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did you forget about all the money the fed printed during covid? fed independence is important, but literally irrelevant in the face of rampant money printing
by llmslave 8mo ago
did you forget about all the money the fed printed during covid?
fed independence is important, but literally irrelevant in the face of rampant money printing
- altcognito 8mo agoWhy did the fed raise interest rates? To soak up some of that cash. It was too slow, but this is exactly the sound money policy that everyone expects. You loosen cash (what you mistakenly call printing money), when you need investment, and tighten cash when inflation and risk taking is out of control.
- llmslave 8mo agoa sound response to some of the worst fed decision making in US history. they essentially ruined the housing market, priced out a generation of younger buyers, which is now crushing fertility rates, savings, and more
- spiderfarmer 8mo agoIt's almost like pandemics have consequences.
- pempem 8mo agoWas it them that did that or employers freezing wages and losing R&D credits/facing tarrifs / wild instability?
- DaSHacka 8mo agoWell, seeing is how that happened before the tariffs, yeah, I'd have to agree with GP.
- marssaxman 8mo agoStrict zoning ruined the housing market, and this is a multigenerational problem: https://www.sciencedirect.com/science/article/abs/pii/S009411902500049X https://www.sciencedirect.com/science/article/abs/pii/S00941...
- IX-103 8mo agoInvestment real estate ruined the housing market. All of a sudden housing prices are expected to grow year over year as an investment. As more and more growth expectations were applied to housing, public policy (including zoning) changed to protect those expectations. Is it any surprise that there came a point at which it became too expensive? Once problem we need to solve is how to unwind housing prices without financially ruining honeowners whose house is their primary/only wealth. Of course this problem is even more severe in areas of the country that are becoming uninhabitable due to changes in climate as it drives down demand.
- altcognito 8mo ago* fertility rates have been dropping for a long time. While this article is focused on "it's not about the teens", it isn't tied to housing, or after covid: https://ifstudies.org/blog/the-us-fertility-decline-is-not-due-to-the-drop-in-teen-pregnancies https://ifstudies.org/blog/the-us-fertility-decline-is-not-d... * housing market was already quite bad before covid (see sibling comment) * Savings rates have hovered around 5% for almost 25+ years - https://fred.stlouisfed.org/series/PSAVERT https://fred.stlouisfed.org/series/PSAVERT
- FrustratedMonky 8mo agowas money printing because of a lack of independence, and manipulation by the executive? or the fed trying to keep things afloat. this president is trying to money print during non-crisis, to ramp up economy to "20% GDP". why downvote? Trump literally said he wants a GDP that goes to 20% or 100%. Shoot to the moon.
- llmslave 8mo agocovid money printing was some of the worst fed decision making in US history. they essentially ruined the housing market, priced out a generation of younger buyers, which is now crushing fertility rates, savings, and more
- FrustratedMonky 8mo agoeveryone complains, nobody has alternatives. what would have been the correct actions in that situation? really the government should tax in good times. and spend in bad times. and be a counter weight to private sector
- llmslave 8mo agono they literally just kept printing money for no reason
- FrustratedMonky 8mo agoIts the 'kept printing' that is the problem with the story. There was a surge and a pull back. Post-COVID Tightening: After this historic surge, the Federal Reserve began "quantitative tightening" in 2022 to combat inflation, slowing M2 growth to near zero and eventually reversing it.
- weberer 8mo ago>slowing M2 growth to near zero and eventually reversing it. The M2 money supply went from 15.4b at the start of 2020 to a peak of 21.7b, before slightly reversing to 20.7b. Then they just continued printing. Now it currently stands at a record high of 22.2b. The dollar is more diluted than ever. https://fred.stlouisfed.org/series/M2SL https://fred.stlouisfed.org/series/M2SL
- Aunche 8mo agoWe were in a lockdown, and Congress voted for multiple trillion dollar stimulus' financed by debt. Refusing to "print money" in those circumstances is just asking for a worse Great Depression.
- nubg 8mo agoOur of curiosity as I know nothing about economics, how would not printing miney lead to a Great Depression?
- okanat 8mo agoA crisis prevents people from earning money. No money means nobody buys anything. Nobody buys anything means no company can now sell stuff, so no revenue. Companies start closing down, so there are even more people who cannot earn money. The government can print money and inject into the system. Some people have money so they continue to buy stuff but maybe at a slower pace or less amount. Things also can get expensive but it is not a total collapse.
- KaiserPro 8mo agoone of the big problems of the great depression was banks went bankrupt left right and centre, and took everyone's life savings with them. Also as a lot of banks generally hold mortgages in their portfolio, so when a bank collapses it means that mortgages all get fucky too. So the mass printing of money meant that banks didn't collapse. It also meant that a fucktonne of cash went into the hands of the uber rich.
- jacquesm 8mo agoThis is one of the reasons safety nets on savings exist in both the USA and in Europe (and probably other places as well about which I'm less informed). Even so, the tacit understanding is that this is more about preventing bank runs than about the practical effects on the currencies involved because it could very well be that that insurance will pay out in money that is worthless.
- throwaway173738 8mo agoWho signed the front of those checks?
- diordiderot 8mo agoVarious civil servants at the Treasury Department?