A thing that makes me nervous is that, for ages, the Fed never successfully re-raised interest rates because the market panicked every time they even mentioned it. But if things go badly, lowering interest rates isn't even possible...
@cwebber maybe the market panicked because they knew it would result in inflation, which would force wage increases, and they're not that interested in wage earners making a bigger piece of the pie. If the market panics, I see that as a good thing. We just need the fed to be unafraid of it.
@ted Yeah I'm not sold on that...
I think as shitty as Keynesian economics are, at least it was a system that could be turned to when everything went nearly off the cliff entirely in 2008. But the kind of recovery method used in the last decade is a short to medium term recovery mechanism, and if you stay on that medicine it's not going to work next time...
@cwebber I think that it's probably not that purposeful, but the lower interest rates do help keep inflation lower, which helps those with cash keep it. I think that we've now shown inflation can be too high and too low.
@ted I agree there re: inflation
