Posted on 09/28/2008 12:30:41 AM PDT by xtinct
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My SIG P 229 is ready and awaiting
actually off to a Fall Luncheon later in my town for the Gen William Loring camp
NO ONE should get money out of this BUT the U.S. taxpayers........anything else is just another new tax on us.
I noticed that there were no Repubs in Pelosi’s little group announcing victory on the deal. Bet $2 that this falls apart on Monday.
Exactly.
Yeah, America. Too big to fail.
If this bailout works anything like the HUD foreclosure sales of the past, the rehabilitation work alone should provide endless opportunities for graft by “community” organizations.
This is nothing but vote buying by the Democrats. That is the real scam in all this.
“There is no reason to get rid of debt now as far as the economy goes.”
But there are. Debt is a form of slavery. And the debt slavers will be back in a few years for another bailout when the next economic bubble caused or perpetuated by them starts to deflate.
A better strategy for those of us who aren’t wall street CEO’s is to let the air out of the bubble through the voluntary elimination of debt. What Mr. Ramsey is preaching is indeed a form of economic subversion. But in the long run, it’s a good form of subversion.
.....GE and GM are the two best examples....
Thanks.
I thought both sold their finance operations.
I’m not an economist, I just remember reasons I get downsized very well.
From a simple viewpoint, the Fed was pumping money, the ‘inflation’ was in housing prices. The Fed kept the interest rates low to keep the housing and finance industries whole. Now housing prices have been/are going to deflate.
Voters should be overseeing their representatives, and the best way to make that happen is to abolish withholding taxes. Make taxpayers write a check to the US Treasury each month for the taxes they owe. Pretty soon they will start asking questions.
Yours is a very reasonable outline of what will probably happen.
There’s too much hysteria out there from the pundits right now, so it was refreshing to read your calm and considered analysis.
That is an excellent report. Easy to read and understand.
The list of Banks on the last few pages is breath taking.
Weiss Research: Proposed $700 Billion Bailout Is Too Little, Too Late to End the Debt Crisis; Too Much, Too Soon for the U.S. Bond Market.
So President Bush has gone from being Hitler in the eyes of the Libs to wise leader now?
I will try to put this in terms that others who skipped these classes will understand. The equation MV=PQ is actually an accounting identity, which means that it must hold by definition, everywhere and always.
M refers to the stock of money in circulation.
V for “velocity” refers to the number of times each year that this money changes hands.
P represents a price index or some other measure of prices.
Q denotes real output, or GDP.
As an example, suppose that the economy produces 100 units of real output each year. The price level is $1 per unit of output. If there are $10 in circulation, what must the velocity of money be? Answer below ...
V = 10 times/year
The velocity of money changes but trends upward over time, as our financial system becomes more efficient (less cash in our wallets, money deposited faster, etc). The velocity of money tends to be high in inflationary periods, because people don’t want to hold more cash than necessary as it depreciates in value. During periods such as we are in right now, with a “rush to liquidity,” velocity tends to fall ... I think. I guess that’s what I’m asking.
It is an exceedingly important variable to monetarists, and for obvious reasons. In his later years, Milton Friedman downplayed just a bit some of the extraordinary emphasis he put on this equation as a policy guide. But he never ever downplayed its significance, to my knowledge, as a way to frame monetary issues.
Further thoughts, any one?
I completely agree!!
Exactly, and in this latest bailout, the affirmative action mortgage system is still intact to do further damage. NO BAILOUT!!!!
END SUBPRIME MORTGAGE LENDING NOW!
“Except if you did get rid of the debt the effect on the rest of the money in circulation would be more traumatic. that is the fundamental problem with FIAT money.”
Yes. This is why I think the gold bugs have it a bit wrong. The problem with fiat money is not so much that it has no intrinsic value, it’s that it is subject to huge increases or decreases based on the amount of debt out there. You can have a huge cascading effect based on really not that much going on. The proverbial butterfly flapping it’s wings in the rainforest leading to a hurricane.
Debt is a bad idea from a personal perspective. It’s also the key to changing the way the monetary system works.
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