Skip to comments.Few Humble Thoughts about the Economy By Ben Stein
Posted on 11/17/2008 3:24:47 PM PST by Responsibility2nd
We are clearly in a serious slowdown. A slowdown this serious, fed by a credit shutdown, will not stop automatically or at least might not.
This is way beyond a normal recession. At this point it might become self reinforcing and become like a Depression in which we reach what economists call a state of equilibrium far below full employment.
This is what happened in the great depression and could happen this time. The main contributor to this unusual situation is a serious credit shortage, generated by fears fed by the collapse of Lehman and the problems at other lenders such as Wachovia and Washington Mutual and financial firms such as Merrill Lynch and Bear Stearns.
There is no other entity besides the government that can restore this situation to a full employment equilibrium position. State governments are suffering and so are municipalities. Corporations are obviously suffering. Only the federal government can literally print money to restore the situation.
Any stimulus will have to be large and fast. The analogy would be to falling off a cliff. It takes a certain care to keep from falling off a cliff but it is a lot easier than retrieving you after you have fallen. The history is that only a large amount of stimulus at this point when the private economy is in shock will help. This means a lot of stimulus applied on a continuous basis.
(Excerpt) Read more at larrykinglive.blogs.cnn.com ...
This is not one of those times.
Gads, you are right!
Ben Stein has been consistently more often wrong than right since early 2007.
There are embarassing playlists of TV panel discussion clips going around from 2007 that focus in on Stein’s lack of understanding as to what was going on.
Stein was an Obama supporter.
Has EVERYONE been drinking the Obama Kool-Aid?
Printing “money” does not cause prosperity.
Huge cuts in marginal tax rates are ALWAYS a good idea.
Repeal of the 16th Amendment has been a good idea ever since the day is was “ratified.” (If it ever was.)
How do people who are normally sane—like Ben Stein—go insane so suddenly?
I do believe that Ben has become a senile citizen. Too bad, he always seemed to be a smart man.
"In 1930, the Republican-controlled House of Representatives, in an effort to alleviate the effects of the... Anyone? Anyone? ...the Great Depression, passed the... Anyone? Anyone? The tariff bill? The Hawley-Smoot Tariff Act? Which, anyone? Raised or lowered? ...raised tariffs, in an effort to collect more revenue for the federal government. Did it work? Anyone? Anyone know the effects? It did not work, and the United States sank deeper into the Great Depression. Today we have a similar debate over this. Anyone know what this is? Class? Anyone? Anyone? Anyone seen this before? The Laffer Curve. Anyone know what this says? It says that at this point on the revenue curve, you will get exactly the same amount of revenue as at this point. This is very controversial. Does anyone know what Vice President Bush called this in 1980? Anyone? Something-d-o-o economics. "Voodoo" economics."
Yes there is, to break the power of the UAW. Let them get protection in Chapter 11, break the union, and private capital may well be willing to invest after the union is broken.
Did you thank me for that tagline? ;)
"Um, he's sick. My best friend's sister's boyfriend's brother's girlfriend heard from this guy who knows this kid who's going with the girl who saw Ferris pass out at 31 Flavors last night. I guess it's pretty serious."
Hey I just needed an excuse to post a pic of Kristy Swanson.
I think Stein has a brain tumor.
He hasn’t been right in the head for a while now.
AP: Stein, an actor, writer and economist, has contributed $2,000 to Franken’s Minnesota Senate campaign. The two men have known each other for about 30 years.
“I’m struck by what an incredibly capable, hard-working guy he is,” Stein told The Associated Press in a telephone interview Thursday. “He’s a very smart liberal, he’s a thoroughgoing patriot, and I would feel better with him in the Senate.”
Franken is one of several Democratic candidates vying to take on Sen. Norm Coleman, R-Minn. As a former “Saturday Night Live” star, Franken has received scores of contributions from people in the entertainment industry, but the donation from Stein doesn’t fit into the GOP’s talking points about liberal Hollywood elites bankrolling Franken’s campaign.
I have said before and I say again, we are still in the Great Depression. The primary industry on earth is the finance industry. It began about the instant Smith’s Wealth rolled off the printing presses making that book instantly obsolete. The finance industry can loan out ten or twenty times what it is worth, based on anticipated return, and if the return doesn’t, that loan won’t.
You’re kidding? Where did you see that?
It devalues debt. The idea is to get debt under control, while (hopefully) not screwing the lender. But since the lenders are holding devalued property that they would like to unload and return to positive cash flow...etc.
See, if done correctly, (please pay no attention to any possible unintended consequences,) everybody wins.
Ben Stein and friends ridiculing Peter Schiff , President of Euro Pacific Capital who predicted the financial collapse of the USA
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