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Fed lowers interest rates with QE and home buying goes up. Fed raises interest rates and home buying goes down. Imagine that. Almost as if this could have all
by jameslk 8y ago
Fed lowers interest rates with QE and home buying goes up. Fed raises interest rates and home buying goes down. Imagine that.
Almost as if this could have all been predicted[0].
0. https://en.wikipedia.org/wiki/Austrian_business_cycle_theory https://en.wikipedia.org/wiki/Austrian_business_cycle_theory
- gowld 8y agoOf course it's been predicted. Economists have predicted 9 of the last 7 recessions. But besides that, the Fed doing exactly what is was chartered to do and constantly issues press releases about is not a shocking revelation of hetereodox economics.
- jameslk 8y agoThe Fed isn't doing exactly what it was chartered to do--it has had a dual mandate since 1977 that complicates its purpose. Regardless, the problem in this system seems more attributable to fractional reserve banking, which is force multiplier on the effects of central banks.
- NTDF9 8y agoI believe the Fed's mandate is wrongly placed. The Fed should only be responsible for money supply, not for full employment. Full employment should be a burden taken on by elected representatives in congress or the executive. The dual mandate asks a fish to make sure the boat flies.
- yourduskquibble 8y agoAnd the saddest part of your entire comment is that no one will listen when the economic facts are obvious and stop the madness.