[quote=FlyerInHi][quote=The-Shoveler]They cannot control everything True, but they can do a lot more than most on this board seem to think.[/quote]
Yes, the Fed under Greenspan made many mistakes that led to the 2008 crash. But the Fed under Bernanke, did a great job to get us out of recession, notwithstanding Congressional inaction.
You’re right, yes we can where other countries cannot. America has many natural economics advantages going for us.[/quote]
They weren’t “mistakes,” Brian. I’ve seen internal Fed papers that were discussing the bubble years before it actually burst. The govt knew exactly what was going to happen. Look at how they loosened GSE/FHA standards about two years before the crash. During the bubble, the private mortgage market grew while the GSE’s market share shrank. They were trying to shift as many mortgages as possible from the private market to the govt before the crash so that they could “save homeowners” (banks/lenders) when the crash came by publicly guaranteeing the mortgages and instituting various foreclosure moratoriums. They were looking to socialize the costs while they privatized the profits, as usual.
Additionally, Bush brought Bernanke on as an economic adviser in ~2005, IIRC, years before the crash. It was not a coincidence that he was considered an expert on the Great Depression. IMO, he was asked to chair the Council of Economic Advisors so that he could help advise them about the best way to handle the upcoming crash and resulting recession/depression. This is also why he was chosen to head the Federal Reserve.
They absolutely knew what was going to happen. If they didn’t then they should all lose their jobs, and those of us who did know should be the ones making all the rules and earning all that cash! 🙂
