Expert says Federal Reserve primary cause of economic disaster

[bamacre]

http://www.youtube.com/watch?v=GFxZDTAXEhg

Steve Forbes admits the Federal Reserve was the primary cause of the economic mess we are in. Creating too much money, which was done to *gasp* help the economy once the tech bubble crashed. What are doing now? Creating more new money to *gasp* help the economy now that the housing bubble has crashed. When are people going to stop blaming free markets for this mess and accept the fact that it was the government and their Fed that created this mess?

 

[miketheidiot]

jesus christ *facepalm*

since when has steve forbes been an expert?

EDIT: seeing as you got owned in the last thread, it must be time for a new thread, right?

 

[First]

Originally posted by: miketheidiot
jesus christ *facepalm*

since when has steve forbes been an expert?

EDIT: seeing as you got owned in the last thread, it must be time for a new thread, right?

rofl, yup. lmao @ Steve Forbes.

 

[Descartes]

I'm not sure what constitutes greater madness: The economic disaster itself or this ceaseless desire to seek out someone to blame. Everyone just latches on to their ideological positions, searches for someone that speaks to it and spreads it like gospel.

To borrow a quote: A wealth of information creates a poverty of attention.

I think it's applicable here. There's too much information floating around about what happened, why, who was involved, etc. that one can't really apply a true causal relationship; instead, to expedite the thought process, one resorts to the comfort of ideology.

Same thinking, different issue.

 

[First]

Though, I actually would say that Forbes is pretty knowledgeable about finance and economics generally, but he falls into the same ideological trap as a lot of guys (that is, his extreme conservative politics) making his cries about the Fed being primarily responsible for the current crisis (because of excess liquidity) grossly overstated. If you had to divide up blame for the current recession in % terms, the Fed's overly aggressive post-9/11 interest rate cuts wouldn't approach anywhere near majority blame (>50%) as compared to unregulated CDS, CDO, or simply poor risk management on the part of firms that made the actual decisions to over-leverage at far greater than 30:1 ratios (Lehman, Bear, et al). None of the Austrians have yet been able to rationalize their claims that individual firms' decision were NOT more at fault (i.e. unregulated CDS lures) without simultaneously ignoring how half the financial system (in pure asset terms $5T) and 99% of all U.S. banks were able to avoid bailouts. If anything it can be argued that this merely fleshes out overly aggressive risk management and overly simplistic exotic financial instrument analysts from the market. It's good to see so many banks weren't sucked into the same trap.

 

[NoStateofMind]

When we hit bottom everyone will look around for who is to blame. Guess who will get the blame? The "free market" will, and that usher in a new era of government control (as if there isn't enough now). The real culprit has been corruption and collusion amongst those with power and the wealthy. That will be ignored though

 

[piasabird]

Banks are more important than people.

 

[bamacre]

:laugh:

I only posted this because I wanted to see if the usuals would stoop to bashing Forbes in order to defend the Fed. Mission Accomplished. :laugh:

 

[First]

Btw, it's funny to see Forbes parroted by Schiff apologists, as he literally laughs at Schiff's notion that the U.S. can't control bond rates or inflation, or that we have anywhere near a good chance of defaulting. Schiff even claims in that video that there's a scenario where bond rates will hit 10%-20%, and uses the falsehood that we have a "negative savings rate" without mentioning that his definition of savings is arcane and poorly defined, much like his take on inflation which he claims is now on par with the 70's. Dude is seriously a riot, no wonder his apologists wimp out of their own threads. :laugh:

 

[silverpig]

Okay, I'll admit it.

I caused this mess. Yup, me. Plain ol' silverpig messed up the global economy. I'm ready to accept my punishment. Send your womens to do what they will with me, I'll take one for the team.

 

[bamacre]

Originally posted by: Evan
Btw, it's funny to see Forbes parroted by Schiff apologists, as he literally laughs at Schiff's notion that the U.S. can't control bond rates or inflation, or that we have anywhere near a good chance of defaulting. Schiff even claims in that video that there's a scenario where bond rates will hit 10%-20%, and uses the falsehood that we have a "negative savings rate" without mentioning that his definition of savings is arcane and poorly defined, much like his take on inflation which he claims is now on par with the 70's. Dude is seriously a riot, no wonder his apologists wimp out of their own threads. :laugh:

LOL, you completely missed my point, perhaps even intentionally. It's just obvious to many experts (except our resident ones :laugh , no matter their ideology or disagreements elsewhere, that the Fed was the primary cause of this mess. You particularly have finally moved from "no cause" to "some cause," and even LK has admitted "some" cause. You guys are learning, and I'm proud of both you. Don't be afraid though, it's ok to admit that your beloved Fed was the primary cause of this mess. Nothing wrong with accepting the truth, nothing to be ashamed of.

I do have to admit one thing though. I am starting to lose interest in you guys' posts. It's just the same stuff. LK will come out with his straw man personal attack, "libertopians," and you always end with saying "you'll wimp out" on the argument. Well, let me fill you in on something. Just because someone realizes, before you do, that there won't be any final say, some mutual agreement, or whatever, and that it's not worth any further effort, doesn't mean that someone is "wimping out." Just because you're the last one to post in a thread doesn't mean the teacher will come around and give you a gold star for winning. And when you get older you will hopefully learn that your saying stuff like this is just stroking your own little ego. And as well, when you get older, hopefully you'll learn that little ego of your's is really nothing but trouble, that it can only give you a false sense of self-esteem. What I mean is, your saying things like this may give you a feeling of superiority, but in reality, it only shows your real subconscious feelings of inferiority.

 

[ranmaniac]

It's more than a housing bubble. It's a quadrillion+ derivatives black hole.

 

[miketheidiot]

Originally posted by: bamacre

Originally posted by: Evan
Btw, it's funny to see Forbes parroted by Schiff apologists, as he literally laughs at Schiff's notion that the U.S. can't control bond rates or inflation, or that we have anywhere near a good chance of defaulting. Schiff even claims in that video that there's a scenario where bond rates will hit 10%-20%, and uses the falsehood that we have a "negative savings rate" without mentioning that his definition of savings is arcane and poorly defined, much like his take on inflation which he claims is now on par with the 70's. Dude is seriously a riot, no wonder his apologists wimp out of their own threads. :laugh:

LOL, you completely missed my point, perhaps even intentionally. It's just obvious to many experts (except our resident ones :laugh , no matter their ideology or disagreements elsewhere, that the Fed was the primary cause of this mess. You particularly have finally moved from "no cause" to "some cause," and even LK has admitted "some" cause. You guys are learning, and I'm proud of both you. Don't be afraid though, it's ok to admit that your beloved Fed was the primary cause of this mess. Nothing wrong with accepting the truth, nothing to be ashamed of.

I do have to admit one thing though. I am starting to lose interest in you guys' posts. It's just the same stuff. LK will come out with his straw man personal attack, "libertopians," and you always end with saying "you'll wimp out" on the argument. Well, let me fill you in on something. Just because someone realizes, before you do, that there won't be any final say, some mutual agreement, or whatever, and that it's not worth any further effort, doesn't mean that someone is "wimping out." Just because you're the last one to post in a thread doesn't mean the teacher will come around and give you a gold star for winning. And when you get older you will hopefully learn that your saying stuff like this is just stroking your own little ego. And as well, when you get older, hopefully you'll learn that little ego of your's is really nothing but trouble, that it can only give you a false sense of self-esteem. What I mean is, your saying things like this may give you a feeling of superiority, but in reality, it only shows your real subconscious feelings of inferiority.

noone with credibility with this.

whats it like being deranged?

 

[miketheidiot]

Originally posted by: bamacre
:laugh:

I only posted this because I wanted to see if the usuals would stoop to bashing Forbes in order to defend the Fed. Mission Accomplished. :laugh:

right because this is the first or last time i've bashed forbes.

 

[bamacre]

Originally posted by: miketheidiot
noone with credibility with this.

Are you saying that anyone who believes that the Fed was the primary cause of this mess has no credibility?

 

[miketheidiot]

Originally posted by: bamacre

Originally posted by: miketheidiot
noone with credibility with this.

Are you saying that anyone who believes that the Fed was the primary cause of this mess has no credibility?

i would say that they need psychological help

 

[bamacre]

Originally posted by: miketheidiot

Originally posted by: bamacre

Originally posted by: miketheidiot
noone with credibility with this.

Are you saying that anyone who believes that the Fed was the primary cause of this mess has no credibility?

i would say that they need psychological help

Steve Forbes needs psychological help?

 

[BansheeX]

Originally posted by: miketheidiot
seeing as you got owned in the last thread, it must be time for a new thread, right?

Hahaha, revisionist history much?

It really doesn't matter who you quote, they're all wrong about certain things, it's just a question of degree. Forbes is rightly sympathetic to a gold standard, but doesn't understand the finer workings of the bond market and has been owned by Schiff on bond rates and on mark-to-market accounting.

http://www.youtube.com/watch?v=JGdj3Gx4A8w
http://www.youtube.com/watch?v=8IJmnnXKsLo

 

[JKing106]

Originally posted by: miketheidiot

Originally posted by: bamacre

Originally posted by: Evan
Btw, it's funny to see Forbes parroted by Schiff apologists, as he literally laughs at Schiff's notion that the U.S. can't control bond rates or inflation, or that we have anywhere near a good chance of defaulting. Schiff even claims in that video that there's a scenario where bond rates will hit 10%-20%, and uses the falsehood that we have a "negative savings rate" without mentioning that his definition of savings is arcane and poorly defined, much like his take on inflation which he claims is now on par with the 70's. Dude is seriously a riot, no wonder his apologists wimp out of their own threads. :laugh:

LOL, you completely missed my point, perhaps even intentionally. It's just obvious to many experts (except our resident ones :laugh , no matter their ideology or disagreements elsewhere, that the Fed was the primary cause of this mess. You particularly have finally moved from "no cause" to "some cause," and even LK has admitted "some" cause. You guys are learning, and I'm proud of both you. Don't be afraid though, it's ok to admit that your beloved Fed was the primary cause of this mess. Nothing wrong with accepting the truth, nothing to be ashamed of.

I do have to admit one thing though. I am starting to lose interest in you guys' posts. It's just the same stuff. LK will come out with his straw man personal attack, "libertopians," and you always end with saying "you'll wimp out" on the argument. Well, let me fill you in on something. Just because someone realizes, before you do, that there won't be any final say, some mutual agreement, or whatever, and that it's not worth any further effort, doesn't mean that someone is "wimping out." Just because you're the last one to post in a thread doesn't mean the teacher will come around and give you a gold star for winning. And when you get older you will hopefully learn that your saying stuff like this is just stroking your own little ego. And as well, when you get older, hopefully you'll learn that little ego of your's is really nothing but trouble, that it can only give you a false sense of self-esteem. What I mean is, your saying things like this may give you a feeling of superiority, but in reality, it only shows your real subconscious feelings of inferiority.

noone with credibility with this.

whats it like being deranged?

What's it like to suck corporate dick? How's the trickle down working for ya?

By the way, do you have $430 million? Steve Forbes does. I'll take his word over yours when it comes to money.

 

[First]

Originally posted by: bamacre

LOL, you completely missed my point, perhaps even intentionally. It's just obvious to many experts (except our resident ones :laugh , no matter their ideology or disagreements elsewhere, that the Fed was the primary cause of this mess. You particularly have finally moved from "no cause" to "some cause," and even LK has admitted "some" cause. You guys are learning, and I'm proud of both you. Don't be afraid though, it's ok to admit that your beloved Fed was the primary cause of this mess. Nothing wrong with accepting the truth, nothing to be ashamed of.

I've always stated the Fed had some culpability, they're not perfect much like free markets aren't perfect. Old news. This idea that the Fed is primarily responsible is nonsense and, per usual, you have no shot at backing it up with anything remotely credible.

I do have to admit one thing though. I am starting to lose interest in you guys' posts. It's just the same stuff. LK will come out with his straw man personal attack, "libertopians," and you always end with saying "you'll wimp out" on the argument. Well, let me fill you in on something. Just because someone realizes, before you do, that there won't be any final say, some mutual agreement, or whatever, and that it's not worth any further effort, doesn't mean that someone is "wimping out." Just because you're the last one to post in a thread doesn't mean the teacher will come around and give you a gold star for winning. And when you get older you will hopefully learn that your saying stuff like this is just stroking your own little ego. And as well, when you get older, hopefully you'll learn that little ego of your's is really nothing but trouble, that it can only give you a false sense of self-esteem. What I mean is, your saying things like this may give you a feeling of superiority, but in reality, it only shows your real subconscious feelings of inferiority.

This has nothing to do with me, I'm not saying anything that any other well informed average Joe with experience and education in these particular fields is saying. You're just going to have to realize on your own someday that you are, in fact, ill-informed in these discussions, because your sources, data, evidence, education, etc. are inadequate. To put it nicely, you're a layman. You may believe otherwise, but your "beliefs" aren't relevant, only what you can substantiate, deduce, reason, etc. You can't do any of it, and it's why informed people belittle and mock you. Get used to it.

 

[First]

Originally posted by: BansheeX

Originally posted by: miketheidiot
seeing as you got owned in the last thread, it must be time for a new thread, right?

Hahaha, revisionist history much?

It really doesn't matter who you quote, they're all wrong about certain things, it's just a question of degree. Forbes is rightly sympathetic to a gold standard, but doesn't understand the finer workings of the bond market and has been owned by Schiff on bond rates and on mark-to-market accounting.

http://www.youtube.com/watch?v=JGdj3Gx4A8w
http://www.youtube.com/watch?v=8IJmnnXKsLo

Odd that you would post two videos where Forbes almost literally bends Schiff over and laughs at him. I guess it makes sense coming from the same guy that claims compound interest "doesn't matter".

 

[Mardeth]

Wow. Way to be vague about something. Fed is primary cause for the recession huh? How? More details please and not just saying it created excess liquidity. How did they create it and how much etc... Because this is just retarded...

 

[JJChicken]

Originally posted by: Descartes
I'm not sure what constitutes greater madness: The economic disaster itself or this ceaseless desire to seek out someone to blame. Everyone just latches on to their ideological positions, searches for someone that speaks to it and spreads it like gospel.

To borrow a quote: A wealth of information creates a poverty of attention.

I think it's applicable here. There's too much information floating around about what happened, why, who was involved, etc. that one can't really apply a true causal relationship; instead, to expedite the thought process, one resorts to the comfort of ideology.

Same thinking, different issue.

That's a nice quote.

 

[JJChicken]

Originally posted by: silverpig
Okay, I'll admit it.

I caused this mess. Yup, me. Plain ol' silverpig messed up the global economy. I'm ready to accept my punishment. Send your womens to do what they will with me, I'll take one for the team.

death by snoo-snoo

 

[Atreus21]

Originally posted by: silverpig
Okay, I'll admit it.

I caused this mess. Yup, me. Plain ol' silverpig messed up the global economy. I'm ready to accept my punishment. Send your womens to do what they will with me, I'll take one for the team.

I broke the dam.