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Pittsburg, Kansas | That is always one potential aspect of the problem.
But who could have predicted that Volker was going to raise short term interest rates to double digit?
I can see where somone could argue that things were getting frothy and it should have been easy to see a wreck coming, even though a wreck is always much easier to see in hindsite. But interest going from mid single digit to 20%????? How does one anticipate such a move?
About the same deal we have with zero interest now. Look at what stocks and bonds have done! Could anyone have predicted, enough ahead of time to make investment decisions, that the Fed would lower rates and bail out the banks like they did? A number of people pointed out the housing crisis before it hit and did a pretty good job of predicting the meltdown. But most of those same people missed it big time on the results. But how on earth can someone anticipate policies changing to a degree they have never been done before?
A lot of things went wrong (and too much right) in the 60's and 70's to blow up the 80's for farmers. But when rules change over night like they did with Volker's interest rate hike, unless a person had inside information, no one could have predicted it or predicted the fallout.
Much easier to see the excesses and downfalls after the fact than when in the middle of the game.
John
Edited by John Burns 10/23/2016 19:39
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A difference between now and the Eighties
