3 ms·
even with a rather full punch bowl set out, the party steadfastly refuses to get started Doesn't that depend on which party you're talking about? I'm under th
by hga 11y ago
even with a rather full punch bowl set out, the party steadfastly refuses to get started
Doesn't that depend on which party you're talking about?
I'm under the impression that the Fed's current policies are correlated with an asset bubble, and that's a classic "party" central banks are known to end in preference to a much worse end being forced later.
- eli_gottlieb 11y agoYes, the problem is the even larger problem of a decorrelation between the economic "fundamentals" (eg: wages, energy prices, manufacturing outputs, service outputs, educational level) and the FIRE-sector asset markets. The latter got sky high before 2008, and have gotten pretty damned high again. The former started declining in the early 2000s, took a hard dive in 2008, and have basically never recovered. The former are also much more strongly affected by fiscal policy rather than monetary.