Bozo lover?
Not really. I mean it was cool when I was 12 to see him live. My sister even got picked for the Bozo buckets. She made number 4, missed number 5.
Can’t figure out how I know?
I guess you're too smart for me.
Posted on 08/23/2009 3:37:35 PM PDT by 1rudeboy
We need to massively overhaul our system of taxation so it encourages personal savings and capital investment staying in the USA, not lost to the cash-only underground economy or lost to offshore financial centers located around the world. It is estimated that somewhere between US$14 and US$19 TRILLION in American-owned liquid assets are out of the US financial system for tax reduction reasons; change our tax laws and most of that money comes back, make many corporations financially whole again and providing a new liquidity base for business loans and lines of credit so necessary for economic recovery.
I think the run on the banks was brought about by the real estate collapse, which was the doing of Congress. If Congress had not funneled vast amounts of money into the housing industry, there would have been no bubble. Of course, some people blame the Fed for the bubble, but you’ve got to remember that the Fed’s responsibility is just to keep the money supply growing at a steady pace, not to choose winners and losers. Much of the nation’s money supply was being sucked into the real estate bubble due to Congressional policies that it had no control over, and the Fed felt compelled to increase the money supply faster in order to keep the rest of the economy from being starved of liquidity while all this was happening. They could have tried to selectively divert money away from the housing industry, but that would have drawn the ire of Congress, which was trying to funnel the money into the housing industry. The Fed considered that its role was to keep the economy liquid, and not to decide which sectors to put the money into. For that reason, the problem was not caused by the Fed, as such, but rather by Congress’s foolish decision to foster growth selectively in the housing industry.
http://www.freerepublic.com/focus/news/2322458/posts?page=12#12
I read several articles, starting maybe in December which located this run in September. Recently, my father found a C-SPAN clip which placed it on September 11. I think there are people who know who did it.
For reasons known only to them they think we're better off not knowing.
Who panicked? Why? I can see some people joining a stampede in progress, but who started it?
Okay smartguy, here’s your chance to teach me a lesson.
I pay my taxes to the IRS. My check gets cashed. Where does the money go?
Conversly, I receive my stimulus check. Where does that money come from?
I have been wondering reading your comments, thanks for finally stating truthfully that you are a troll and a Bozo lover. Can’t figure out how I know? Too bad, you gave yourself away in most of your comments, and one in particular. POS.
Excellent!
People who saw what happened to Lehman. Who remembered what happened to Bear. Who worried, what if I can't even get my "safe money" out of my money market account.
Why?
If my house and stock go down, they'll probably come back. If my safe money disappears, I'm screwed. Why risk it in a 1% money market fund, I'll put it in my checking account instead.
I can see some people joining a stampede in progress
Some of the bigger firms probably started to stampede, they didn't want to lose their money either.
but who started it?
Nobody, everybody. Who started pulling their money out of Bear that caused them to collapse? Who pulled their money out of Lehman that caused them to collapse? Who started selling their shares on October 19, 1987?
The US Treasury. They spend it on things like new jets for Congress and studies of penguin mating habits.
Conversly, I receive my stimulus check. Where does that money come from?
From the US Treasury. They borrow it from countries like China and Saudi Arabia. And people who buy savings bonds and money market funds.
Bozo lover?
Not really. I mean it was cool when I was 12 to see him live. My sister even got picked for the Bozo buckets. She made number 4, missed number 5.
Can’t figure out how I know?
I guess you're too smart for me.
Thanks for the suggestion but I already am a member of FairTaxNation.com.
Because this didn't occur in a vacuum.
This new monetary inflation is counteracting a massive credit contraction, which is occurring - and appears likely to continue to occur for some time - due to failing loans made by lenders and borrowers during the credit expansion. Without the Fed's new monetary inflation, prices would be falling even more than they are. Yes this would be painful, but some of the pain would be counteracted by falling prices for consumers because their dollars would buy more.
Housing prices, for one, would be lower and more affordable. The Fed has swapped dollars for crap loans on bank balance sheets to keep them solvent. Without this action there would be more foreclosures occurring. As a result, there would be an even greater supply of houses on the market, driving down prices.
Yes, the Fed has slowed the credit contraction, but at what cost? They've added moral hazard into the financial system. We now have a system where the "too bigs" can make risky loans and enjoy profits if they work out, but dollar holders take the losses if they don't. The administration's proposed fix - additional regulation and oversight of the "too bigs" - doesn't pass the smell test.
Of course the Fed has done and is doing much more than this. There are other recipients of the new money. Finding out exactly who all of the recipients are and letting the public know is the point of the bill.
I can almost agree with you, but while it is true that Congress directed the expansion of the housing bubble, the SOURCE of the bubble is the monetary expansion by the Fed. It's as if Congress blew the bubble, but the Fed supplied the air.
If you think about it, the Fed is a primary cause - perhaps THE primary cause - of the size of the federal government. Without the Fed the federal government could not borrow to the extent it has, and without the borrowed money, the federal government would not be as intrusive in our lives as it is. The Fed is their engine.
A fact that is seldom repeated or emphasized, but that I have posted on FR a couple of times, has to do with the SEC rules put in place in September 2008, and similar accompanying rules in the UK and elsewhere, for hedge funds to disclose their short positions and to reveal the names of their client investors.
http://www.longshorttrader.com/2008/09/sec-to-require-hedge-funds-to-disclose.html
There was also a temporary SEC ban on short sale of nearly one thousand selected stocks making it difficult for hedge funds to unwind their short positions. This caused tremendous volatiliy to the capital markets.
http://www.feg.com/research/hedge_funds.php?nID=93&issue=2008_10
Hedge Funds were before September 2008 a type of Swiss Banking system on American soil. The rules by the SEC to remove the shroud arround hedge funds caused a collapse in parent banks such as Bear Stearns and then Lehman because they were heavily leveraged and because they were doing the dirty work of the parants such as selling credit default swaps and mortgage backed securities.
Good! Need to say it!
Bear had been the previous March. Seems a little late to panic, IMO.
Thank you. Now, how does the Fed fit into this?
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