[ExI] Article From March on SubPrime

[Samantha Atkins]

On Sep 25, 2008, at 1:11 PM, Damien Sullivan wrote:

> On Thu, Sep 25, 2008 at 10:48:18AM -0700, Samantha Atkins wrote:
>
>> Is it not the Fed that control interest rates and the money  
>> supply?  I
>> confess I forget which agency, quasi-governmental private group (like
>> the Fed), does what these days.  But interest rates and inflation of
>> the money supply are critical enablers of major bubbles.
>
> Bubbles happened long before central banks like the Fed existed.  The
> Fed can make things worse -- probably the Great Depression, an
> extraordinary version of earlier 'panic' cycles -- but also better --
> the lack of panics and bank runs since then.


Hehehehe.  The Fed was all over the Great Depression.  There meddling  
and the actions of government to attempt to force prices to stay high  
are arguably what made the Great Depression "Great".   Other previous  
market hits as severe were recovered from much more quickly.

Do you read the news?  We are following nearly precisely the pattern  
of the Great Depression right now.   The government is pushing more  
and more finagling of the economy when government policies largely got  
us here in the first place.

- samantha