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People have it backwards. *Will be downvoted due to contrarian view A recession happened in 2008-2009 due to greedy mortgage investments, and the fed stepped i

by mgh2 4y ago

People have it backwards. *Will be downvoted due to contrarian view A recession happened in 2008-2009 due to greedy mortgage investments, and the fed stepped in with quantitative easing (QE) to fix it. Yes, many people lost their jobs and houses, but for the next 10 years, the economy recovered and GDP boomed. A pandemic hit in 2020, the fed stepped in w/ QE again. Inflation and war today, fed steps in again w/ quantitative tightening (QT). The masses are always so prone to basic survival instincts of fear (FUD) and greed (FOMO). On the backstage, businessman & financiers take advantage of this psychology for economic gain: selling gold, crypto, ICOs, IPOs, SPACs, pulse oximeters, mortgages, what have you... While these elite brainwash the masses (via search, social media, trad. media, entertainment, etc.), the fed is "demonized" for keeping the country hustling, producing, and growing [1]. Printed money? It is to keep you productive and prevent you from loosing your mind...be grateful for having a government that can step in to help instead of actually stealing from people [2] and having a work culture that can justify/fuel this [3]. As long as these tenets stay, demand for the American dream/way of life/dollars will survive, so take a deep breath... [1] Insider's POV: https://news.ycombinator.com/item?id=31589103 https://news.ycombinator.com/item?id=31589103 [2] https://en.wikipedia.org/wiki/Corruption_Perceptions_Index https://en.wikipedia.org/wiki/Corruption_Perceptions_Index [3] https://news.ycombinator.com/item?id=29903457 https://news.ycombinator.com/item?id=29903457

colechristensen 4y ago
Between the housing crisis and COVID-19 the Fed never really pulled back, interest rates stayed at almost zero. As a result the economy was overinflated going right into covid and then we had the unusual economic steps during covid and now an enormously larger amount of money in the economy that can only get sucked out with high fed rates or by being inflated away (and can't be justified with growth because actual growth isn't happening anywhere remotely near where the supply of money has grown)
- mgh2 4y ago
  The answer is straightforward, as a system (input, output): COVID decreased productivity (lockdowns, deaths, supply chains, etc.), so money was created to recover and boost this loss, to restore the balance [to the force ;D].
ezekiel68 4y ago
Man. That must be one hell of a "smoke-filled back room" where all of this snookering gets coordinated. And to think -- not a single snitch in decades to reveal the man behind the curtain! Incredible, when you realize that no two simple bank robbers can keep their mouths shut about a neighborhood heist.
- mgh2 4y ago
  There were several "glitches", not many because of the cost if revealed and the power of brainwashing, because the system is so well built to hide the lies. Everyone would rather shut up, as long as they get paid. The internet just amplifies these behaviors anonymously. No conspiracy needed either. As sinister as this sounds, this is how people and society work, if you bother to look... Ex: 1. Jim Cramer: https://www.youtube.com/results?search_query=jim+cramer+manipulation https://www.youtube.com/results?search_query=jim+cramer+mani... 2. Book: https://www.amazon.com/Trust-Me-Im-Lying-Ryan-Holiday-audiobook/dp/B07RK54H63/ref=sr_1_1?crid=2S33G3P4L9DD0&keywords=trust+me+im+lying&qid=1654194580&sprefix=trust+me%2Caps%2C218&sr=8-1 https://www.amazon.com/Trust-Me-Im-Lying-Ryan-Holiday-audiob... 3. The Social Dilemma: https://www.imdb.com/title/tt11464826/?ref_=nv_sr_srsg_3 https://www.imdb.com/title/tt11464826/?ref_=nv_sr_srsg_3
ChrisLomont 4y ago
>in 2008-2009 due to greedy mortgage investments .... also due to people taking mortgages they could not pay to try and win housing bingo. If people had not promised to pay for mortgages they could not, lying on forms to get such mortgages, then they would not have defaulted at record rates, increasing risk for investments.
- ShamelessC 4y ago
  That is severely lacking in nuance to the point of coming across as tone deaf trolling.
  - ChrisLomont 4y ago
    It was meant that way to counter sole blame on "due to greedy mortgage investments". And it is correct - see my other post in this thread with all the relevant FRED data series on people's finances leading up to the 2008-2009 crisis. People most certainly ran many of their own indicators to record highs before the crash, by choice, by choosing more debt than they could manage.
    - mgh2 4y ago
      Sorry to burst the bubble, but "choice" is also elite's propaganda - the own the entire vertical: https://trendguardian.medium.com/free-will-a-rich-fairy-tale-4fecf8095812 https://trendguardian.medium.com/free-will-a-rich-fairy-tale...
      - ChrisLomont 4y ago
        Well, if you believe people don't have free will, then no sense blaming your "elite" either. Everyone is only doing what they're programmed to do, no sense in holding anyone accountable for any actions .... Or you can face that people do choose to buy things.
        mgh2 4y ago
foverzar 4y ago
> Corruption perception index How does anyone even take this metrics seriously?
- mgh2 4y ago
  It is just a sentiment proxy, but it is correlated to GDP per capita.

by mgh2 4y ago

colechristensen 4y ago

Between the housing crisis and COVID-19 the Fed never really pulled back, interest rates stayed at almost zero. As a result the economy was overinflated going right into covid and then we had the unusual economic steps during covid and now an enormously larger amount of money in the economy that can only get sucked out with high fed rates or by being inflated away (and can't be justified with growth because actual growth isn't happening anywhere remotely near where the supply of money has grown)

mgh2 4y ago
The answer is straightforward, as a system (input, output): COVID decreased productivity (lockdowns, deaths, supply chains, etc.), so money was created to recover and boost this loss, to restore the balance [to the force ;D].

ezekiel68 4y ago

Man. That must be one hell of a "smoke-filled back room" where all of this snookering gets coordinated. And to think -- not a single snitch in decades to reveal the man behind the curtain! Incredible, when you realize that no two simple bank robbers can keep their mouths shut about a neighborhood heist.

mgh2 4y ago
There were several "glitches", not many because of the cost if revealed and the power of brainwashing, because the system is so well built to hide the lies. Everyone would rather shut up, as long as they get paid. The internet just amplifies these behaviors anonymously. No conspiracy needed either. As sinister as this sounds, this is how people and society work, if you bother to look... Ex: 1. Jim Cramer: https://www.youtube.com/results?search_query=jim+cramer+manipulation https://www.youtube.com/results?search_query=jim+cramer+mani... 2. Book: https://www.amazon.com/Trust-Me-Im-Lying-Ryan-Holiday-audiobook/dp/B07RK54H63/ref=sr_1_1?crid=2S33G3P4L9DD0&keywords=trust+me+im+lying&qid=1654194580&sprefix=trust+me%2Caps%2C218&sr=8-1 https://www.amazon.com/Trust-Me-Im-Lying-Ryan-Holiday-audiob... 3. The Social Dilemma: https://www.imdb.com/title/tt11464826/?ref_=nv_sr_srsg_3 https://www.imdb.com/title/tt11464826/?ref_=nv_sr_srsg_3

ChrisLomont 4y ago

>in 2008-2009 due to greedy mortgage investments .... also due to people taking mortgages they could not pay to try and win housing bingo. If people had not promised to pay for mortgages they could not, lying on forms to get such mortgages, then they would not have defaulted at record rates, increasing risk for investments.

ShamelessC 4y ago
That is severely lacking in nuance to the point of coming across as tone deaf trolling.
- ChrisLomont 4y ago
  It was meant that way to counter sole blame on "due to greedy mortgage investments". And it is correct - see my other post in this thread with all the relevant FRED data series on people's finances leading up to the 2008-2009 crisis. People most certainly ran many of their own indicators to record highs before the crash, by choice, by choosing more debt than they could manage.
  - mgh2 4y ago
    Sorry to burst the bubble, but "choice" is also elite's propaganda - the own the entire vertical: https://trendguardian.medium.com/free-will-a-rich-fairy-tale-4fecf8095812 https://trendguardian.medium.com/free-will-a-rich-fairy-tale...
    - ChrisLomont 4y ago
      Well, if you believe people don't have free will, then no sense blaming your "elite" either. Everyone is only doing what they're programmed to do, no sense in holding anyone accountable for any actions .... Or you can face that people do choose to buy things.
      - mgh2 4y ago

foverzar 4y ago

> Corruption perception index How does anyone even take this metrics seriously?

mgh2 4y ago
It is just a sentiment proxy, but it is correlated to GDP per capita.