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Thanks for clearing that up. What do you think the US govt & FED should/should not do now?

• parasubvert 11y ago
  I think they should keep doing what they're doing - don't raise rates or reduce the monetary base (the $ trillions they keep on the books since the crisis) until real inflation is clearly setting in. Asset prices can keep inching up so long as they're not into bubble territory (which arguably they're not yet). The economy is in a much better position but it's still underperforming and the labor participation rate is still historically down as so many exited the labor force during the 2008 crisis and ensuing layoffs. Once some inflation sets in, it's a sign the world is returning to "normal" (after 8 years!), but .. no guarantees given instability in Europe, Middle East, Oil Glut, etc. Usual disclaimers: I am not an economist, but minored in it & follow it; the economics profession has a wide diversity of opinions, though I think my views aren't particularly radical. I also think the government should be ready to invest in our crumbling infrastructure for the next downturn/crisis. The 2009 stimulus helped but was not well allocated and was too small. That said it's unlikely congress will pass any such thing for many years due to current politics.