{"id":3472,"date":"2009-09-08T16:21:46","date_gmt":"2009-09-08T20:21:46","guid":{"rendered":"http:\/\/1boringoldman.com\/?p=3472"},"modified":"2009-09-09T00:31:02","modified_gmt":"2009-09-09T04:31:02","slug":"the-law-of-unintended-consequences-2","status":"publish","type":"post","link":"https:\/\/1boringoldman.com\/index.php\/2009\/09\/08\/the-law-of-unintended-consequences-2\/","title":{"rendered":"the law of unintended consequences&#8230;"},"content":{"rendered":"\n<p align=\"center\"><em>Only graph nuts will care about this, but here goes anyway <\/em><\/p>\n<p>If you look at this graph of the Federal Reserve&#8217;s Interest Rates &#8211; before Greenspan, lowering the rate in response to a downturn worked and afterwards the rate could be gotten back up to where it had been or higher. That means that there was a good buffer available for the next downturn.<\/p>\n<p align=\"center\"><img decoding=\"async\" width=\"520\" border=\"0\" src=\"http:\/\/1boringoldman.com\/images\/federalreserve.gif\" \/><\/p>\n<p align=\"center\"><a href=\"http:\/\/www.moneycafe.com\/library\/primeratehistory.htm\" target=\"_blank\"><img decoding=\"async\" width=\"520\" border=\"1\" src=\"http:\/\/www.moneycafe.com\/library\/ratecharts\/ratecharts1.gif\" \/><\/a>&nbsp;<\/p>\n<div align=\"justify\"><img decoding=\"async\" width=\"84\" hspace=\"4\" border=\"1\" align=\"right\" src=\"http:\/\/t0.gstatic.com\/images?q=tbn:Z-pMhyvLmDiZnM:http:\/\/msnbcmedia4.msn.com\/j\/msnbc\/Components\/Photos\/060307\/060307_greenspan_vmed_3p.widec.jpg\" \/>After the early 1980&#8217;s, that was no longer true. <strong><font color=\"#300030\">What happened in the early 1980&#8217;s?<\/font><\/strong> <strong><font color=\"#300030\">Reagan <\/font><font color=\"#300030\">[omics]<\/font><\/strong>; <strong><font color=\"#300030\">Deficit Spending<\/font><\/strong>; <strong><font color=\"#300030\">Tax Cuts<\/font><\/strong>; <strong><font color=\"#300030\">Deregulation<\/font><\/strong>; <strong><font color=\"#300030\">Greenspan<\/font><\/strong>. It&#8217;s pretty striking that the graph looks like a Christmas Tree. So, either Reaganomics changed the playing field <u><strong>OR<\/strong><\/u> <strong><font color=\"#300030\">Greenspan kept Interest Rates too low to have the tool available for the next downturn<\/font><\/strong>. I wonder if he thought he was doing something good &#8211; keeping the credit flowing as part of the Reaganite\/Republican <strong><font color=\"#400040\">easy-money<\/font><\/strong> meme that almost buried us. Whatever he thought he was doing, he was wrong as rain&#8230;<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Only graph nuts will care about this, but here goes anyway If you look at this graph of the Federal Reserve&#8217;s Interest Rates &#8211; before Greenspan, lowering the rate in response to a downturn worked and afterwards the rate could be gotten back up to where it had been or higher. That means that there [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_bbp_topic_count":0,"_bbp_reply_count":0,"_bbp_total_topic_count":0,"_bbp_total_reply_count":0,"_bbp_voice_count":0,"_bbp_anonymous_reply_count":0,"_bbp_forum_subforum_count":0,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-3472","post","type-post","status-publish","format-standard","hentry","category-politics"],"_links":{"self":[{"href":"https:\/\/1boringoldman.com\/index.php\/wp-json\/wp\/v2\/posts\/3472","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/1boringoldman.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/1boringoldman.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/1boringoldman.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/1boringoldman.com\/index.php\/wp-json\/wp\/v2\/comments?post=3472"}],"version-history":[{"count":0,"href":"https:\/\/1boringoldman.com\/index.php\/wp-json\/wp\/v2\/posts\/3472\/revisions"}],"wp:attachment":[{"href":"https:\/\/1boringoldman.com\/index.php\/wp-json\/wp\/v2\/media?parent=3472"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/1boringoldman.com\/index.php\/wp-json\/wp\/v2\/categories?post=3472"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/1boringoldman.com\/index.php\/wp-json\/wp\/v2\/tags?post=3472"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}