The View From Inside a Depression

[briansd1]

[quote=ucodegen]
There is one area that government spending is useful. Remember, not all spending comes from taxes.. some comes from ‘printing’ as well. One area that government spending is useful is in recovery from recessions or preventions of depressions. Generally, the government should be paying down its borrowed money when the economy is healthy or becoming ‘overheated’. The government needs to do the reverse (spending money) when times get tight. It controls the currency and needs to be a balancing force against the extremities of the market. Unfortunately, not many politicians seem to have the self control to ‘save for a rainy day’.[/quote]

That was my point.

The bailout money is not coming from redistribution at this point. It’s coming from printing.

Look at Norway. They are doing an excellent job at saving for the rainy days.

[Arraya]

The Federal Reserve plans are very simple. Mortgage the country to try and sustain the unsustainable by any means necessary. To talk about government spending and misallocation of funds misses what is being done, which is Wall Street hijacking our government to keep a debt ponzi-scheme going. It is a ponzi-scheme by definition.

Still, what the Banks said would be fixed, when Paulson threatened us with martial law has not been done. CREDIT IS STILL CONTRACTING, which is the driver of all economic woes.

http://www.zerohedge.com/article/has-government-sowed-seeds-green-shoots-or-another-depression
What I am saying is that the government’s actions to date have not fixed the underlying problems or helped stabilize the economy. The government has been doing all of the wrong things and made the situation worse by, among other things:

(1) Throwing trillions of dollars at the “too big to fails”, instead of admitting that many of them are insolvent

(2) Undermining trust of nations all over the world in the American economy
(3) Failing to restore Glass-Steagall, reign in credit default swaps, or do anything else necessary to stabilize the financial system
(4) Attempting to restart high levels of leverage and securitization
(5) Failing to take real measures to decrease employment and increase manufacturing

(6) Creating an enormous debt overhang and trashing our currency

[Arraya]

The Federal Reserve plans are very simple. Mortgage the country to try and sustain the unsustainable by any means necessary. To talk about government spending and misallocation of funds misses what is being done, which is Wall Street hijacking our government to keep a debt ponzi-scheme going. It is a ponzi-scheme by definition.

Still, what the Banks said would be fixed, when Paulson threatened us with martial law has not been done. CREDIT IS STILL CONTRACTING, which is the driver of all economic woes.

http://www.zerohedge.com/article/has-government-sowed-seeds-green-shoots-or-another-depression
What I am saying is that the government’s actions to date have not fixed the underlying problems or helped stabilize the economy. The government has been doing all of the wrong things and made the situation worse by, among other things:

(1) Throwing trillions of dollars at the “too big to fails”, instead of admitting that many of them are insolvent

(2) Undermining trust of nations all over the world in the American economy
(3) Failing to restore Glass-Steagall, reign in credit default swaps, or do anything else necessary to stabilize the financial system
(4) Attempting to restart high levels of leverage and securitization
(5) Failing to take real measures to decrease employment and increase manufacturing

(6) Creating an enormous debt overhang and trashing our currency

[Arraya]

The Federal Reserve plans are very simple. Mortgage the country to try and sustain the unsustainable by any means necessary. To talk about government spending and misallocation of funds misses what is being done, which is Wall Street hijacking our government to keep a debt ponzi-scheme going. It is a ponzi-scheme by definition.

Still, what the Banks said would be fixed, when Paulson threatened us with martial law has not been done. CREDIT IS STILL CONTRACTING, which is the driver of all economic woes.

http://www.zerohedge.com/article/has-government-sowed-seeds-green-shoots-or-another-depression
What I am saying is that the government’s actions to date have not fixed the underlying problems or helped stabilize the economy. The government has been doing all of the wrong things and made the situation worse by, among other things:

(1) Throwing trillions of dollars at the “too big to fails”, instead of admitting that many of them are insolvent

(2) Undermining trust of nations all over the world in the American economy
(3) Failing to restore Glass-Steagall, reign in credit default swaps, or do anything else necessary to stabilize the financial system
(4) Attempting to restart high levels of leverage and securitization
(5) Failing to take real measures to decrease employment and increase manufacturing

(6) Creating an enormous debt overhang and trashing our currency

[Arraya]

The Federal Reserve plans are very simple. Mortgage the country to try and sustain the unsustainable by any means necessary. To talk about government spending and misallocation of funds misses what is being done, which is Wall Street hijacking our government to keep a debt ponzi-scheme going. It is a ponzi-scheme by definition.

Still, what the Banks said would be fixed, when Paulson threatened us with martial law has not been done. CREDIT IS STILL CONTRACTING, which is the driver of all economic woes.

http://www.zerohedge.com/article/has-government-sowed-seeds-green-shoots-or-another-depression
What I am saying is that the government’s actions to date have not fixed the underlying problems or helped stabilize the economy. The government has been doing all of the wrong things and made the situation worse by, among other things:

(1) Throwing trillions of dollars at the “too big to fails”, instead of admitting that many of them are insolvent

(2) Undermining trust of nations all over the world in the American economy
(3) Failing to restore Glass-Steagall, reign in credit default swaps, or do anything else necessary to stabilize the financial system
(4) Attempting to restart high levels of leverage and securitization
(5) Failing to take real measures to decrease employment and increase manufacturing

(6) Creating an enormous debt overhang and trashing our currency

[Arraya]

The Federal Reserve plans are very simple. Mortgage the country to try and sustain the unsustainable by any means necessary. To talk about government spending and misallocation of funds misses what is being done, which is Wall Street hijacking our government to keep a debt ponzi-scheme going. It is a ponzi-scheme by definition.

Still, what the Banks said would be fixed, when Paulson threatened us with martial law has not been done. CREDIT IS STILL CONTRACTING, which is the driver of all economic woes.

http://www.zerohedge.com/article/has-government-sowed-seeds-green-shoots-or-another-depression
What I am saying is that the government’s actions to date have not fixed the underlying problems or helped stabilize the economy. The government has been doing all of the wrong things and made the situation worse by, among other things:

(1) Throwing trillions of dollars at the “too big to fails”, instead of admitting that many of them are insolvent

(2) Undermining trust of nations all over the world in the American economy
(3) Failing to restore Glass-Steagall, reign in credit default swaps, or do anything else necessary to stabilize the financial system
(4) Attempting to restart high levels of leverage and securitization
(5) Failing to take real measures to decrease employment and increase manufacturing

(6) Creating an enormous debt overhang and trashing our currency

[ucodegen]

The Republicans real estate folks will never admit that they are operating in a socialist market with countless subsidies that artificially prop up real estate prices and magnify inefficiencies.

I would love the estate estate Republicans to lobby for the removal of real estate support and for letting the “real” free market flourish.

Slight problem here.. almost all RE folks want the market propped up.. and not all RE folks are Republicans. RE brokers make a percentage of the sale (6% for sole broker, 3% on split commission). The higher the RE price.. the more they make.. therefore, regardless of party affiliation, they tend to want higher RE prices.

Some Republicans are taking the reverse position and sold of RE or are taking a short position on Real Estate related companies (ie. builders).

I know that it will never happen.

Considering that we have a Democratic President and House and Senate are largely Democratic… why? Three reasons.. Pelosi, Raines, Franks.. who are ‘staunch’ Democrats and are working hard behind the scenes to find ways to support RE prices. These are the same three who subverted bills to regulate the GSEs and banks from unsafe lending, which helped create the bubble and left us where we are now.

[ucodegen]

The Republicans real estate folks will never admit that they are operating in a socialist market with countless subsidies that artificially prop up real estate prices and magnify inefficiencies.

I would love the estate estate Republicans to lobby for the removal of real estate support and for letting the “real” free market flourish.

Slight problem here.. almost all RE folks want the market propped up.. and not all RE folks are Republicans. RE brokers make a percentage of the sale (6% for sole broker, 3% on split commission). The higher the RE price.. the more they make.. therefore, regardless of party affiliation, they tend to want higher RE prices.

Some Republicans are taking the reverse position and sold of RE or are taking a short position on Real Estate related companies (ie. builders).

I know that it will never happen.

Considering that we have a Democratic President and House and Senate are largely Democratic… why? Three reasons.. Pelosi, Raines, Franks.. who are ‘staunch’ Democrats and are working hard behind the scenes to find ways to support RE prices. These are the same three who subverted bills to regulate the GSEs and banks from unsafe lending, which helped create the bubble and left us where we are now.

[ucodegen]

The Republicans real estate folks will never admit that they are operating in a socialist market with countless subsidies that artificially prop up real estate prices and magnify inefficiencies.

I would love the estate estate Republicans to lobby for the removal of real estate support and for letting the “real” free market flourish.

Slight problem here.. almost all RE folks want the market propped up.. and not all RE folks are Republicans. RE brokers make a percentage of the sale (6% for sole broker, 3% on split commission). The higher the RE price.. the more they make.. therefore, regardless of party affiliation, they tend to want higher RE prices.

Some Republicans are taking the reverse position and sold of RE or are taking a short position on Real Estate related companies (ie. builders).

I know that it will never happen.

Considering that we have a Democratic President and House and Senate are largely Democratic… why? Three reasons.. Pelosi, Raines, Franks.. who are ‘staunch’ Democrats and are working hard behind the scenes to find ways to support RE prices. These are the same three who subverted bills to regulate the GSEs and banks from unsafe lending, which helped create the bubble and left us where we are now.

[ucodegen]

The Republicans real estate folks will never admit that they are operating in a socialist market with countless subsidies that artificially prop up real estate prices and magnify inefficiencies.

I would love the estate estate Republicans to lobby for the removal of real estate support and for letting the “real” free market flourish.

Slight problem here.. almost all RE folks want the market propped up.. and not all RE folks are Republicans. RE brokers make a percentage of the sale (6% for sole broker, 3% on split commission). The higher the RE price.. the more they make.. therefore, regardless of party affiliation, they tend to want higher RE prices.

Some Republicans are taking the reverse position and sold of RE or are taking a short position on Real Estate related companies (ie. builders).

I know that it will never happen.

Considering that we have a Democratic President and House and Senate are largely Democratic… why? Three reasons.. Pelosi, Raines, Franks.. who are ‘staunch’ Democrats and are working hard behind the scenes to find ways to support RE prices. These are the same three who subverted bills to regulate the GSEs and banks from unsafe lending, which helped create the bubble and left us where we are now.

[ucodegen]

The Republicans real estate folks will never admit that they are operating in a socialist market with countless subsidies that artificially prop up real estate prices and magnify inefficiencies.

I would love the estate estate Republicans to lobby for the removal of real estate support and for letting the “real” free market flourish.

Slight problem here.. almost all RE folks want the market propped up.. and not all RE folks are Republicans. RE brokers make a percentage of the sale (6% for sole broker, 3% on split commission). The higher the RE price.. the more they make.. therefore, regardless of party affiliation, they tend to want higher RE prices.

Some Republicans are taking the reverse position and sold of RE or are taking a short position on Real Estate related companies (ie. builders).

I know that it will never happen.

Considering that we have a Democratic President and House and Senate are largely Democratic… why? Three reasons.. Pelosi, Raines, Franks.. who are ‘staunch’ Democrats and are working hard behind the scenes to find ways to support RE prices. These are the same three who subverted bills to regulate the GSEs and banks from unsafe lending, which helped create the bubble and left us where we are now.

[jpinpb]

[quote=Hobie]Just redistributing wealth through social programs is much akin to giving you kid an allowance. It doesn’t motivate him to find a way to earn more.
Enough for now.[/quote]

I am in favor of not feeding the hungry, but teaching them to fish.

Arraya – thanks for the link!

[jpinpb]

[quote=Hobie]Just redistributing wealth through social programs is much akin to giving you kid an allowance. It doesn’t motivate him to find a way to earn more.
Enough for now.[/quote]

I am in favor of not feeding the hungry, but teaching them to fish.

Arraya – thanks for the link!

[jpinpb]

[quote=Hobie]Just redistributing wealth through social programs is much akin to giving you kid an allowance. It doesn’t motivate him to find a way to earn more.
Enough for now.[/quote]

I am in favor of not feeding the hungry, but teaching them to fish.

Arraya – thanks for the link!

[jpinpb]

[quote=Hobie]Just redistributing wealth through social programs is much akin to giving you kid an allowance. It doesn’t motivate him to find a way to earn more.
Enough for now.[/quote]

I am in favor of not feeding the hungry, but teaching them to fish.

Arraya – thanks for the link!

[Author]

Posts