the idea of money is crazy

[bu villain]

not true, give specifics. Their policy has caused the recessions, not prevented them, or kept them from happeneing. Im not sure you know how the stock market, bonds, interest rates and CPI work. Not being snooty, just the truth. I dont know how you can claim the FED isnt responsible when they control interest rates, which is lending, and control monetary policy......

I keep repeating it but it doesn't seem to be working. Perhaps caps lock will help...THE FED CANNOT PREVENT RECESSION, DEPRESSION, BOOMS, BUSTS, OR PANICS! They aren't responsible because they aren't Gods. There are global markets, economic conditions, and human psychology involved. You can't force anyone to borrow money no matter what the interest rates are. You can't force banks to lend money either. You can't force people/companies to invest their money wisely. How exactly do you think the Fed could have prevented the Tech bubble?

not true at all. keeping interest rates low IS THE PROBLEM. no one saves, so you combat TOO MUCH LENDING by having........MORE LENDING????

The problem in 2007 was too much lending. The problem in 2010 was not enough. They are fighting the 2010 problem, not the 2007 one.

What happens when interest rates are kept lower than the market wants? does saving happen?

Yes savings happens just at a lower rate. But will live in a consumer driven economy so to get it humming again, we want spending, not saving.

Not true x3. the great depression and great 2008 recession were the worst we have ever had, and was under the Feds watch. -1 point

There are plenty to choose from so I'm not sure what criteria you are using to say 2008 was the worst. The 13 Worst Recessions, Depressions, and Panics In American History - 24/7 Wall St.

Also while technically the Fed existed during the Great Depression, we were still tied to gold which severely limited their ability to do anything about it. Once they disconnected the domestic market from gold in 1933, they were able to do more. Remember, I'm not claiming the Fed has total control over the economy.

The fed prints money, it directly controls interest rates.

Directly influences but does not directly control. If the US lived in a bubble then you would have a stronger argument. The thing is, borrowers and lenders can always go to the international markets. That's why I will not invest in Treasuries right now, no yield. Not sure why we are discussing this aspect though because I never disagreed they could influence interest rates. In fact, it is one of their primary purposes.