Magnifying Bubble

Posted on Monday, November 17th, 2008 at 5:05 am

Question on the interest rate cycle: Bubble - Crash - Bailout - Inflation?

Do you think that: a) The Fed is the main cause of this cycle, or at least consolidates what would otherwise industry cycles in one cycle of the economy, and greatly amplifies? b) The Fed amplifies a preexisting business cycle little? c) The Fed smooths business cycle pre-existing, but not doing enough? d) The Fed did a great job or maintain a monetary system stable and credit, but these things happen? e) What cycle? But how does it ride?

F none of the above, the EDF is well when working shock absorber expands and contracts to absorb the bumps in the economic cycle and maintain the value of our currency. The Greenspan Fed got on track when begain Greenspan reading his own press clippings and reveling in his own celebrity status.


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