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To add to this: the Fed was created in response to the usual ups and downs of the marketplace - there would be financial crises about every 20-30 years, and the
by patrickgzill 17y ago
To add to this: the Fed was created in response to the usual ups and downs of the marketplace - there would be financial crises about every 20-30 years, and they could be quite crushing.
The claim was that if the Fed was created, we would never have such bubbles/panics again.
Since the Fed was created in 1913, and we have had the Great Depression and lots of other monetary issues, including the current one, it is safe to say that the original argument in favor of the Fed is proven false.
- jimbokun 17y agoOutside of the great depression, have the crises been as bad as they were before the institution of the Fed? It's possible that the Fed has moderated the severity of monetary crises.
- stretchwithme 17y agono, its all been relatively minor. There was no massive inflation in the 70s, and there's no massive $12 trillion debt. And we aren't going from bubble to bubble. yep, its all been smooth sailing. only because they've figured out how to borrow and inflate their way out of every correction. in the mean time total system risk grows to never imagined heights.