That 1937 feeling all over again

Discussion in 'Politics' started by BDBoop, Aug 7, 2011.

  1. BDBoop
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    BDBoop BANNED

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    Don't harsh my zen, Jen!
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    That 1937 feeling all over again | Reuters

    I think Congress is going to have to actually - Oh, I don't know ... do their JOB??
     
  2. BDBoop
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    PAUL KRUGMAN: Market drop reflects what others ignore | PressDemocrat.com
     
  3. Grampa Murked U
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    [ame=http://www.youtube.com/watch?v=eZC6mxpgSYg&feature=youtube_gdata_player]‪Metallica My Friend Of Misery with lyrics‬‏ - YouTube[/ame]
     
  4. Moonglow
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    close the free bar at Congress
     
  5. Annie
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    If anything, it's more like 1932.
     
  6. ShackledNation
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    ShackledNation Libertarian

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    Controlling interest rates is what causes all these crises. If Ben Bernanke wanted to grow the economy, he would burn down the Federal Reserve and quit.
     
  7. Oddball
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    An awful lot like 1978.
     
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  8. ShackledNation
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    ShackledNation Libertarian

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    The central bank did not rush to tighten monetary policy during the Great Depression, so Bernanke is an expert in historical inaccuracy. Immediately following the late October 1929 crash, the NY Fed began slashing rates. It kept periodically cutting until it got to 1.5%, which was the lowest rate in Fed history to that point.

    Now it's true, in October 1931 the NY Fed abruptly changed course, because the Bank of England the month before had severed the pound's link to gold, and worldwide investors were fearful of a similar move by the US authorities. In order to stem the outflow of gold, the Federal Reserve did indeed find its hand forced and it had to jack up its rates.

    But the point is that the Fed had implemented record "easy" policies from November 1929 through September 1931, some 22 months after the onset of the Great Depression. For nearly two years, the same easy money and big spending policies Keynesians advocate today were followed, and they failed miserably.

    Furthermore, Throughout the period we are considering, the highest the New York Fed ever charged banks was 7 percent. And the only time it did that was smack dab in the middle of the 1920–1921 depression. That depression ended within a year. Interest rates were also raised to end stagflation and the economic disaster of the 70s and early 80s, and resulted in economic growth.
     
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  9. hellofromwarsaw
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    Difference being the TARP and Stimulus did their job, averting a depression, and corporations, banks and the rich have record amounts of cash on hand. The problem is to get the do-nothing, block everything Pubs in congress to pass some of the jobs bill andtrade pacts languishing for no reason (except they want him to fail,the bought off a-holes)- and get the GD Pub a-holes to hire and loan...$%^&*#@ #$^&&%@#!! tyvm
     
  10. Toro
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    It appears to be more like 1937. 1932 was just before the absolute bottom of the Great Depression.
     

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