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greenleaves - 2:04 am on Aug 19, 2009 (gmt 0)
And that is, it was caused/allow to happen intentionally by the Federal Reserve. They are the ones that control liquidity. There was a lack thereof. Therefore, it was the Feds responsibility. As helicopter Ben said, the fed can always just dump money into the economy (Ben gave a metaphor with a helicopter, from there his nickname) , so if there isn't enough cash to go around, and prices rise as a result, it is in their control. Albeit, it is a delicate balance the fed has to maintain (pumping cash into the economy and taking it out), but to me, it seems this was more intentional than accidental. I also recognize that recession cycles are a normal part of living in a world of inexact balances between supply and demand. But this doesn't seem to cut completely for me. So the real question for me is, when are they going to loosen the faucet of money and what was the purpose of these intentions? And how long will the world take to recover after that? I honestly believe they haven't lifted their grip on money supply/distribution. So any such reports from the IMF are mute. On a tinfoil hat note, I half have a feeling this is all leading up to a major war, maybe even a world one... just like what happened with WW2/Great Depression. And to rebuttal the comment of: Then I guess I can just think away illness or think of richness and become rich. I guess you are a believer in 'The Secret' :$
The problem with this report and any other analyst is they aren't taking into consideration the fundamental issue of this recession. Thoughts become things (Mike Dooley)