8 ms·
> Central banks were created because without them, finance was subject to wild, terrifying, ruinous boom/bust cycles. Let's see how that is working out: Fed
by kloch 5y ago
> Central banks were created because without them, finance was subject to wild, terrifying, ruinous boom/bust cycles.
Let's see how that is working out:
Federal Reserve created in 1913
Roaring 1920's -> 1929 Crash/Great Depression
1960's Nifty Fifty -> 1973-1974 Crash/recession
1980's bubble -> 1987 Crash and early 1990's recession
Dot Com bubble -> 2000-2003 Crash/recession
Housing Bubble -> 2008 Crash/GFC
Everything Bubble -> ???
At least since the 1987 crash, artificially low interest rates from Central Banks and more recently outright money printing/QE enhanced or outright created the bubbles and busts. Even when viewed in the most favorable light their supposed moderating function seems to be horribly broken.
- landemva 5y agoNow the USA private central bank is bailing out the banking system worldwide. August 2019 bank overnight lending 'repo' seized up for European banks. Federal Reserve stepped in. Europe is set up to default on government debt, and people in other countries should not be tied to that failed experiment. As a hedge, it may be prudent to get some eth and btc and hold your own keys to it.
- Anon84 5y agoYes, they were much, much, more common before the Fed: https://en.wikipedia.org/wiki/List_of_recessions_in_the_United_States https://en.wikipedia.org/wiki/List_of_recessions_in_the_Unit...
- jqpabc123 5y ago<i>... seems to be horribly broken.</i> Let's see how the alternative is working out: BTC -> Lost 40% of it's value over the last few months ETH and others are down as well. All indications are that crypto will drop faster/harder than anything else in a downturn.