tag:blogger.com,1999:blog-3758330678390419129.post4015651122715879..comments2024-02-13T02:39:22.756-05:00Comments on EconomicPolicyJournal.com: The Truth About Janet Yellen's Forecasting RecordRobert Wenzelhttp://www.blogger.com/profile/14296920597416905488noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-3758330678390419129.post-86067223601714411742013-10-13T03:41:26.424-04:002013-10-13T03:41:26.424-04:00It is true that the economy can withstand the popp...It is true that the economy can withstand the popping of a bubble<br />But in the case of the housing bubble, the entire banking system was dependent on the inflated mortgages staying above water. And then the big suckers like AIG bought tons of credit default swaps on margin. Anyone with a lick of common sense could see the risks escalating. <br />Maybe it was a case of all these political richard datehttps://www.blogger.com/profile/14037983462447341323noreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-27602351388673644372013-09-12T11:02:30.928-04:002013-09-12T11:02:30.928-04:00"First, if the bubble were to collapse on its..."First, if the bubble were to collapse on its own, would the effect on the economy be exceedingly large? Second, is it unlikely that the Fed could mitigate the consequences? Third, is monetary policy the best tool to use to deflate a house-price bubble?<br /><br />"My answers to these questions in the shortest possible form are, “no,” “no,” and “no.”"<br /><br />-- Janet Yellen, 9/Jeremy R. Hammondhttps://www.blogger.com/profile/00435387165017933335noreply@blogger.com