It can help pull out by cutting taxes and not interfering in the market as much. But thats not what Obama did.

@chad Not to mention he's the only President to never reach 3% annual growth. It was an embarrassing recovery

and unfortunately Trump will get the blame if a recession comes.

This type of thing has caused a recession throughout history, it's why central planning doesn't work and why the federal reserve should be abolished

Tell that to Reagan, HW Bush, and W Bush

Even one year of annual 3% growth

Pretty sure even FDR got 3%

It would have been possible, if he didn't tamper the economy

When you say growth do you mean GDP

yeah

annual gdp growth never hit 3%

And he probably set the stones for a bust

to clear up all the malinvestments during the 0% interest rates

but the 0% interest rates were an important tool during the recession

@hcaez No they cause malinvestments

it's happened throughout the last century

it will follow with a bust

by who and in what?

Central banks expand credit well beyond their own assets and by the funds of their clients, often supported or encouraged by the setting of low interest rates by a central bank. This additional credit flow into the economy from increased borrowing for capital projects stimulates economic activity. Projects which would not have been started before, seem now profitable, creating malinvestment. They increase demand for production materials and for labor and their prices rise, which, in turn, leads to an increase in prices of consumption goods. If the banks would stop the extension of credit, the boom would be rapidly over. To prevent the sudden halt of this boom (and the resulting collapse of prices), the banks must create more and more credit, and the prices will rise even more.

But this expansion of credit cannot continue forever. There is no additional capital or labor; there is only more money (and debt). The means of production and labor which have been diverted to the new enterprises have to be taken away from others. Society is not sufficiently rich to permit the creation of new enterprises without taking away from others. As long as the expansion of credit is continued this will not be noticed, but it can't be pushed indefinitely. The inflation and the boom can last only as long as the public thinks that the prices will stop rising in the near future.

ah my bad, I should've been more specific

yeah I understand your idea, I just wanted some specific examples

maybe some individual names or specific investment banks and what they did with the money they borrowed from the fed

@hcaez not borrowed from the FED really, the FED set the interest rates and expanded the money supply

Notable examples of them causing recessions would be

'29, '90 , '82, '08

right the fed sets the interest rates on the money that they give out

but im asking for specific examples of individuals or banks that pulled money from the fed because of the 0% interest rate and invested it in a bad way

@hcaez benchmark for the banks

It isn't the banks who invest, but the people

well yeah individual investing is a decent chunk, but most investment is done by large banks such as vanguard, boa, merrill lynch

these big banks are the primary "customers" of the fed

I wouldn't say most

most investing is done by ordinary people

ordinary companies

Who see this 0% rates and make bad decisions

Rates should be controlled by the free market

you may be surprised but its really banks who do the majority of investing in the economy

ordinary people just don't match up to the 5 trillion of assets that vanguard has alone, even when you collect the people in large groups

I'd say it's both, either way it does cause malinvestments.

I can't give specific examples