unemployment starts the double dip

[JakeStarkey]

Monetary policy
The United States had adopted the Federal Reserve System in 1913, and the institution was still new. Milton Friedman and Anna Schwartz, in A Monetary History of the United States, identify mistakes in Federal Reserve policy as a key factor in the crisis. At the end of the war the Federal Reserve Bank of New York began raising interest rates sharply. In December 1919 the rate was raised to 4.75% from 5%. A month later it was raised to 6% and in June 1920 it was raised to 7% (the highest interest rates of any period except the 1970s and early 1980s). The high rates sharply reduced the amount of bank lending in the country, both to other banks and to consumers and businesses.[2][8]

Rates were sharply reduced in the latter half of 1921. The New York Federal Reserve reduced rates in successive half-point moves over the July- November period from the 7% high to 4.5% on November 3 1921. The depression ended.



Heres a fucking clue for you

Well...here's a clue for you then. You are quoting from early Friedman when he was a Keyesian. He later recanted and became an economist for Ronald Reagan. So yes...thanks for the source. It bites you bad.

It bit you, bud. Friedman was wrong when he changed, and you are wrong to follow him.

 

[saveliberty]

Cause she's going to say I lied:

"Originally Dr. Friedman was a Keynesian supporter of the New Deal and advocate of government intervention in the economy. However, his 1950s reinterpretation of the Keynesian consumption function challenged the basic Keynesian model. At the University of Chicago, Friedman became the main advocate for opposing Keynesianism"

Milton Friedman - Wikipedia, the free encyclopedia

 

[SFC Ollie]

I will rely upon common sense. You can play with interest rates and spend money you don't have. I will pay my bills with money I do have.

And more people everyday are seeing that whatever this administration is doing, and whatever you want to call it simply doesn't work.

 

[Truthmatters]

These creeps, TM, and several on the left here, are getting paid for it. I doubt they believe any of it.

How do you know this?

 

[SFC Ollie]

These creeps, TM, and several on the left here, are getting paid for it. I doubt they believe any of it.

How do you know this?

Jake is paid by the DNC to pretend he is on the right. He knows everything, just ask him he'll tell you.

 

[Truthmatters]

I would love to get paid to say what I believe anyway.

 

[Truthmatters]

I will rely upon common sense. You can play with interest rates and spend money you don't have. I will pay my bills with money I do have.

And more people everyday are seeing that whatever this administration is doing, and whatever you want to call it simply doesn't work.

Did you ever buy a house our car on credit?

 

[saveliberty]

These creeps, TM, and several on the left here, are getting paid for it. I doubt they believe any of it.

How do you know this?

Yes, I'd LOVE a verifiable source for this.

 

[Truthmatters]

Why cant find out where to get paid for you crap?

 

[SFC Ollie]

I will rely upon common sense. You can play with interest rates and spend money you don't have. I will pay my bills with money I do have.

And more people everyday are seeing that whatever this administration is doing, and whatever you want to call it simply doesn't work.

Did you ever buy a house our car on credit?

Of course, with payments that i could afford to make. I didn't buy a house and then add a second, third, and fourth mortgage to it. And I paid off the car loan and am still driving that car, 7 years later. I didn't go out and refinance it. It's called fiscal responsibility, something we have been lacking in Washington for quite some time.

But since it's Obama now it doesn't matter does it..........

 

[JakeStarkey]

Go to both national party sites. Also go to the sites for national think tanks. Do some research. I knew a person who was writing online for both parties in 2008; it was hysterical.

 

[uscitizen]

If the feds had not kept interest rates so low during the Bush presidency perhaps the fed could have an impact on this recession.

If the Bush economy was so great why was the interest rate kept so low?

 

[Avorysuds]

Monetary policy
The United States had adopted the Federal Reserve System in 1913, and the institution was still new. Milton Friedman and Anna Schwartz, in A Monetary History of the United States, identify mistakes in Federal Reserve policy as a key factor in the crisis. At the end of the war the Federal Reserve Bank of New York began raising interest rates sharply. In December 1919 the rate was raised to 4.75% from 5%. A month later it was raised to 6% and in June 1920 it was raised to 7% (the highest interest rates of any period except the 1970s and early 1980s). The high rates sharply reduced the amount of bank lending in the country, both to other banks and to consumers and businesses.[2][8]

Rates were sharply reduced in the latter half of 1921. The New York Federal Reserve reduced rates in successive half-point moves over the July- November period from the 7% high to 4.5% on November 3 1921. The depression ended.



Heres a fucking clue for you

And once again history stops short. Thanks TM.

Ok so TM, being the FedR has been lowering rates for years now (today) why is it we didn't have this amazing bounce back recovery? Could it be that back under Harding he shrunk Government while Obama/Bush grew Government?

Could it be that lowering taxes while shrinking Government to a size that revenues could more support works over giving *tax credits* (deficit building) while growing Government?

Please try and keep up TM.

http://www.elliottwave.com/images/marketwatch/interestratesfed.GIF

So at .25% (today) VS the Harding's 4.5% why are things not in wonderland awsome TM?

 

[Avorysuds]

http://dollardaze.org/blog/posts/00578/EffectiveFundsRate.png

Here is a bigger chart of the FedR for you TM. At points of the best economy we have very high interest rates, like under Bill Clinton. MOST of the time rates are higher than they were during the 1920’s depression.

We went from about 5% under Obama taking office to .25%... You give credit to the FedR for Harding’s successes but seem to again ignore the rest of the ENTIRE history of the FedR. Why are we not getting the same results of a lowered rate today TM? I mean 7 to 4.5 was big enough for you (2.5% drop) but yet a whopping 4.5ish % drop down to near ZERO % is what? Not enough???

So “hear is a clue” for you TM… Read more than a paragraph while only trying to find what you want to hear.

 

[Avorysuds]

If the feds had not kept interest rates so low during the Bush presidency perhaps the fed could have an impact on this recession.

If the Bush economy was so great why was the interest rate kept so low?

Because maybe growing Government and spending more don't make for good long term effects on the economy. Just like under FRD and now under Obama.

Shit, Obama has a .25%, that's a *POINT* ---->.<----- 25% and during the GREAT DEPRESSION we had a around 2.5 to 3%...



http://media.photobucket.com/image/...ire history rates/bonddad/AAA_Max_630_378.png

 

[saveliberty]

Why cant find out where to get paid for you crap?

Just a guess, but if "they" did pay, they would probably want sentences that made sense. If they paid, I'd stalk people like you 24/7. You make me look good.

 

[Truthmatters]

Dude no one could make you look good

 

[uscitizen]

If the feds had not kept interest rates so low during the Bush presidency perhaps the fed could have an impact on this recession.

If the Bush economy was so great why was the interest rate kept so low?

Because maybe growing Government and spending more don't make for good long term effects on the economy. Just like under FRD and now under Obama.

Shit, Obama has a .25%, that's a *POINT* ---->.<----- 25% and during the GREAT DEPRESSION we had a around 2.5 to 3%...



Us federal reserve entire history rates image by bonddad on Photobucket

that was my point. Bush grew employment and the goverment thru massive spending. So when it fell apart there was no reserve to bump the economy back up.

If the economy was so good under bush why did they keep the interest rates so low?
The fact is the Bush economy was all bogus and only propped up by low rates and massive govt spending.

 

[SFC Ollie]

If the feds had not kept interest rates so low during the Bush presidency perhaps the fed could have an impact on this recession.

If the Bush economy was so great why was the interest rate kept so low?

Because maybe growing Government and spending more don't make for good long term effects on the economy. Just like under FRD and now under Obama.

Shit, Obama has a .25%, that's a *POINT* ---->.<----- 25% and during the GREAT DEPRESSION we had a around 2.5 to 3%...



Us federal reserve entire history rates image by bonddad on Photobucket

that was my point. Bush grew employment and the goverment thru massive spending. So when it fell apart there was no reserve to bump the economy back up.

If the economy was so good under bush why did they keep the interest rates so low?
The fact is the Bush economy was all bogus and only propped up by low rates and massive govt spending.

I don't know about that. We have even lower rates and more spending now and the economy is not getting better.

 

[saveliberty]

If the feds had not kept interest rates so low during the Bush presidency perhaps the fed could have an impact on this recession.

If the Bush economy was so great why was the interest rate kept so low?

Because maybe growing Government and spending more don't make for good long term effects on the economy. Just like under FRD and now under Obama.

Shit, Obama has a .25%, that's a *POINT* ---->.<----- 25% and during the GREAT DEPRESSION we had a around 2.5 to 3%...



Us federal reserve entire history rates image by bonddad on Photobucket

that was my point. Bush grew employment and the goverment thru massive spending. So when it fell apart there was no reserve to bump the economy back up.

If the economy was so good under bush why did they keep the interest rates so low?
The fact is the Bush economy was all bogus and only propped up by low rates and massive govt spending.

US Citizen, with all due respect, at this point we need to consider the band-aid being used and not the disease. Obama is trying to cure hemmoroids with an eye patch.