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Recession once every 4 to 7 years. Why? July 7, 2014

Posted by hslu in Economics, Euro, Global Affair.
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Yeah, since 1947.

Why?

Is it the Fed? Is it the too big to fail and too big to jail financial institution? Is it the war?

Can the recession or if you will boom and bust cycle be avoided?

May be it is the inherent natural of the capitalism and us human beings: greed and fear.

May be it is the government regulators, including the Fed, who are by default incompetent, lazy, unaccountable and always failed to do their jobs.

May be it is the politicians who failed to make laws before the shit hits the fan so to speak.

The truth of the matter is sadly for our common people a combination of all the above.

If it is and I think it is, the capitalism system is seriously flawed and the history will for sure repeat itself again.

Last recession was in 2009 which means another one will come in a couple of years. Since the Great Recession was so severe, it may take a couple of years more to get rid of the leverage out of the system. But, come it will. Inflation has already started in the US.

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