Posts Tagged ‘compounds’

“The Fed (Federal Reserve) and the government have created a false boom.  It’s not sustainable.  The last boom—from 2003 to 2007—was a false boom, too.  So was the one before that.  By manipulating interest rates, the Fed injects adrenaline into the economy and stimulates it.  But this doesn’t allow the market to cleanse itself of the sins of the previous boom (which the Fed’s stimulation also caused).  So, the malinvestment builds up and compounds.  And the issues that caused the crises never get addressed.” -Tom Dyson

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