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Fed Risks Fueling More Bubbles, Davos Economists Say

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moh malekpour

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May 25, 2002
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California
http://www.bloomberg.com/apps/news?pid=20601087&sid=alohzhP61Auo&refer=home
The Federal Reserve, which yesterday announced its first emergency rate cut since 2001, is ignoring history's lessons and risks re-igniting more asset bubbles, economists at the World Economic Forum annual meeting said.

The Fed is saying ``we are there to clean up after bubbles first rather than to prevent the danger,'' Stephen Roach, Morgan Stanley's Asia chairman, said in a panel discussion in Davos, Switzerland. ``It's a dangerous, reckless and irresponsible way to run the world's largest economy.''
 

Terrel L. Shields

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Arkansas
By ignoring the early indicators (04-05) that housing was over-heating badly and tightening the regulation on lenders (thus slowing the liquidity bubble) rather than simply raising the interest rates, this mess would not have over-heated like it did. Bernake is not up to this job.
 

Riick

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Aug 14, 2007
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Delaware
Lower rates + more liquidity = a debased currency with low interest rates
-- A currency backed by 9v Batteries is bound to run down and short out --
 

Greg Bell

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Jul 7, 2006
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Louisiana
Stock market had a nice dead cat bounce today.Time for a suckers rally.Pollyanna's will be buying tomorrow............
 
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