RT @balajis: This is exactly why Bitcoin works. A simple monetary policy specifies a hard cap of 21 million BTC. Anyone with a computer can cryptographically verify this to confirm the supply has not been inflated. https://t.co/trzsdDAB7c
This excellent post by @mattyglesias aligns with what a different kind of policymaker — namely the tech CEO — has learned over the years. To get many people to do something, you need to make it as simple and transparent as possible.
I mean, if you’re invested in equities it’s been working out pretty fucking great. injecting liquidity at every little sign of correction keeps the market pumping...just have to get out before deleveraging happens.
Yeah, I was thinking more like the explosion of all kinds of debt generally and the pernicious effects of permanent, artificially low interest rates (which is also a suppression of the price of risk). You can't really retire and live off the secure income of a bond portfolio anymore and that's a problem unless you're pretty rich.
But yeah, anyone who possibly can should max out whatever retirement funds they can set aside, plow it into $SPY and forget about it. Someone like AOC would really be doing her poorer constituents a favor if she launched a "community organization" effort to help people open up Roth IRAs.
Post-2009 the Fed is not going to let the stock market crash again (at least not for very long as we just saw). It may all blow up in the end but at least your interests will be aligned with the fat cats' and you can be confident that all possible resources will be marshaled to protect them before/if the ship actually goes down
Excellent analysis. I don't always agree with Matthew Yglesias, but this is spot on.
I think part of the reason why is that, in order to earn "trust", people have to:
1) trust that you are trying to do the right thing
2) trust that you are competent to do the right thing
A lot of the complexity of modern government programs, regardless of whether or not they achieve (1), are more or less guaranteed to fail at (2), for all the same reasons that complexity is a problem in software or anything else.