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It's foolish because it's literally impossible to avoid a heavy recession or depression when people are told to stay inside and do nothing. The odds of this ac

It's foolish because it's literally impossible to avoid a heavy recession or depression when people are told to stay inside and do nothing. The odds of this action working out well now are slim to none. Then when it's actually needed they will have to do it again. You'll end up with the same non recovery recovery where people are barely getting by but certain asset classes are inflated to the moon.

dcftoapv 7y ago
No, it's not foolish. We need to keep markets liquid to avoid a lending crisis. That's why the fed announced asset purchases. They don't do them all at once. They buy steadily over a period of time to help keep prices stable. That's very important. They had to do rate cuts now because it takes a long, long time for them to work (measured in years rather than months). That was a preventative measure, not a band-aid. Look, guys, I promise you the fed knows wtf they're doing. These guys live and breath to be ready to respond to these type of emergencies. We should be far more worried about (the lack of) policy responses from DC. DC has no idea wtf they're doing, and it shows.
- amznthrowaway5 7y ago
  > Look, guys, I promise you the fed knows wtf they're doing. These guys live and breath to be ready to respond to these type of emergencies. Isn't that the same thing we were told in 2008?
- dnautics 7y ago
  > Look, guys, I promise you the fed knows wtf they're doing. These guys live and breath to be ready to respond to these type of emergencies. There's no possible way this could go wrong.
  - dcftoapv 7y ago
    Given the guy that I just responded to called liquidity injections foolish, you should want to take your chances with the fed. If the fed hadn't announced that action last night then the hell that would have rained down on Monday would have gone down in history with Lehman and Black Monday.

dcftoapv 7y ago

No, it's not foolish. We need to keep markets liquid to avoid a lending crisis. That's why the fed announced asset purchases. They don't do them all at once. They buy steadily over a period of time to help keep prices stable. That's very important. They had to do rate cuts now because it takes a long, long time for them to work (measured in years rather than months). That was a preventative measure, not a band-aid. Look, guys, I promise you the fed knows wtf they're doing. These guys live and breath to be ready to respond to these type of emergencies. We should be far more worried about (the lack of) policy responses from DC. DC has no idea wtf they're doing, and it shows.

amznthrowaway5 7y ago
> Look, guys, I promise you the fed knows wtf they're doing. These guys live and breath to be ready to respond to these type of emergencies. Isn't that the same thing we were told in 2008?
dnautics 7y ago
> Look, guys, I promise you the fed knows wtf they're doing. These guys live and breath to be ready to respond to these type of emergencies. There's no possible way this could go wrong.
- dcftoapv 7y ago
  Given the guy that I just responded to called liquidity injections foolish, you should want to take your chances with the fed. If the fed hadn't announced that action last night then the hell that would have rained down on Monday would have gone down in history with Lehman and Black Monday.