Doug H. wrote:
On Sep 3, 2007, at 3:19 PM, raghu wrote:
Is there any evidence that the Fed does think in class struggle terms?
Their slowness to ease in this cycle, for example. Much of Wall
Street was expecting an easing even before the subprime crisis, but
it never came - and they've been slower to ease in the crisis than WS
would like.
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If the central banks aren't centrally concerned with protecting capitalist
class interests, than who is? You might as well jettison class entirely as a
framework for understanding social and economic conflict. But in this
instance isn't the slowness to cut the fed funds rate more a matter of
trying to reimpose internal class discipline by punishing the more egregious
speculators and warning the market not to get too complacent about the
"Greenspan put"? I don't see how its recent halting moves are directed at
the working class, except in the sense it's waiting to see a more serious
impact on the the real economy before it eases further, which is something
less than an declaration of class war. As you note, right now the pressure
for easing is primarily coming from Wall Street wanting the Fed to rescue
the tottering asset-backed securities markets and prevent the contagion from
spreading to the better credits.
