tag:blogger.com,1999:blog-11719208.post7975161984489771412..comments2023-11-05T04:36:14.223-08:00Comments on The Mess That Greenspan Made: Fed starts talking tough againTimhttp://www.blogger.com/profile/16530974968126497397noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-11719208.post-47180516707876105792009-06-05T19:36:01.684-07:002009-06-05T19:36:01.684-07:00I was being a little bit facetious in the comment ...I was being a <i>little</i> bit facetious in the comment "nearly everyone now convinced that a repeat of the Great Depression is off the table". That's certainly the conventional wisdom at the moment, but conventional wisdom (as we've come to learn) is often wrong.Timhttps://www.blogger.com/profile/16530974968126497397noreply@blogger.comtag:blogger.com,1999:blog-11719208.post-67014826716490706482009-06-05T17:44:32.667-07:002009-06-05T17:44:32.667-07:00I'm not sure why you postulate that virtually ...I'm not sure why you postulate that virtually nobody is worried about our current recession turning into the same thing as the Great Depression. As far as I can tell, we're on course to repeat the steps which created that situation, both politically and economically. The published numbers will be somewhat different this time with the massive expansion of fiat currency and its effects, but the end result will be very similar: lots of unemployment, lots of bad government attempts to "help" the problem making things worse, lots of socialism from people taking advantage of the situation to push agendas, a long time until real recovery, etc.<br /><br />The Fed's actions do look interesting, though. They might be seeing an impending threat: when people are upset after the stimulus doesn't work, they will be looking for someone to blame, and there's already a strong movement to abolish the Fed. The government could probably buy at least another year, maybe two, of socialist expansion by throwing the Fed under the bus if/when inflation ramps up, or the bond market really starts pricing it in. The Obama administration could probably even get a free pass for their first couple years of total failure economic policies by laying it all on the Fed's doorstep; if I were the Fed, I might be a tad nervous about now.<br /><br />Just a thought.Nickhttps://www.blogger.com/profile/05587036619182019599noreply@blogger.comtag:blogger.com,1999:blog-11719208.post-67938012231047187872009-06-05T17:19:25.278-07:002009-06-05T17:19:25.278-07:00I think whatever happens, they're going to scr...I think whatever happens, they're going to screw it up badly once again and just you wait to see what happens if they try to raise rates as the 2010 mid-term election gets closer.Anonymousnoreply@blogger.com