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It seems like we've had just as many financial crises before the advent of the Federal Reserve in 1913 than after, so it remains unclear to me the benefits of h

It seems like we've had just as many financial crises before the advent of the Federal Reserve in 1913 than after, so it remains unclear to me the benefits of having it around, particularly as its nominal independence from the political process is eroding. Sure, keep the lender of last resort; but maybe let the market determine interest rates through money markets, with incentive-control through judicious laws, instead of by fiat.

Zetice 4y ago
Hmm, I suggest reading about some of the pre-fed crises to understand better why these modern problems are much better to have if given the choice…
- prottog 4y ago
  Which pre-Fed crises were worse than the Great Depression or the GFC?
  - Zetice 4y ago
    https://www.investopedia.com/articles/economics/08/federal-reserve.asp https://www.investopedia.com/articles/economics/08/federal-r... The obvious example is the panic of 1907, and if your argument is that today’s fed looks anything like 1929’s fed, that’s gonna be a tough road to hoe.
  - HDThoreaun 4y ago
    Literally the entire second half of the 19th century.
- jrumbut 4y ago
  And this situation is similar. A bad thing happened, so we were going to feel some pain. Instead of letting that lead to complete chaos we let it lead to some chaos and some inflation.
  - Zetice 4y ago
    Exactly, and just to drive it home, I’m going to feel zero pain as a result of SVB imploding, Thanks to the fed. I felt no pain in ‘08, in ‘20, also thanks to the fed. It was just news to me, abstract and happening to other people. That would not have been true without the fed.
    - jrumbut 4y ago
      I do wish we could get beyond the idea of "I don't like this system, get rid of it." It's not realistic in a society this size to just chuck something like the Federal Reserve. You'd think technologists of all people would understand that to get rid of a legacy system you need to make something so much better it becomes obsolete (or, at the very least, the embrace-extend-extinguish approach).
deleted 4y ago
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Zetice 4y ago

Hmm, I suggest reading about some of the pre-fed crises to understand better why these modern problems are much better to have if given the choice…

prottog 4y ago
Which pre-Fed crises were worse than the Great Depression or the GFC?
- Zetice 4y ago
  https://www.investopedia.com/articles/economics/08/federal-reserve.asp https://www.investopedia.com/articles/economics/08/federal-r... The obvious example is the panic of 1907, and if your argument is that today’s fed looks anything like 1929’s fed, that’s gonna be a tough road to hoe.
- HDThoreaun 4y ago
  Literally the entire second half of the 19th century.
jrumbut 4y ago
And this situation is similar. A bad thing happened, so we were going to feel some pain. Instead of letting that lead to complete chaos we let it lead to some chaos and some inflation.
- Zetice 4y ago
  Exactly, and just to drive it home, I’m going to feel zero pain as a result of SVB imploding, Thanks to the fed. I felt no pain in ‘08, in ‘20, also thanks to the fed. It was just news to me, abstract and happening to other people. That would not have been true without the fed.
  - jrumbut 4y ago
    I do wish we could get beyond the idea of "I don't like this system, get rid of it." It's not realistic in a society this size to just chuck something like the Federal Reserve. You'd think technologists of all people would understand that to get rid of a legacy system you need to make something so much better it becomes obsolete (or, at the very least, the embrace-extend-extinguish approach).

deleted 4y ago

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