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Re:Central banks are still testing the limits to how low int... by Spooky23 on Thursday November 26, 2015 @09:47PM (#10635600)
I think the Feds actions made sense in the early crisis days after Lehman's collapse and AIG. Liquidity needed to be injected into the system.

The QE stuff carried on far too long with no consequence to the banks.

If banking is such an awful business, let the investment houses and insurance companies spin off.

Re:Central banks are still testing the limits to how low int... by HiLo on Thursday November 26, 2015 @10:28PM (#10635705)
OK, so can you back this up? The economy has actually recovered. So where did they fuck up?
Re:Central banks are still testing the limits to how low int... by littletimmy on Thursday November 26, 2015 @11:52PM (#10635902)
At the cost of a massive increase in inequality and massive asset bubbles. This is recovery, no doubt, but a recovery that makes things worse in the long-term.
Re:Central banks are still testing the limits to how low int... by HiLo on Friday November 27, 2015 @12:06AM (#10635937)
The increase in inequality was ongoing before that, so you haven't linked QE and inequality. Neither has Bernanke, who says the ties are very opaque.

Furthermore, this isn't a massive asset bubble, nor does it fit the description of them. What sectors are in a bubble? If they popped, would they bring the economy down with them?

Your most credible case on this would be the energy industry - "low rates allowed shady shale companies to borrow billions at ultralow rates," right? OK, so now that the price of oil has been cut ~65% (65% of your revenues, gone!), we:

1. Still have positive inflation, even when accounting for energy

2. Still have a functioning energy sector

3. Haven't experienced any kind of major economic dislocations.

I guess what I'm asking is, how is this recovery making things worse in the long run, than a total economic collapse in a nuclear age would have been?

Re:Central banks are still testing the limits to how low int... by Spooky23 on Friday November 27, 2015 @08:23AM (#10637168)
You still have "too big to fail" banks like BoA who are barely passing stress tests.

Because of that, we're in this weird near zero interest rate world that in the long term is undermining pension funds and creating other structural problems.