What does the FED do if there is another recession?

[clatoden99]

It seems like Fed interest rates are going stay low, if not zero, for the foreseeable future. What does the fed do if there is another recession?

[feh]

It seems like Fed interest rates are going stay low, if not zero, for the foreseeable future. What does the fed do if there is another recession?

More quantitative easing.

But, they don't have much ammo at this point. The legislative branch would need to get on the ball w/ fiscal policy (which would seem to be very unlikely).

[TexasHusker]

"If" there is a recession?

"If" there is a recession? An economy can't expand without contracting, and vice versa.

There will always be expansions, and there will always be recessions.

When the gubmit tries to stall off a recession artificially, as happened in the last one, through massive deficit spending and artificially low interest rates, the snowball is essentially kicked down the hill. But has it moves down the hill, it grows.

So WHEN the next recession occurs, the proverbial "soft landing" can't happen, because the gubmit shot its wad trying to manipulate and engineer the last recession. They are out of bullets, other than going into NEGATIVE interest rates for overnight lending, which is a distinct possibility.

Our socialist-leaning gubmit (both parties at this point) have done a good job transforming the U.S. economy into a more European style system. Long term, that will result in a slightly more stable economy, yet quite sluggish with very low growth. Our economy has transformed from a fiercely independent, pioneering phenomenon, into a "I need the gubmit to help take care of me" scenario:

- Give me free healthcare
- Give me prescriptions
- Keep interest rates low to help me buy a house
- Bail me out when my house purchase turns out to be a poor investment
- Lend me money for my college
- Better yet, just GIVE me the money for college
- Pay for my abortion
- Pay for my kids' lunches at school
- Manipulate the financial system so that my IRA can grow
- Pay me longer for not having a job
- Pay me some ridiculously high amount that has no relationship to Fair Market Value for my clunker, so I can finance a new car that I can't afford
- Immediately destroy the clunkers that were worth so much, so that actual poor people can't have access to them
- Increase minimum wage to artificially high levels - it won't really affect anyone


The expansion years such as we experienced under Reagan are a thing of the past, due to years of socialist fiscal policy. We are now conditioned to look for help from the gubmit, and the ruling class is always happy to help - because it serves to increase their power all-the-more.

[feh]

The expansion years such as we experienced under Reagan are a thing of the past, due to years of socialist fiscal policy.

One of the great myths of US politics. Reagan did a great deal of deficit spending.

[TexasHusker]

One of the great myths of US politics. Reagan did a great deal of deficit spending.

Correct. I am not making a political statement, but a reality statement. The ruling class - Pubs and Dems - have moved us to a Euro-style economy.

[greenskeeper]

I wish would would have just taken our lumps back in the late 2000s and been much better off today.

[TexasHusker]

I wish would would have just taken our lumps back in the late 2000s and been much better off today.

As a society, we now demand indemnification from our lumps. It is always someone else's fault. The ruling class is eager to oblige, yet we've quietly exchanged our freedoms as part of the bargain.

[greenskeeper]

It is always someone else's fault.

according to most ***** *****, yes.

[GoodSteward]

according to most **** ****, yes.

That fits to any group. They all blame the other side. Nobody is willing to admit they are part of the problem.

[disneysteve]

according to most ***** *****, yes.

Please refrain from posting insults and negative generalizations about people.