Are We About to Repeat the Mistakes of 1937?

Quote from mrbill:

Good Post. Just one point, with interest rates so damn low, it's tough to bring yourself to actually put money in a savings account or CD. I'm getting less than half of one percent on a couple of big chunks and just can't find anything that I like to move the $$ to.

I have been more risky in my business ventures, not less, due to this phenomenon. One venture which is still keeping me away from home would never have been funded by me a few years ago, but now I almost figure What the Hell, I'm getting 20 bps on XX dollars, why not go for it. Not my normal modus operandi.
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And those are the EXACT same conditions which caused all the mal-investment from 2003-07. "Starving for yield" or "chasing yield" by otherwise risk averse individuals or entities...they wound up stuffed to the gills with worthless MBS and other derivative "junk".

Ultimately, there is another cleansing of the mal-investment and the cycle repeats over and over again with this current monetary system.
 
Quote from Ricter:

"Stability" for what? We are not now being punished for our deficit, and it's coming down.
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Stability as in balance between rev and expenses. I guess you mean the deficit is coming down as a % of GDP, again it is in a completely trivial way. We may not be being punished for it atm, but our credit has been downgraded, suppose we need to pay more int for our borrowing. Suppose we have a major war. Suppose hc costs continue to rise, unsustainable medicare continues to cost more. SS is expected to begin paying out more than it takes in + interest, within the next decade. Obamacare goes into effect in 2 years. With our current growth we don't have the ability to handle any of these things, certainly not all of them. The point is we are not in a fiscally sustainable position. We DO have a spending problem, and on the present course it is only going to worsen.
 
Quote from PiggyBank:

Stability as in balance between rev and expenses. I guess you mean the deficit is coming down as a % of GDP, again it is in a completely trivial way. We may not be being punished for it atm, but our credit has been downgraded, suppose we need to pay more int for our borrowing. Suppose we have a major war. Suppose hc costs continue to rise, unsustainable medicare continues to cost more. SS is expected to begin paying out more than it takes in + interest, within the next decade. Obamacare goes into effect in 2 years. With our current growth we don't have the ability to handle any of these things, certainly not all of them. The point is we are not in a fiscally sustainable position. We DO have a spending problem, and on the present course it is only going to worsen.
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Ricter's answer to all of the above is to "borrow more"...
 
Quote from denner:

Ricter's answer to all of the above is to "borrow more"...
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Ricter retard never met a government program or tax he didn't like.
 
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