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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Skeeter Bug who wrote (87103)	12/18/2000 3:05:55 PM
From: Cogito	Read Replies (1) \| Respond to of 132070

Skeeter - Thanks for the well-reasoned response. You make some good points. However, to say that Clinton's attitudes are what lead to the overvaluation of the stock market seems like a stretch. As for the money supply and cost-of-debt issues, I think the President is the wrong place to look for blame. I haven't heard anyone, Republican, Democrat, President or Presidential candidate, come anywhere close to criticizing Greenspan and the Fed's policies. I don't expect W. to start mixing in on that score anytime soon. You opine that Clinton's "lack of a value system leadership led to the powers that be pulling the trigger with IMPUNITY AND AGAINST NO OPPOSITION." Considering that Republicans haven't exactly been hesitant to criticize Clinton on any number of points, why don't you rail against them for not loudly providing the opposition? I'd say greed is close to universal, and nobody has wanted to rock the boat. The biggest economic problem Americans have is that the vast majority of them don't understand that living on credit is expensive and just not wize. That applies to governments as well as individuals. I'd like to see Congress (because it's their job) do two things: 1 - Pay off the national debt. If it means not giving people a break on taxes in the short term, fine. Significant tax cuts can come later. Pay debt while you have surpluses. Don't assume surpluses will continue. 2 - Enact some legislation to help educate people about the real costs of credit card and other commercial debt. Perhaps that would do more good than trying to regulate card issuers. Obviously, though, something has to be done. The biggest problem I have with blaming Clinton for our current economic problems is that it does no good. It gives us a convenient scapegoat while doing nothing to actually deal with the situation. - Allen

To: Skeeter Bug who wrote (87103)	12/19/2000 12:08:59 AM
From: Hawkmoon	Read Replies (2) \| Respond to of 132070

1. finagling productivity numbers through hedonic pricing. As opposed to any other form of statistical finagling normally associated with the "dismal science"? 2. increasing money supply near double digit rates. Two major events/issues have clearly contributed to having money supply jacked up to such rates for limited periods of time, namely the LTCM/Asian Contagion event, and Y2K. But AG has been severely constricting money supply since January and jacking up rates. It's tantamount to having to punch the accelerator to avoid getting rear-ended, but then having to hit the brakes to bring yourself back down to your normal cruising speed. But I think AG has overdone the constriction and needs to send a clear signal tomorrow. 3. making debt so cheap as to EXPLODE debt. Huh?? What was the average interest rate back in the '50s and early '60s? federalreserve.gov And then compare it to US GNP, then and now: forecasts.org The real issue with regard to money supply growth is the quality of the loans that are being made and the value and liquidity of the collateral that is being provided. So since US GNP has grown so tremendously since the 1950s, I guess I would have to ask you exactly when this "credit bomb" was officially armed? Was it when the US went off the Gold Standard? Regards, Ron