What happened to our "Recovery Summer"?

[EL PRESIDENTE]

I was really confused between this and your earlier statement, until I got here. I think Oregon teachers typically make about 50k. But I suppose the cost of living is significantly different in Cali

$50k in Oregon isn't bad, is it?

 

[OSUBlazerfan]

$50k in Oregon isn't bad, is it?

No it isnt

 

[maxiep]

http://finance.yahoo.com/news/New-claims-for-unemployment-apf-3180551258.html?x=0&.v=1

 

[maxiep]

BTW, Bernanke is trying to stem the tide by monetizing more of our debt. Things are going to get very, very bad.

 

[blazerboy30]

says the monopolistic king to his peasants.

What?

 

[Eastoff]

What?

you said you think the government should stay out of the economy. I am confusingly, hyperbolically suggesting that this will lead to royalty, or atleast oligarchies. There must be SOME checks against the economy. Do you disagree that companies got us into the banking crisis, regardless of your opinion about how the government handled it after? What about Bernie Maddoff, he was brought down by the government eventually.

 

[maxiep]

you said you think the government should stay out of the economy. I am confusingly, hyperbolically suggesting that this will lead to royalty, or atleast oligarchies. There must be SOME checks against the economy. Do you disagree that companies got us into the banking crisis, regardless of your opinion about how the government handled it after? What about Bernie Maddoff, he was brought down by the government eventually.

I would argue that government intervention--specifically the polticization of FNMA and FHLMC--in this case caused the banking crisis. Forcing banks to make sub-prime loans that were absorbed by the GSEs downplayed the risk of the MBS product created from them. The government has also tried to pick winners in their differing treatment of Bear and Lehman vs. AIG and GM. Creative destruction is a normal part of capitalism. Firms that take risks that are too big go bankrupt and are absorbed by better-run firms. You don't prop them up. The idea of "too big to fail" needs to die. If a firm becomes that big, it needs to be broken up.

Although I have strongly libertarian viewpoints, there is a necessary role for government to help regulate industry. The problem is they've done a really shitty job of it. I don't blame them. If you're a reasonably smart person, you can create synthetic bonds on Wall Street for seven figures a year or you can regulate those people by working for the SEC for $100K. Where do you think the talent is going to end up?

Personally, I think a reasonable place to start is reinstalling the provision of Glass-Steagall that keeps commerical and investment banks separate. I think the next move is to deal with Fannie and Freddie, either by completely removing their implied backing by the Federal Govt or by allowing them to purchase that guarantee from the taxpayers. They need to be made completely privatized or even eliminated. The market has been created; it doesn't need a GSE anymore.

 

[blazerboy30]

you said you think the government should stay out of the economy. I am confusingly, hyperbolically suggesting that this will lead to royalty, or atleast oligarchies. There must be SOME checks against the economy. Do you disagree that companies got us into the banking crisis, regardless of your opinion about how the government handled it after?

Yes, I do disagree. We've discussed this so many times before, and you refuse to "remember". The subprime loans took off because the government got involved and started giving incentives for, and requiring companies to make those subprime loans. If the government hadn't been involved, those loans wouldn't have been made.

Besides that, you readily admit the government has to "guess" on their economic involvement, yet you keep wanting them to do so. Additionally, there is a difference between the government having "checks" and the government determining the economy.

edit: maxiep beat me to it, and said it better than I did.

 

[Denny Crane]

Seems a lot of the bailout and so-called emergency stimulus money went overseas.

http://apnews.myway.com/article/20100812/D9HHSM180.html

An example: Major French and German banks were among the biggest beneficiaries of the U.S. rescue of American International Group Inc., yet the American government shouldered the entire $70 billion risk of pumping capital into the crippled insurance titan. The report compares that with the $35 billion that France spent on its overall financial rescue program and the $133 billion that Germany spent.

Much of the $182 billion in federal aid to AIG - the biggest of the government rescues - went to meet the company's obligations to its Wall Street trading partners on credit default swaps, a form of insurance against default of securities. The partners included French banks Societe Generale, which received $11.9 billion in AIG money, and BNP Paribas, which got $4.9 billion, and Germany's Deutsche Bank, $11.8 billion.

Of the 87 banks and financial entities that indirectly benefited from the U.S. aid to AIG, 43 are foreign, according to the report. In addition to France and Germany, they include banks based in Canada, Britain and Switzerland.

 

[Denny Crane]

I would agree that the law makers don't seem to know enough about economy. They seem to know better on social rights issues. But those two things start to over lap...

http://online.wsj.com/article/SB100...3674269169684.html?mod=WSJ_hpp_LEFTTopStories

As in recent polls, Americans are split on President Barack Obama's job performance, with 47% approving and 48% disapproving. But a majority disapproves of his performance on the economy. And six in 10, including 83% of independents and a quarter of Democrats, say they are only somewhat or not at all confident that Mr. Obama has the right policies to improve it.

 

[Denny Crane]

Let them eat cake!

http://www.usatoday.com/money/economy/income/2010-08-10-1Afedpay10_ST_N.htm

Federal workers earning double their private counterparts

 

[maxiep]

http://thehill.com/blogs/on-the-money/801-economy/115011-white-houses-recovery-summery-slipping-away

 

[maxiep]

http://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm

2nd quarter GDP was revised downward 33% from 2.4% to 1.6%. Super duper.

 

[maxiep]

Here's a more digestable version of the 2nd quarter news: http://hotair.com/archives/2010/08/27/q2-gdp-revised-downward-to-1-6/

 

[maxiep]

And the political implication of our slowing economy: http://www.commentarymagazine.com/blogs/index.php/rubin/348511

 

[EL PRESIDENTE]

ru-oh.



http://news.yahoo.com/s/ap/20100827/ap_on_bi_ge/us_bernanke

Federal Reserve Chairman Ben Bernanke said Friday that the Fed will consider making another large-scale purchase of securities if the slowing economy were to deteriorate significantly and signs of deflation were to flare.

Bernanke acknowledged that the recent pace of growth is "less vigorous than we expected." He described the outlook as uncertain and said the economy "remains vulnerable to unexpected developments."

At the same time, he said growth is likely to pick up next year. He downplayed the odds of another recession, even after a series of dismal reports on housing and manufacturing this week stoked fears that the economy may be on the verge of another downturn.

Bernanke stopped short of committing to any specific action. But he raised the prospect of another Fed purchase of securities, most likely government debt or mortgage securities, to drive down rates on mortgages and other debt to spur more spending by Americans.

 

[Denny Crane]

Ruh Roh Cho

http://sportstwo.com/threads/158935-Too-little-too-late