IamAlejo

Unemployment rates are a lagging indicator, if the economy is recovering, the first signs would be shown in the market and then unemployment follows. So pointing that the market is recovering while jobs aren't doesn't prove much of anything. That has nothing to do with how any economy is run (you can't work around it), that's just economics.

And great point with the Great Depression, when we started to get out of it the Government thought it would be a great idea to not run on so much of a fractional reserve, and doubled the Reserve Ratio, thinking banks would be willing to lend out more because they had more in their reserves and didn't have to worry about a run on their accounts. Instead the opposite happened, banks held on to even MORE money than before, and liquidity came to a halt. This led to the double dip.

Liquidity was one of the major problems with the recent economic downturn, following right along side the housing bubble which was because of bad loans given out by the banks and shady people lying on their loan applications.

You can't just point to every problem and go "oh, it's cause the central bank". No, it's not.

You can think critically all you want, but you're thinking poorly and don't have any idea as to what you're talking about.

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