spiegel.de — The dollar is in a tailspin, the trade deficit is growing and a recession is on the horizon. The American way of life is in serious danger. But the head of the Federal Reserve keeps on pumping easy credit into the system -- a crazy policy that will worsen the crisis.
Apr 14, 2008 View in Crawl 4
nerysApr 16, 2008
Actually almost all economies that are BACKED by something of value (such as gold) do NOT hardly EVER have inflation or recessions. Its when we try to CHEAT and create value from nothing THATS how you get inflation and recession.
bc289Apr 16, 2008
The Fed isn't owned by money center banks. Where did you hear that?Currency inflation is not a problem. I'm actually not sure what you mean by that, do you mean the growth in money supply? What ultimately matters is CPI, as that is the best measure of your purchasing power. This is because CPI measures the prices of a basket of commonly bought goods. How many of these goods you can buy measures your purchasing power. Although I'm not really sure what you mean by currency inflation, ultimately I believe the consumer price index is the most relevant thing we should be focusing on here. That has shown that inflation has been relatively low.
andy3109Apr 16, 2008
Please tell me you understand the fact that rich people aren't rich if the "bottom" 90% you talk about don't spend. And in order to spend, the bottom 90% need something called...*money*
tezkatApr 16, 2008
You're so full of s**t, I've seen your dumb ass posts before. I understand how economics work, and the intricate patchwork of schemes it needs to survive. We haven't made advancements as human beings when we still have to rely on some form of capital just to have a meal and a roof over our heads. That's primitive thinking, and in now way considers the plight of mankind. I would give up all your useless "advancements" and "comforts" for true peace. Because all the nice s**t you have comes at the expense of those far more unfortunate than you. You could care less for others, as you seem to worship the Fed and it's white male minions. f**k you, why don't you take a trip to a poor country and let me know how central banking has benefited their sovereignty and welfare.Stupid f**k.
ksmcafeeApr 18, 2008
we have had 7 (count em, 7) credit crunches in the past two decades and you know what happened? markets self corrected themselves each time.its a self-fulfilling feedback loop. panic creates panic
dpazar2Apr 18, 2008
Basic econ, supply and demand with credit and the housing market . There are an abundant amount of defaults which lead to a greater supply of houses on the market, with this credit crunch, the average Joe cannot obtain a loan to buy a house. With the average Joe not being able to purchase houses the supply will remain constant and housing price will not change. Once the supply of housing starts to diminish, prices will adjust. Its as basic as it gets. Yes, issuing credit to anyone started this mess of epic proportions in the first place but it is what will get us out as well. As far as Federal regulation is concerned, the bail out and the method of the bail out were and are of sound practice. The Fed did not just give JP Morgan money to buy out Bear Stearns, they did through a discount window which gives them more regulation and control to regulate JP Morgan. They (The Fed) are the lending institution and can set what ever guidelines and terms they want on pay back and who they lend money to and how they invest it to make sure this entire scene does not happen again. This is how things should be done in the future to give a little more regulation to the Fed over all of big banks and who they lend to.
ackermanncApr 23, 2008
I'll be glad to refute that when the US finally subverts Peking.
bc289May 9, 2008
lol I just saw your comment. So explain to me how I have dumb ass posts? Was it because I'm a stupid f**k?And you're wrong. I care a lot about others, and that's why I'm studying economics. I just dont want people to push policies that will end up hurting us more than helping us.