How does the Federal Reserve cause Recessions and Depressions ?

[aid632007]

How does the Federal Reserve cause Recessions and Depressions ?

[eduardo89]

http://irismgmt.com/images/ABCT.png

[sofia]

Read www.tomatobubble.com

[VIDEODROME]

It seems to me they don't create Recessions but act to stall or delay them until they can't hold back the pressure and it happens anyway and is more severe then it should have been.

Or that inconvenient ups and downs and business cycles are clamped down on and artificially controlled and stabilized.

[Wesker1982]

How does the Federal Reserve cause Recessions and Depressions ?

This video is very good, please watch.


http://www.youtube.com/watch?v=541bajR4k8g

[Zippyjuan]

Recessions and depressions are certainly not unique to the Federal Reserve period of our history. They used to call all economic downturns until the Great Depressions- after that the term depression was reserved for only bad crisies and avoided due to its emotional implications. Economies naturally can develop periods of excess which are followed by periods of wringing out or unwinding that excess. Trying to controll these normal events can end up making them worse.

[TheNcredibleEgg]

To put it simply:

The Fed causes the depression/recesscion because it is (in recent history) responsible for blowing up the bubble economy that preceded. And by blowing up an artificial economy - a crash invariably follows.

(BTW - the country is currently in a FED induced bubble right now. How much further it will blow is an open question - but the eventual crash will come. And the FED is the main blame.)