Obama warns of dire consequences without stimulus

[Zoom-boing]

Once again, Republicans didn't cause this recession or the Great Depression. Both were caused by the Federal Reserve.

Kevin, can you elaborate on this (in ah, user-friendly speak )? Thanks.

 

[Kevin_Kennedy]

Kevin, can you elaborate on this (in ah, user-friendly speak )? Thanks.

The Fed inflated the money supply, which caused the housing bubble, the bubble popped as they always do, and here we are.

The Fed creates boom-and-bust cycles. During the boom period everything is seemingly great, but the bust must always follow. During the bust period the market attempts to re-allocate resources that were displaced due to the Fed intervening in the market.

 

[Zoom-boing]

The problem is that no one knows what we're doing right now. The Wall Street rescue plan was for the stated purpose of preventing the financial crisis from spreading to Main Street, but it turns out that it had already spread to Main Street and none of the people running the show on either side of the aisle knew.

But politicians always think they should be seen doing something even if they have no idea what to do, so now that after the Wall Street bailout and the Detroit bailout the public is sick of bailouts, we have enter the age of stimulus packages, despite the fact that no one has any better idea of how a stimulus package will help get us out of the deep recession we have entered than they did how the Wall Street rescue plan was supposed to cure the financial crisis.

Shouldn't they know? I mean, isn't that their job?

 

[Zoom-boing]

The Fed inflated the money supply, which caused the housing bubble, the bubble popped as they always do, and here we are.

I thought banks lending money to people who wouldn't be able to pay it back, zero downpayment, interest only loans, people buying more than they could really afford, etc. were the causes. I don't know why anyone would think that lending money to poor risk people was a good idea.

The Fed creates boom-and-bust cycles. During the boom period everything is seemingly great, but the bust must always follow. During the bust period the market attempts to re-allocate resources that were displaced due to the Fed intervening in the market.

If this is a cycle, why is it so bad this time?

 

[jeffrockit]

Well, no, the fellow on the factory floor knows full well that this is the Republican Recession/Depression. For sure, Bush has made things much worse on all fronts. Obama has yet to govern, so we will not know that for a couple of years.

Congress, not the President, controls the economy and budgets and Dems have been in charge for the past 2 years!

 

[Annie]

Well, no, the fellow on the factory floor knows full well that this is the Republican Recession/Depression. For sure, Bush has made things much worse on all fronts. Obama has yet to govern, so we will not know that for a couple of years.

Don't think so:

Why Obama Will 'Own' the Recession - Capital Commerce (usnews.com)

 

[Kevin_Kennedy]

I thought banks lending money to people who wouldn't be able to pay it back, zero downpayment, interest only loans, people buying more than they could really afford, etc. were the causes. I don't know why anyone would think that lending money to poor risk people was a good idea.

If this is a cycle, why is it so bad this time?

There was certainly more than one cause, my point is that the Fed is at the heart of all major financial crises.

The more the bubble inflates the worse it is when it pops.

 

[AmericaFirst]

There was certainly more than one cause, my point is that the Fed is at the heart of all major financial crises.

The more the bubble inflates the worse it is when it pops.

I agree 100 percent.

END THE FED!

 

[indago]

Well, no, the fellow on the factory floor knows full well that this is the Republican Recession/Depression. For sure, Bush has made things much worse on all fronts. Obama has yet to govern, so we will not know that for a couple of years.

http://www.usmessageboard.com/949209-post136.html

 

[garyd]

Bush hasn't made anything worse. He in fact couldn't.

By the way I like to go on record as saying that if we get this silly 'stimulus' package things will get much worse.

 

[Kevin_Kennedy]

Bush hasn't made anything worse. He in fact couldn't.

By the way I like to go on record as saying that if we get this silly 'stimulus' package things will get much worse.

Bush supported the bank bailouts, which made it worse.

 

[garyd]

Yep but absent The Democratic congress's capitulation Bush can beg all He wants and it won't matter. The point is that Congress rightly controlls the purse strings not the president.