Posted on 03/10/2008 6:15:48 PM PDT by shrinkermd
Your ignorance of how the money supply works hasn't changed in the last few months.
LOL!
LOL!
That’s fascinating. What does that have to do with the Fed’s temporary debt swap?
Oh really? Well, you are a fool because it also picks your pocket. All those folks who own Park Ave condo's, and fly private jets to vacation houses in the Virgin Islands. That was all bought with money derived through expansion of credit, and it is drawing on goods and services in the US economy, driving up the prices of goods and services that I would like to purchase with my salary. So yes, damned straight it picks my pocket.
Could you try writing that in English? Pretty please?
Park ave condos existed and were owned before you were born and have nothing to do with contemporary credit.
The rest is the same tired class warfare nonsense.
Everything anyone ever does in economic life changes the value of every commodity you possess, and plenty you don't possess. Is this a reason for no one else to be allowed to perform any economic action of any kind? It is not.
If one man lends to another to fund some new production, neither of them you, and the loan is sensible and makes economic sense and produces new value, then there is more value in the world after it than before, and none of that value is yours. Does that pick your pocket? It does not.
If two men agree to work together to make something, do so, and others like it and bid for it, and in doing so are drawn away from something else you work at or own or sell, does this pick your pocket? No, it does not. Buggy whip makers aren't robbed by Henry Ford. The value of their goods and services changes, but they had no prior right to those values, beyond their real usefulness to other men.
And you have the freedom to pick every commodity you want to hold or own, and to avoid any other. If you think one class of them is a bad deal, you needn't hold it, and you are not wronged in any way by someone else choosing to, even unwisely.
If some potential customer of yours goes to Vegas and bets on red and loses, and then can't buy something you offer, you have not been wronged by the house in Vegas, or by him. Because you had no prior right to the value of his goods. The bare potential that he might choose to do things that would benefit you more than what he did choose to do, is not an economic right that can be violated if that doesn't pan out.
You are not wronged in any way by modern financiers and their modern finance. Sometimes other free men will even manage to do stupid things that make everything harder for the whole society, because it is poorer for their mistakes than it would have been for more enlightened decisions. But that still isn't wronging you, because you have no prior right to other men always using their freedom wisely. It is their freedom, not yours, and they are not your slaves.
You need an attitude adjustment, stat. Also, you haven't got a conservative bone in your body and you are on the wrong site, thinking as you do.
Golly, I wish I had a time machine so I could go back and buy all my stocks at the bottom, and then a crystal ball so I could sell them at the top. By September of 2002, the market had 18 months to react to W's ignorant economic speeches and his equally ignorant economic policies. And by September of 2007, the facade is finally wearing out.
Now go back and figure the rates of return for the major indices from when W took office, January 20, 2001 until now. It's not pretty. There is a chance the markets could recover by the end of the year as people anticipate one of the worst economic presidents ever leaving office.
It's too bad for you that economic performance isn't measured by the price of oil, though I wouldn't be surprised if that's the way W does it.
“But we do not have rational men in command, we have whiners and blame games and socialists and enemies determined to destroy capitalism and sow all the political division they can.”
Excellent “to do” list. And for Prez we will get John McCain who knows little about economics. Great. Hope to heck he surrounds himself with good men, but I won’t hold my breath and turn blue.
“Last week, the Fed said it would lend banks $100 billion
Where does this come from exactly? The Chinese bond buyers?”
Actually I’m afraid they have started up the printing presses and are churning out the money, made-up money.
That's a nice red herring, but that's not what happens when the Fed creates credit. To put it simply, my committed capital loses value when they do that. My long term investment in productive capacity is swamped by the speculative leverage fueled by cheap credit. As a producer I might get lucky and get an LBO, but it is much more likely I will find all my inputs costing much more, long term capital costing much more or unavailable.
But he cut taxes when he was supposed to and between that and the loose Fed we got a bull market. Which you tried to pretend didn't happen, for some unfathomable reason - maybe your DU loyalties I suppose.
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