tag:blogger.com,1999:blog-5713178645208582139.post7640478568626105589..comments2024-03-22T02:37:15.030-05:00Comments on Macro Musings Blog: Twist and YawnDavid Beckworthhttp://www.blogger.com/profile/04577612979801459194noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-5713178645208582139.post-91601061749535475172011-09-22T16:00:29.308-05:002011-09-22T16:00:29.308-05:00You have to remember, the contracts of the bad bet...You have to remember, the contracts of the bad bets the banking system made in the last decade are expiring in droves. Hence, the parts that were liquid but damaged to do write down debt at fire sale prices(which happened in the past) because of the counterparty risk are starting to liquidate holdings aka "market correction".<br /><br />So the FED is actually not trying to 'Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-78108335486794300762011-09-22T11:25:01.680-05:002011-09-22T11:25:01.680-05:00Also, another viewpoint could be that the FED shou...Also, another viewpoint could be that the FED should let markets correct themselves. <br /><br />Look at how the markets reacted to their policy this morning. I cant remember any Fed in the past using such large amounts of money to stimulate an economy.<br /><br />-RJRobhttps://www.blogger.com/profile/07382876310796679572noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-29286462857992007172011-09-22T02:59:35.201-05:002011-09-22T02:59:35.201-05:00Yet again, I ask why, when the Fed can be so innov...Yet again, I ask why, when the Fed can be so innovative in easing monetary policy, it is not in the dock for failing to use its asset purchase mix to address the "conundrum" of low long rates during the boom: http://reservedplace.blogspot.com/2008/01/us-economic-policy-shot-in-foot-1-soma.htmlRebelEconomisthttps://www.blogger.com/profile/13241098878248190971noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-26119744520723361812011-09-21T19:53:18.291-05:002011-09-21T19:53:18.291-05:00Well said DB. The Fed should boost the private se...Well said DB. The Fed should boost the private sector expectations by targeting nominal GDP- or price level. Maybe then firms will use their cash and invest it! Just maybe we would see a lower unemployment rate<br /><br />-RJRobhttps://www.blogger.com/profile/07382876310796679572noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-71987252159347510762011-09-21T17:25:06.832-05:002011-09-21T17:25:06.832-05:00This comment has been removed by the author.Justin D. Tapphttps://www.blogger.com/profile/12618278252714742391noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-62352353225523194352011-09-21T17:20:23.710-05:002011-09-21T17:20:23.710-05:00This comment has been removed by the author.Justin D. Tapphttps://www.blogger.com/profile/12618278252714742391noreply@blogger.com