You guess wrong. If you actually want a discussion, I'm happy to oblige. If you just want to rant and name-call and generally keep acting like a disagreeable ass, you'll need a different dance partner.
Cheers.
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Obama promotes fiscal restraint, big spending
- Thread starter swtrader
- Start date
You guess wrong. If you actually want a discussion, I'm happy to oblige. If you just want to rant and name-call and generally keep acting like a disagreeable ass, you'll need a different dance partner.
Cheers.
Quote from Random.Capital:
You guess wrong. If you actually want a discussion, I'm happy to oblige. If you just want to rant and name-call and generally keep acting like a disagreeable ass, you'll need a different dance partner.
Cheers.
No need to have a discussion with someone about the performance of a government official when that official has yet to even take office.
That's where you and I differ.
Quote from Landis82:
Interesting that you highlight the SINGLE biggest reason why Bernanke was so slow in "reacting" to this crisis which is not just domestic, but GLOBAL in nature.
He saw that banks were still able to raise capital, which did not happen during the Great Depression . . . He also didn't think that sub-prime was as "concentrated" on the balance sheets of the banking sector.
Two big mistakes, that he recently admitted.
And yes, this time is DIFFERENT for several of the points that I just raised above.
Dearth of Commercial Credit?
The money supply contracted during the Great Depression because it was tied to a completely absurd Reserve Note / Gold restriction.
People wound-up exchanging their Reserve Notes for Gold and that then severely contracted the money supply.
Let me get this straight.
Because Banks could raise capital and subprime was worse than originally thought, this time is somehow "different"?
Don't you think thats a little weak?
First, an outright purchase of the underlying mortgage defaults that caused this mess is no more than 2 Trillion Dollars. We've spent 8.5, so far. Thats your first red flag.
Second, recapitalization wouldn't have taken place if Banks practised transparent accounting that didn't hide or misreport their shit assets! Of course, Bernacke had no idea what their risk was - him and Paulson agreed Banks be allowed to hide them from the investing public!
About the Great Depression, Money Supply and Gold. You just reiterated my point.
The Great Depression was Great (read: uncontrolled) because lack of money supply to restart the economy after the flush. Y? Money supply tied to gold.
We don't have that problem. We can juice rates to 0% after Banks fail and the system purges itself.
Therefore, the specter of "uncontrolled collapse" is a false one.
Cheap credit to restart the System is available.
We get rid of Crap Institutions, let Banks fail, confidence is restored, people invest again, new Leaders expand and economic growth continues.