Zero is also a Nobel prize laureate and if those other two boobs think you can spend your way out of debt or tax your way into prosperity they have equally earned their booby prize too!
Posted on 11/21/2009 9:04:18 PM PST by blam
Financial And Economic Situation Could Get Ugly Fast
Economics / Economic Stimulus
Nov 21, 2009 - 03:27 AM
By: Mike_Whitney
Things could get ugly fast. With the Democrats backing-off on a second round of stimulus, the Fed signaling an end to quantitative easing, and Obama moaning about rising deficits; there's a good chance that the stumbling recovery could turn into another sharp plunge. Bank lending is shrinking, consumers spending is off, housing prices are falling, unemployment is soaring and the wholesale credit markets are in a shambles. This isn't the time to slash government support in the name of "fiscal responsibility". Obama needs to ignore the gloomsters and alarmists and pay attention to the Nobel laureates like Joe Stiglitz and Paul Krugman. They're the guys who know how to steer the ship to safe water.
But there are troubling signs that Obama has joined the ranks of the deficit hawks and is planning a policy-reversal that will pitch the economy into a nosedive. Here's what he said on his tour through Asia:
"I think it is important to recognize if we keep on adding to the debt, even in the midst of this recovery, that at some point, people could lose confidence in the U.S. economy in a way that could actually lead to a double-dip recession."
So it's true. Obama has aligned himself with the faux-prophets and dollar demagogues who think that the end is nigh. But trimming the deficits now (when they should be expanding) will lead to a viscous cycle of debt deflation that will push-down asset prices, increase defaults, force more layoffs, slow consumer spending, lower earnings and send the economy into a downward spiral. The president is paving the way to a double-dip recession, a slump that could be worse than the first.
Has Obama perused the jobless figures lately? Has he noticed the Fed shoving more than a $1 trillion under the collapsing housing market with no sign of improvement? Has anyone told our blinkered accountant-in-chief that the entire financial system is propped-up with $11.4 trillion of dodgy scaffolding that could buckle in the first big gust?
Obama has either taken leave of his senses or he's spending too much time listening to the cheerless Jeremiahs on the Internet. He needs break their spell and seek the counsel of the experts who get paid to crunch the numbers---real economists. Cutting government spending and raising taxes--the two ways that deficits are paid off--is the fast-track to disaster. Don't go there.
If Obama needs more proof that the economy is still flatlining, he should thumb through Fed chair Ben Bernanke's speech to the Economic Club of New York which was delivered on Tuesday. The presentation was a sobering snapshot of lingering depression with precious few glimmers of light. Here's an excerpt:
"The flow of credit remains constrained, economic activity weak, and unemployment much too high. Future setbacks are possible....How the economy will evolve in 2010 and beyond is less certain....
[snip]
This guy is bitchin because they are not expending spending am I reading this right
ping
Economics / Economic Stimulus
Nov 21, 2009 - 03:12 AM
By: Mike Whitney
"Crybabies need not apply"
Barack Obama has decided to push the economy back into recession, and no one can figure out why. Perhaps the impressionable Obama has come under the spell of the deficit hawks and crystal gazers who see Armageddon around every corner.
Or maybe he's thrown-in with the snappish Marc Faber whose dire predictions of hyperinflation are about as cheery as Hieronymus Bosch's vision of Hell.
Whatever the reason, the President has done a hasty volte-face and decided that trimming the deficits in the middle of a severe economic downturn is the way to go. Here's what Obama said just days ago on his Asia tour:
"I think it is important to recognize if we keep on adding to the debt, even in the midst of this recovery, that at some point, people could lose confidence in the U.S. economy in a way that could actually lead to a double-dip recession."
[snip]
I live in MA and want to sell my house and get the F out of here.....And i can’t.
They frigging trapped me.
2/3 through my mortgage and my equity is now crap.
I lost at least a 100 grand in value so far.
What a waste of time.
I shoulda just been a bum.
Woulda been a lot easier.
Announcing that he will not longer persue job stifling health care takeovers, cap and trade, and card check for the remainder of his first term, and Obama can create job growth right now, as employers will have a lower cost of hiring new employees. Its free too.
Where is the “barf”?
Isn’t “Financial” and “Economic” redundant?
Yes, Mike, it is.
No matter WHEN the pretending stops, it will be ugly. The more quickly it's done, the more quickly the real recover can begin.
Let failures fail.
How viscous? 20w? 30w? 50w?
If the Democrats get their Mengelecare passed, I believe the stock market wil react violently.
Down.
recover = recovery
the simple solution to economic problems...
get out of Afghanistan
“Here’s what [Obama]said on his tour through Asia:”
I think if this guy just understood that Obama is a liar and says the opposite of what he will do - he’ll be a lot happier.
Exactly, when he recommend following the advice of the absurdly over-rated economists Stiglitz and Krugman, that tells us all we need to know. The message is that Obama isn’t expanding the government enough.
No, it is not. Economics is not necessarily about finance (many economists don’t know much about financial matters, for example), and you can be an expert on financial matters and still be a dunce on basic economics (see Warren Buffet for example).
LMAO
He can’t create job growth right now by backing off on his agenda, but if he announced this, and ceased all other idiotic proposals for, oh, six months.... the business sector would likely come out of their turtle shells and start believing that they have a stable environment in which to do business.
Which they don’t right now.
No, not really. Think of them as analogous to “tactical” and “strategic” (respectively) in military science...
I have a simpler solution, one that will never be used by the U.S.A.
Conquest of inferior nations and reaping of the spoils. Take over the oil fields of the Middle East by force. Meet any retaliation with brutal suppression. I know, it's not a P.C. thing to do. But it has worked for empires in the past. You think the Muslims of the world are going to be kind to us when we're overrun?
the US is paying the living expenses
of millions of ragheads in the
middle east
Sounds to me like this rocket scientist hasn't figured out that Obama's a two faced liar.
I know. It sickens me that we’re giving our money to aliens overseas without getting anything beneficial in exchange. Our government should cut them off and think about helping Americans first. That’s why I say seize their oil fields and other assets, and use that to better our lives here.
Would Hitler have been elected and allowed to do the things he did if times were good in Germany at the time?
People do not sacrifice their Liberty in good times.
Obama called 1-900-CREATE-A-CRISIS. He means to do this.
2nd wave of a tsunami is worse.
recover = recovery = hangover that won’t stop.
I find it amusing that Liberals who are so vested in Evolution and "survival of the fittest" do a 180 when it comes to the financial world.
Markets when left alone are self correcting, its when government starts stirring things up that the really bad stuff starts happening!
hey mister....I'd rather have this depression go deeper than be a slave or have my kids or grandkids be slaves...
Same thing in Florida with respect to home equity. At least there is no state income tax here, property tax increases for resident owners are restricted, and the weather is generally very nice.
This buffoon is an economic genius!! Everyone with a shred of intelligence knows the way out of debt is to borrow and spend more money.
The one’s in bed with the government. Contemplate how they set this all up over the course of the past few months.
Banks under the bailout and in some cases not are in the hands of the government.
Essentially all credit/loans are through the government. They didn't trim out the things that caused the downturn, they pumped them up.
Who is in bed with the Congress critters on medical stuff and keep in mind it's not just medical reform, it is insurance reform. AIG was financial insurance, now medical insurance, FDIC insurance. We're watching everything else except the insider insurance circles.
Watch the market will go up on the false premises of incoming stability. We're paying ahead in the bill. The incoming funds from fee's, penalties, taxes will appear to stabilize the markets until 2013/2014 and then it will all crash as the mandates kick-in.
If they don't get the medical reform, we crash now. I know it all sounds pretty convoluted, but if the democrat bet is medical actually creates the false (bubble)stability in the markets; 0bama appears to save the day for the election cycle starting in 2011. (Remember the theft infusion starts immediately, that is the reason for the push to get this through.)
It says at the bottom of the article he’s a Libertarian? And he thinks Krugman is right?
Zero is also a Nobel prize laureate and if those other two boobs think you can spend your way out of debt or tax your way into prosperity they have equally earned their booby prize too!
kookoo. koookoooo. koooo kooo.
The shear stress is related to the change in velocity across the path of fluid flow--
The economic analogy would be of course the differential rate of change of the velocity of money across economic strata.
Now the Reynolds number is a measure of the ratio of inertial forces (inertial, "holding back", conservative, such as FR or Conservatives4Palin) 
to viscious (SEIU, Daily KOS) and other progressive forces 
Again, the economic analogy is the number of Republican- and conservative- leaning blogs and emails and phone calls to the local Cloward-Piven coefficient.
The socioeconmic Reynolds number, unlike the dimensionless fluid dynamics one, is expressed as the thickness (in millimeters) of the tinfoil hat.
Cheers!
Cheers!
A) Paul Krugman is a Nobel laureate??? Do they just hand those things out to anybody these days?
B) I'd feel a lot better if the ship they were steering wasn't the S.S. Minnow.
That 100 grand wasn’t real, anyway — it was just a temporary artificial blip.
Yep.
Not to anybody — you have to also be a liberal.
Obama and his pal Oprah believe that to change America you have to destroy it first.
He is dumb enough to think you can spend your way out of debt, too.
This idiot is the chimp of the socialist party. Chump, sorry.
He wants to bait the Chinese into dumping the dollar. He’s stupider than Krugman
Sure...why not spend 4 or 5 trillion more! Oops...I guess perhaps it’s because no one is going to loan it to us.
Health care will fail if it is not reversed simply because there is no money. The reality of California will soon be the reality of the US.
I just want to see if I got this right:
Essentially all credit/loans are through the government.
No doubt about that.
it's not just medical reform, it is insurance reform. AIG was financial insurance, now medical insurance, FDIC insurance.
I've been wondering, who gets Blue Cross Blue Shield? They seem pretty big, big enough to resist a takeover.
the market will go up on the false premises of incoming stability
When the government takes over and insures these corporations against bankruptcy, businessmen will feel safer and invest more? And in the short-term fees, added taxes and penalties will create the mirage that the government can cover these obligations?
then it will all crash as the mandates kick-in
You mean when government starts paying it's insurance and health care claims?
If I've got this right, I don't get it. In the midst of a recession, government starts sucking money out of consumer's pockets? Wouldn't that crash the economy before 0 has enough time to build his house of cards?
I'm sure this administration wants to set itself up as a white knight during the next election. I'm paranoid that 0 and Rahm are putting things in place to stage a political coupe. "Never let a crises go to waste". But to do this, they'll need to get over the short-term consequences--when people read their tax returns.
Things are going to get ugly Forrest Gump could figure that out but this article seems like a very sly way of pushing a second stimulus package. What do they need another 7 something billion to fund Obama’s slush funds, ACORN and all of his buds?
On paper guys like this have a point to some extent. But they never, ever realize that government spending comes with one really big issue:
The government picks and chooses the winners and losers. And nine times out of ten, politicians will choose to stimulate businesses that are owned or controlled by the special interests that help them get elected.
Politicians don’t know how to run the economy. So expecting them to properly spend trillions of dollars in order to jump start the economy is ludicrous.
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