[T-A]

https://www.nobelprize.org/prizes/economic-sciences/2022/pop...

Bernanke’s research shows that bank crises can potentially have catastrophic consequences. This insight illustrates the importance of well-functioning bank regulation, and was also the reasoning behind crucial elements of economic policy during the financial crisis of 2008–2009. At this time, Bernanke was head of the US central bank, the Federal Reserve, and was able to put knowledge from research into policy. Later, when the pandemic hit in 2020, significant measures were taken to avoid a global financial crisis. The laureates’ insights have played an important role in ensuring these latter crises did not develop into new depressions with devastating consequences for society.

[Lionga]

The consequences of the FED money printing are just starting to show. The everything bubble this time might become much worse than the housing bubble of 2008.

[jonnybgood]

What if the Fed didn’t respond the way it did? What would of happened? And what were the alternatives?

[Lionga]

A small recession then instead of a big one now.

[AnimalMuppet]

You think the recession now is bigger than what we would have had in 2008, without intervention at that time? I suspect that your memory fails you as to what 2008 was like.

[throw0101c]

> The consequences of the FED money printing are just starting to show.

So having an economy in with the unemployment rate being the lowest it's been in decades is a bad thing? Would you rather have low economic growth and millions of people out of work? Would that that make you happy?

I'd rather have an economy that's "too hot" with inflation that needs to be slowed down than having people not getting a pay cheque at all. Slowing down an economy that's doing "too well" is preferable IMHO to one that's causing suffering.

But that's just me.

[Lionga]

The slowing down now will cause more suffering than a slow economy during covid would have been.

They are raising rates but inflation is not going down at all.

Until it does there is not just "low economic growth" but rather economic contraction and even more out of work than if they did just let economy take its natural course and correction during covid.

Will that make you happy?

[piva00]

A slow economy during a pandemic would create so much social strife and unrest... Imagine for a second if people didn't have a job, couldn't get out of the house, didn't get any money to buy food and/or pay rent. Do you think any society would have endured 2+ years of pandemic emergency actions while going through a deep recession?

The economy are people's lives, not just numbers to be balanced. Keep that in mind, empathy goes a long way to help understand human systems.

[Hendrikto]

> these latter crises did not develop into new depressions with devastating consequences for society.

That is a bit premature to claim…