I think the answer is obvious, but think a second about it. I have asked this question plenty of people and they answer with the former, but then support Bernanke and his stimulus packages.
Bernanke decided on the latter and created a monetary policy which pleased financial markets in the short-term and we all know what happens to bubbles. Those who follow the illusion that Bernanke saved anything, be my guest and take his side as for now you feel an artificial boost.
Why do you say “[B][U]but[/U][/B] then …”? Do you think it’s [I]necessarily[/I] inconsistent to prefer a 9-month recession to two decades of stagflation and still support stimulus packages? Where does the “9 months” come from? (Are you possibly thinking of a pregnancy rather than a recession?) :33:
I don’t know: how’s the US motor industry doing, after the bailout, in your estimation?
I agree, it will be studied for generations to come. Even the morons at the Fed started to crunch the numbers and see that during QE 3 economic growth declined. No need to say more than that.
I agree, it will be studied for generations to come. Even the morons at the Fed started to crunch the numbers and see that during QE 3 economic growth declined. No need to say more than that.[/QUOTE]
Obviously the economy has been rather sluggish… But it didn’t decline since QE 3. The third round of QE came last September…
And GDP has NOT declined since… The last quarter that the economy declined was in 2009.
There would not have been a reason to initiated unprecedented economic stimulus if the economy was not severely suffering to begin with…So you cant expect anything to work quickly. However, We would not be having the recovery that we are if QE 3 had not occurred. The rebound in housing is primarily a result of the low interest rates caused by the MBS purchasing, which in turn increases consumer sentiment and spending.
You may want to think twice about bashing the people whose jobs are to make sure you have one
I did not suggest a negative GDP figure, I said growth declined as it is coming in weaker quarter after quarter. Either way, the economy will pay the price and what you may think contributed to the current uptick in economic activity is worthless as it will not be sustainable. I do not depend on the Fed for a job and those who do I feel sorry for. Just today there have been a dozen reports how GDP is ticking down despite QE which is why half the warm douchers at the Fed want to scale down as they understand there is no positive impact while the economy get loaded with debt, but hey we can discuss QE all day…you may favor it and I bash those morons.
[QUOTE=“TheLastBear;509956”]
I do not depend on the Fed for a job and those who do I feel sorry for. [/QUOTE]
You want to bet? If your paycheck is in US dollars your job is reliant on the Feds doing their job.
As far as why the Feds are considering tapering… They have set their monetary policy decisions to be based on unemployment rate and inflation goals, not GDP.
Here’s the unemployment rate figures… See a trend?
Without QE we would have seen the recession last twice as long… The economy would have fallen much deeper… Twice as many people would have been underwater in their mortgages resulting in even more massive losses for banks… Credit would have been impossible to get… Companies would not be able to get the lending they needed… employment would have been higher then 1982… and all of this would create a self feeding cycle…
You would have both a nine month recession AND 20 years of stagflation.
Haha, amusing that you ate the feces they dropped on the general public. One thing I can agree on is the recession may have lasted longer than 9 months (I used that as an example, a bad one at that). The rest you said is just utter textbook crap. Without QE we would have gone through a deeper recession, but after that we would have recovered, credit would have not been impossible to get but it would have not been available to every jack out there with a job.
The truth is we will never know how bad it may or may not have gotten, but the majority buys this garbage that without QE it would have been so much worse and that the Septic Tank saved the system. It is nothing more than an illusion and everyone in the smart money camp understands it. Sure, the stupidity of the Fed was taken advantage of and money made which is a good thing.
The problems of QE will become evident in about 18 to 24 months from now, but of course at that point it will be too late. You favor QE and hail it as something good, great. I do the opposite and that is how markets are created. Just keep in mind that in general the majority is always wrong and ends up holding the bag.
Again, those who ‘depend’ on the Fed for a job I can only feel sorry for.
Haha, amusing that you ate the feces they dropped on the general public. One thing I can agree on is the recession may have lasted longer than 9 months (I used that as an example, a bad one at that). The rest you said is just utter textbook crap. Without QE we would have gone through a deeper recession, but after that we would have recovered, credit would have not been impossible to get but it would have not been available to every jack out there with a job.
The truth is we will never know how bad it may or may not have gotten, but the majority buys this garbage that without QE it would have been so much worse and that the Septic Tank saved the system. It is nothing more than an illusion and everyone in the smart money camp understands it. Sure, the stupidity of the Fed was taken advantage of and money made which is a good thing.
The problems of QE will become evident in about 18 to 24 months from now, but of course at that point it will be too late. You favor QE and hail it as something good, great. I do the opposite and that is how markets are created. Just keep in mind that in general the majority is always wrong and ends up holding the bag.
Again, those who ‘depend’ on the Fed for a job I can only feel sorry for.[/QUOTE]
I don’t feel like trading insults with you so you can call me what makes you feel better about yourself. As I stated, we have a different point of view and I will leave it at that.
