Thread: That's it.
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Old 09-05-2008, 11:35 AM   #5 (permalink)
Lateralus
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Quote:
Originally Posted by Jack Flak View Post
I wouldn't call myself a Clinton kind of guy. To each his own. I don't think presidents have a thousandth the influence on the economy people give them credit for. Cycles are gonna cycle despite them.
Yep, the chairman of the Federal Reserve has more power than the president, over the economy. Clinton's administration benefited from Greenspan's loosening of the money supply. Now we're paying the price for Greenspan's idiocy, while the federal government bails out the banks (claiming they're actually helping consumers...hah!).

Fuck Greenspan and fuck Bernanke. They think they can control the business cycle by targeting interest rates. The problem is, Volker already proved that strategy to be a failure back in the 70s. The only real tool the fed has to control the economy is its power to print money. It was Volker's tight money policy that brought us out of stagflation, not setting interest rates which is akin to setting price controls.
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