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Quote by: bishop  i've always argued that the fed's rate cuts were what lifted the country out of recession and caused a major boom in the market. plus, there's strong, historical evidence that this is, in fact, the case. you'll rarely ever find an economist who argues differently - or that bush's "tax cuts" had a remotely proportional effect compared to the fed's rate cuts. these "tax cuts" compared to the rate cuts is like a drop of water vs. a river. |
You are more right than you know, Bishop. Both the boom
and the inevitable bust are due to the central bank's (i.e. the Fed's) rate cuts. Of course, "rate cuts" is just another way of saying "artificial expansion of the money supply".
- Rob