Throughout their power to change interest rates and buy massive amounts of financial assets, the Federal Reserve System applied more influence over economic growth and the employment rate in recent times than any other government entity.
During the Obama administration it’s been used to sustain the financial system after the Wall Street meltdown in 2008; it also gave the economy extraordinarily methods of support during the recession such as purchases of securities, the creation of new lending platforms and a weak recovery that trailed. The FED’s did not mention to anybody that banks needed help with emergency loans to assure their investors that their firms weren’t in danger. These actions are credited to quantitative easing, along with the stimulus bill and federal bank bailouts, preventing a global depression. The central bank provides asset purchases, emergency loans and other forms of aid worth approximately $7.8 trillion dollars, making them the government’s largest effort to the financial system.
Quantitative easing lowers interest rates, makes it cheaper for the banks to borrow money and generally helps the banks give loans that help the activity of the economy. During the recession banks do not want to lend money so quantitative easing comes in hand by methods of bringing money into the economy and helping lower interest rates that Central banks do not usually control. Purchasing large debt by “expanding the balance sheet,...
... middle of paper ...
...has slowly prevented from collapsing.
Mcguire, Bill. "Fed Loaned Banks Trillions in Bailout, Bloomberg Reports." Companies. 2011. Web. 28 Mar 2012.
Mallin, Jay. "Federal Reserve (Fed).” The New York Times, n.d. Web. March 21, 2012.
Thornton, David. "Obama and Gas Prices." Yahoo. Examiner.com, 03-25-2012. Web. 28 Mar 2012.
Giokaris, John. "Barack Obama Follows Bush And Piles On Debt: Where Is The Tea Party?" Policymic. Business, National Debt, 03-22-2012. Web. 27 Mar 2012.
Ip, Greg . "Measuring the impact of regulation: The rule of more." Greg Ip . N.p., 02-18-2012. Web. 27 Mar 2012.
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- I certainly agree, to some degree, that both administrations are quite similar in some respects to the characterization that is being put forth. However, it would suffice to say that they are not absolutely continuations of Bush 43’s policies but rather amplification in some matters and a complete change in others. On the use of drones, NYT’s Peter M. Singer (“Do Drones Undermine Democracy?”) makes the comprehensive argument that the use of drones goes against the how wars are meant to be fought—human participation.... [tags: American politics and policies]
699 words (2 pages)
- There are many reasons why the Bush administration chose to go to war with Iraq. According to president bush in his speech in Cincinnati the main reasons why he chose to go to war with Iraq is that Saddam Hosen the president of Iraq was told to destroy the weapons they were making, but he did not, in addition to that he was supporting the terrorist and killed many people and he wanted to disarm him. This caused threats to many people; the other reason that president bush mentioned was about the gulf war and the attack on September 11 2001 where a lot of Americans lost their lives.... [tags: Iraq War, George W. Bush, Iraq]
1088 words (3.1 pages)
- In 2006, Joe Biden, Les Gelb and many others proposed plans to decentralize power in Iraq. Biden, then a United States senator from Delaware, Gelb and others recognized that Iraqi society was fracturing into sectarian blocs. They believed that governing institutions should reflect the fundamental loyalties on the ground. According to the Biden plan, the central Iraqi government would still have performed a few important tasks, but many other powers would have been devolved to regional governments in the Sunni, Shiite and Kurdish areas.... [tags: Iraq, Iraq War, Barack Obama, Joe Biden]
787 words (2.2 pages)
- In the New York Times’ “Prosecute Torturers and Their Bosses,” the Editorial Board claims that President Obama has “failed to bring to justice anyone responsible for the torture of terrorism suspects;” however, the Obama administration as well as the Bush administration are equally to blame for the torture regime and the lack of progress made in diminishing it. Since the attacks of September 11, 2001, programs have been generated to permit the torture of any suspects of terrorism or terroristic acts.... [tags: George W. Bush, Barack Obama]
1223 words (3.5 pages)
- Future US historians may well look back on the Barack Obama presidency as a foreign policy curio that pulled away from traditional alliances while seeking rapprochement with sworn foes. By pivoting towards the Asia-Pacific, his administration also reoriented America’s national interest towards containing China’s rise as a military power rather than managing the power dynamics in the Middle East. This US obsession with China is inexplicable, let us be honest, considering Beijing’s firm no-first-strike policy and bilateral trade worth over half a trillion dollars.... [tags: George W. Bush, Barack Obama, Saudi Arabia]
991 words (2.8 pages)
- Karl Weber, a sociologist and political economist, describes authority as a form legal domination. Followers comply with the rules of these individuals because they consider their authority to be legitimate. While the legitimacy of domination does not have to be rationality, right, or natural justice, it is legitimate because individuals accept, obey, and consider domination to be required. The president of the United States is considered a traditional, legal and charismatic authority, where the legitimate domination rests on the idea of the legality of enacted rules for these individuals elevated to their status to give commands.... [tags: Obama Essays]
740 words (2.1 pages)
- In the Obama Administration, they are committed to finding new ways to help create and consume energy in America. In the new reform, they are looking towards a better future in which they can help the environment, but also look forward to creating better jobs. The government seems to be actively promoting the creation of “green” jobs. Part of this project is to focus on creating jobs, but to make it environmental friendly. At times it seems truly impossible to cover all the aspects of going green.... [tags: environment, energy, expense]
822 words (2.3 pages)
- Critique There isn’t a president who doesn 't face criticism. For president Obama it was criticism on education, the economy, and his foreign policy. The Washington Post, the New York Times, and The Economist outlets gave him an End-of-term report card. Obama knew coming in that there was a lot of work to be done. On top of that he had to deliver on his promise to bring America forward, to make America better. The criticism against Obama played a big factor for his reelection. The people wanted answers.... [tags: George W. Bush, Iraq War, Barack Obama]
785 words (2.2 pages)
- ... According to Locke, Many things there are, which the law by no means can provide for; and those must necessarily be left to the discretion of him that has the executive power in his hands, to be ordered by him as the public good and advantage shall require; nay, it is fit that the laws themselves should in some cases give way to the executive power. (Locke, Second Treatise, pg. 84) Locke essentially allows the executive limited prerogative to deal with emergencies or situations for the public good; "many accidents may happen, wherein a strict and rigid observation of the laws may do harm (Locke, Second Treatise, pg.... [tags: the role of the Executive branch]
1372 words (3.9 pages)
- The “War on Terror” that began days after the September 11th attacks was declared by President George W. Bush and has continued under President Barack Obama. President Bush wanted to restore the security of the United States. Many of the policies he enacted, while controversial, are still used by the current administration. One of these policies was the operation of the Guantanamo Bay detention center. While it has had far reaching domestic effects it is still a foreign policy issue by nature. The prisoners that have been held in Guantanamo come from all over the world, including Algeria, China, and Pakistan.... [tags: war on terron, United States, current events]
1158 words (3.3 pages)