3 ms·
Thank you for pointing this out. Secondly, just what the hell is the central bank supposed to do? Had they not intervened hard in debt markets, we would have se
by ttul 7y ago
Thank you for pointing this out. Secondly, just what the hell is the central bank supposed to do? Had they not intervened hard in debt markets, we would have seen bank runs and mass chaos in financial markets, making things we take for granted (such as paying for stuff at the grocery store) totally fail over night.
I am wayyyy less worried about the magnitude of the Fed’s intervention than I am about what might have happened otherwise.
- malandrew 7y agoLately, I've been amazed at the number of people that have been arguing in favor of allowing "otherwise" to happen.
- WanderPanda 7y agoEveryone is afraid of „otherwise“ without anyone having witnessed it before. My guess is, we are trading short / mid-term stability for decreased long-term efficiency / productivity
- wait_a_minute 7y agoWhich in my opinion is acceptable, because it's the short-term chaos that is the most likely to bubble out of control and turn into a long-term chaos. Imagine the chaos that would besiege the world if there was a risk of bank runs and people not even being able to pay for food anymore. We're only three to six missed meals away from absolute anarchy and violence in the streets.
- thoughtstheseus 7y agoThe Fed is doing a great job with current tools but they're a bandaid for bigger issues. It's not a question of if this becomes an issue it's a question of when. The longer you let the bubble build the harder it is to deal with it. Economic stagnation similar to Japan... is tough to deal with.
- brankoB 7y agoBeats continuing to bailout the corporations instead of the people.