Comments on: Between A Rock And A Hard Place: The Federal Reserve’s Quandary http://amateurassetallocator.com/2008/07/28/between-a-rock-and-a-hard-place-the-federal-reserves-quandary/ Amateur Asset Allocator Fri, 10 Sep 2010 20:04:25 -0400 http://wordpress.org/?v=2.9.2 hourly 1 By: Kyle http://amateurassetallocator.com/2008/07/28/between-a-rock-and-a-hard-place-the-federal-reserves-quandary/comment-page-1/#comment-1552 Kyle Mon, 28 Jul 2008 17:03:03 +0000 http://amateurassetallocator.com/?p=247#comment-1552 I think there's a lot of blame to spread around. Certainly the Fed isn't innocent, but neither is congress or the voters. All in all, I think the Fed is doing the best they can in a very difficult situation. Obviously the solution to the inflation problem would be to raise interest rates sharply a la Volker but I'm not sure the Congress or voters would put up with that. I think there’s a lot of blame to spread around. Certainly the Fed isn’t innocent, but neither is congress or the voters. All in all, I think the Fed is doing the best they can in a very difficult situation. Obviously the solution to the inflation problem would be to raise interest rates sharply a la Volker but I’m not sure the Congress or voters would put up with that.

]]> By: Curt http://amateurassetallocator.com/2008/07/28/between-a-rock-and-a-hard-place-the-federal-reserves-quandary/comment-page-1/#comment-1551 Curt Mon, 28 Jul 2008 16:39:28 +0000 http://amateurassetallocator.com/?p=247#comment-1551 I like that way you framed the dilemma. So who is to blame? If the Fed was only acting in the best interest of the economy given the debt created by congress overspending, then maybe congress is to blame. But, if congress has been over spending for decades because the people have pushed for more government social programs, then maybe the people are to blame. At the end of the day, the people voted for politicians that promised more money for them, which resulted in an increase of inflation and taxes. The American dream has become a nightmare. I like that way you framed the dilemma. So who is to blame? If the Fed was only acting in the best interest of the economy given the debt created by congress overspending, then maybe congress is to blame. But, if congress has been over spending for decades because the people have pushed for more government social programs, then maybe the people are to blame.

At the end of the day, the people voted for politicians that promised more money for them, which resulted in an increase of inflation and taxes. The American dream has become a nightmare.

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