Monday, September 21, 2015

Article #1

"Why the Keynesian Chorus is Cackling Like Chicken Little" included a lot of finger pointing towards people that were making up numbers, data, and measuring systems. Such as the Goldman Index that "consists of financial variables that are so powerfully influenced by Fed Policy" or news speakers that "create appearance of growth and gains in the macro-aggregates by the presumption of theory". I can't verify anything the author says. I don't exactly know who to trust. For all I know the bad guy (if there is one) is the author himself. But the way all the information is presented to me convinces me that Fed policy isn't doing much to help households. Currently big corporations such as wallstreet are borrowing tons of money with very little interest rate which is bad for the economy in the long run because it causes mispricing and generally "does not fuel an outbreak of borrowing and spending" in households. There money currently being spent is just money previously saved. The funny thing is all this is stuff I can't notice, stuff many people don't actually notice.

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