[quote]LIFTICVSMAXIMVS wrote:
I would like to know how they came up with this magical number, $600 billion. Why not $1 trillion? How do they know this quantity is enough since they were not smart enough to get it right the first time?[/quote]
They call Goldman Sachs, which in turn look for the price of hookers and blow and their specific needs in that area and the percentage of profits that they are entitled to due to their partnership agreement and voila, 600 billion.
First of all, you dont need a PHD in economics to understand alot of this. Henry Hazlitt wrote some of the greatest pieces in the 20th century and he never finished college.
Secondly, the feds goal is that dual mandate of full employment and “price stability” which are market distorting measures, and they cannot do anything but the opposite of price stability since prices are something that is reflected in real time. The only thing they do to prices is distort them with artificially low interest rates that create bubbles. This is what they are doing once more based on their flawed keynesian thinking.
I see that you feel people chiming in about economic policy is akin to the armchair quarterback. However, this is a game in which we are all participants, or should I say pawns. Sorry bud, let the fed do its “job” and you will have fun footing the bill. The Bundesbank is so critical of this decision of the Fed because its precisley the same as 1920’s Weimar Republic.
Monetary policy cannot fix the problems related to fiscal policy.