| carl_barx said: the housing bubble had nothing AT ALL to do with the federal reserve or with the dotcom crisis of 2000-01 (the latter is a separate economic crisis resulting from speculation about internet startups, and the former has actually helped, through quantitative easing, to keep interest rates down during the recession and encourage investment)... it had to do with deregulation of the banks begun by reagan, continued (unfortunately) by clinton and congressional republicans, and continued even more enthusiastically by george w. bush (all wikipedia, hopefully you don't think they're left-wing...). as for your catastrophism about the future, i can't really answer to that. you can't safeguard against all risk, but to be honest, it is republican economic policy that caused the great recession for the most part, and i think that needs to be recognized (which, to be fair, you sort of do in your post above). |
Yeah, I'm no Republican. I'm anti-war, anti-drug-war, sit somewhere in the middle on abortion, pro-marriage equality, atheist. I just happen to think that Republicans are better on the economy, IN RHETORIC ONLY, in policy, they're just as awful as Democrats.
http://wiki.mises.org/wiki/Austrian_predictions/Housing_bubble
Yes, quantitive easing is the cause of bubbles. Interest rates actually mean something, they're a price on using money now versus using money in the future. Prices are an important market function, as they enable accurate information for good investment. Quantitive easing manipulates the price of borrowing, messing up that market information, and creating malinvestments, such as dotcom, housing, automobiles, education, stocks, etc.
http://www.zerohedge.com/news/2015-06-02/auto-sales-reach-10-year-highs-record-credit-record-loan-terms-record-ignorance <- auto
http://www.businessinsider.com/tech-stock-bubble-warning-signs-2015-4 - tech bubble
http://www.marketwatch.com/story/china-shares-fall-as-stimulus-hopes-wane-startups-look-expensive-2015-06-26 <- looks like stocks in China may have just popped.
