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> Globally, no one that matters wants it to fail, therefore it won't. I’ve seen this argument before, and can’t help to think how naive it sounds. Can you nam
by runeks 6y ago
> Globally, no one that matters wants it to fail, therefore it won't.
I’ve seen this argument before, and can’t help to think how naive it sounds.
Can you name one other case where the fact that we don’t want something to fail results in it being unable to fail?
Actions have consequences. No matter how much we don’t want a particular set of consequences to occur, they will if we perform the wrong actions.
- koonsolo 6y agoGlobally, no one wants a pandemic, therefore...
- TheAdamAndChe 6y agoGlobally, no one wants a housing price collapse and global recession, therefore...
- eru 6y agoActually, the general public kept demanding a housing price collapse around 2008. It's rather tragic. See https://www.goodreads.com/book/show/43062766-shut-out https://www.goodreads.com/book/show/43062766-shut-out for more detail than you ever wanted to know, or check out the author's blog at https://www.idiosyncraticwhisk.com/ https://www.idiosyncraticwhisk.com/
- api 6y agoHousing prices that are too high are terrible too. They effectively lock people out of homeownership on reasonable terms. I would prefer reasonable home prices, which means neither collapse nor bubble mania.
- eru 6y agoI agree with your sentiment. But it's not house prices that are important. It's housing affordability, which is better measured by monthly mortgage payments (and rents). However, that was not what happened in and after 2008. Availability of credit collapsed. So owning housing got cheaper for people who could still get credit, but renting did not become cheaper. Have a look at the backlog of https://www.idiosyncraticwhisk.com/ https://www.idiosyncraticwhisk.com/ for more than you ever wanted to know about the topic. (Or splurge on the author's book.)
- teraku 6y agoIt might make it sound like they are an inactive bunch. But they take action precisely because they don't want it to fail.
- 35fbe7d3d5b9 6y agoPrecisely. And it's important to forget those actions aren't just about interest rates and issuing currency. The US dollar will continue to be supreme so long as the United States controls the US Agency for International Development, the Office of Foreign Asset Control, and the US Marine Corps.
- ping_pong 6y agoNaive? People on the opposite side of the argument have been wrong consistently for decades. The last time they were right was the Great Depression, almost 100 years ago. I think policy makers like the Federal Reserve have learned a lot since then.