The Keynesian model used by central financial planners over the last half century calls for tight policies when the economy is hot and loose policies when it is cool. This is supposed to smooth out the boom/bust cycle. But what weve gotten is not counter-cyclical policies, but just a boatload of easy money. The feds were quick to cut rates and slow to raise them. In the US, for example, rates were either flat or falling 80% of the time since 1986. And fiscal policy the US federal government budget has always been stimulative. The feds are supposed to run surplus(*)es in the fat years and deficits in the lean years. But there hasnt been a dime of real surplus since the mid-70s. Nothing but deficits. This was not a good model. It was only occasionally counter-cyclical. Usually, it was pro-cyclical making the booms and busts worse, not smoothing them out. And now, thanks largely to all that stimulus delivered to the financial sector but not to the real economy theres a huge gap between what the economy actually produces in real wealth and the wealth that people think they have as measured by stock, bond and real estate prices. And the financial press reinforces the illusion. Look at the narra(*)tive of the crisis of 20082009, for example. It goes like this: the country suffered a financial crisis because of deregulation and greed. It is now recovering, thanks to the decisive action by the authorities. Ben Bernanke, Janet Yellen, and Mario Draghi are the heroes. The big banks are the villains. Dramatic tension is provided by occasional kangaroo courts that hit the bankers with big fines, and arguments over how fast the economy is recovering and when the Fed will raise rates. Good luck to you if you believe any of that. It is all nonsense. Nonsense on stilts. Nonsense on steroids. Nonsense with broadband. But in the financial press and the mainstream press you will hear nothing different. Nor will political leaders give you a hint that there might be something wrong. Because if you admit that todays sales, profits and asset prices are tricked up by excess credit, you also have to admit that the whole system is vulnerable to a disastrous correction, like 2008, but worse. That is the sort of financial crisis that no one wants to think about especially the people who are responsible for it. So you will hear nothing about it from the New York Times. Nor the Wall Street Journal. Nor from Congress or president Obama. Nor Janet Yellen. Nor Jamie Dimon. Nor Paul Krugman. Nor the banks.
Here's Krugman's reply to your hair-shirt rant: Crash-Test Dummies as Republican Candidates for President Have a nice read.
I read this in your link "Then theres Donald Trump, who likes to take an occasional break from his anti-immigrant diatribes to complain that China is taking advantage of Americas weak leadership" and stopped reading - this is so (*)(*)(*)(*)en predictable from the Left. No, Trump is not bashing immigrants, he's bashing Illegal Aliens. Know the difference?
Well actually he bashed all Mexicans legal or illegal. Here is his statement, "When Mexico sends its people, they’re not sending their best. They’re sending people that have lots of problems. They’re bringing drugs. They’re bringing crime. They’re rapists." You notice the is no statement about illegal or illegal. But of course if you believe that he is talking only about people the Mexican government sends then his statement only applies to legal immigrants since they are the only one's who need permission from the Mexican government to come to the US.
You are right. Actually he only bashed legal immigrants from Mexico. See above. Illegal don't get sent by Mexico.
Yes... they steer their dregs toward the border. They do not address their border... their policies "send" murdering rapist drug selling gang members north.
You're right. They're volunteers. And, yes, Trump would also like to get rid of U.S. citizens along with all of those brown people. Some people just can't read or listen.
That's a "Liberal" way of parsing what Trump said. Ha ha, you sound just like Hillary who, based on some offbeat remark now saying, Republicans do not like women Look, Mexico does send us a lot of gardeners, taco flippers, dishwashers and a whole bunch of gang members. And I'm happy Trump is calling things what they are. I'm (*)(*)(*)(*)ing sick or political correctness. About time we have someone with balls in the White House, and Hillary is not in that category - - - Updated - - -
stock futures are down for friday imf says there not going to help greece in any more bail outs 16654.77 -109.00
If parsing means interpreting what the Donald said using the standard conventions of the English language then you are correct. Suspect your interpretation involves more wishful thing than actual reading of what Trump said.
Not really interested in what Trump said or didnt say... The question is "will the Dow go down again" I think a drop down to 10000 -- 12000 between now and some time in 2016 is a definite possibility.
And why would you think that such a large drop is a definite possibility. Only major risks to our economy I can see would be a major war with Iran or a Republican president and congress that actually tried to balance the budget overnight. And you can counter even that by the fact that our market is drawing investment from all over the world based on it's perceived stability.
There are major financial concerns world wide. Stock markets of all countries will crumble in the near future, including the USA. There is way too much debt, and it cannot continue. Usually if you believe something cannot continue.....it wont... The Dow just cant keep going up and up.....this cannot continue... The media continue to tell everyone that everythings fine....theyre lying... Vern Gowdie has his finger on the pulse...do some googling....
US derivatives stand at a record 800 TRILLION right now. Global GDP is 70 TRILLION per year. There is no way to deleverage this monster other than a complete reset (crash) of the system........
And what brings such a "reset" to be? We are headed for the most devastating worldwide conflict yet known to mankind. It's what we do.
