[Rich Toscano]

[quote=citydweller]So does this mean the stimulus really was necessary to avoid a downward, deflationary spiral?[/quote]

“A” stimulus, maybe, but “The” stimulus? (The one that mostly bailed out financial companies?) No… good writeup here:

http://www.ritholtz.com/blog/2010/08/bailout-counter-factual/

Also: I believe that the whole “consumers will put off purchases if prices are dropping” thing is way overblown, in this tutorial and elsewhere. People might put something off for a little while, but that would only last for so long because A) life goes on and B) people would eventually want to capitalize on the good deals. Look at the computer industry as evidence, prices are constantly dropping there and yet people somehow buy computers.

The more harmful aspect of deflation, in our society, is that if the society is highly indebted then deflation causes the real burden of the debt to rise.

[Rich Toscano]

[quote=citydweller]So does this mean the stimulus really was necessary to avoid a downward, deflationary spiral?[/quote]

“A” stimulus, maybe, but “The” stimulus? (The one that mostly bailed out financial companies?) No… good writeup here:

http://www.ritholtz.com/blog/2010/08/bailout-counter-factual/

Also: I believe that the whole “consumers will put off purchases if prices are dropping” thing is way overblown, in this tutorial and elsewhere. People might put something off for a little while, but that would only last for so long because A) life goes on and B) people would eventually want to capitalize on the good deals. Look at the computer industry as evidence, prices are constantly dropping there and yet people somehow buy computers.

The more harmful aspect of deflation, in our society, is that if the society is highly indebted then deflation causes the real burden of the debt to rise.

[Rich Toscano]

[quote=citydweller]So does this mean the stimulus really was necessary to avoid a downward, deflationary spiral?[/quote]

“A” stimulus, maybe, but “The” stimulus? (The one that mostly bailed out financial companies?) No… good writeup here:

http://www.ritholtz.com/blog/2010/08/bailout-counter-factual/

Also: I believe that the whole “consumers will put off purchases if prices are dropping” thing is way overblown, in this tutorial and elsewhere. People might put something off for a little while, but that would only last for so long because A) life goes on and B) people would eventually want to capitalize on the good deals. Look at the computer industry as evidence, prices are constantly dropping there and yet people somehow buy computers.

The more harmful aspect of deflation, in our society, is that if the society is highly indebted then deflation causes the real burden of the debt to rise.

[Rich Toscano]

[quote=citydweller]So does this mean the stimulus really was necessary to avoid a downward, deflationary spiral?[/quote]

“A” stimulus, maybe, but “The” stimulus? (The one that mostly bailed out financial companies?) No… good writeup here:

http://www.ritholtz.com/blog/2010/08/bailout-counter-factual/

Also: I believe that the whole “consumers will put off purchases if prices are dropping” thing is way overblown, in this tutorial and elsewhere. People might put something off for a little while, but that would only last for so long because A) life goes on and B) people would eventually want to capitalize on the good deals. Look at the computer industry as evidence, prices are constantly dropping there and yet people somehow buy computers.

The more harmful aspect of deflation, in our society, is that if the society is highly indebted then deflation causes the real burden of the debt to rise.

[Rich Toscano]

The idea may be getting some scattered play among economists, but I am skeptical that those in power would just let the market play out without intervention. I think that people are not sick of stimulus per se, they are sick of stimulus that isn’t helping them individually. So I could see the approach changing but it’s hard to envision them just backing off entirely.

This goes double if we start to get another leg down. It’s one thing to talk about austerity when things look like they are recovering; it’s another to do it in the midst of a panic or big downleg. (Think of the TARP, all it took was a market decline to get that passed on the second go).

I do agree that if the people who are talking austerity get elected, they will have to do something to appear austere. But I don’t think it will last, especially if we get another serious downleg in the housing market or economy.

[Rich Toscano]

The idea may be getting some scattered play among economists, but I am skeptical that those in power would just let the market play out without intervention. I think that people are not sick of stimulus per se, they are sick of stimulus that isn’t helping them individually. So I could see the approach changing but it’s hard to envision them just backing off entirely.

This goes double if we start to get another leg down. It’s one thing to talk about austerity when things look like they are recovering; it’s another to do it in the midst of a panic or big downleg. (Think of the TARP, all it took was a market decline to get that passed on the second go).

I do agree that if the people who are talking austerity get elected, they will have to do something to appear austere. But I don’t think it will last, especially if we get another serious downleg in the housing market or economy.

[Rich Toscano]

The idea may be getting some scattered play among economists, but I am skeptical that those in power would just let the market play out without intervention. I think that people are not sick of stimulus per se, they are sick of stimulus that isn’t helping them individually. So I could see the approach changing but it’s hard to envision them just backing off entirely.

This goes double if we start to get another leg down. It’s one thing to talk about austerity when things look like they are recovering; it’s another to do it in the midst of a panic or big downleg. (Think of the TARP, all it took was a market decline to get that passed on the second go).

I do agree that if the people who are talking austerity get elected, they will have to do something to appear austere. But I don’t think it will last, especially if we get another serious downleg in the housing market or economy.

[Rich Toscano]

The idea may be getting some scattered play among economists, but I am skeptical that those in power would just let the market play out without intervention. I think that people are not sick of stimulus per se, they are sick of stimulus that isn’t helping them individually. So I could see the approach changing but it’s hard to envision them just backing off entirely.

This goes double if we start to get another leg down. It’s one thing to talk about austerity when things look like they are recovering; it’s another to do it in the midst of a panic or big downleg. (Think of the TARP, all it took was a market decline to get that passed on the second go).

I do agree that if the people who are talking austerity get elected, they will have to do something to appear austere. But I don’t think it will last, especially if we get another serious downleg in the housing market or economy.

[Rich Toscano]

The idea may be getting some scattered play among economists, but I am skeptical that those in power would just let the market play out without intervention. I think that people are not sick of stimulus per se, they are sick of stimulus that isn’t helping them individually. So I could see the approach changing but it’s hard to envision them just backing off entirely.

This goes double if we start to get another leg down. It’s one thing to talk about austerity when things look like they are recovering; it’s another to do it in the midst of a panic or big downleg. (Think of the TARP, all it took was a market decline to get that passed on the second go).

I do agree that if the people who are talking austerity get elected, they will have to do something to appear austere. But I don’t think it will last, especially if we get another serious downleg in the housing market or economy.

[Rich Toscano]

[quote=patb]i just find it amusing.

The bushies were all these squishy gay bashers
and they had filled the DoD with Fundy bible thumpers
and they had marines in the same trenches as boy rapers.

i know texas line calls it vile but he was supporting puutting pedophiles in close contact with our troops.[/quote]

Last chance to familiarize yourself with the forum rules of conduct: http://piggington.com/threadjackers_will_be_persecuted_maybe_even_prosecuted

[Rich Toscano]

[quote=patb]i just find it amusing.

The bushies were all these squishy gay bashers
and they had filled the DoD with Fundy bible thumpers
and they had marines in the same trenches as boy rapers.

i know texas line calls it vile but he was supporting puutting pedophiles in close contact with our troops.[/quote]

Last chance to familiarize yourself with the forum rules of conduct: http://piggington.com/threadjackers_will_be_persecuted_maybe_even_prosecuted

[Rich Toscano]

[quote=patb]i just find it amusing.

The bushies were all these squishy gay bashers
and they had filled the DoD with Fundy bible thumpers
and they had marines in the same trenches as boy rapers.

i know texas line calls it vile but he was supporting puutting pedophiles in close contact with our troops.[/quote]

Last chance to familiarize yourself with the forum rules of conduct: http://piggington.com/threadjackers_will_be_persecuted_maybe_even_prosecuted

[Rich Toscano]

[quote=patb]i just find it amusing.

The bushies were all these squishy gay bashers
and they had filled the DoD with Fundy bible thumpers
and they had marines in the same trenches as boy rapers.

i know texas line calls it vile but he was supporting puutting pedophiles in close contact with our troops.[/quote]

Last chance to familiarize yourself with the forum rules of conduct: http://piggington.com/threadjackers_will_be_persecuted_maybe_even_prosecuted

[Rich Toscano]

[quote=patb]i just find it amusing.

The bushies were all these squishy gay bashers
and they had filled the DoD with Fundy bible thumpers
and they had marines in the same trenches as boy rapers.

i know texas line calls it vile but he was supporting puutting pedophiles in close contact with our troops.[/quote]

Last chance to familiarize yourself with the forum rules of conduct: http://piggington.com/threadjackers_will_be_persecuted_maybe_even_prosecuted

[Rich Toscano]

[quote=outtamojo]Big mistake by me posting this one – I should known this was gonna turn into another political bullshat thread. Rich can you delete this thread please?[/quote]

No, it was not your mistake to post this, as it was very interesting. It was the mistake of patb to start up the right wing bashing, and of jim jones to then start in on the left.

Patb especially — your post is completely devoid of content except to be combative and offensive and clearly trying to start the kind of left vs. right flamewar I’ve said a million times that I do not want on this forum. After all that’s happened in prior threads on the topic of political threadjacks, it’s amazing to me that you think it’s ok to post something like that.

I’m not going to delete the thread but I will ask that the left vs right aspect that some people are trying to start up be ended immediately and that people respect the forum rules.

[Author]

Posts