Ted Forstmann on the reasons for the financial crisis

with Ted Forstmann
in Business
on Monday, November 21, 2011 * * * * *

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Ted Forstmann on the reasons for the financial crisis

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    1. robertpaulson  01/17/2012 10:15 AM Report

      The idea of the 2002/03 rate cuts was to create economic activity out of thin air in order to allow the war on terrorism in spite of the tech bubble burst. It was jeopardizing the future for immmediate gains. We're in the future now.

      The housing bubble was the conduit. It was meant that way.

      Let's say the central bank should be used to political ends. Can someone explain how that can be squared with democratic principles?

    2. Gelles  12/29/2011 05:28 AM Report

      anne4444, more than a month ago, wrote on 11/22/2011

      ..... ..... "Printing money itself is not good, nor bad. The question is how we use [it] as an additional tool. The difference between the good and the bad is called “brain”. That is the reason why the word of “NO BRAINIER” was invented."

      ======== end anne ========

      The opportunity to add comment to Forstmann's opinion on the Fed, the price of money and the jobs crisis, may be part of some new use of this archive. (I have not figured out how this screen appeared on Dec 29, 2011.)

      At any rate if I understand anne, she sees cheap money as an opportunity for banks to do good or bad with their power to lend cheap money to the borrowing public. She implies that derivative bets were not the intended purpose of Fed policy. Rather, the intention was to fund green/good enterprise to strengthen the economy and the nation. This would mean greater satisfaction of need and full employment.

      It was a no-brainer for banks to have done their duty. But banks have not done what the central bank intended.

      This says to me that the central bank has failed to use its brain and the money system the way we, the people, require them to be used.

      REMant's comment is not consistent with mine. I do not know what he means.

      (The outlet advertisement for sneakers needs to be removed from the archive -- ASAP.)

    3. Bluegrassbloke  12/26/2011 04:14 AM Report

      I agree.

    4. REMant  11/23/2011 11:08 AM Report

      Anne that's preposterous.

    5. anne4444  11/22/2011 10:02 PM Report

      Printing money itself is not good, nor bad. The question is how we use them as an additional tool. The difference between the good and the bad is called “brain”. That is the reason why the word of “NO BRAINIER” was invented.