{{
`${userDetail.user.displayName}${userDetail.user.cachedBungieGlobalDisplayNameCode ? `#${standardizeBungieGlobalCode(userDetail.user.cachedBungieGlobalDisplayNameCode)}` : ""}`}}
{{getUserClans()}}
11/14/2012 6:20:57 AM
48
After taking Macroeconomics
I must wonder, if there's so many economists that known that's wrong with the economy of a country such as United States, why don't they fix it?
This [url=http://www.youtube.com/watch?v=PTUY16CkS-k]video (kind of funny actually)[/url] explains a lot of things and the problems that needs to be fix and etc.
I mean, it seems to me it is so obvious what we need to do after just taking an introductory course to macroeconomics, I mean, now I know not to spend $800 billion on a stimulus legislation that will hardly stimulate anything.
What do you guys think? Any of you took a micro/macro economic course before and had your mind changed after finishing it?
-
[quote][b]Posted by:[/b] Mr Libertarian #2_ We borrow from the same banks that we loan to them at extremely low assets bought by the GoldmanSachs and ask for extremely high interest rates in bonds. (BTW, the person who authorizes this is the head chaiman of the New York branch of the federal reserve, he worked for Goldman Sachs). Then in return, we invest in bubbles or made bubbles that soon failed. [/quote] I'm sorry, but this is an incredibly big pet peeve of mine. The Federal Reserve effects two rates. The Federal Funds Rate set by the FOMC is used for overnight loans when banks drop below reserve requirements. The Discount Window issues loans to banks on a short-term basis when banks have liquidity problems. It is usually higher than the Federal Funds rate by a hundred or so basis points and is also short term and backed by collateral. The Discount Window is generally assumed to be a lender of last resort as they price their rates above what other banks are willing to lend for. Bank of America can not borrow from the Federal Reserve at 0-0.25% and turn around and give you a mortgage at 4%. Every time I hear this I want to kick little children. [Edited on 11.14.2012 12:36 PM PST]
