Posted on 09/28/2008 12:30:41 AM PDT by xtinct
oh hooray! the government will waive its magic wand and all bad things will become good. no worries everything is taken care of! children go to sleep now mommy is taking good care of you - you pussies.
I don’t put too much stock in monetarism
‘The use of quantity of money as a target has not been a success.’ He (Milton Friedman) added: ‘I’m not sure I would as of today push it as hard as I once did.’ (Financial Times, 7 June 2003).
But the article also said it was not yet clear how the House Republicans would react.
This could be progress, or this could be a repeat of the false claims of agreement we had Thursday, when McCain announced his return to Washington.
My guess is that we get agreement, it's ugly but less so than Paulson's original 3 page outrage, and the Treasury Bill printing press overheats, but is repaired and kept running, this coming week.
Without this bill, payrolls of a few major companies that depend on commercial paper would not be met this coming Friday, and companies such as GE would have been in the ICU the following week. GM and Ford already got their rescue in the other spending bill. The stock market has been holding up (well, only falling 20 or 30 percent.) But the short term credit markets have collapsed these last two weeks, more dramatically than in anyone's memory.
The New World Order is proceeding apace -- it's currency is U.S.Treasuries. Lots of mortgage backed securities and derivatives and financial stocks currently held by major foreign nations will be swapped for Treasuries.
I predict that there will be a stock market rally Monday, which will quickly turn into either a choppy sideways market, or a violent down draft (another October crash.) Oil prices will hold reasonably close to current levels (the Saudis are voting with their petrol for McCain), recessionary signs will increase but not terribly, and McCain will win. The market will rally into sometime in January, but it will be just a bear market rally, leading into an honest recession (not a 1930's Depression -- just a recession.) Inflation will rise in the next two years as in the 1970's, but not hyperinflation. Unemployment will rise some more, as some companies don't make it through these white water rapids.
What's happening is that the world's mass of financial paper, the majority of which (100's of trillions) was derivatives based on mortgage backed securities) is deflating -- bubble bursting time. The void is being partially filled by Treasuries, as we set up to go through a recession, and form the base for the next bubble.
This after the govt. strongarmed lenders to lend to risky homeowners in the first place. So it's going to cost nearly a trillion dollars at least and the U.S. government gains control over the mortgage industry, with kickbacks to certain Senators and God knows who else.
What a deal! I'm gaining more confidence in system with each passing second. /s
double ditto on ACORN.
When the economy is humming along in an apparently more healthy state, it makes sense to target the Fed funds rate.
In times of severe distress, it makes more sense to target the quantity of money.
Peloski’s happy. Reid’s happy. Frank’s happy. Dodd’s happy. Bush’s happy.
They’re not sure how many House Republicans will support the bill.
What does that tell ya?
we had a real deflation during the mid 90’s. A lot of companies went broke because they could not repay debts with dollars more valuable than those they had borrowed only a few years earlier. Money moved away from commodity based companies and 3rd world countries to high tech/service companies as their exposure to commodities was minimal. That’s why we had the dotcom bubble.
I’m praying they got it dumped from this bill.
That was my first thought upon seeing this. They'd better have scuttled that and the La Raza cr@p.
Both are anti-American institutions have no business being in any taxpayer-funded bill, let alone this bill.
From a Reuters article.
Democrats jettisoned proposals that would have put money into a trust fund for affordable housing
Also from what I'm reading sounds like the Republicans got pretty much what they wanted.
Some details to work out, but I'm told there is a deal in the works, minus ACORN.
09/28 01:04 AM
Window Dressing.
ACORN is a red herring.
I want the whole nightmare filibustered.
I just found that...was going to post it.
Can’t please everyone.
Prices of commodities and subsequently of goods that could be manufactured overseas were sharply lower throughout the 1990's, yes. But that's not deflation. There was plenty of money, just not in commodities and Wal-Mart dry goods.
Deflation is a general reduction in money supply, not the sloshing of it from one place to another. Or as I like to say it, overstating a bit, deflation is "no money, no how, no where." You have to go back to the 1930's, before we went off the gold standard, to find that.
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