by jessaustin on 3/24/23, 4:43 PM with 1 comments
by jmclnx on 3/24/23, 5:43 PM
> In 1979, a new sheriff came to town—Long Tall Paul Volcker. Interest rates were raised to 17% in May 1980 and to 19% by January 1981
No mention of the 2nd oil shock, where prices rose extremely fast, to me that is the # 1 cause of economic woes at this time. And the US was still feeling the effects of the 1973/74 Oil Embargo.
https://en.wikipedia.org/wiki/1979_oil_crisis
No mention of the Iraq War that enriched many very large companies in the early 2000s, turning what could have been an elimination of the Federal Deficit. 2 trillion+ was added to the Nation Debt for that war.
> Volcker’s grand monetarist experiment—letting go of interest rates and targeting the money supply to try to bring down inflation
Saving and loan crisis was caused by the Banks themselves to make a quick buck. One of the Bush Brothers almost ended up in jail. I think his daddy saved him from that. From the link "In the early 1980s Congress passed two laws intended to deregulate the Savings and Loans industry, the Depository Institutions Deregulation and Monetary". That gave the S&L Banks free rein start speculating.
https://en.wikipedia.org/wiki/Savings_and_loan_crisis
I am sure there are a lot more she missed, but getting tired of fact checking :)