Is the "bad economy" just a meme, looking back the economy has always been bad. Just in modern America alone we've had:
>recession after WW1, severe in europe >then the great depression >1937 recession >WW2 happens >then another recession after WW2 >50's and 60's were pretty good >70's were completely fucked >early 80's were a brutal recession >early 90's were a brutal recession >tech bubble pops, early 2000's were a brutal recession >2008, brutal recession >looks like were entering another recession
>Fed keeps lowering interest rates >negative real interest rates >economy blows up >BILL CLINTON YOU ECONOMIC GENIUS >Greenspan forgets the brake pedal >asset inflation out the ass >pop #1 >in order to recover from this recession we need to lower interest rates to boost the economy >here we go again >pop #2 Housing Market Boogaloo >in order to recover from the recession we need to lower interest rates to boost the economy >it keeps happening >please stop
The economy has been shit since 1987-88ish
The DJIA is probably overvalued around roughly 100% right now. Its maybe worth 10,000, possibly lower but its valued at around 20,000 right now.
Austin Campbell
if the economy is considered good by the majority, that's a pretty good indicator that we're in some sort of bubble and it's about to pop.
life is about misery - it's unnatural otherwise.
Hudson Gonzalez
>interest rates >stopping a real estate bubble
Didn't Sweden try that a while ago and tumble into deflation because of that? I'm trying to find source but google is a nigger and is just giving me things about their now negative rates
Jacob Myers
mild deflation is good around 1-3% instead of trying to play catch up with the inflation rate and asset inflation its better to have people earn ambient wealth over time with a little deflation especially since we have a lot of room for deflation
US got rid of its inflation in the 70s and 80s by jacking up the interest rates which although causes a small recession, corrected the market and gave real data indicating how the economy was performing and gave way to steady permanent growth over time
The euros are honestly so stupid and irrelevant that its not worth analyzing their policies. Europe is an intellectual wasteland when it comes to economics
Nathan Adams
I mean yeah deflation makes my money more money, but doesn't it kind of fuck everything up on account of nobody buying things?
Jaxon Thompson
it shouldnt if its light enough
most people dont even know what the inflation rate% is or what inflation is at all
Expectations shift in demand and supply curves only really happen if people understand how the economy and price structures work and we all know that most people have no fucking clue
Thomas Price
What about banks, what's going to happen when they just sit on cash and commerce shuts down?
Ryan Howard
recession. raising interest rates to where they need to be in order to correct the market will cause a recession but its better to cause a controlled recession before another major bubble burst because the next one might just break the entire system altogether and the government wont be able to do anything about it at that point. The recession in the 1980s was partially a controlled recession based around raising interest rates in order to cool off the economy and correct the market
Banks need a major system overload to make sure that they operate correctly as banks and not as hedge funds and snake oil salesmen making stupidly huge profits on shifting money from one account to another in debt equity swaps and derivatives trading or whatever meme bullshit theyre using now. The country badly need another Glass Steagall act to wrangle those fuckers back into submission.
Luke Cook
I think I agree with most of what you said in theory, but getting congress to pass regulation to control banks while central banks coordinate a "controlled recession" to get rid of bad assets sound impossible.
