Welcome to DU!
The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards.
Join the community:
Create a free account
Support DU (and get rid of ads!):
Become a Star Member
Latest Breaking News
General Discussion
The DU Lounge
All Forums
Issue Forums
Culture Forums
Alliance Forums
Region Forums
Support Forums
Help & Search
General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsFed could worsen the next recession
Ricchiuto argues the last three recessions in 1990-91, 2000-2001 and 2007-2009 stemmed from credit bubbles that the Fed inadvertently helped to form through lax monetary policy. Its about to repeat that mistake again, he said.
A rate cut will incite undesired risk taking by borrowers and deepen the next recession, which will unnecessarily increase the cost to society, Ricchiuto told clients in a new research note.
Recessions are becoming deeper, he said, and the economy is taking longer to recover.
A rate cut will incite undesired risk taking by borrowers and deepen the next recession, which will unnecessarily increase the cost to society, Ricchiuto told clients in a new research note.
Recessions are becoming deeper, he said, and the economy is taking longer to recover.
https://www.marketwatch.com/story/fed-making-mistake-by-cutting-rates-could-make-next-recession-worse-critic-contends-2019-07-22?mod=mw_theo_homepage
The Fed has created a market culture that feeds off of cheap money. This is not sustainable over the long haul. It encourages over-speculation and devalues the currency.
InfoView thread info, including edit history
TrashPut this thread in your Trash Can (My DU » Trash Can)
BookmarkAdd this thread to your Bookmarks (My DU » Bookmarks)
3 replies, 755 views
ShareGet links to this post and/or share on social media
AlertAlert this post for a rule violation
PowersThere are no powers you can use on this post
EditCannot edit other people's posts
ReplyReply to this post
EditCannot edit other people's posts
Rec (4)
ReplyReply to this post
3 replies
= new reply since forum marked as read
Highlight:
NoneDon't highlight anything
5 newestHighlight 5 most recent replies
Fed could worsen the next recession (Original Post)
Yavin4
Jul 2019
OP
CNBC cannot say enough of how the Fed must have the stock market's back at all times.
Dawson Leery
Jul 2019
#1
Dawson Leery
(19,348 posts)1. CNBC cannot say enough of how the Fed must have the stock market's back at all times.
Yavin4
(35,433 posts)2. Another sign that the markets are becoming more of a indicator of Fed moves than
a reflection of the state of the performance of the equities in the markets.
roamer65
(36,745 posts)3. The economy takes longer to recover because there is less of it after each recession.
So goes a dying empire.
Next recession the Fed will resort to negative interest rates.