Aug

1

What is the cause of this 10 trillion miss if not the opportunity cost of the bailout and buying of bonds and mortgages by the Fed, the expansion of their asset base, the main accepted principle of macro economics that providing high powered money will create a multiplied effect on output. 


"Is Life Still Good If You Miss Out on $10 Trillion?"

"A new analysis from the Federal Reserve Bank of Dallas provides a broader perspective on the weakness of this recovery and the damage caused by the crisis. They estimate that the shortfall in GDP from 2008 through 2023 amounts to about $10 trillion in today's dollars."

anonymous writes:

Retrospectively, It would have been fascinating to see if the animal spirits could have sorted things out better than the 'rescue packages' of our overlords. I suspect that with the same level of regulation as we had pre-'crisis' the difference would have been, inter alia, that we would have lost two or three of the 'global banks'.

The volatility of economic conditions would have been a little higher for a short time. There would be more smaller competitors now in many industries providing better levels of service and competition. The distribution of the economic gains since the lows would have been shared amongst a wider set of private enterprises rather than the 'semi private' banking sector.  


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