“Fiscal policy....seems to have been an unsuccessful recovery devicein the ’thirties – not because it did not work, but because it was not tried.”
quoting e cary brown
gentle ben's actions to save the "credit system"
"there was real strain in financial markets starting from late 2007, with the meltdown in subprime mortgages. The Fed worked very hard throughout 2008 to mitigate the consequences of falling house prices and credit contraction. They were very proactive. Then when the crisis hit in the fall of 2008, the Fed was essential in helping to prevent a much more catastrophic meltdown. They kept the financial crisis from being much worse than it otherwise would have been. It's hard to second-guess them on that part of their response."
okay in other words all hands on deck all out to save our credit system
from siezing up here and there and by pre empting such siezures preventing serious dislocations ie disrupted systemic counter party interflows
ie keep the internal moving parts from grinding each other to powder
but now she turns on gentle ben:
"Where I think you can second-guess them is once we got through the immediate crisis. By the fall of 2009, the financial system had stabilised but the rest of the economy was still reeling from the fallout and unemployment was heading up to 10%."
wait ..the fall of 09 ..
try the spring of 09
at any rate
" Instead of further aggressive moves to encourage faster recovery, such as more quantitative easing or a bold communications policy, the Fed essentially took a breather. That was a mistake."
the why is of course left as a mistake
when we all know by now
stop the contraction was a mission that had to be completed swiftly
...once the convulsions began ..and proved quite unexpectedly severe ...
but a recovery ?
that was to be kept slow in the economic north
while the traders of the south might zoom back
this to improve north south trade imbalances
and within the oecd a second tier of double tracking
was clear policy
hence the teutonics v the piigs
and england too
uncle ?
as the global core
uncle was allowed to remain half and half
and obviously efforts to retain the euro harness required and continue to require
complex inner "workings" by the ECB
christie:
ohbummer with his larry recovery act
and ben's interventions
was better then hoover
" this recession, as bad as it was, wasn't a second Great Depression. The policy response was much more effective and much more aggressive than it was in the early thirties."
which nicely doesn't answer the question
ya but was it better then the new deals first two terms ?
which saw as e cary brown concluded
full fiscal action
"never tried"
as pk points out
ohbummer's first term after the first 6 months of '09
macro poicy wise
looks a heel of a lot like fdr's second term
chrissy
"....what happened in 1937. Basically, monetary and fiscal policymakers got tired of all the exceptional things they were doing to help the economy, and they tightened policy too soon. The result was a “depression within a depression” – a big downturn that sent unemployment shooting back up when we were far from fully recovered."
well ohbummer did better then that too so he's like sorta better then roosevelt
but not because he faced only conditions half so severe
would he have run the deficit needed to recovery from a 1933 economy ???
".. we learned over the first half of 2009 that the recession was much worse than almost anyone had expected, and that the recovery would likely be slow...I argued that it would be a terrible mistake to take away support for the economy too soon, and that in fact we needed to be doing more, not less, to help the economy."
she lost that debate
because the fuckers wanted a slow if fairly steady long arching recovery
here
in norte amigo
a recovery not led by a big fiscal deficit
but led by the MNCs and their backers the wally boys
under de facto wall street rules
fiscal deficits are used to stablize not to recovery
