09-17-2008, 12:12 AM | #1 |
Senior Member
Join Date: Jan 2006
Location: WA
Posts: 1,287
|
Blow it or poke it?
What should be the Feds stance on bubbles?
Greenspan doesn't believe the Fed can or should address market bubbles, i.e. tech stocks, housing prices, commodities. Greenspan has argued that bubbles provided needed technology and process advancements. He also believes the Fed should pick up the pieces in their wake - by bailing out large financial institutions that help finance them. Volcker thinks the Fed should be more interventionist and try to curb bubbles in the asset markets. He says, "It's no fun raising interest rates" but it must be done to regulate price and asset markets. Volcker doesn't think it's the Feds role to broker bailouts. Bernanke looks like he's more the Greenspan camp, because of the bailouts, but it's difficult to see that is truly the case; he is basically still cleaning up, at this point.
__________________
"Five to one... One in five No one here gets out alive" |
09-17-2008, 07:25 AM | #2 |
Senior Member
Join Date: Aug 2005
Location: Orange County, California
Posts: 3,059
|
Damn you!
I thought this was going to be another thread about Megan Fox.
__________________
Get your stinking paws off me, you damned, dirty Yewt! "Now perhaps as I spanked myself screaming out "Kozlowski, say it like you mean it bitch!" might have been out of line, but such was the mood." - Goatnapper "If you want to fatten a pig up to make the pig MORE delicious, you can feed it almost anything. Seriously. The pig is like the car on Back to the Future. You put in garbage, and out comes something magical!" - Cali Coug |
Bookmarks |
|
|