i do not understand how you can say CBs cannot do much about the prices of food an energy, given the correlation we have seen in commodities and the federal reserve's monetary policy stance. i just dont get it.
i want my home price to normalize and avoid being inflated to prices it had no business being in the first place. i certainly dont want the country to implode simply because i want my home price to stay "where it is".
if banks were in the business of banking, your comments would be correct. but ever since the destruction of Glass-Steagall, that is no longer the case. therefore, the entire premise of your argument is no longer applicable as banks do not have to lend anymore, and instead can take the "benefit" provided to them by the Fed and do something else besides lending with it. and they most certainly do.
It's obvious that you really have no idea what happened, why it happened, and what all of the effects were.
next you're going to start quoting krugman. seriously, you want to know who i listen to? anyone in the austrian school - not keynesian eCONomics professors who think the only answer to the quandry that stimulus hasn't worked well is to double it.
and it's obvious to me that your head is permanently stuffed up your arse - or you're on the payroll of a big bank or the fed. or both. probably both.
don't you get it? HE decides what the 'normal' price is, just like the rest of Joe public out there. They missed the supply/demand lesson from econ 101.
i would answer "supply and demand under historically average monetary conditions". i would be happy to debate if you feel otherwise.
sorry, are you trying to answer for me? the only thing we "get" about you is your lack of understanding in anything relative to the current situation we live in. go back to your propaganada.