The Age of Easy Money (Video and Transcript)

FRONTLINE investigates the Fed’s epic economic experiment to revive the U.S. economy with what has been called an “easy money” policy and the far-reaching and sometimes unintended consequences.

NOURIEL ROUBINI: So we lived in a bubble, in a dream, and this dream in a bubble is bursting and is turning into an economic and a financial nightmare.

Are you basically saying that we should be preparing right now? That there would be a bursting of this massive credit bubble?

What's amazing is that a lot of people, and I would say I'm included in this, think that there probably will be a bigger correction at some point.

RANA FOROOHAR: Yeah. Yeah, let me try and be honest but not scare people [laughs], if that's possible. So the markets were down 20% last year. That seems like a lot, and if we were in a normal market cycle, I'd say, "OK, we're done. We're probably at the bottom." I don't know if I can safely say that we're at the bottom because of what we're looking back at, this age of easy money. Not just even since the financial crisis, but before that, for the decades that rates have been going down and down and down and debt has been going up and up and up. That's a long period of time where assets have arguably been artificially inflated, and so is it possible that you could see a continued correction at some point? It is possible.

We have had literally a few decades of ever-increasing bubbles that have been fed and supported by central banks. And not only have we had bubbles, but we've had bubbles that have been fed by excessive leverage, excessive private and public borrowing and excessive risk-taking.

The party is over. Inflation is high and rising. Central banks have to increase interest rates. That is bursting the asset bubble. It's increasing the amount of the debt servicing of everybody who over-borrowed like crazy. So we lived in a bubble, in a dream, and this dream in a bubble is bursting and is turning into an economic and a financial nightmare.

1 posted on 03/29/2023 3:34:21 PM PDT by Faith Presses On

Youtube:

https://www.youtube.com/watch?v=EpMLAQbSYAw

Complete Transcript:

https://www.pbs.org/wgbh/frontline/documentary/age-of-easy-money/transcript/

2 posted on 03/29/2023 3:35:05 PM PDT by Faith Presses On (Willing to die for Christ, if it's His will--politics should prepare people for the Gospel)

I can’t listen to this, or read the transcript. I hope these people get their “Just rewards”. Thy will be done Father.

3 posted on 03/30/2023 5:38:51 PM PDT by Glad2bnuts (In America we don't have Brownshirts running a putz, it is the Brownskirts...male ...fe ...whatever)

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