if ben bernanke is a great depression scholar/wizard like many of you say, then why is there a financial meltdown?

[Nepenthe]

Originally Posted by Humanoid

This does not mean the FED is acting "last minute", they use a number of data points that are updated monthly and can also collect data from the business world at will. They don't need 100% certainty (which rarely exists in economics) to act, but they do need actual data that confirms any speculation.

Exactly, there are leading indicators, current indicators, and trailing indicators, they use all of these.

[texdav]

Tyhe fed contro9ls interest rates to control inflation. Lower it too much and watch inflation taleoff.That is why we have not seen inflation rise uncontrolled like in the 70's when it went quickly to double digits quickly. Stag faltion is what we see now;having lived when Carter was president I remember thoise times and seeing it get so bad that they had to pout ib price controls that didn't really work either. This is nothing in unemployment;inflation like the 70's recession.

[Moth]

Originally Posted by SouthCali4LifeSD

the word, influence, is the democratic word for control... it's not too different from communism.

bernanke manipulates the market. he controls the supply of money, which controls the strength of the economy, which, in turn, controls the masses as to what they want to do next in the market.

Now why does that sound silly? Were the man to possess such powers (you have literally given him wizard status) would he not dole out perpetually great economies?

Yes, he controls the money supply. But its up to the institutions and masses as to how to react. And if you read the papers, such reactions are not good.

Comparing this to communism is so inane that it begs for nonresponse.

[gwynedd1]

Originally Posted by Moth

Now why does that sound silly? Were the man to possess such powers (you have literally given him wizard status) would he not dole out perpetually great economies?

Yes, he controls the money supply. But its up to the institutions and masses as to how to react. And if you read the papers, such reactions are not good.

Comparing this to communism is so inane that it begs for nonresponse.

Hello Moth,

Then its up to you to explain the difference.Berneke is not just setting the money supply. He is giving it to banks. Here are some communist fundamentals for you.
1. The value of a good is the time required to produce it.

Ok since we are trying to keep banks in business and people employed in these banks we are essentially trying to keep the same manpower assuming it has value as time and labor inputs. Now what would the Austrian school say about the utility of swindlers? Theses good are worthless. That's 1 for point for SouthCali4LifeSD and 0 for you.

2. From each according to his need and from each according to his means.

Since banks are insolvent they need money. Tax payers have the means.

1 point for SouthCali4LifeSD and 0 for you.



I would say you owe SouthCal an apology...