Quote:
Originally Posted by joe bloe
Once upon a time, I bought my first home. Because I had never owned a home before, I wasn't experienced in caring for a lawn, specifically fertilizing a lawn.
I over fertilized the lawn. I was carefull to apply lots of water immediately after fertilizing, so it never burned. For several months, the lawn was beautiful and appeared to be healthy. Then winter came, an unusally cold winter, and my lawn completely died.
What happened was, because I had over fertilized, the lawn's root system became extremely shallow. My lawn had sort of become dependant on fertilization and did not seek nourishment from the ground.
The Federal Reserve is doing to the economy, what I did to my lawn. We need an economy that can grow naturally, without the need for federal money to artificially stimulate it.
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0nce upon a time? ,,, thats the way your thoughts always begin ... in fairy tale land.
did this make you squeal like a pig?
Fed lowered interest rates 11 times in 2001. In November 2002 and the middle of 2003, the Fed lowered rates again, in an attempt to stimulate the economy.
In the summer of 2004, the Fed started gradually raising rates from the historic low levels. Their stated belief is that the economy has started to recover and that by gently moving rates higher, they will be able to keep inflation in check without curbing the ongoing recovery. The gradual increasing of rates has continued from the summer of 2004 through the summer of 2006. The Fed increased the overnight interest rate 17 times before not raising the rate at their August 2006 meeting. The rate remained constant through the summer of 2007. In the fall of 2007, the Fed started reducing rates.
In 2008, the Fed reduced rates several times in response to a weakening economy and to provide additional liquidity as financial markets dealt with uncertainties in the sub-prime mortgage and other credit markets.
In the late summer and fall of 2008, Congress granted the Federal Reserve significantly more authority to deal with the turmoil in the financial markets. This includes purchasing illiquid securities from institutions, making loans to troubled firms, and making investments in banks and other institutions to provide additional capital for their operations
what say ye, Porky?
FED Wants To Recreate Financial Crisis... How QE3 Will Actually Inhibit Growth & Job Creation.
