tag:blogger.com,1999:blog-5713178645208582139.post318613567429964023..comments2024-03-22T02:37:15.030-05:00Comments on Macro Musings Blog: How Consequential Was the Fed Tightening in 2008?David Beckworthhttp://www.blogger.com/profile/04577612979801459194noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-5713178645208582139.post-6805817569080244752015-12-17T15:12:17.880-06:002015-12-17T15:12:17.880-06:00Lots of toxic loans bundled into toxic MBSs, used ...Lots of toxic loans bundled into toxic MBSs, used as collateral, probably caused the crash as much as anything. Even prime loans went bad. This toxic loan system does not work where there are land use rules. And no, it isn't the land use rules that were at fault. The toxic loans were at fault. People could not pay back the loans when they adjusted to principle. And nowadays, there is more Gary Andersonhttp://www.talkmarkets.com/content/us-markets/scott-sumner-and-friends-want-unbridled-growth-chicago-school-update?post=80548noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-19131576551271466072015-12-11T13:32:16.060-06:002015-12-11T13:32:16.060-06:00Doesn't the data from the Professional Forecas...Doesn't the data from the Professional Forecasters Survey beg the question of why apparently tight money didn't cause professional forecasters to revise down their NGDP forecasts between Q2 and Q3? (They are slightly up instead). Calls into question the rationality of all actors involved.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-42636019888852706752015-12-10T23:23:04.966-06:002015-12-10T23:23:04.966-06:00You could also describe the problem the government...You could also describe the problem the government has handling the deflator. That leads toward GDP undercounting and bad policy that results. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-29623807816446443992015-12-10T17:59:37.987-06:002015-12-10T17:59:37.987-06:00This is a painfully good postThis is a painfully good postBJHnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-55527486555495245302015-12-10T15:56:45.775-06:002015-12-10T15:56:45.775-06:00Does anyone have the slightest proof that FED tigh...Does anyone have the slightest proof that FED tightening brought about the Great Recession??? Many things coalesced to cause the downturn. It seems to me that Cruz and others are simply trying to scapegoat the FED for their own political ends.Dawg5384noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-71916826465023135132015-12-10T09:25:08.759-06:002015-12-10T09:25:08.759-06:00The large and hidden problems happened due to a la...The large and hidden problems happened due to a laissez-faire attitude with weak oversight. So I hope your purpose is not to eventually argue more laissez-faire.<br />Oversight is critical to a well functioning system. Life would not exist like it does without homeostasis and its oversight and regulation using small endocrine glands. If you take away those glands, and let the organs like the Anonymoushttps://www.blogger.com/profile/08872413892907720515noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-40435972493314148992015-12-10T08:42:03.576-06:002015-12-10T08:42:03.576-06:00Krugman makes very good points... The solution is ...Krugman makes very good points... The solution is not to go laissez-faire all the way. That may be where you are going with this argument. But there were larger dynamics unraveling at great speed during 2008.<br />I still look to 2007 as the time when the Fed was too tight. The recession came on at the end of 2007. Then from there in 2008 many large and hidden issues and imbalances began to Anonymoushttps://www.blogger.com/profile/08872413892907720515noreply@blogger.com