Kramer talks about CA

[jeeman]

Actually, you should read the “Forgotten Man”. The myth is that the gov’t did nothing, exacerbating the fallout from the stock market.

In reality, the government was raising taxes due to lowered revenues from the stock market losses, etc. The uncertainty that gov’t intervention caused made the Great Depression last all 8 years of FDR’s first two terms. Investors don’t know what to do if they think that owning gold will be illegal or legal, if taxes will be raised, etc.

Think about what would happen if Hillary pushes for raising long term capital gains taxes to your regular income rate by the end of 2009….the market will take a huge nosedive by the end of that year, as everyone rushes take advantage of the 15% rate that is currently in place.

This is the kind of stuff that occurred in the 30s. The left in the this country revised history saying that government is the nice benevolent force that can come to the rescue. This is erroneous.

Jeeman

[NotCranky]

Jeeman,
I am not taking a partisan view on this just yet, despite the fact that one could say “look who’s watch it happened on”. Even then, I don’t think, is very circumspect. My gut feeling is that the bean counters behind the big institutions were allowed to orchestrate this and both parties the Fed and multiple gov. agencies cooperated.National builders obviously caught on fast to the boom or were “in the know”. Maybe it went places they didn’t intend?They probably knew at least some of the fallout would come.I don’t doubt tax payers will be hurt by all of this.

Maybe we will have a depression style spiral to our economy.After so many decades and calamities w/o a remake of the 30’s and discussions here on the board and with friends and family, I will have to see it to believe it. You can bet my eyes are open. My comments were just about how the price tag on houses MIGHT be eventually be affected by the bailouts, worth 2 cents adjusted for inflation since that phrase was coined.

[NotCranky]

Jeeman,
I am not taking a partisan view on this just yet, despite the fact that one could say “look who’s watch it happened on”. Even then, I don’t think, is very circumspect. My gut feeling is that the bean counters behind the big institutions were allowed to orchestrate this and both parties the Fed and multiple gov. agencies cooperated.National builders obviously caught on fast to the boom or were “in the know”. Maybe it went places they didn’t intend?They probably knew at least some of the fallout would come.I don’t doubt tax payers will be hurt by all of this.

Maybe we will have a depression style spiral to our economy.After so many decades and calamities w/o a remake of the 30’s and discussions here on the board and with friends and family, I will have to see it to believe it. You can bet my eyes are open. My comments were just about how the price tag on houses MIGHT be eventually be affected by the bailouts, worth 2 cents adjusted for inflation since that phrase was coined.

[NotCranky]

Jeeman,
I am not taking a partisan view on this just yet, despite the fact that one could say “look who’s watch it happened on”. Even then, I don’t think, is very circumspect. My gut feeling is that the bean counters behind the big institutions were allowed to orchestrate this and both parties the Fed and multiple gov. agencies cooperated.National builders obviously caught on fast to the boom or were “in the know”. Maybe it went places they didn’t intend?They probably knew at least some of the fallout would come.I don’t doubt tax payers will be hurt by all of this.

Maybe we will have a depression style spiral to our economy.After so many decades and calamities w/o a remake of the 30’s and discussions here on the board and with friends and family, I will have to see it to believe it. You can bet my eyes are open. My comments were just about how the price tag on houses MIGHT be eventually be affected by the bailouts, worth 2 cents adjusted for inflation since that phrase was coined.

[NotCranky]

Jeeman,
I am not taking a partisan view on this just yet, despite the fact that one could say “look who’s watch it happened on”. Even then, I don’t think, is very circumspect. My gut feeling is that the bean counters behind the big institutions were allowed to orchestrate this and both parties the Fed and multiple gov. agencies cooperated.National builders obviously caught on fast to the boom or were “in the know”. Maybe it went places they didn’t intend?They probably knew at least some of the fallout would come.I don’t doubt tax payers will be hurt by all of this.

Maybe we will have a depression style spiral to our economy.After so many decades and calamities w/o a remake of the 30’s and discussions here on the board and with friends and family, I will have to see it to believe it. You can bet my eyes are open. My comments were just about how the price tag on houses MIGHT be eventually be affected by the bailouts, worth 2 cents adjusted for inflation since that phrase was coined.

[NotCranky]

Jeeman,
I am not taking a partisan view on this just yet, despite the fact that one could say “look who’s watch it happened on”. Even then, I don’t think, is very circumspect. My gut feeling is that the bean counters behind the big institutions were allowed to orchestrate this and both parties the Fed and multiple gov. agencies cooperated.National builders obviously caught on fast to the boom or were “in the know”. Maybe it went places they didn’t intend?They probably knew at least some of the fallout would come.I don’t doubt tax payers will be hurt by all of this.

Maybe we will have a depression style spiral to our economy.After so many decades and calamities w/o a remake of the 30’s and discussions here on the board and with friends and family, I will have to see it to believe it. You can bet my eyes are open. My comments were just about how the price tag on houses MIGHT be eventually be affected by the bailouts, worth 2 cents adjusted for inflation since that phrase was coined.

[NotCranky]

“Inflation makes debt less expensive.”

and less profitable to creditors, especially those that lent at historically low rates for long terms and are seeing some of that risk blow up,in part because of an ovedue credit crunch… sounds like a story about being stuck between a rock and a hard place. If you inflate to rescue your debt instruments you kill the value of them if you don’t inflate or lower rates it blows up.
No wonder they set up bag holders and are looking for bailouts.

[NotCranky]

“Inflation makes debt less expensive.”

and less profitable to creditors, especially those that lent at historically low rates for long terms and are seeing some of that risk blow up,in part because of an ovedue credit crunch… sounds like a story about being stuck between a rock and a hard place. If you inflate to rescue your debt instruments you kill the value of them if you don’t inflate or lower rates it blows up.
No wonder they set up bag holders and are looking for bailouts.

[NotCranky]

“Inflation makes debt less expensive.”

and less profitable to creditors, especially those that lent at historically low rates for long terms and are seeing some of that risk blow up,in part because of an ovedue credit crunch… sounds like a story about being stuck between a rock and a hard place. If you inflate to rescue your debt instruments you kill the value of them if you don’t inflate or lower rates it blows up.
No wonder they set up bag holders and are looking for bailouts.

[NotCranky]

“Inflation makes debt less expensive.”

and less profitable to creditors, especially those that lent at historically low rates for long terms and are seeing some of that risk blow up,in part because of an ovedue credit crunch… sounds like a story about being stuck between a rock and a hard place. If you inflate to rescue your debt instruments you kill the value of them if you don’t inflate or lower rates it blows up.
No wonder they set up bag holders and are looking for bailouts.

[NotCranky]

“Inflation makes debt less expensive.”

and less profitable to creditors, especially those that lent at historically low rates for long terms and are seeing some of that risk blow up,in part because of an ovedue credit crunch… sounds like a story about being stuck between a rock and a hard place. If you inflate to rescue your debt instruments you kill the value of them if you don’t inflate or lower rates it blows up.
No wonder they set up bag holders and are looking for bailouts.

[Anonymous]

“- If the first two don’t work, I would look for a spike in inflation….they have a built-in excuse with rising energy costs. If paychecks increase, house values may stop falling and the number of owners underwater can be minimized. The big losers if this does indeed happen: renters and those living on fixed incomes.”

I’d hate to see the government step in. It’s gonna hurt the little people like me, those of us who are waiting around for the market to correct itself so we can own property at realistic prices. Morally, a government bailout is just plain wrong. Whoever bought in the housing frenzy knew what they were doing; they didn’t have to be greedy. Even my 12-year-old has the common sense to know prices cannot rise forever. People rolled the dice and they lost, why should I have to pay for their mistake?

[Anonymous]

“- If the first two don’t work, I would look for a spike in inflation….they have a built-in excuse with rising energy costs. If paychecks increase, house values may stop falling and the number of owners underwater can be minimized. The big losers if this does indeed happen: renters and those living on fixed incomes.”

I’d hate to see the government step in. It’s gonna hurt the little people like me, those of us who are waiting around for the market to correct itself so we can own property at realistic prices. Morally, a government bailout is just plain wrong. Whoever bought in the housing frenzy knew what they were doing; they didn’t have to be greedy. Even my 12-year-old has the common sense to know prices cannot rise forever. People rolled the dice and they lost, why should I have to pay for their mistake?

[Anonymous]

“- If the first two don’t work, I would look for a spike in inflation….they have a built-in excuse with rising energy costs. If paychecks increase, house values may stop falling and the number of owners underwater can be minimized. The big losers if this does indeed happen: renters and those living on fixed incomes.”

I’d hate to see the government step in. It’s gonna hurt the little people like me, those of us who are waiting around for the market to correct itself so we can own property at realistic prices. Morally, a government bailout is just plain wrong. Whoever bought in the housing frenzy knew what they were doing; they didn’t have to be greedy. Even my 12-year-old has the common sense to know prices cannot rise forever. People rolled the dice and they lost, why should I have to pay for their mistake?

[Anonymous]

“- If the first two don’t work, I would look for a spike in inflation….they have a built-in excuse with rising energy costs. If paychecks increase, house values may stop falling and the number of owners underwater can be minimized. The big losers if this does indeed happen: renters and those living on fixed incomes.”

I’d hate to see the government step in. It’s gonna hurt the little people like me, those of us who are waiting around for the market to correct itself so we can own property at realistic prices. Morally, a government bailout is just plain wrong. Whoever bought in the housing frenzy knew what they were doing; they didn’t have to be greedy. Even my 12-year-old has the common sense to know prices cannot rise forever. People rolled the dice and they lost, why should I have to pay for their mistake?

[Author]

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