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New Don't know
I don't know about Bernanke, he is new at this. But under Greenspan it usually worked the other way around. With the White House coming to Greenspan and asking him to do or not do something and Greenspan mostly ignoring them and doing what he wanted.

More over, with the subprime crisis part of the problem all along has been that nobody knew what would happen. There where so many layers of private deals, structured deals and leverage that nobody knew what the real risks where.

Jay
New I'm too cynical
I have this notion that there is a room with a bunch of people locked up and all they do is think and talk about things. They take a look around them and postulate all the possible consequences and then leak the info. Whoever is smart enough to figure out the correct trend is the winnah!

Smile,
Amy
New Re: I'm too cynical
I have this notion that there is a room with a bunch of people locked up and all they do is think and talk about things. They take a look around them and postulate all the possible consequences and then leak the info. Whoever is smart enough to figure out the correct trend is the winnah!

Actually your pretty close. There are lots of analysts and economists that do just that.

The problem is that if you ask 100 economists what the economy is going to do you will get something more then 100 answers with a value range of - infinity to + infinity.

The number that get it right on a regular basis is so small that it can be attributed entirely to random chance.

Jay
New Here's where I have a problem
It's kind of like what I was thinking with the hurricane computer models...

I realize that the world is chaotic, but with the amount of brain power and computer power we have available, I find it beyond comprehension that policymakers can be caught with their pants down. I guess all the years I spent as a debater has taught me to look at a situation from all the angles and it is second nature, so I just expect others to do the same. Then again, if no one (current admin) listens when someone actually speaks the truth...

Just thinking out loud.
Smile,
Amy
New Re: Here's where I have a problem
I realize that the world is chaotic, but with the amount of brain power and computer power we have available, I find it beyond comprehension that policymakers can be caught with their pants down. I guess all the years I spent as a debater has taught me to look at a situation from all the angles and it is second nature, so I just expect others to do the same. Then again, if no one (current admin) listens when someone actually speaks the truth...

It's the nature of economics. Pretty much every economist knew this bubble had to come down eventually. But when is the big question, if you take hard action before the bubble bursts you will strange the economy under regulation and overly tight money, if you wait to long the economy will shatter under you or inflation will rampage out of control.

And given the lack of good advice about when the bubble will burst plus the tendency for those at the top to prefer the rose colored glasses view, it is natural that they tend to wait a bit too long to take action.

Personally, I think the Fed may even be over reacting a bit here. In the long run the bubble has to burst. The job of the Fed is too let it down slowly, not to prop it up. The Fed pumping liquidity into the market may stave off the problem for a while but only at the expense of running up inflation. And if the bubble bursts while inflation is rampant it will just be that much worse.

Jay
New Flashback to the 70's
here we come!
Smile,
Amy
Expand Edited by imqwerky Aug. 17, 2007, 08:10:19 PM EDT
New everyone with a lick of common sense knew
package loans into financial instruments that could be traded on margin via hedge funds. If I wasnt so lazy I would google and point out the post where I said this is going to be savings and loans part 2 a couple of years ago.
thanx,
bill
Quantum materiae materietur marmota monax si marmota monax materiam possit materiari?
Any opinions expressed by me are mine alone, posted from my home computer, on my own time as a free american and do not reflect the opinions of any person or company that I have had professional relations with in the past 51 years. meep

reach me at [link|mailto:bill.oxley@cox.net|mailto:bill.oxley@cox.net]
     Feds cut discount rate - (JayMehaffey) - (10)
         Gee - (imqwerky) - (9)
             Don't know - (JayMehaffey) - (6)
                 I'm too cynical - (imqwerky) - (4)
                     Re: I'm too cynical - (JayMehaffey) - (3)
                         Here's where I have a problem - (imqwerky) - (2)
                             Re: Here's where I have a problem - (JayMehaffey) - (1)
                                 Flashback to the 70's - (imqwerky)
                 everyone with a lick of common sense knew - (boxley)
             And youd' be wrong - (crazy) - (1)
                 And so I shall - (imqwerky)

You have no concept of an internal monologue, do you?
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