{"id":6436,"date":"2015-03-12T05:48:01","date_gmt":"2015-03-12T10:48:01","guid":{"rendered":"http:\/\/olduvai.ca\/?p=6436"},"modified":"2015-03-12T05:48:01","modified_gmt":"2015-03-12T10:48:01","slug":"the-great-immoderation-how-the-fed-is-sowing-the-next-recession","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=6436","title":{"rendered":"The Great Immoderation: How The Fed Is Sowing The Next Recession"},"content":{"rendered":"

The Great Immoderation: How The Fed Is Sowing The Next Recession<\/a><\/h3>\n

In\u00a0February 2004 Ben Bernanke famously declared the business cycle had been tamed and took a bow in behalf of enlightened\u00a0monetary\u00a0management, claiming it was the principal\u00a0source of this beneficent development. Exactly 55 months later, of course, he terrorized the Congressional leadership and a clueless President with the frieghtening\u00a0proposition that a Great Depression 2.0 was just around the corner.<\/p>\n

As to why he\u00a0had been so stupendously wrong,\u00a0Bernanke did not say. Nor did he explain why\u00a0the\u00a0brilliantly \u201cstable\u201d\u00a0US economy\u00a0had suddenly stumbled to the edge of an\u00a0abyss despite the Fed\u2019s energetic money printing in the interim. And the Fed had not been stingy in the slightest; it balance sheet had actually\u00a0expanded by $150 billion or nearly 4.5% annually between February 2004 and the Lehman bankruptcy.<\/p>\n

\"\"<\/p>\n

Indeed, six and one-half years on from the financial crisis\u2014-events that made a mockery of the Great Moderation\u2014\u2013the monetary politburo and\u00a0its acolytes on Wall Street have offered no coherent explanation as to why Armageddon loomed nigh and why\u00a0the worst business cycle plunge since the 1930s actually materialized. Certainly their\u00a0lame Monday morning claim that \u201cprudential regulation\u201d had failed doesn\u2019t cut it.<\/p>\n

 <\/p>\n

…click on the above link to read the rest of the article…<\/p>\n","protected":false},"excerpt":{"rendered":"

The Great Immoderation: How The Fed Is Sowing The Next Recession In\u00a0February 2004 Ben Bernanke famously declared the business cycle had been tamed and took a bow in behalf of enlightened\u00a0monetary\u00a0management, claiming it was the principal\u00a0source of this beneficent development. Exactly 55 months later, of course, he terrorized the Congressional leadership and a clueless President […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[68,98,303,305,383,538,661,662,1264,841],"class_list":["post-6436","post","type-post","status-publish","format-standard","hentry","category-economics","tag-ben-bernanke","tag-business-cycle","tag-fed","tag-federal-reserve","tag-great-depression","tag-money-printing","tag-qe","tag-quantitative-easing","tag-recession","tag-us-economy"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/6436","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6436"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/6436\/revisions"}],"predecessor-version":[{"id":6437,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/6436\/revisions\/6437"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6436"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6436"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6436"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}