Stock Rollercoaster...
SEC emergency rule to curb short sales...
Fed chief details woes in markets, housing, jobs...
Bush, Bernanke try to calm economic storm...
'Global funding crisis'...
STRESSED OUT SUMMER
Posted on 07/15/2008 3:33:03 PM PDT by Ernest_at_the_Beach
NEW YORK -- "The era of big government is over."
So said President Bill Clinton more than 12 years ago in a statement that was never accurate. The government stayed big. And after the recent -- and justified -- interventions to prop up some big U.S. financial institutions, it's appropriate to say the era of government is now bigger than ever.
It's going to stay that way for a long while, regardless of who becomes the next president. Neither of the presumptive major candidates -- Barack Obama and John McCain -- is a traditional, hands-off economic conservative.
That's a good thing, because the option of letting the chips fall where they may won't be open to the next president. Oh sure, there will be good, long debates on taxes and the like, but the hand of government regulation will need to rest on markets and major financial institutions more heavily than it has in a while.
The next president could do a lot worse than having the current Federal Reserve chairman and Treasury secretary stay in place. They are broadly experienced professionals with cool heads.
Fed Chairman Ben Bernanke, of course, came into office talking about sticking to his knitting: monetary policy. No more Alan Greenspan-economic czar stuff. Nevertheless, he'll likely preside over a significant expansion of the Fed's regulatory responsibilities.
(Excerpt) Read more at djnewsplus.com ...
They are all Fabians through and through.
Above is from the Drudge Report....
discount window = bank subsidies = inflation tax.
Yeah, Slick Willie said “middle class tax cut”; so did Barack.
Slick Barry.
When asked how long his economic pump priming could continue, the rich gay Keynes said, “In the long run, we’re all dead.”
IOW, screw future generations! Let our grandkids hold the empty bag!
Well, the future generation is here, and the bag is indeed empty.
I believe Nixon was the first to say it. And W is a hundred times the Keynesian that Clinton was. Except for Reagan, and a few others, Republicans suck at economics.
Keynes was an upper class twit that had no sense of reality about him. He is a commie through and through.
What Bernanke, Wolfowitz and the whole bunch are is neo keynesians - they will do nothing when the economy is building up a bubble (you know... chain mail economy like US housing market) and then flood the market with money once the bubble bursts.
So far the theory - only this time they couldn’t flood efficiently because when they openend the gates they realized that the money levels in the markets where to high to be flooded.
Over years they ran the economy with M3 extension to satisfy Chineese money demand - when the economy cooled and some wars had to be paid they increased printing speed a notch - then chineese demand was satisfied.
Now all that’s going to help seems to be to become a socialistic system where nearly all of the housing market in official hands.
Congratulations.
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