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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: PKRBKR who wrote (774969)	3/14/2014 5:58:39 PM
From: Steve Lokness	Read Replies (2) \| Respond to of 1576163

<<<<< what is wrong with cheap money for those that qualify? >>>> Good question. There is no free lunch. That there is nothing wrong with cheap money is the exact mistake that Greenspan made. .............It distorts and rewards poor investment. The Austrian School that Mindmeld mentioned (Mises) discusses this in length. Way too complicated to go into on a chat board but reading some of economic theory can be helpful. I think Austrians were almost alone in telling us that the money policy was creating a bubble. No matter what you think of Austrian thought, can't take that away from them. BTW, while I believe Austrians have a lot of it right, I think they - just as keynesian thinking does - hasn't adapted to a world in which their thinking no longer fits well. A global economy for instance. It's just different now, but how those differences all fit together takes a smarter person than I am. Somehow this has to explain why we haven't seen more of inflation. I wish someone could explain that to me.

To: PKRBKR who wrote (774969)	3/14/2014 7:32:27 PM
From: John Vosilla	Respond to of 1576163

what is wrong with cheap money for those that qualify The value of assets get priced artificially high creating more imbalances and even more debt for the latest entrants into the game of keeping up with the Jones's. You've got massive housing bubbles going on all over the world yet again just like 2005-06 and seems this won't end till the bubble spreads everywhere in a couple more years.. As to Wall Street it is much easier to make the numbers work on ten year discounted cash flow numbers with the ten year treasury far below where it should be creating yet more imbalances and malinvestment into projects that should not have taken place at expanded multiples to cash flow, more leveraged buyouts and mergers and layoffs squeezing the workers even more from every possible angle the end game. Has become all a shell game under both Bush and Obama rewarding the investor class as no one really addressed growing from the middle out anymore stuff that worked best under Eisenhower and Clinton, periods of low inflation, no wars, affordable real estate and balanced budgets.. Trickle down Reagan style works only after a prolonged period (i'm talking 30+ years) of high taxes and a more balanced income distribution starting with FDR during the big one. We are so far from that point today it ain't even funny..