Volcker: Crisis May be Even Worse than Depression

[jpinpb]

What would cause a snap back? There has to be a trigger. After the dotcom bust, the housing market got manipulated w/the capital gains tax break and lowered interest rates, then lowered rates again and again and then the NINA and liar loans and subprime and Alt-A and option ARMS, etc. etc.

This real estate bubble happened and it had multiple explanations.

What would be the impetus that will improve the economy? Will all the stimulus/bailouts/rescue do the trick?

After watching “House of Cards” I’m of the thought that anything the government can do at this point is slow things down from getting worse, not do what it takes to suddenly overnight improve it.

So many of our jobs have been outsourced, manufacturing, etc. In fact, real estate bubble saved us from a severe recession after 9/11 and the dotcom bust b/c it created jobs and money out of thin air.

What magical thing will be the upturn? Genuine. Collective Pigg minds. What will turn this around?

[Nor-LA-SD-guy]

The only thing I can thing of at the moment is some type of Instant credit repair for FHB..

But mostly just NEED !!

[Nor-LA-SD-guy]

The only thing I can thing of at the moment is some type of Instant credit repair for FHB..

But mostly just NEED !!

[Nor-LA-SD-guy]

The only thing I can thing of at the moment is some type of Instant credit repair for FHB..

But mostly just NEED !!

[Nor-LA-SD-guy]

The only thing I can thing of at the moment is some type of Instant credit repair for FHB..

But mostly just NEED !!

[Nor-LA-SD-guy]

The only thing I can thing of at the moment is some type of Instant credit repair for FHB..

But mostly just NEED !!

[jpinpb]

I have asked this question before and I don’t remember any answers. I don’t know what it would take to turn it around. Throwing money at it is — well, there’s just not enough money. We just experienced a mega-bubble. The best the government can do is let the air out gently, i.e. slow the train down from 1000 miles an hour to 200 miles an hour. It’s still going to hurt, just take longer to feel the pain.

[jpinpb]

I have asked this question before and I don’t remember any answers. I don’t know what it would take to turn it around. Throwing money at it is — well, there’s just not enough money. We just experienced a mega-bubble. The best the government can do is let the air out gently, i.e. slow the train down from 1000 miles an hour to 200 miles an hour. It’s still going to hurt, just take longer to feel the pain.

[jpinpb]

I have asked this question before and I don’t remember any answers. I don’t know what it would take to turn it around. Throwing money at it is — well, there’s just not enough money. We just experienced a mega-bubble. The best the government can do is let the air out gently, i.e. slow the train down from 1000 miles an hour to 200 miles an hour. It’s still going to hurt, just take longer to feel the pain.

[jpinpb]

I have asked this question before and I don’t remember any answers. I don’t know what it would take to turn it around. Throwing money at it is — well, there’s just not enough money. We just experienced a mega-bubble. The best the government can do is let the air out gently, i.e. slow the train down from 1000 miles an hour to 200 miles an hour. It’s still going to hurt, just take longer to feel the pain.

[jpinpb]

I have asked this question before and I don’t remember any answers. I don’t know what it would take to turn it around. Throwing money at it is — well, there’s just not enough money. We just experienced a mega-bubble. The best the government can do is let the air out gently, i.e. slow the train down from 1000 miles an hour to 200 miles an hour. It’s still going to hurt, just take longer to feel the pain.

[denverite]

The only long-term cure will be when the government adopts policies that create and maintain middle-class (production) jobs. This means that,as a nation, we must produce goods and services that the US and the remainder of the world will need. The economy cannot fully recover until consumers (~70% of our GDP) have gainful, productive employment.

Short term stimulus’ and tax breaks will not move the economy ahead in the long run, and may have deleterious consequences down the road.

Stock markets previously priced in cheaper, outsourced labor for many industries. The market, if not already pricing in the increased cost of domestic labor, may yet have more adjustment to come.

If we continue to send jobs overseas, we will end up with a “second world” economy, with a diminishing middle class.

[denverite]

The only long-term cure will be when the government adopts policies that create and maintain middle-class (production) jobs. This means that,as a nation, we must produce goods and services that the US and the remainder of the world will need. The economy cannot fully recover until consumers (~70% of our GDP) have gainful, productive employment.

Short term stimulus’ and tax breaks will not move the economy ahead in the long run, and may have deleterious consequences down the road.

Stock markets previously priced in cheaper, outsourced labor for many industries. The market, if not already pricing in the increased cost of domestic labor, may yet have more adjustment to come.

If we continue to send jobs overseas, we will end up with a “second world” economy, with a diminishing middle class.

[denverite]

The only long-term cure will be when the government adopts policies that create and maintain middle-class (production) jobs. This means that,as a nation, we must produce goods and services that the US and the remainder of the world will need. The economy cannot fully recover until consumers (~70% of our GDP) have gainful, productive employment.

Short term stimulus’ and tax breaks will not move the economy ahead in the long run, and may have deleterious consequences down the road.

Stock markets previously priced in cheaper, outsourced labor for many industries. The market, if not already pricing in the increased cost of domestic labor, may yet have more adjustment to come.

If we continue to send jobs overseas, we will end up with a “second world” economy, with a diminishing middle class.

[denverite]

The only long-term cure will be when the government adopts policies that create and maintain middle-class (production) jobs. This means that,as a nation, we must produce goods and services that the US and the remainder of the world will need. The economy cannot fully recover until consumers (~70% of our GDP) have gainful, productive employment.

Short term stimulus’ and tax breaks will not move the economy ahead in the long run, and may have deleterious consequences down the road.

Stock markets previously priced in cheaper, outsourced labor for many industries. The market, if not already pricing in the increased cost of domestic labor, may yet have more adjustment to come.

If we continue to send jobs overseas, we will end up with a “second world” economy, with a diminishing middle class.

[Author]

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