The Fed tends to overrun things, in an ill-advised attempt to try and create "painless" economic corrections. The whole POINT of an economic correction is to slap those who made stupid decisions upside the head. You can try to soften the slaps a bit, but it you eliminate them, things get worse.
Remember the bank "deregulation" that allowed banks to do all kinds of stupid things, while assuring them that any losses would be covered by Federal insurance?
Now we're insulating mortage providers, mortgage insurers, speculators, mortgage customers, and everyone else involved with stupid financial decisions. God forbid anybody have any unpleasant consequences from an economic screwup or trying to get rich on a bubble.
It's the economic equivalent of putting pennies in the fuse box. Which is a great idea if your goal is not having to buy new fuses. Unfortunately the goal should be keeping the house from burning down.
Current Events » in reply to The market loves rate cuts.
At some point, they better quit.
The whole thread (36 posts)
- The stock market doesn't seem to be rational.
- Still Bullish
- The market loves rate cuts. (n/t)
- At some point, they better quit.
- re: Not yet.
- You have a strange love-hate relationship with capitalism. (n/t)
- Not really. I just know how it's supposed to work. (n/t)
- People with stashes of $100 dollar bills will be the real losers.
- Once capital was invented there have been booms and busts.
- re: Once capital was invented there have been booms and busts.
- Pretty much when coinage was invented.
- About the time someone invented fire.
- re: Once capital was invented there have been booms and busts.
- Not really. I just know how it's supposed to work. (n/t)
- Avoiding a hangover by staying drunk.
- At some point, they better quit.
- You just noticed that?