Fed Up

The 1970s saw mild recessions compared to the conservatives' housing bust. And they were largely from supply shocks that caused mild stagflation. But Jim Carter and Paul Volcker addressed those issues, and Reagan reaped the benefits.

I would agree that Volcker handled the issue quite well, much better than the response from Greenspan and Bernanke have handled the current recession, but I certainly wouldn't categorize the stagflation as mild.


The 1970s saw mild recessions compared to the conservatives' housing bust

how can it be a conservative housing bust when there was massive govt intervention before the bust?? Ever heard of Fed/ Fanny/ Freddie just for starters??

ZERO to do with te WORLD WIDE CREDIT BUBBLE AND BUST, one Dubya ignored (FBI warnings starting in 2004) and was the head cheerleader for!



Examining the big lie: How the facts of the economic crisis stack up


Here are key things we know based on data. Together, they present a series of tough hurdles for the big lie proponents.

•The boom and bust was global. Proponents of the Big Lie ignore the worldwide nature of the housing boom and bust.




Sept09_CF1.jpg



Nonbank mortgage underwriting exploded from 2001 to 2007, along with the private label securitization market, which eclipsed Fannie and Freddie during the boom.

Check the mortgage origination data: The vast majority of subprime mortgages — the loans at the heart of the global crisis — were underwritten by unregulated private firms. These were lenders who sold the bulk of their mortgages to Wall Street, not to Fannie or Freddie. Indeed, these firms had no deposits, so they were not under the jurisdiction of the Federal Deposit Insurance Corp or the Office of Thrift Supervision. The relative market share of Fannie Mae and Freddie Mac dropped from a high of 57 percent of all new mortgage originations in 2003, down to 37 percent as the bubble was developing in 2005-06.


fannieFreddie2.jpg





Private lenders not subject to congressional regulations collapsed lending standards. Taking up that extra share were nonbanks selling mortgages elsewhere, not to the GSEs. Conforming mortgages had rules that were less profitable than the newfangled loans. Private securitizers — competitors of Fannie and Freddie — grew from 10 percent of the market in 2002 to nearly 40 percent in 2006.


Only one of the top 25 subprime lenders in 2006 was directly subject to the housing laws overseen by either Fannie Mae, Freddie Mac or the Community Reinvestment Act — Source: McClatchy



Examining the big lie: How the facts of the economic crisis stack up | The Big Picture
 
The 1970s saw mild recessions compared to the conservatives' housing bust. And they were largely from supply shocks that caused mild stagflation. But Jim Carter and Paul Volcker addressed those issues, and Reagan reaped the benefits.

I would agree that Volcker handled the issue quite well, much better than the response from Greenspan and Bernanke have handled the current recession, but I certainly wouldn't categorize the stagflation as mild.


The 1970s saw mild recessions compared to the conservatives' housing bust

how can it be a conservative housing bust when there was massive govt intervention before the bust?? Ever heard of Fed/ Fanny/ Freddie just for starters??

- Conservative Ideas Can't Escape Blame for the Financial Crisis


The onset of the recent financial crisis in late 2007 created an intellectual crisis for conservatives, who had been touting for decades the benefits of a hands-off approach to financial market regulation. As the crisis quickly spiraled out of control, it quickly became apparent that the massive credit bubble of the mid-2000s, followed by the inevitable bust that culminated with the financial markets freeze in the fall of 2008, occurred predominantly among those parts of the financial system that were least regulated, or where regulations existed but were largely unenforced.

Predictably, many conservatives sought to blame the bogeymen they always blamed.

Politics Most Blatant | Center for American Progress
 
I would agree that Volcker handled the issue quite well, much better than the response from Greenspan and Bernanke have handled the current recession, but I certainly wouldn't categorize the stagflation as mild.


The 1970s saw mild recessions compared to the conservatives' housing bust

how can it be a conservative housing bust when there was massive govt intervention before the bust?? Ever heard of Fed/ Fanny/ Freddie just for starters??

- Conservative Ideas Can't Escape Blame for the Financial Crisis


The onset of the recent financial crisis in late 2007 created an intellectual crisis for conservatives, who had been touting for decades the benefits of a hands-off approach to financial market regulation. As the crisis quickly spiraled out of control, it quickly became apparent that the massive credit bubble of the mid-2000s, followed by the inevitable bust that culminated with the financial markets freeze in the fall of 2008, occurred predominantly among those parts of the financial system that were least regulated, or where regulations existed but were largely unenforced.

Predictably, many conservatives sought to blame the bogeymen they always blamed.

Politics Most Blatant | Center for American Progress

actually Fed Fan Fred represented just part of the massive liberal intervention, the exact opposite of hands off. Where are you confused exactly?
 
The 1970s saw mild recessions compared to the conservatives' housing bust

how can it be a conservative housing bust when there was massive govt intervention before the bust?? Ever heard of Fed/ Fanny/ Freddie just for starters??

- Conservative Ideas Can't Escape Blame for the Financial Crisis


The onset of the recent financial crisis in late 2007 created an intellectual crisis for conservatives, who had been touting for decades the benefits of a hands-off approach to financial market regulation. As the crisis quickly spiraled out of control, it quickly became apparent that the massive credit bubble of the mid-2000s, followed by the inevitable bust that culminated with the financial markets freeze in the fall of 2008, occurred predominantly among those parts of the financial system that were least regulated, or where regulations existed but were largely unenforced.

Predictably, many conservatives sought to blame the bogeymen they always blamed.

Politics Most Blatant | Center for American Progress

actually Fed Fan Fred represented just part of the massive liberal intervention, the exact opposite of hands off. Where are you confused exactly?

Got it, You'll stick to MYTHS AND FAIRY TALES

WORLD WIDE CREDIT BUBBLE AND BUST


Examining the big lie: How the facts of the economic crisis stack up


Here are key things we know based on data. Together, they present a series of tough hurdles for the big lie proponents.

•The boom and bust was global. Proponents of the Big Lie ignore the worldwide nature of the housing boom and bust.


Sept09_CF1.jpg



A McKinsey Global Institute report noted “from 2000 through 2007, a remarkable run-up in global home prices occurred.” It is highly unlikely that a simultaneous boom and bust everywhere else in the world was caused by one set of factors (ultra-low rates, securitized AAA-rated subprime, derivatives) but had a different set of causes in the United States.


Examining the big lie: How the facts of the economic crisis stack up | The Big Picture
 
- Conservative Ideas Can't Escape Blame for the Financial Crisis


The onset of the recent financial crisis in late 2007 created an intellectual crisis for conservatives, who had been touting for decades the benefits of a hands-off approach to financial market regulation. As the crisis quickly spiraled out of control, it quickly became apparent that the massive credit bubble of the mid-2000s, followed by the inevitable bust that culminated with the financial markets freeze in the fall of 2008, occurred predominantly among those parts of the financial system that were least regulated, or where regulations existed but were largely unenforced.

Predictably, many conservatives sought to blame the bogeymen they always blamed.

Politics Most Blatant | Center for American Progress

actually Fed Fan Fred represented just part of the massive liberal intervention, the exact opposite of hands off. Where are you confused exactly?

Got it, You'll stick to MYTHS AND FAIRY TALES

WORLD WIDE CREDIT BUBBLE AND BUST


Examining the big lie: How the facts of the economic crisis stack up


Here are key things we know based on data. Together, they present a series of tough hurdles for the big lie proponents.

•The boom and bust was global. Proponents of the Big Lie ignore the worldwide nature of the housing boom and bust.


Sept09_CF1.jpg



A McKinsey Global Institute report noted “from 2000 through 2007, a remarkable run-up in global home prices occurred.” It is highly unlikely that a simultaneous boom and bust everywhere else in the world was caused by one set of factors (ultra-low rates, securitized AAA-rated subprime, derivatives) but had a different set of causes in the United States.


Examining the big lie: How the facts of the economic crisis stack up | The Big Picture

Got it, You'll stick to MYTHS AND FAIRY TALES

actually Fed Fan Fred are very very very real and massively intervene in the housing market! What exactly don't you understand? Changing the subject does not fool anyone. Sorry; don't mean to rock your world.
 
actually Fed Fan Fred represented just part of the massive liberal intervention, the exact opposite of hands off. Where are you confused exactly?

Got it, You'll stick to MYTHS AND FAIRY TALES

WORLD WIDE CREDIT BUBBLE AND BUST


Examining the big lie: How the facts of the economic crisis stack up


Here are key things we know based on data. Together, they present a series of tough hurdles for the big lie proponents.

•The boom and bust was global. Proponents of the Big Lie ignore the worldwide nature of the housing boom and bust.


Sept09_CF1.jpg



A McKinsey Global Institute report noted “from 2000 through 2007, a remarkable run-up in global home prices occurred.” It is highly unlikely that a simultaneous boom and bust everywhere else in the world was caused by one set of factors (ultra-low rates, securitized AAA-rated subprime, derivatives) but had a different set of causes in the United States.


Examining the big lie: How the facts of the economic crisis stack up | The Big Picture

Got it, You'll stick to MYTHS AND FAIRY TALES

actually Fed Fan Fred are very very very real and massively intervene in the housing market! What exactly don't you understand? Changing the subject does not fool anyone. Sorry; don't mean to rock your world.

So the fed reserve and F/F caused a world wide credit bubble and bust? Was there F/F in the credit card industry? Commercial banking or auto loans? lol
 
Was there F/F in the credit card industry? Commercial banking or auto loans? lol

no and I did not say there was??? So, can you put into words what point you feel you have made?



Yet F/F distorted the markets in the housing bubble Dubya created but NOT in the world wide credit bubble or the commercial real estate bubble, auto bubble or credit card bubble in thew US? THAT'S your premise? Blame GSE's for 'distorting' a bubble? lol
 
So the fed reserve and F/F caused a world wide credit bubble and bust?

IF I said that I"ll pay you $10,000. Bet?

YOU will ALWAYS play the edges right Bubba?

" conservative housing bust when there was massive govt intervention before the bust?? Ever heard of Fed/ Fanny/ Freddie just for starters??"



Conservative Ideas Can't Escape Blame for the Financial Crisis



The onset of the recent financial crisis in late 2007 created an intellectual crisis for conservatives, who had been touting for decades the benefits of a hands-off approach to financial market regulation. As the crisis quickly spiraled out of control, it quickly became apparent that the massive credit bubble of the mid-2000s, followed by the inevitable bust that culminated with the financial markets freeze in the fall of 2008, occurred predominantly among those parts of the financial system that were least regulated, or where regulations existed but were largely unenforced.

Predictably, many conservatives sought to blame the bogeymen they always blamed.

Politics Most Blatant | Center for American Progress
 
Forbes Article Posted by Ron Paul: 5/15/2009 @ 7:10PM
[MENTION=11774]Kevin_Kennedy[/MENTION] post: 05-17-2009, 03:21 AM
Ron Paul: Like father like son: The man has a difficult time distinguishing fact from fiction, myth from reality, himself from causes.

"A true propagandist he starts out with crap like: "One of the fallacies of modern economics is the idea that...In reality, it is..."

"A common misconception is..."

then the hero populists ends with: "If Congress fails to scrutinize the Fed and the actions of its unelected bureaucrats, it will only have itself to blame as this country’s economy crashes and burns."

The country's economy has NOT crashed and burned. Like his dad and other charlatans of prophecy, Senator Paul throws enough crap into the fan hoping at some point some will stick and he can say "See, I told you so."

yes, sad but true, the libertarians got it all wrong for years predicting that a huge inflation was coming. They did not realize that quantity and velocity both matter.
Still, it is disconcerting that the Fed which had no idea the crash was coming is somehow doing a good job of mitigating it.
make enough predictions and a few are bound to come true.

yet on closer look most that come true weren't really predicted as is, they need to be massaged:badgrin:
 
Forbes Article Posted by Ron Paul: 5/15/2009 @ 7:10PM
[MENTION=11774]Kevin_Kennedy[/MENTION] post: 05-17-2009, 03:21 AM

Ron Paul: Like father like son: The man has a difficult time distinguishing fact from fiction, myth from reality, himself from causes.

"A true propagandist he starts out with crap like: "One of the fallacies of modern economics is the idea that...In reality, it is..."

"A common misconception is..."

then the hero populists ends with: "If Congress fails to scrutinize the Fed and the actions of its unelected bureaucrats, it will only have itself to blame as this country’s economy crashes and burns."

The country's economy has NOT crashed and burned. Like his dad and other charlatans of prophecy, Senator Paul throws enough crap into the fan hoping at some point some will stick and he can say "See, I told you so."

yes, sad but true, the libertarians got it all wrong for years predicting that a huge inflation was coming. They did not realize that quantity and velocity both matter.
Still, it is disconcerting that the Fed which had no idea the crash was coming is somehow doing a good job of mitigating it.
make enough predictions and a few are bound to come true.

yet on closer look most that come true weren't really predicted as is, they need to be massaged:badgrin:

Well time will tell. It could well be that we have entered a new era of central banking. Now we are aware of how to manage runs, inflation, and bubbles. If thats all there is to be aware of and manage we may be home free at least in term of monetary policy. The dual mandate is a problem for sure, but not a deadly one it seems.
 

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