Posted on 01/29/2015 5:20:04 PM PST by logi_cal869
It might be hard to imagine President Ronald Reagan agreeing with President Barack Obama's take on wealth inequality. But Reagan's first director of the Office of Management and Budget, David Stockman, says that the disparity in household wealth is a major problem that ought to be addressed. He just has very different ideas about how to deal with it. (snip)
But Stockman says blame lays not with the tax code (indeed, he pioneered a trickle-down approach to taxes under Reagan) but with the Fed.
Obama "is talking about a symptom, but he's clueless as to the cause. The cause is not capitalism. The cause is not some entrepreneur out there trying to invent something and improve the performance of his business. The problem is in the Eccles building [home to the main office of the Fed] and in the 12 people sitting there and thinking that interest rates are some magic elixir that'll cause this very troubled and difficult economy to revive," Stockman said. (snip)
"We've had two huge bubbles that collapsed already in this century," he said. "When this third bubble collapses—and surely it will—I believe that will be the day of reckoning. The credibility of all this central-bank-dominated, Wall-Street-coddling policy will be totally repudiated, and maybe then we can clean the slate and start over."
(Excerpt) Read more at cnbc.com ...
Stockman has been a bit of a kook for a while.
Mod:
I goofed. Author of article is Alex Rosenberg, not David Stockman.
(20 lashes)
I was never a big fan of David Stockman, but over the last few years I’ve learned to read every word he writes and listen to everything he says. He may not be 100% correct, but he sure knows his way around Federal monetary policy and its impact on economic conditions in the U.S.
Just an observation:
I’ve noticed that everyone that points to the Fed as the cause of the phantom economic crisis that most in this country have their heads in the sand about...end up being labeled some slur and henceforth discredited.
I find that very interesting...
I am sure we will find Utopia someday. Meanwhile, blame it on Reagan.
Obama’s policies have made income inequality MUCH WORSE!
I think Bill Gates should give each American a million dollars. You know, just to assuage his white guilt.
The problem is the Buffets, Gateses, cronyism, fascism and socialism...communism and the wimps like McConnell...McCain...Boehner...Cantor...who take part in it and live in the darned beltway and don’t think $18trillion won’t kill off our country. They truly should all be hanged for treason.
This is the problem with excerpts and not reading articles. I didn’t write the headline (which is crappy, but pasted as-is for searching).
The article is nothing about blaming Reagan.
More to it than that. Everyone working in real estate is complicit. That ponzi scheme is ratcheting up all over again.
Speaking of ‘ill-gotten gains’, I hate to be the only one to point it out but everyone that profited off of home equity also took part in the ‘ill-gotten gains’. Free $$ off of inflated illusionary market equity.
The whole system is ripe for collapse. This cannot continue unabated.
Yes...other treasonous turns do exist in the other two branches. I’d love to see them in Siberia.
Maybe so, but what is in this piece isn’t entirely kooky. The headline isn’t very accurate. Stockman is saying that the top is benefiting under Obama, but Main Street isn’t. That’s not wrong.
IMHO Stockman is 100% correct about the Federal Reserve and the massive (and usually unconsidered) effects its debt creation and fiat currency printing is having on the the economy - and society.
Sure it does. It equates Reagan to Obama.
It might be hard to imagine President Ronald Reagan agreeing with President Barack Obama's take on wealth inequality
It was a lousy attempt by the author.
He failed, imho.
That's exactly right. There was a recent business leadership meeting in my area a few months ago, and one of the subjects they discussed was the issue of unaffordable housing. I pointed out that some people absolutely love the idea of home prices that are "unaffordable" for most buyers: the ones who are selling their homes at these "unaffordable" prices.
We could even bring in a real head of state for the much lower pay of 527427.48 shekels per year ($134,000) and replace our current one.
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