Greenspan `Made a Mess' and U.S. Risks Recession, Stiglitz Says

this is all a very complicated mix.

Republicans hire industrial types as their advisors and we have weak dollar policies. So we have export led earnings

dems hire new york bankers and we have strong dollar policies and we have financial company led earnings.

The amazing thing is that our economy can flourish under both approaches. It will be very interesting to see what the next administration does and to see which segments of the s&ps can move to the forefront and sustain growth for the next 4-8 years.
 
We interrupt the gazillionth dollar bashing thread for a bit of actual wisdom:

1 - Yes, we're at the foothills of a major gold bull market (although the volatility could give you whiplash if you're not careful).
2 - However, the euro is next. Yes, the euro.

If any of you actually bothered to do a bit of research - the data is easily accessible - you'd find that the dollar in 1980 was not much different in its value in relation to other currencies than it had been in 1970.
But in relation to gold, it and every other currency was considerably lower.
In any gold bull market, faith in paper declines. The festivities may start with the USD, but they won't end there.
 
Keynes was an advocate of deficit spending during times of economic peril.

Quote from Thunderdog:

I'm not sure I understand the context of your Keynesian reference. My economics is a bit rusty, but from what I recall, Keynes was an advocate of fiscal policy, meaning taxing and spending how and where appropriate. The Bush administration has screwed up on both ends. I doubt that Keynes ever conceived of debt spending into oblivion while cutting taxes (especially at a time when the ostensible economic fundamentals, as provided by the government, did not warrant such tax cuts in the face of mounting deficits).
More...
 
well look...

we need about 4 - 5 trillion of bailout money so you do the math....

the dollar index goes to 30 give or take, gasoline is 7 a gallon...

interest rates go to 12% if you're anywhere near qualified, whatever that means.....

so a hot dog costs $15...stop bitching...
 
Quote from ASusilovic:

Joseph Stiglitz, a Nobel-prize winning former World Bank economist, said the U.S. economy risks tumbling into recession because of the subprime crisis and a ``mess'' left by former Federal Reserve Chairman Alan Greenspan.

``I'm very pessimistic,'' Stiglitz said in an interview in London today. ``It's not just the housing sector. Over the last five to six years our economy has been bolstered by the real estate sector.

``Americans have been taking money out of their houses to finance a consumption binge,'' Stiglitz said. ``Last year alone mortgage equity withdrawal was between $850 billion to $950 billion. That game is over.''

Stiglitz said that the U.S. faces ``a very major slowdown, maybe recession.''

``Alan Greenspan really made a mess of all this,'' Stiglitz said. ``He pushed out too much liquidity at the wrong time. He supported the tax cut in 2001, which is the beginning of these problems. He encouraged people to take out variable rate mortgages. That helped create the subprime crisis.''

http://www.bloomberg.com/apps/news?pid=20601087&sid=aqZxFlbToZZA&refer=home
More...

When I first read your post I didn't recognize his name. I dated their Au Pair when his was a professor at Stanford, too funny. :p

I only got to meet him once. Nice guy, friendly, and seemed quite smart. His wife I believe was professor of Sociology at Stanford. They comped them a min mansion to live in free of charge. It was quite plush.

If I remember correctly he went on to work for Clinton's cabinet.
 
Quote from daddyeaux:

well look...

we need about 4 - 5 trillion of bailout money so you do the math....

the dollar index goes to 30 give or take, gasoline is 7 a gallon...

interest rates go to 12% if you're anywhere near qualified, whatever that means.....

so a hot dog costs $15...stop bitching...
More...

Gas will not be 7$ / gallon in the next decade, barring a military conflict or mass pandemic. Oil is at $100 now and the pump price is not much more then it was at $60. For god's sake has no one stopped to ask why? There's over $50 of fear premium in Oil right now, and that still leaves triple-digit profit margins for the oil companies!!!

The oil companies are going to get their profits dinged because if the price of gas goes much higher people will cutback on driving.
 
Quote from krazykarl:

Gas will not be 7$ / gallon in the next decade, barring a military conflict or mass pandemic. Oil is at $100 now and the pump price is not much more then it was at $60. For god's sake has no one stopped to ask why? There's over $50 of fear premium in Oil right now, and that still leaves triple-digit profit margins for the oil companies!!!

The oil companies are going to get their profits dinged because if the price of gas goes much higher people will cutback on driving.
More...

wholesale oil price accounts for approximately 50% of the retail cost of gasoline. at $3.50/gal, that suggests an oil price of $74/barrel, so there's a $23/barrel "premium" right now.

people had been saying that once gas reaches $3/gal, people will cut back on driving but they havent. i have a feeling the threshold of pain is much much higher than the current $3.50/gal price.
 
Quote from blackjack007:

wholesale oil price accounts for approximately 50% of the retail cost of gasoline. at $3.50/gal, that suggests an oil price of $74/barrel, so there's a $23/barrel "premium" right now.

people had been saying that once gas reaches $3/gal, people will cut back on driving but they havent. i have a feeling the threshold of pain is much much higher than the current $3.50/gal price.
More...

Your math is fuzzy.

You're right that oil to gas is about 2:1, but it doesn't account for 50% of the retail cost, it's 50% of the wholesale cost of the refined product. The profits are above and beyond that.(minus the refining..)

i agree that the pain threshold is higher, but not much. We'll start slowing when it hits 4, if ever....(inflation/war/pandemic aside)
 
"He supported the tax cut in 2001, which is the beginning of these problems"

He also served in the clinton admin.

He's a Bush hater.


This guy is NOT a free market supporter. Don't listed to anything he says.

I can't stand all these biased statements from these textbook idiots.
 
You must log in or register to reply here.
Back
Top