“Aggressive monetary policy can reduce the depth of a recession,” declared George W. Bush

[ShcShc11 0]

What does that mean?
Its advocating for QUANTITATIVE EASING.

Who is the author of that?
Harvard’s N. Gregory Mankiw, former George W. Bush's economic advisor.

WHO IS Gregory Mankiw?
Mr Mankiw is ROMNEY'S economic advisor.


So this whole hate on quantitative easing (QE) is so damn intellectually backward. Fact is: BOTH Democrats and Republicans KNOW it is part of the answer.

Mankiw advocated a much MORE aggressive Fed policy than the one announced last week.

If they say otherwise, its only for political points. Economic advisors of both Romney and Obama are very pro-QE.


Just saying'

Cheers! Shc

[Gravitymaster 0]

Yes it can, but that doesn't mean it always will. At some point, you have to stop digging the hole. Some people are smart enough to know when that point is reached, and some are not.

[lawrocket 3]

"The genius himself advocating it? Wow! That Dubya advocated QE sure changed my mind about it. All I needed to know is that he supports it and I know it can't fail." - Nobody

My wife is hotter than your wife.

[Gravitymaster 0]

Amazing how Bush is able to switch back and forth between idiot and genius isn't it? Damn guy is a real chameleon.

[ShcShc11 0]

Quote

Amazing how Bush is able to switch back and forth between idiot and genius isn't it? Damn guy is a real chameleon.

LOL. you guys got so politicized, its incredible.

The fact I am trying to point out here is QE isin't this controversial, disputed notion. Its not this "artificial boost, sugar high".

Everyone (from economic advisors on BOTH parties) recognizes that QE is an essential part to recover from 2008 Great Depression bust.


...people whine about the economy without having any real pre-conception of what monetary policies actually do (without any real understanding of how money actually works).


Politics these days (especially politicized economics), just became catch phrases and slogans similar to 1984.

[Gravitymaster 0]

So Bush was a genius?

[kallend 2,219]

Quote

So Bush was a genius?

Quote

Who is the author of that?
Harvard’s N. Gregory Mankiw

...

The only sure way to survive a canopy collision is not to have one.

[ShcShc11 0]

Quote

So Bush was a genius?

lol so keen on Bush huh
Let's answer this with another comparison:
Lehman Brothers Investment Management Director George Herbert Walker IV

George Herbert Walker is a supporter of aggressive monetary policy in times of hard recessions.

Yet he was at the heart of the Lehman Brothers collapse of 2008. Is Mr. Walker a genius because he is correct in the assessment that monetary policy is needed in times of recession?


Thanks and Cheers! Shc

[Gravitymaster 0]

Not keen on Bush. Never was. I supported him because the alternative was worse. I never supported Bush's monetary policy and criticized him often for his spending policies.

I really don't understand how anyone can think that continuing to borrow money to stimulate the economy is a good idea. Especially in light of the fact the last 2 were miserable failures.

I will say it once again since it hasn't gotten through to some yet. The biggest reason the economy is struggling is because the recovery is a jobless recovery. The reason it is a jobless recovery is because businesses are afraid to expand when we have a government that cannot even come up with a budget. Sure, there are other reasons but the unemployment rate is the biggest reason we are struggling IMO. Until business has a sense of stability, you can dump all the money you want into the economy and will continue to see the same results. What is the definition of Insanity, again?

[lawrocket 3]

Here's the point about QE:

It is a complete reflection about what one person - or a cadre of people - determine to be "best."

I compare it to a junkie on heroin. What is best? Do we let the junkie continue on heroin? Do we string him along on methadone. Or do we detox him?

The first is rarely the best for anyone. For the junkie, methadone is often good because he won't bottom out and, you know, he doesn't have to worry about the pain and sickness. But the cost is spread out over a long time.

But detox? THat's pain. Bottom out quickly and work back. Within a couple of months he's better off than on methadone. Sure, the crash was way worse but the improvement actually occurs.

I view QE as methadone. It doesn't solve the problem but merely prevents bottoming out. It ends up costing a lot and more QE ends up being needed in the future.

See how "best" turns out? There are legitimate arguments. And you know, one way or another, QE uses other peoples' money. It's much easier to do that.

Also, I'm sure you are familiar with the term "moral hazard." Notice how many characteristics of moral hazard have been seen during the whole runup to the recession and DURING the recession?

Doomed to repeat

My wife is hotter than your wife.