tag:blogger.com,1999:blog-8358039.post4266430064435575045..comments2024-03-25T15:17:04.488-07:00Comments on Captain Capitalism: Socialism/Capitalism Video Newly ReleasedCaptain Capitalismhttp://www.blogger.com/profile/05620212946121617985noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-8358039.post-11942630892817300322012-01-13T17:19:19.269-08:002012-01-13T17:19:19.269-08:00Was that another anti-Federal Reserve comment?
I&...Was that another anti-Federal Reserve comment?<br /><br />I'm sure the Federal Reserve causes problems especially when they act as political cronies. But there were always recessions, depressions, and panics before the Federal Reserve, so exclusively blaming them is stupid.amcznoreply@blogger.comtag:blogger.com,1999:blog-8358039.post-62948318264372821162012-01-12T15:40:53.710-08:002012-01-12T15:40:53.710-08:00Markets (a.k.a. people) to blame for the housing c...Markets (a.k.a. people) to blame for the housing crisis? Aw HELL no. <br /><br />FED lowers interest rates -> savings decrease, investment increase -> capital stock is being depleted; new production processes are unsustainable because there is not enough savings to finish them in the future; time structure of capital is disturbed -> there's inflation as a reaction to new money -> FED increases interest rates to slow down inflation -> the depletion of capital becomes evident, unsustainable processes are stopped, the capital invested in those processes is written off, the labor bound to that capital is laid off.<br /><br />The existence of FED is to blame for recessions completely. But I'm sure you're familiar with the Austrian business cycle theory.<br /><br />Also, sub prime borrowers and the banks just performed voluntary market operations without negative externalities, they didn't violate anyone's property rights, therefore cannot be deemed morally wrong in this situation.Sonny Orteganoreply@blogger.com