Obama, worst president since FDR!

[Loki]

I'd like you to use logic, but we both know that's a losing cause.

[Khendraja'aro]

I'd like you to use logic, but we both know that's a losing cause.

You rang?

[GGT]

I'd like you to use logic, but we both know that's a losing cause.

You didn't answer my question.

Since when did Federal Reserve actions and monetary policy rely on "logic"? These are the economic experts you're so eager to defend, based on their academic expertise? Since when did your comment We probably lost millions fewer [jobs] than would be the case if the interest rate was significantly higher mean using "logic"?

[GGT]

Bump to post just one op-ed regarding the Fed's actions:

http://business.time.com/2012/01/26/...d=biz-main-led

When Paul Volcker raised interest rates to crush inflation, he was widely denounced. Now he is considered a monetary god. If Bernanke wants to be known as the guy who saved the economy, and not just avoided a depression, more bold steps will be needed.

In other words, the central bank is still propping up the major banks and the stock market....to incentivize more borrowing, trading, and speculation, while hurting the general public, and savers. It's not doing any mortgage holder any good, and not encouraging new home buyers.

The Fed is already holding TRILLIONS of dollars in mortgage-backed securities, waiting for an uptick. Theoretically, that would give banks and mortgage companies some time to de-leverage and recapitalize, but that's not what they're doing. They've added new service fees, reduced their loan originations, and borrow "free money" from the Fed to keep operating profits.

Seems to me this is a great example of Trickle Down Policy that's more like Voo Doo Economics. What do you think?

[Loki]

Um, the reason they're including all these fees is because of the credit card bill, which limited their ability to make money on credit cards. Your analogy also makes no sense (as usual): we're not facing inflation today.

[GGT]

Um, the reason they're including all these fees is because of the credit card bill, which limited their ability to make money on credit cards. Your analogy also makes no sense (as usual): we're not facing inflation today.

Ah, so let's see here....banks can't make money by charging upwards of 24.9% interest rates (during a time when consumers rely heavily on credit for things like doctor's visits and medications, or gas for the car between paychecks or jobs), but banks also can't make money by originating loans and servicing them?

This is the rationale for the Federal Reserve holding TRILLIONS of mortgage-related securities, and calling it quantatative easing? This is the reason they're holding interest rates at near ZERO for a few more years? Is this the "logic" you mentioned earlier?

[Loki]

And that's relevant to the price of strawberries in Peru?

[GGT]

And that's relevant to the price of strawberries in Peru?

So sorry, I forgot to enter my reply for acceptance by the Forum Screening Committee and Chairman Loki before posting.

I am, however, still waiting for you to explain how monetary policy uses Logic.