Spending Didn't Work? Let's Spend More
Harry Truman said it best; there’s no such thing as the future, only history that hasn’t happened yet. Thanks Harry. Let’s take a stroll down memory lane, shall we?
March 28th, 2007-”at this juncture…the impact on the broader economy and financial markets of the problems in the subprime markets seems likely contained.”
October 15th, 2007-”It is not the responsibility of the Federal Reserve-nor would it be appropriate-to protect lenders, and investors from the consequences of their financial decisions.”
June 9th, 2008-”Despite a recent spike in the nation’s unemployment rate, the danger that the economy has fallen into a ’substantial downturn’ appears to have waned.”
July 16th, 2008-”[Freddie and Fannie]…will make it through the storm.” “[are]…in no danger of failing.”,”…adequately capitalized.”
September 8th, 2008-Fannie and Freddie nationalized.
All quotes above from Ben Bernanke as documented in “AFTERSHOCK” second edition.
Today Big Ben will speak to congress. This column is being written before Ben speaks, however based upon Ben’s record the outcome is predictable. Just as with Obama you can usually count on whatever they say the opposite will occur.
ZeroHedge’s Tyler Durden has a way with words and says it much better than I: Now that stocks are back to reflecting nothing more than expectations of how many times the Chairsatan dilutes the existing monetary base in a carbon copy replica of not only 2011 but also 2010… and 2009 (because contrary to what purists may believe, the only way to inflate away unsustainable debt in a growth-free economy is by destroying the currency), and manic pattern chasers have crawled out of their holes proclaiming the death of the bear market after a two day bounce, what is happening in the actual economy, no longer reflected by the market, has once again been pulled back to the backburner. Which is sad, because while ever fewer people reap the benefits of artificial, centrally-planned S&P rallies, the rest of the population suffers, and what is worse: hope for a quiet, middle-class life is now an endangered species.
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 Fritz Pfister Fritz began his Real Estate career in 1987 and has been with RE/MAX since 1989.
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Michael1364 Wrote: 1 hour ago (1:04 PM)
Bernake is such a loser.
Only in the govt sector could someone so clueless be paid so well for so many years with absolutely no idea of what he is supposed to do.
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Topeka Wrote: 2 hours ago (11:38 AM)
When the Golden Goose Slayers are finished... what then?
Stagflation
- b/c there's no way the Connected will be without Money
- and there's no way We the People can get the Money (excluding the Left's Special Interest Group’s who collect govt checks - whom I refuse to count as part of us...)
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Topeka Wrote: 2 hours ago (11:37 AM)
Fritz,
good points...
----
... how so much worse it would seem if you were not in a protected industry...
The "Great Depression" never ended in thousands of counties across America, and But For Ronald Reagan, more than half the industries in the nation would have spent the last few decades in Round 2.
Meanwhile - back at the industrial park - many industries have done Round 2, 3, and even 4.
Not "creative destruction" by lower cost and superior quality in a semi-"free market"
- but Real Creative Destruction by Govt led Auto De Fa...
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Topeka Wrote: 2 hours ago (11:28 AM)
jvan,
good catch
BTO: youtube.com
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RJBJr Wrote: 6 hours ago (7:42 AM)
Problem is the stimulate are trying to pump up a service economy. A service economy produces no wealth. Pouring more money into that hole just makes the hole deeper and the hole will eventually collapse. Don't spend any more money! Allow the productive, wealth- creating, sector to grow and the service industries to shrink. A better capitalist system that rewards workers for ideas and productivity instead of hours spent on the job is a far more effective stimulus.
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RJBJr Wrote: 6 hours ago (7:48 AM)
I meant STIMULAE. This IPAD is difficult to type on.
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jvan horn Wrote: 8 hours ago (5:57 AM)
A fine article, but the song was from Bachman Turner Overdrive, not the Guess Who.
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Dan107 Wrote: 9 hours ago (4:29 AM)
Plan A didn't work. Let's go to Plan B which is a clone of Plan A. That didn't work. Darn! Let's go to Plan C which is a carbon copy of Plan B which is a clone of Plan A. That didn't work. Darn, again! Let's go to....
Do you expect anything else from a one trick pony?
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