so you can buy cheap chinese crap at walmart is not going to work. who will buy the crap when there are no good paying jobs?
- quarkie, on 10/10/2007, -2/+8The banks ***** up with sub-prime mortgages, not really the fed. And people who took them out.
The banks got greedy with the situation.
Banks: "we need more money. Lets give these people who can't afford a house a really good rate for two years, and then jack up the price"
People: "I want to buy a house"
Bank: "OK, here is money sign here"
People: 'Thanks"
-Two years later, housing market has fallen and the rates have reset. people look and realize theya re paying too much for their house based on the market..
People" Screw you bank we're defaulting"
Bank: "OH NOEZ!"
Certain things about the economy/finance are retarded. This has affected credit in sectors it shouldn't. This was a small sector of the mortgage market but now people with good credit can't get a housing loan and banks don't lend as much money out to companies. Hence this has screwed up things it shouldn't have. - MiltFriedman, on 10/10/2007, -1/+7Actually, the Fed was created before the great depression. The Federal Reserve Act was passed in 1913 and they started operations in 1914. Also, the Fed is often cited as being a direct factor in the severity of downturn in the economy during the depression due to their lack of action in preventing the collapse of banks.
- PJ1967, on 10/10/2007, -0/+6I thought we were supposed to blame everything on Bill Clinton?
- funkytaco, on 10/10/2007, -3/+9"Bush has... what... to do with the recession on the housing market?"
It's called Domestic Policy. Running the country - ever heard of it?
http://www.whitehouse.gov/dpc/
http://www.whitehouse.gov/infocus/economy/ - 3tcp, on 10/10/2007, -2/+8FTFA
"While most economists still don't believe the nation will fall into a recession, there is general agreement that the economy now faces a greater risk than there was only a month or two ago"
Buried - rarson, on 10/10/2007, -7/+12The problem is that they do. They try to prevent recessions, which as you say are normal, but in doing so, they're only delaying the effect. And it's piling up and turning into what will be a depression.
- Chandon, on 10/10/2007, -2/+7Contrary to popular belief (at least among market idealists), the United States *does not* have a self-regulating free market economy. The money supply (directly controlled by the interest rate) especially has to be constantly hand-tuned to prevent the system from destabilizing.
- yodaj007, on 10/10/2007, -0/+5No, CixeL, a depression is not defined by human suffering. It is defined by economic criteria. What you are talking about is the EFFECT of a depression.
- Spoomeister, on 10/10/2007, -0/+5Real conservatives have always supported low taxes and low spending.
But today, too many politicians and lobbyists are spending America into ruin. We are nine trillion dollars in debt as a nation. Our mounting government debt endangers the financial future of our children and grandchildren. If we don’t cut spending now, higher taxes and economic disaster will be in their future — and yours.
In addition, the Federal Reserve, our central bank, fosters runaway debt by increasing the money supply — making each dollar in your pocket worth less. The Fed is a private bank run by unelected officials who are not required to be open or accountable to “we the people.”
Worse, our economy and our very independence as a nation is increasingly in the hands of foreign governments such as China and Saudi Arabia, because their central banks also finance our runaway spending.
We cannot continue to allow private banks, wasteful agencies, lobbyists, corporations on welfare, and governments collecting foreign aid to dictate the size of our ballooning budget. We need a new method to prioritize our spending. It’s called the Constitution of the United States. - wvernon1981, on 10/10/2007, -0/+5Federal Reserve monetary policy at the time was partially responsible for the severity of the depression.
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