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A comment on Bernanke Says U.S. Economy Faces a ‘Wile E. Coyote’ Moment in 2020. Parent comment

Re:Bernanke Says U.S. Economy Faces a ‘Wile E. Coyote’ Momen... by ianai on Friday June 08, 2018 @11:59AM (#17266704)
No, I’m saying that without the Fed and the federal government acting to rationally steer markets the markets will go off a cliff and not come back. Just like Bernanke said here. Regulators matter. When the government stimulates the already hot market with lax taxes and high spending it’s like pouring liquid oxygen onto a flame.
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Re:Bernanke Says U.S. Economy Faces a ‘Wile E. Coyote’ Momen... by AnimalMuppet on Friday June 08, 2018 @12:37PM (#17267132)
But that's demonstrably false. Pre-Fed the economy went off a cliff several times, and came back. Look at the Panics of 1857, 1873, 1893, and 1907.

Now, I think I agree with your larger point, that without the Fed this would be much worse.

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Re:Bernanke Says U.S. Economy Faces a ‘Wile E. Coyote’ Momen... by alter_eco123 on Friday June 08, 2018 @12:19PM (#17266920)
> I’m saying that without the Fed and the federal government acting to rationally steer markets the markets will go off a cliff and not come back.

So how did markets exist at all when the Fed was created? By your logic, they would have "gone off a cliff and never come back" long before that.

> When the government stimulates the already hot market with lax taxes and high spending it’s like pouring liquid oxygen onto a flame

Even after all the stimulus so far? No diminishing returns, ever?

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