Does quantitative easing really work?

Ah, another one in favor of government privilege for the big banks.

 

There were many causes of the housing bubble. You could call programs like tax incentives designed to encourage home ownership (remember the "ownership society") "stimulus", but that was "stimulus" to a particular market, not the economy as a whole.

Please don't call me dear. I'm not your dear. Thanks.

 

If it's trivial, why are you so opposed? Let's just make the trivial change, eliminate more socialism and move towards a more capitalist system.

 

It will be mitigated if Govt stimulus breaks the recessionary cycle so it doesn't become a depression.

Do you understand now?

 

100's of bankruptcy is a privilege???
https://en.wikipedia.org/wiki/List_of_banks_acquired_or_bankrupted_during_the_Great_Recession



List of banks acquired or bankrupted during the Great Recession
From Wikipedia, the free encyclopedia

This is a list of notable financial institutions worldwide that were severely affected by the Great Recession centered in 2007–2009. The list includes banks (including savings and loan associations, commercial banks and investment banks), building societies and insurance companies that were:

• taken over or merged with another financial institution;
• nationalised by a government or central bank; or
• declared insolvent or liquidated.

Announcement date Acquired company Acquirer Type of company acquired Value (USD, EUR and GBP) Reference
January 3, 2007 Ownit Mortgage Solutions Inc Chapter 11 bankruptcy and liquidation Mortgage lender [1]
January 29, 2007 American Freedom Mortgage Chapter 11 bankruptcy and liquidation Mortgage lender [2]
April 2, 2007 New Century Chapter 11 bankruptcy and liquidation Mortgage lender [3]
August 6, 2007 American Home Mortgage Chapter 11 bankruptcy and liquidation Mortgage lender [4]
August 31, 2007 Ameriquest Mortgage Chapter 11 bankruptcy and liquidation Largest Subprime Mortgage lender [5]
September 28, 2007 NetBank ING Direct Savings and loan association $14,000,000 [6][7]
October 9, 2007 ABN AMRO Royal Bank of Scotland FortisGrupo Santander Diversified financial services €70,000,000,000
February 22, 2008 Northern Rock Government of the United Kingdom Retail and mortgage bank [8]
April 1, 2008 Bear Stearns, New York City JPMorgan Chase, New York City Investment bank $2,200,000,000 [9]
June 7, 2008 Catholic Building Society Chelsea Building Society Building Society £51,000,000 [10]

 

I am proposing no such thing, and you're showing your RW propaganda misinformed views. The great recession stopped almost as soon as FDR implemented his new deal programs and started growing thereafter.

Year - GDP $2009 - % chng
1929 1,055.6
1930 965.8 -8.5%
1931 904.1 -6.4%
1932 787.5 -12.9%
1933 777.6 -1.3% <- FDR takes office, implements "New Deal".
1934 861.4 +10.8%
1935 938.2 +8.9%
1936 1,059.6 +12.9%

 

Well, sure. Fractional reserve lending has provided the fuel (credit and lending) for an economic expansion unprecedented in human history.

Who wants to live in a 1750s economy?

 

so? housing was big enough to drag whole economy down with mal investment that could only be corrected by the free market!

 

I didn't mention bankruptcy. I said that FDIC and the legal determination that deposits are loans and not bailments is a privilege.

How many people do you think realize that when they "deposit" their paycheck at the bank they are giving up ownership of their money? The money they need to buy groceries and pay rent.

The government rigs the system to provide the banks with a steady stream of "lenders".

 

When the free market is contracting and panicking and laying people off who are not spending, the free market causes further contraction.

Still confused?

 

actually FDR's administration was called the Great Depression. It did not end until he thankfully died!!

 

No, it was corrected by rapid government intervention that prevented a wholesale depression.

Do you understand? Are you still confused?

 

Like the great depression and the great recession.

If a business wants to raise cash to loan out, they should raise that cash like all other legitimate businesses: issue bonds or issue equity. Not call themselves a bank and then take their depositors money and use it for their own purposes.

 

correct and it can only be reversed when people know the free market is correcting govt stimulus mistakes. Another stimulus will deepen recession not reverse it. FDR and Obama are prime examples as is all of Europe. Get it now?

 

we are not talking about intervention but stimulus. Nice try at changing subject when you lost debate

 

Well sure, there are boom and bust cycles. But has a whole, we've had a couple centuries of unprecedented economic growth, industrialization, and hundreds of millions lifted out of poverty.

Small businesses and individuals can't float bonds. If they could we wouldn't need banks.

 

I was using it in the same context. Do you understand now? Are you still confused?

 

The free market doesn't correct anything when people are losing their jobs, panicking, and not spending, causing other people to lose their jobs.

Do you understand now? Are you still confused?

 

you said they were privileged apparently you meant privileged to go bankrupt?

 

Only in your RW propaganda misinformed world. I proved to you that the economy turned around and started growing when FDR took office and instituted is "New Deal" programs.

Do you get it? Are you still confused? Do you understand now?

 

nothing causes more job loss panic etc than the threat of another stimulus like the one that created the problem in the first place. Now you can see how FDR prolonged depression for `16 years

 

Small businesses and individuals could borrow from a bank. And the bank could raise the money it lends in a legitimate manner like all other businesses, by raising equity or by selling bonds. Not by fooling people into thinking they're "depositing" their money in a safe place and that it remains their money.

 

so when was the Great Depression if during FDD's entire presidency????

 

No, I didn't mean privileged to go bankrupt. I've already told you that.

I said that FDIC and the legal determination that deposits are loans and not bailments is a privilege.

Jeez, it's maddening dealing with socialists.

 

Your just making stuff up.

Do you understand now? Are you still confused?

Year - GDP $2009 - % chng
1929 1,055.6
1930 965.8 -8.5%
1931 904.1 -6.4%
1932 787.5 -12.9%
1933 777.6 -1.3% <- FDR takes office, implements "New Deal".
1934 861.4 +10.8%
1935 938.2 +8.9%
1936 1,059.6 +12.9%

Nope. Still don't see it.

Do you get it? Do you understand now? Are you still confused?