US policymakers will do whatever it takes to avert 1990's Japan: Fed Reserve (FT)

Discussion in 'Wall St. News' started by achilles28, Mar 13, 2008.

  1. achilles28


    US will avoid deep recession, Fed says
    By Krishna Guha in Washington
    Published: March 12 2008 21:06

    The US will avoid a severe and prolonged recession similar to Japan’s in the 1990s because US policymakers will do whatever it takes to avert such an outcome, the Federal Reserve believes...

    There is also a growing awareness that monetary policy alone might not be able to contain the risk of a severe recession, because of wide risk spreads and constraints imposed by inflation...

    Fed officials insist the US will not end up like Japan, not because economics could not deliver such an outcome, but because the US system will not allow problems to fester.

    Where-oh-where will this road take us, I wonder?
  2. Why do you want to avoid recession ? Recession is good ! It cleans out the system. Look at the bad recession Geramny had a couple of years a ago -- and now their companies are lean and efficient. The bad ones are gone.
    The US needs a recession badly ! It will clean the mess - it will make the country more efficient. To inflate the problem is the worst you can do !