In response to:

The New, Improved Bernanke Business Cycle

B.B.Crane Wrote: Aug 30, 2012 11:42 AM
First of all, Bill, as REAL economists know, the boom-bust cycle is created by government intervention, not as an inherent instability of capitalism. It is an inevitable and recurring fact of life in fascist and communist nations where central planners and bureaucrats restrict consumer choice and eliminate entrepreneurial freedom. Second, Bernanke and his friends created the housing bubble by lending to those who couldn't repay because government allowed them to not only pass off their bad loans to others, leaving them liable, but to insure and short their losses, saddling taxpayers with making up ALL loses and giving the banks millions of homes through foreclosure and trillions in bailouts. It's time stop crying and start revolting.
george33 Wrote: Aug 31, 2012 7:48 PM
The federal reserve claims to be independent of political coercion, like the supreme court, but the facts belie their assertions. Is it coincidence that when Barney Frank wanted to "roll the dice" on home ownership, the federal reserve was there to keep interest rates unrealistically low - and since we were in the "boom years" of W's administration, there was no economic reason to do so?

As the central bankers of the world try to avoid the impossible, it suddenly occurred to me that the citizens of the U.S. are also attempting the exact same thing. 

As most good economists know, the economic cycle of growth has certain undeniable stages. 

Starting with growth, we then move to the excessive boom

Yet, it seems that after everyone is finally in, the balloon bursts and the bust phase commences.  At this point the inevitable contraction occurs.

Company after company fails, people are unemployed, houses are foreclosed upon, and financial collapse is everywhere. 

Amidst this...

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