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It's wild. The Fed brought interest rates down to zero and created a massive asset bubbled fueled by cheap debt. Now they're cranking up interest rates to pop t
by hnuser847 4y ago
It's wild. The Fed brought interest rates down to zero and created a massive asset bubbled fueled by cheap debt. Now they're cranking up interest rates to pop they bubble they created, and we're supposed to applaud them for carefully maintaining "stable prices". All they've done is put us through an economic rollercoaster where most of us ended poorer in the end.
- chasd00 4y agowell don't forget, in 2008/9 they were fighting a deflationary spiral. That was the biggest fear and Bernanke even said he'd drop bags of money from helicopters before getting trapped in that situation. There were lots of voices warning of the inevitability of high inflation but the deflationary conditions soaked it up until now. I think the real problem is the pandemic was not a deflationary situation, we just turned off production quite literally and then increased demand by giving everyone money for not producing anything. /not an economist just a normal everyday guy
- mitthrowaway2 4y ago
- mullingitover 4y agoThe crazy part is that they dropped reserve requirements to zero for banks at the beginning of the pandemic, and for all the hiking of rates the reserve requirements are still at zero. They slammed on the brakes while the other foot is still flooring the gas pedal.