There is a body of thought that the FEDS should this time be preemptive and be cautious with their recent statement on interest rates "will be kept exceptionally low for an extended period".
This is what happened, with typical Greenspan babbletalk, from 2003-2004 and what fed the housing boom and the housing crisis.
Most of us know that it is not smart to raise interest rates and make credit even harder to get as we come "out of a recession" (if this statement is true), but any Floydian thinkers that have been with us for years have heard my endless rants in the past about Greenspan and his evil objectivism thinking, easy credit, and the "game" of raising the economy falsely, at the expense of the average Joe, and in the pockets of real estate and financial sector speculators.
Hmm. The FEDS, with the debt created, will also have to sell assets to absorb reserves, shrink the monetary base, and avoid inflation.
Bernanke is a student of the Great Depression and it has served us well in our forced bank stimulus. Let's be sure we understand it: The banks played money games, and nothing was real. AIG and other insurance giants played the game, and Fannie and Freddie expansion without controls (supported by Democrats and Republicans), and soon the banks literally had no money.
The money played became beyond how much money there actually was in the world, and fraud was uncovered from Madoff, to Stanford, and all through it the real government of Goldman Sachs has continued to make their own money from it all. Astute, or ?
