It's the right thing to do in an acute situation where financing locks up.
I would argue it's obviously the wrong thing to do for years and years while all assets are mooning in value, and 1m jobs being added per month.
The Fed chairpeople we've had since the financial crisis have been spineless about normalizing the balance sheet because they always optimize for the short term. Pretty sad tbh.
Need somebody who actually cares about the future generations in there. Nobody wants to be the guy that makes your stocks or house go down in value, but that's exactly what's needed to give future generations opportunity, and not just a huge asset bubble that will inevitably burst some decades down the line.
Covid monetary policy will go down as an initial success that snowballed into a huge failure.
>I would argue it's obviously the wrong thing to do for years and years while all assets are mooning in value, and 1m jobs being added per month.
That's kind of what I was saying. They did this during 2009. Great, it was needed. They should have exited and brought to balance probably by around 2016 at the latest.
>The Fed chairpeople we've had since the financial crisis have been spineless about normalizing the balance sheet because they always optimize for the short term. Pretty sad tbh.
It's not necessarily 'spinelessness' they just realize what will happen when they do this. This 'balance' let them increase the bad situation in the bad and they later have to decrease it will make a great situation worse. If the situation isn't great and they make it worse. They could make something neutral into bad.
>Need somebody who actually cares about the future generations in there. Nobody wants to be the guy that makes your stocks or house go down in value, but that's exactly what's needed to give future generations opportunity, and not just a huge asset bubble that will inevitably burst some decades down the line.
That's kind of the thing right. This is about generational warfare. This is the worker shortage of 2030 starting now. This is the boomers trying to retire and move their investment to safe bonds but not enough bonds are available. So yields are well below inflation.
I would argue it's obviously the wrong thing to do for years and years while all assets are mooning in value, and 1m jobs being added per month.
The Fed chairpeople we've had since the financial crisis have been spineless about normalizing the balance sheet because they always optimize for the short term. Pretty sad tbh.
Need somebody who actually cares about the future generations in there. Nobody wants to be the guy that makes your stocks or house go down in value, but that's exactly what's needed to give future generations opportunity, and not just a huge asset bubble that will inevitably burst some decades down the line.
Covid monetary policy will go down as an initial success that snowballed into a huge failure.