Take That, Congress

[giblets]

On September 20th, as its officials sat down to a two-day policy-setting meeting, they got an unusual letter from the four top Republicans in Congress urging them to “resist further extraordinary intervention in the US economy…[We] have seen no evidence that further monetary stimulus will create jobs.”

If the politicians had hoped to stay the Fed’s hand, they failed. The next day it announced it would purchase $400 billion of Treasury securities maturing in six to 30 years by next June, while selling an equivalent amount with maturities of three years or less. It also said it would maintain its mortgage-related holdings at current levels to support the housing market. Three of the ten voting officials dissented, as they did in August when the Fed said it expected to keep short-term rates near zero at least until mid-2013.

http://www.economist.com/node/21530090

Republicans
Federal Reserve

[Hauldren Collider]

Wait, I thought raising interest rates would be better? Can KH/Kuci weigh in on this please?

[giblets]

Rather than rely on your older brother, why don't you explain why you personally think it would be better?

[Hauldren Collider]

Because I don't know **** about economics. Well, okay, I know some ****, but I know if I tried to explain it I'd **** it up and he'd yell at me.

[Asher]

It's dangerous for you to think Kuci knows lots about economics. He's young, and economics is not a science despite claims some people may make. People in his field are conditioned to trust in The Models and The Theories blindly and explicitly. I've seen way too many people over the years with an arrogant attitude about economics (or finance) and get burned badly. Hell, the whole mess the US is in is a prime example of that. Canada had policies that Kuci et al would've railed as stupid in 2004 (heavy bank/mortgage regulation, for instance), but now in hindsight the world is pointing to Canada as an example of how to do it right.

I think it's very important you realize economics is not definitive. There's a reason economics degrees tend to be BAs.

[Dinner]

Wait, I thought raising interest rates would be better? Can KH/Kuci weigh in on this please?

Why would they raise interest rates when growth is near zero and inflation is below trend? Of course they're not going to raise interest rates.

[Kuciwalker]

Asher, you are literally the most arrogant and overconfident person wrt economics on this forum.

[Asher]

Asher, you are literally the most arrogant and overconfident person wrt economics on this forum.

I can see how you can get that impression, what with me stating several times I'm not an expert in economics and also that anyone who pretends to think economics is a predictable scientific field is a moron.

[Egbert]

I can see how you can get that impression, what with me stating several times I'm not an expert in economics and also that anyone who pretends to think economics is a predictable scientific field is a moron.

Pointless and futile to argue. We appear to have a couple of self appointed economics gurus in poccession of crystal balls.

[Hauldren Collider]

It's dangerous for you to think Kuci knows lots about economics. He's young, and economics is not a science despite claims some people may make. People in his field are conditioned to trust in The Models and The Theories blindly and explicitly. I've seen way too many people over the years with an arrogant attitude about economics (or finance) and get burned badly. Hell, the whole mess the US is in is a prime example of that. Canada had policies that Kuci et al would've railed as stupid in 2004 (heavy bank/mortgage regulation, for instance), but now in hindsight the world is pointing to Canada as an example of how to do it right.

I think it's very important you realize economics is not definitive. There's a reason economics degrees tend to be BAs.

Biology's not definitive either, but that doesn't mean I'm gonna go to some native american folk medicine instead of trusting the experts.

[Imran Siddiqui]

Why would they raise interest rates when growth is near zero and inflation is below trend? Of course they're not going to raise interest rates.

This. (and yes, I know I just said Oerdin was correct on this statement)

[Asher]

Biology's not definitive either, but that doesn't mean I'm gonna go to some native american folk medicine instead of trusting the experts.

An actuary in training is not an expert. It's someone who regurgitates trendy economic theories of the day. He's not even an actual economist. His field is even implicitly biased towards several theories of economics.

[KrazyHorse]

This thread is hilarious. Asher, gribby, oerdin and imran are complete ignoramuses. HC is an ignoramus, but is at least asking questions rather than expressing an opinion.

Question: what's it called when there's a fed meeting and over the next 24 hours the dollar soars, the price of commodities plunges, the tips spread drops through the floor and equities prices plummet?

Answer according to the popular press and the ignoramuses previously mentioned: monetary loosening!

[giblets]

Question: what's it called when there's a fed meeting and over the next 24 hours the dollar soars, the price of commodities plunges, the tips spread drops through the floor and equities prices plummet?

Answer according to the popular press and the ignoramuses previously mentioned: monetary loosening!

The information you listed doesn't describe monetary policy. Monetary loosening occurs when the fed buys stuff.

[KrazyHorse]

And yes, the goal of the fed should be to increase rates. The is curve slopes upward right now...