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> it is political suicide ... Politicians have different time horizons than the cities, provinces and nations that they govern. It's not political suicide if

> it is political suicide ... Politicians have different time horizons than the cities, provinces and nations that they govern. It's not political suicide if the politician enriched himself at the expense of the public and is out of office when the consequences are realized.

rubyskills 6y ago
The government has no control of bubble bursts.. in fact they usually aggravate the possibility. According to history, bubble pops usually happen with one small pop and another much larger one after the fact. This second one will happen when people least expect it because the media has thus far spun a narrative of extreme optimism in contrast to reality. The reality is the economic numbers don't look great and will take awhile to bounce back.
- jlbnjmn 6y ago
  > The government has no control of bubble bursts Pretty sure the Fed has been spending trillions to keep asset bubbles from bursting. So far it's been working, but also exacerbating social tensions and wealth inequality.
  - rubyskills 6y ago
    How many bubbles have popped since the Fed has been QEing? What happened in 2008?
    - dredds 6y ago
      None, because as they finally pulled back on QE in 2019 the yields inverted and the overnights jumped, so Trump forced them to dive back in around Sept '19 to keep the gravy-train trucking for the election year bragging rights.
      - rubyskills 6y ago
        I'm looking at different times scales. There have been pops every 7-10 years or so and they get worse every time. That is part of the business cycle. Sure, things recover (in huge part do to QE), but that doesn't mean bubbles do not happen on a pet frequent basis?
dntbnmpls 6y ago
That's a good point. It is not political suicide for those leaving politics. But it is political suicide for those that are elected or want to be re-elected. For example, Bush Jr left the economy in a mess but he was a 2 term president with no political future. So Bush Jr is fine, but Obama who was elected and who wants to be re-elected has to re-inflate housing and stock prices. That's why the housing prices and stock prices won't stay low for extended periods of time. That is until we arrive at the limit of our growth/expansion when no political or economic measure will do any good.

rubyskills 6y ago

The government has no control of bubble bursts.. in fact they usually aggravate the possibility. According to history, bubble pops usually happen with one small pop and another much larger one after the fact. This second one will happen when people least expect it because the media has thus far spun a narrative of extreme optimism in contrast to reality. The reality is the economic numbers don't look great and will take awhile to bounce back.

jlbnjmn 6y ago
> The government has no control of bubble bursts Pretty sure the Fed has been spending trillions to keep asset bubbles from bursting. So far it's been working, but also exacerbating social tensions and wealth inequality.
- rubyskills 6y ago
  How many bubbles have popped since the Fed has been QEing? What happened in 2008?
  - dredds 6y ago
    None, because as they finally pulled back on QE in 2019 the yields inverted and the overnights jumped, so Trump forced them to dive back in around Sept '19 to keep the gravy-train trucking for the election year bragging rights.
    - rubyskills 6y ago
      I'm looking at different times scales. There have been pops every 7-10 years or so and they get worse every time. That is part of the business cycle. Sure, things recover (in huge part do to QE), but that doesn't mean bubbles do not happen on a pet frequent basis?

dntbnmpls 6y ago

That's a good point. It is not political suicide for those leaving politics. But it is political suicide for those that are elected or want to be re-elected. For example, Bush Jr left the economy in a mess but he was a 2 term president with no political future. So Bush Jr is fine, but Obama who was elected and who wants to be re-elected has to re-inflate housing and stock prices. That's why the housing prices and stock prices won't stay low for extended periods of time. That is until we arrive at the limit of our growth/expansion when no political or economic measure will do any good.