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.
Luke Sullivan
>federal reserve >congressional oversight wew lad where have you been for the last 103 years
The banking regulation bit is the hardest thing to manage. The way to beat them back is to pressure congress using a public mandate. How likely is it that we're ever going to see a public mandate based around banking again? Hard to say, but its been done by Jefferson, Jackson, Teddy Roosevelt, Wilson, and FDR so its not completely far fetched.
Carter Reed
Life is about misery *with a bright future* That last part is important
Jaxson Wright
Only thing sure is that interest rates are insane low and europe is absolutely beyond repair.
Us economy is doing quite well compared to eu. However, gdp, inflation, and employment statistics are constantly shown and representet as positive and negative. Nobody really fucking knows. Gdp measure absolutely nothing anymore and is only risen with more debt / more government workers.
Employment statistics are absolutely worthless as nobody really knows what is going on, they are measured completely differently than 20 years ago. Some stats show best employment stats past 15 years, some show worst youth employment past 100 years.
Leo Robinson
>Us economy is doing quite well compared to eu smoke and mirrors
Caleb Roberts
I do not know if anyone has said it already in this thread but the true enemy of the market is over speculation. It is very easy to post gains with low interest rates, when money is cheap to borrow you can leverage the hell out of your money and literally leave debt on the market without taking major losses. For the average guy like you and me, this doe not matter much. But, for the people moving billions of dollars a day, it adds up. It falsely inflates value which encourages increased investment and a perpetual rise. And, once it is realized that the values are inflated, it all comes crashing down. The market reaction to the talk of raised interest rates and a stop of QE is just a correction, but a correction can turn into a full blown rout. It is no secret the market is overinflated but the only question is whether or not consumer faith in the economy can match speculation and equalize before it comes down. So, far it has not.
Joseph Richardson
8 - 12 year cycle. Always has been and always will be under capitalism.
Lucas Jackson
This. Some people here were just too young to remember anything more than one financial crisis. They happen like clockwork.
1929, 2001, and 2008 are not typically boom/bust business cycle shit.
These are amplified to horrendous proportions by the Fed.
Isaac Richardson
The macroeconomy and median income are not the same. Yes the economy has always had wild swings but people had relatively high wages. Now they haven't had a real rise in income for over 40 years. That's what is meant by "bad economy" to the average person.
Nicholas Roberts
There was no Federal Reserve in 1929 dipshit
Austin Torres
>federal reserve act of 1913 >1913
Joseph Murphy
>federal reserve act of 1913 >implying the fed did anything of significance before the 1930s >implying that Glass–Steagall wasn't the saving grace of the federal reserve system
