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I'm not a fan of "diagrams" in economics, but sometimes... This is a screen capture of slide 36 from a SlideShare presentatio... -
In the Google News this morning, "The Fed may have saved the economy by hiking rates for 18 months—and may have guaranteed crisis for... -
Bosch season five air date: 18 April. Ten episodes. Four days later, six of the transcripts were already available. A few days later, the ... -
JW Mason : "... in retrospect it is clear that we should have been talking about big new public spending programs to boost demand.&quo... -
Comparing the labor cost of Nonfinancial Corporate Business (NCB) to NCB profits since 2018. The vertical gray bar during 2020 shows the re...
2 comments:
Art said:
"What happened here"
After 12 years you finally get around to asking that question...
2008 was the point where the Fed demonstrated that they actually believed their own Bullshit about controlling interest rates and employment.
When interest rates collapsed in the fall of 2008 the Fed in a desperate attempt to prop up interest rates sold treasury securities (the theory is that dumping securities on the open market causes the price to fall and thus the interest rate to rise). But it didn't work (not even a little bit) revealing once and for all that the Fed never had any control over interest rates (beyond the superstitious belief that they had this power - superstition has powerful until the day people suddenly realize it isn't)
You are a patient man.
Thanks Jim. Good answer, clear, concise. Makes sense.
First thing I did after seeing the graph: I went to the St Louis Fed's financial crisis timeline. I didn't find anything in there about that huge drop in Fed holdings of federal debt. Maybe the FOMC minutes tell the story... Maybe I will look.
Thanks for keeping an eye on me.
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