Krugman heralds start of next depression

[jeeman]

The only reason we had a surplus in 1998-2000 was because of massive capital gains tax revenues from the stock market bubble. When this went away, the deficits returned. Bush cut tax *rates*, but if you look at tax *revenue* charts, the revenues climbed after the rate cuts.

[Nor-LA-SD-guy]

Are the Canada homes mispriced currently at all time highs,
Maybe but talking to my Canadian colleagues they seem confident.

Is Chinese real-estate in a bubble, maybe, but Chinese inflation seems to easing the housing debt issues for the moment,

Can the Fed print money and buy treasuries when ever they need to?? , maybe not but they have done it before.

[Nor-LA-SD-guy]

Are the Canada homes mispriced currently at all time highs,
Maybe but talking to my Canadian colleagues they seem confident.

Is Chinese real-estate in a bubble, maybe, but Chinese inflation seems to easing the housing debt issues for the moment,

Can the Fed print money and buy treasuries when ever they need to?? , maybe not but they have done it before.

[Nor-LA-SD-guy]

Are the Canada homes mispriced currently at all time highs,
Maybe but talking to my Canadian colleagues they seem confident.

Is Chinese real-estate in a bubble, maybe, but Chinese inflation seems to easing the housing debt issues for the moment,

Can the Fed print money and buy treasuries when ever they need to?? , maybe not but they have done it before.

[Nor-LA-SD-guy]

Are the Canada homes mispriced currently at all time highs,
Maybe but talking to my Canadian colleagues they seem confident.

Is Chinese real-estate in a bubble, maybe, but Chinese inflation seems to easing the housing debt issues for the moment,

Can the Fed print money and buy treasuries when ever they need to?? , maybe not but they have done it before.

[Nor-LA-SD-guy]

Are the Canada homes mispriced currently at all time highs,
Maybe but talking to my Canadian colleagues they seem confident.

Is Chinese real-estate in a bubble, maybe, but Chinese inflation seems to easing the housing debt issues for the moment,

Can the Fed print money and buy treasuries when ever they need to?? , maybe not but they have done it before.

[briansd1]

[quote=Nor-LA-SD-guy]One more thing, Canada did not pursue austerity policies,

In fact they have been adding quite a bit of stimulus this year,

The only thing they did (or more importantly did not do) is not have a lot of subprime loans
And they did have a bank regulator who was not asleep at the wheel as well.[/quote]

You are correct.

Here is a good article on the conservative Canadian approach to mortgage finance.

* High down payment required.
* Stricter regulations.
* No “ownership society” agenda.
* No mortgage interest deduction.
* Prepayment penalty to discourage endless refinancing.
* Much less subprime.
* Less securitization.

“It is a regulatory structure in Canada that created the Canadian mortgage system, and it was a regulatory and political structure in the U.S. that created the U.S. mortgage system,” said Ed Clark, chief executive of TD Bank.

http://www.washingtonpost.com/wp-dyn/content/article/2010/06/23/AR2010062304024.html

[briansd1]

[quote=Nor-LA-SD-guy]One more thing, Canada did not pursue austerity policies,

In fact they have been adding quite a bit of stimulus this year,

The only thing they did (or more importantly did not do) is not have a lot of subprime loans
And they did have a bank regulator who was not asleep at the wheel as well.[/quote]

You are correct.

Here is a good article on the conservative Canadian approach to mortgage finance.

* High down payment required.
* Stricter regulations.
* No “ownership society” agenda.
* No mortgage interest deduction.
* Prepayment penalty to discourage endless refinancing.
* Much less subprime.
* Less securitization.

“It is a regulatory structure in Canada that created the Canadian mortgage system, and it was a regulatory and political structure in the U.S. that created the U.S. mortgage system,” said Ed Clark, chief executive of TD Bank.

http://www.washingtonpost.com/wp-dyn/content/article/2010/06/23/AR2010062304024.html

[briansd1]

[quote=Nor-LA-SD-guy]One more thing, Canada did not pursue austerity policies,

In fact they have been adding quite a bit of stimulus this year,

The only thing they did (or more importantly did not do) is not have a lot of subprime loans
And they did have a bank regulator who was not asleep at the wheel as well.[/quote]

You are correct.

Here is a good article on the conservative Canadian approach to mortgage finance.

* High down payment required.
* Stricter regulations.
* No “ownership society” agenda.
* No mortgage interest deduction.
* Prepayment penalty to discourage endless refinancing.
* Much less subprime.
* Less securitization.

“It is a regulatory structure in Canada that created the Canadian mortgage system, and it was a regulatory and political structure in the U.S. that created the U.S. mortgage system,” said Ed Clark, chief executive of TD Bank.

http://www.washingtonpost.com/wp-dyn/content/article/2010/06/23/AR2010062304024.html

[briansd1]

[quote=Nor-LA-SD-guy]One more thing, Canada did not pursue austerity policies,

In fact they have been adding quite a bit of stimulus this year,

The only thing they did (or more importantly did not do) is not have a lot of subprime loans
And they did have a bank regulator who was not asleep at the wheel as well.[/quote]

You are correct.

Here is a good article on the conservative Canadian approach to mortgage finance.

* High down payment required.
* Stricter regulations.
* No “ownership society” agenda.
* No mortgage interest deduction.
* Prepayment penalty to discourage endless refinancing.
* Much less subprime.
* Less securitization.

“It is a regulatory structure in Canada that created the Canadian mortgage system, and it was a regulatory and political structure in the U.S. that created the U.S. mortgage system,” said Ed Clark, chief executive of TD Bank.

http://www.washingtonpost.com/wp-dyn/content/article/2010/06/23/AR2010062304024.html

[briansd1]

[quote=Nor-LA-SD-guy]One more thing, Canada did not pursue austerity policies,

In fact they have been adding quite a bit of stimulus this year,

The only thing they did (or more importantly did not do) is not have a lot of subprime loans
And they did have a bank regulator who was not asleep at the wheel as well.[/quote]

You are correct.

Here is a good article on the conservative Canadian approach to mortgage finance.

* High down payment required.
* Stricter regulations.
* No “ownership society” agenda.
* No mortgage interest deduction.
* Prepayment penalty to discourage endless refinancing.
* Much less subprime.
* Less securitization.

“It is a regulatory structure in Canada that created the Canadian mortgage system, and it was a regulatory and political structure in the U.S. that created the U.S. mortgage system,” said Ed Clark, chief executive of TD Bank.

http://www.washingtonpost.com/wp-dyn/content/article/2010/06/23/AR2010062304024.html

[briansd1]

We should also define what depression are collapse are.

A depression is a 10% contraction in GDP. That’s what Krugman and other are talking about. We need to prevent a depression so that millions across the world don’t fall (or fall back) into poverty.

What is a collapse? Arraya and others seem to believe that government and civil society will collapse and a new better and improved political order will rise.

Even with a depression (as defined above), government can assure continuity.

We have to remember that currency is only a concept and a means of exchange that encourage economic activity. Currencies have come and gone in the past and society did not collapse.

I believe that, by itself, revolution is a noble concept. The problem is that once you overthrow the existing order, you are still left to manage the country and the economy. If you look back at history, the revolutionaries who rose to leadership tended to be uneducated people who had no concept of economics and management to spur economic activity and wealth creation.

So to those wishing for a collapse, what do you see as the solution on the horizon?

[briansd1]

We should also define what depression are collapse are.

A depression is a 10% contraction in GDP. That’s what Krugman and other are talking about. We need to prevent a depression so that millions across the world don’t fall (or fall back) into poverty.

What is a collapse? Arraya and others seem to believe that government and civil society will collapse and a new better and improved political order will rise.

Even with a depression (as defined above), government can assure continuity.

We have to remember that currency is only a concept and a means of exchange that encourage economic activity. Currencies have come and gone in the past and society did not collapse.

I believe that, by itself, revolution is a noble concept. The problem is that once you overthrow the existing order, you are still left to manage the country and the economy. If you look back at history, the revolutionaries who rose to leadership tended to be uneducated people who had no concept of economics and management to spur economic activity and wealth creation.

So to those wishing for a collapse, what do you see as the solution on the horizon?

[briansd1]

We should also define what depression are collapse are.

A depression is a 10% contraction in GDP. That’s what Krugman and other are talking about. We need to prevent a depression so that millions across the world don’t fall (or fall back) into poverty.

What is a collapse? Arraya and others seem to believe that government and civil society will collapse and a new better and improved political order will rise.

Even with a depression (as defined above), government can assure continuity.

We have to remember that currency is only a concept and a means of exchange that encourage economic activity. Currencies have come and gone in the past and society did not collapse.

I believe that, by itself, revolution is a noble concept. The problem is that once you overthrow the existing order, you are still left to manage the country and the economy. If you look back at history, the revolutionaries who rose to leadership tended to be uneducated people who had no concept of economics and management to spur economic activity and wealth creation.

So to those wishing for a collapse, what do you see as the solution on the horizon?

[briansd1]

We should also define what depression are collapse are.

A depression is a 10% contraction in GDP. That’s what Krugman and other are talking about. We need to prevent a depression so that millions across the world don’t fall (or fall back) into poverty.

What is a collapse? Arraya and others seem to believe that government and civil society will collapse and a new better and improved political order will rise.

Even with a depression (as defined above), government can assure continuity.

We have to remember that currency is only a concept and a means of exchange that encourage economic activity. Currencies have come and gone in the past and society did not collapse.

I believe that, by itself, revolution is a noble concept. The problem is that once you overthrow the existing order, you are still left to manage the country and the economy. If you look back at history, the revolutionaries who rose to leadership tended to be uneducated people who had no concept of economics and management to spur economic activity and wealth creation.

So to those wishing for a collapse, what do you see as the solution on the horizon?

[Author]

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