4 ms·
My understanding is we’re not necessarily good at preventing crashes. But we’ve used a new strategy (printing money) to avoid one in the short term. This seems
by bamboozled 4y ago
My understanding is we’re not necessarily good at preventing crashes. But we’ve used a new strategy (printing money) to avoid one in the short term.
This seems to have created inflation and it’s various seemingly negative consequences.
- rapind 4y agoI believe the technical term is “kicking the can down the road”. We’re experts at it up here in Canada if you’d like any tips.
- deleted 4y ago[deleted]
- pm90 4y agoDeficit spending is not a new strategy. Financial crashes are often precipitated by short term factors eg inability to come up with enough capital, cascading failures as financial firms fail and spook all investors. The Fed has essentially acted more proactively to assure the market that it won’t let this happen. If the fundamentals of the system are broken, there isn’t much even the fed could do. That doesn’t seem to be the case (modulo things the Feds cant control eg Foreign Wars).
- bombcar 4y agoYeah, I wouldn’t say we successfully prevented a 2008 crash until we’re through the next crash - as arguably the 2008 crash was a prevention of a 2001 crash.