Forum Post: Federal Reserve Critics Claim that "The Federal Reserve Repeatedly Blows Bubbles and Asset Classes then Disavows any Responsibility for starting or stopping the bubble before it wreaks havoc on the economy" Bethany McLean co-author of "All the Devils are
Posted 12 years ago on Nov. 20, 2011, 2:08 p.m. EST by FedWallFedWellFedUP
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Federal Reserve Critics Claim that "The Federal Reserve Repeatedly Blows Bubbles and Asset Classes then Disavows any Responsibility for starting or stopping the bubble before it wreaks havoc on the economy" Bethany McLean co-author of "All the Devils are Here"
The Federal Reserve kept rates low in '01-'02 to create bubble at a time when the 99% did not want to BUY ANYTHING. Then from '03 to '06 the smashed the BUBBLE created by raising interest rates 17x in a row pushing millions into foreclosure and generating rich payoffs for derivatives market and insured cdo and cds investment packages.
is bubble a financial term?
Yes. You need to learn finance jargon. It means artificially inflated prices.