{"id":194193,"date":"2008-10-17T05:23:00","date_gmt":"2008-10-17T10:23:00","guid":{"rendered":"https:\/\/www.panix.com\/~msaroff\/40years\/2008\/10\/17\/can-central-banks-manage-asset-bubbles\/"},"modified":"2008-10-17T05:23:00","modified_gmt":"2008-10-17T10:23:00","slug":"can-central-banks-manage-asset-bubbles","status":"publish","type":"post","link":"https:\/\/www.panix.com\/~msaroff\/40years\/2008\/10\/17\/can-central-banks-manage-asset-bubbles\/","title":{"rendered":"Can Central Banks MAnage Asset Bubbles"},"content":{"rendered":"<p>Alan &#8220;Bubbles&#8221; Greenspan said that it was impossible, so all that could be done was to clean up afterwards, though it&#8217;s clear that Ben Bernanke is s looking at ways for <a href=\"http:\/\/www.bloomberg.com\/apps\/news?pid=20601087&amp;sid=aoz6hXOq_3Xc&amp;refer=home\">the Federal Reserve to intervene before bubbles get too frothy<\/a>.<\/p>\n<p>He&#8217;s also looking at how excessive consolidation in banks made the current troubles worse.<\/p>\n<p>This is a clear repudiation of Greenspan&#8217;s policies and philosophies.<\/p>\n<p>Kevin Drum nails the problem clearly, at least with respect to housing, when he asks <a href=\"http:\/\/www.motherjones.com\/kevin-drum\/2008\/10\/asset_bubbles.html\">when do asset bubbles become inflationary<\/a>.<\/p>\n<p>While it is hard to claim that the Dot Com boom was inflationary, it&#8217;s clear that the housing bubble was.  These were not abstract financial assets, they were <span style=\"font-weight:bold;\">essentials of life that people pay for<\/span>, but the Fed, and the BLS, specifically gamed the inflation data so as not to have to count double digit increases in the cost of shelter as inflation.<\/p>\n<p>Of course Alan &#8220;Bubbles&#8221; Greenspan, who hates wages, but loves unearned income, would never subscribe to the idea that this was inflationary, but he&#8217;s a complete wanker.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Alan &#8220;Bubbles&#8221; Greenspan said that it was impossible, so all that could be done was to clean up afterwards, though it&#8217;s clear that Ben Bernanke is s looking at ways for the Federal Reserve to intervene before bubbles get too frothy. He&#8217;s also looking at how excessive consolidation in banks made the current troubles worse. &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1004,1200,985],"tags":[],"class_list":["post-194193","post","type-post","status-publish","format-standard","hentry","category-finance","category-inflation","category-regulation"],"_links":{"self":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/194193"}],"collection":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/comments?post=194193"}],"version-history":[{"count":0,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/194193\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/media?parent=194193"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/categories?post=194193"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/tags?post=194193"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}