FLOYD NORRIS
Posted on 08/09/2011 3:52:43 AM PDT by SkyPilot
What will stop this?
Let’s look at some of the things that have not worked.
The Group of 7 finance ministers promised to act together in a cooperative way.
FLOYD NORRIS
Notions on high and low finance.
President Obama assured us that he wanted to cooperate with Republicans.
It would be wonderful — and most likely would lead to a rebound — if there were evidence that genuine cooperation was going to arrive, and that governments would act together to try to both fix the financial systems and avoid new downturns. But so far there is no indication that any such thing will happen.
If that cannot be, some bold leadership from someone — preferably someone with the ability to borrow lots of money — would be welcome. But the president seems unwilling to do anything but issue pleas that fall on deaf ears. Chancellor Angela Merkel has grudgingly moved but is unwilling or unable to try to persuade Germany that it must step up far more than it has.
Picking one cause for the recent slide is not easy. But in retrospect one should not rule out the European bank stress tests, whose results came out on July 20. This time, we were promised, the tests would be credible. But when they arrived, we learned that Europe was still assuming that European sovereign debts were risk-free. The collapse started soon after that.
I am in no position to crow — I was more optimistic about the economy than most were last year, and I was wrong. But it now appears clear that the financial crisis never really ended. The amount of capital wasted in the boom years continues to drag economies down. But there is no real discussion of how to deal with that.
(Excerpt) Read more at economix.blogs.nytimes.com ...
All the talk about the Great Recession ending in June 2009 was all lies. We knew that of course, but the Slimes and other liberals are finally admitting it. The Presstitutes went into overdrive to convince the boobs in American that the Community Organizer was leading us into "The Recovery Summer" that turned into "The Recovery Autumn" that turned into yet another "Recovery."
The Slimes author laments that no one will "work together."
Let me help him buy a vowel: What has to be done is reign in Entitlements and Welfare, and Obama and the Democrats WON'T do that.
Now that liberals are seeing their own 401Ks and wealth evaporate under Obama and the Democrats, they suddently want "something done." The laughable attempt to lable this the "Tea Party Downgrade" was illogic on its face.
Nothing has changed in thousands of years. Those who hate God, but love money and their own selves, swallow the bitter pill of destruction that they themselves created:
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"They have an unhealthy interest in controversies and quarrels about words that result in envy, strife, malicious talk, evil suspicions and constant friction between people of corrupt mind, who have been robbed of the truth and who think that godliness is a means to financial gain. But godliness with contentment is great gain. For we brought nothing into the world, and we can take nothing out of it. But if we have food and clothing, we will be content with that. Those who want to get rich fall into temptation and a trap and into many foolish and harmful desires that plunge people into ruin and destruction. For the love of money is a root of all kinds of evil. Some people, eager for money, have wandered from the faith and pierced themselves with many griefs. But you, man of God, flee from all this, and pursue righteousness, godliness, faith, love, endurance and gentleness. Fight the good fight of the faith."
1 Timothy 6: 4-11
Pinging myself for later.
“Now that liberals are seeing their own 401Ks and wealth evaporate under Obama and the Democrats, they suddently want “something done.”
I’ve been saying the same thing for 20 years: The only time a liberal gives a rat’s ass about the reality of the damage their policies cause is when it affects them personally. Then, if the impact upon them is severe enough, they become conservatives overnight. Take away their privelidge, wealth and lively-hood in the name of progressive ideals and they scream, bitch and moan to high heaven about “how unfair it is.”
You could have pinged me, too, but I understand you were pressed for time. ;)
The issue here is that everyone loses in a recession....doesn’t matter what political persuasion you are....you lose.
The truth of the 2008 recession “ending”. For economists, they will all say that there was an end about fifteen months into this. But this really wasn’t a regular-type recession. The housing market is a billion-ton anchor on the economy and has never rebounded in any fashion. Various areas of the US are stuck in unemployment...and not recovering. So whatever concept we had of past recessions...does not apply to the current situation. I’d even start to call it an “Obamcession” because it is a very unique circumstance.
Somebody IS doing something.
Lots of them.
They are pulling the plug on the financial system. They are voting with their cash and running for the hills from a collapsing system.
The system is collapsing because those with money don't much feel like giving it to those who won't work to earn their own money.
Imagine that?
Obama and his stooges can't understand why they are overdrawn.
They still have checks in their checkbooks.
Financial collapse is not supposed to happen to socialists and yet IT DOES EVERY TIME!
I’d even start to call it an “Obamcession” because it is a very unique circumstance.
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Not unique at all ,, this is just Japan part #2 , it’s the zombie banks , it’s the gov’t spending , it’s failure to act on reality ... the time to let the corrupt banks fail was in 2008 , we should have had 10 Lehmans...
Welfare and medical programs on illegals are bleeding this country dry. No one wants to deal with it. How many illegals babies will you pay to have delivered this month. And then there is all the place holder affirmative action do nothing jobs in the government. Dang!
Make that 20;
November 2012: Hope.
Actually it is not a unique circumstance. A very astute FReeper posted this, this morning The Economic Collapse of Argentina . There are indeed a great many similarities. Video #2 and #3 are telling.
The answer is obvious, meaning the Dems will never do it.
We can’t afford social security as a 30 year federal vacation for those over 65 (or 67), and the starting age needs to be adjusted to about 70 or even 72. The social security and medicare age should be raised - gradually and on people 50 and under, but it has to go up further than scheduled. We can’t afford to support the unemployed for a year, and that needs to be adjusted to the time span that unemployment insurance payments cover - perhaps two months. If you can’t find a job that you want within a few weeks, it’s time to find a job you can get instead of staying on the dole for months or years waiting for a dream job that no longer exists.
We can’t afford $700B in defense spending when 25% to 30% of that is pork. The trick is to cut the waste, fraud, and abuse (especially earmarks), cut the non-logistic support, and keep the operating forces strong. We can’t afford ANY of the $150B in discretionary one time items, nor can we afford all of our recurring discretionary spending. It’s not a hard concept; we can’t afford spending that we can’t afford, so we need to eliinate that spending.
If I was in charge of the federal budget, I wouldn’t fix it quite the way I would fix my own budget, but I’d get the job done. With my own budget, it would balance the first year and every year. With the federal budget, I would cut the deficit in half the first year and again the second year, balancing it the third year. That’s purely to minimize the local economic shock in areas that depend on deficit charity, but I think it’s worth it to reduce the transition trauma. Next year’s deficit should be under $800B, the following year under $400B, and the budget should balance thereafter. That’s arbitrary, but we’ve seen what happens without a guideline.
That's because it's not a recession. It's a depression:
In economics, a depression is a sustained, long-term downturn in economic activity in one or more economies. It is a more severe downturn than a recession, which is seen by some economists as part of the modern business cycle.Considered, by some economists, a rare and extreme form of recession, a depression is characterized by its length, by abnormally large increases in unemployment, falls in the availability of credit— often due to some kind of banking or financial crisis, shrinking output—as buyers dry up and suppliers cut back on production, and investment, large number of bankruptcies—including sovereign debt defaults, significantly reduced amounts of trade and commerce—especially international, as well as highly volatile relative currency value fluctuations—most often due to devaluations. Price deflation, financial crises and bank failures are also common elements of a depression that are not normally a part of a recession.
Wikipedia
1. “I affirm here today that the United States, and I as the US President, are committed to free market capitalism, and we are confident that American hard work and ingenuity in the private sector will keep the US the world leader.
2. “It has been made abundantly clear that we must decrease government spending or we risk our national security and economic future. Failure to do so will hurt all Americans. I am asking House and Senate leaders to meet with me and members of my cabinet at least bi-weekly over the coming months to discuss and formulate bipartisan plans for appropriate spending cuts. Also, I am asking each Federal agency to internally cut administrative costs by at least 10% over the next 12 months. Failure to do so will result in a mandatory 20% decrease in federal expenditures to that agency.”
3. “It has also become clear that, despite good intentions and great effort, the current iteration of the new health care law is flawed and has required my administration to grant multiple waivers to various groups to avoid economic hardship. It is also clear that it will not save money sufficiently. I am asking Congress to revise this legislation substantially in a manner that strongly promotes market place competition, preserves our world-class medical, biomedical, device development, and pharmaceutical industries and provides each American with the lowest cost highest quality care possible. I pledge to the American people that the changes made will improve your care options, decrease costs, address preexisting conditions, emphasize your personal choice, and be private sector based.”
With a super-genius like Paul Krugman on the staff, nobody at the NYT should have any problem understanding economics.
/s
LLS
www.governmentgonewild.com or on YouTube.
LLS
As long as the roots are not severed, all is well. And all will be well in the garden. In the garden, growth has it seasons. First comes spring and summer, but then we have fall and winter. And then we get spring and summer again. There will be growth in the spring!
If Obama submits his resignation, the market will jump 1000 points. Only when people have the confidence that this nightmare is over, will they feel comfortable enough to trust and invest again.
This faculty lounge experiment needs to be ended immediately.
“If that cannot be, some bold leadership from someone — preferably someone with the ability to borrow lots of money.”
Wish this man-who-squats-to-pee, codependent, pantywaist (or maybe “pantywaste” as in “a waste of perfectly good panties”) New Yorker would shut up about borrowing (and spending) evermore money. And why’s the faint-hearted fool even want to borrow? As Greenspan sez, he and his people can just print more paper whenever it’s needed.
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