Comments on: The Financial Bailouts: “See the Needle and the Damage Done” http://www.thefreemanonline.org/featured/the-financial-bailouts-%e2%80%9csee-the-needle-and-the-damage-done%e2%80%9d/ Ideas on Liberty Wed, 15 Feb 2012 04:40:14 +0000 hourly 1 http://wordpress.org/?v=3.3 By: Awaken Patriots! We are on a course headed towards disaster! | LibertyAwareness http://www.thefreemanonline.org/featured/the-financial-bailouts-%e2%80%9csee-the-needle-and-the-damage-done%e2%80%9d/comment-page-1/#comment-41563 Awaken Patriots! We are on a course headed towards disaster! | LibertyAwareness Sun, 27 Mar 2011 06:57:40 +0000 http://www.thefreemanonline.org/?p=8668#comment-41563 [...] with prices for credit will only exacerbate the problems that we are facing today.  The market needs the uncertainty created by government intervention to end in order for a speedy recovery to take [...] [...] with prices for credit will only exacerbate the problems that we are facing today.  The market needs the uncertainty created by government intervention to end in order for a speedy recovery to take [...]

]]> By: Not Convinced http://www.thefreemanonline.org/featured/the-financial-bailouts-%e2%80%9csee-the-needle-and-the-damage-done%e2%80%9d/comment-page-1/#comment-36307 Not Convinced Fri, 10 Dec 2010 09:27:35 +0000 http://www.thefreemanonline.org/?p=8668#comment-36307 The theoretical arguments for not bailing out seem persuasive, but I am told (without having seen the evidence) that in the book "This Time Its Different..." the authors compared the crises when bank bailouts did happen and those crises when bank bailouts did not happen and concluded that it was better to bailout. Therefore I am still open-minded until I see more evidence (eg I buy the book). The theoretical arguments for not bailing out seem persuasive, but I am told (without having seen the evidence) that in the book “This Time Its Different…” the authors compared the crises when bank bailouts did happen and those crises when bank bailouts did not happen and concluded that it was better to bailout. Therefore I am still open-minded until I see more evidence (eg I buy the book).

]]> By: TOP 10 WAYS THE OBAMA BUDGET WASTES TAXPAYER MONEY « American Government and Economics http://www.thefreemanonline.org/featured/the-financial-bailouts-%e2%80%9csee-the-needle-and-the-damage-done%e2%80%9d/comment-page-1/#comment-23214 TOP 10 WAYS THE OBAMA BUDGET WASTES TAXPAYER MONEY « American Government and Economics Mon, 15 Mar 2010 20:50:51 +0000 http://www.thefreemanonline.org/?p=8668#comment-23214 [...] with prices for credit will only exacerbate the problems that we are facing today.  The market needs the uncertainty created by government intervention to end in order for a speedy recovery to take [...] [...] with prices for credit will only exacerbate the problems that we are facing today.  The market needs the uncertainty created by government intervention to end in order for a speedy recovery to take [...]

]]> By: Legality of the AIG Bailout Questioned Inside Fed | The Freeman | Ideas On Liberty http://www.thefreemanonline.org/featured/the-financial-bailouts-%e2%80%9csee-the-needle-and-the-damage-done%e2%80%9d/comment-page-1/#comment-22100 Legality of the AIG Bailout Questioned Inside Fed | The Freeman | Ideas On Liberty Wed, 27 Jan 2010 13:03:14 +0000 http://www.thefreemanonline.org/?p=8668#comment-22100 [...] Timely Classic “The Financial Bailouts: ‘See the Needle and the Damage Done’” by Lawrence H. [...] [...] Timely Classic “The Financial Bailouts: ‘See the Needle and the Damage Done’” by Lawrence H. [...]

]]> By: The Independent Ben Bernanke - Hit & Run : Reason Magazine http://www.thefreemanonline.org/featured/the-financial-bailouts-%e2%80%9csee-the-needle-and-the-damage-done%e2%80%9d/comment-page-1/#comment-20013 The Independent Ben Bernanke - Hit & Run : Reason Magazine Thu, 03 Dec 2009 17:12:05 +0000 http://www.thefreemanonline.org/?p=8668#comment-20013 [...] my colleague and celebrated monetary historian Larry White wrote earlier this year, “The Fed’s new activities deserve to be called a bailout program because they seek to channel [...] [...] my colleague and celebrated monetary historian Larry White wrote earlier this year, “The Fed’s new activities deserve to be called a bailout program because they seek to channel [...]

]]> By: Bailout Overseer Warns of Surprise Price Tag | Foundation for Economic Education http://www.thefreemanonline.org/featured/the-financial-bailouts-%e2%80%9csee-the-needle-and-the-damage-done%e2%80%9d/comment-page-1/#comment-18329 Bailout Overseer Warns of Surprise Price Tag | Foundation for Economic Education Wed, 21 Oct 2009 12:02:36 +0000 http://www.thefreemanonline.org/?p=8668#comment-18329 [...] Timely Classic “The Financial Bailouts: ‘See the Needle and the Damage Done’” by Lawrence H. White Sheldon Richman is the editor of The Freeman and "In brief." He is a [...] [...] Timely Classic “The Financial Bailouts: ‘See the Needle and the Damage Done’” by Lawrence H. White Sheldon Richman is the editor of The Freeman and "In brief." He is a [...]

]]> By: Lawrence H. White http://www.thefreemanonline.org/featured/the-financial-bailouts-%e2%80%9csee-the-needle-and-the-damage-done%e2%80%9d/comment-page-1/#comment-4030 Lawrence H. White Mon, 09 Mar 2009 06:09:27 +0000 http://www.thefreemanonline.org/?p=8668#comment-4030 In response to jp: Traditionally the Fed bought Treasury securities with newly "printed" monetary liabilities to expand (assets up, liabilities up). It could easily sell the securities back to the market to shrink its monetary liabilities (assets down, liabilities down). Now its assets are mostly loans to troubled financial institutions. These are harder to contract. They can't be sold. The Fed has to wait for them to be paid back (and not re-extend them). But the borrowers might be able to repay (may need a re-extension) when the Fed wants to contract. In response to jp: Traditionally the Fed bought Treasury securities with newly “printed” monetary liabilities to expand (assets up, liabilities up). It could easily sell the securities back to the market to shrink its monetary liabilities (assets down, liabilities down). Now its assets are mostly loans to troubled financial institutions. These are harder to contract. They can’t be sold. The Fed has to wait for them to be paid back (and not re-extend them). But the borrowers might be able to repay (may need a re-extension) when the Fed wants to contract.

]]> By: bobby b http://www.thefreemanonline.org/featured/the-financial-bailouts-%e2%80%9csee-the-needle-and-the-damage-done%e2%80%9d/comment-page-1/#comment-3939 bobby b Sun, 08 Mar 2009 06:07:56 +0000 http://www.thefreemanonline.org/?p=8668#comment-3939 \" . . . the Fed . . . employed 495 full-time staff economists . . . engaged more than 120 leading academic economists . . . conducted some 30 conferences that brought 300-plus academics to the podium . . . published more than 230 articles . . . 74% of the articles on monetary policy published by US-based economists.\" - - - - - So, they\'ve been active proponents of providing stimulus for quite some time? \" . . . the Fed . . . employed 495 full-time staff economists . . . engaged more than 120 leading academic economists . . . conducted some 30 conferences that brought 300-plus academics to the podium . . . published more than 230 articles . . . 74% of the articles on monetary policy published by US-based economists.\"
– - – - -

So, they\’ve been active proponents of providing stimulus for quite some time?

]]> By: jp http://www.thefreemanonline.org/featured/the-financial-bailouts-%e2%80%9csee-the-needle-and-the-damage-done%e2%80%9d/comment-page-1/#comment-3846 jp Fri, 06 Mar 2009 17:25:05 +0000 http://www.thefreemanonline.org/?p=8668#comment-3846 \" The Fed has no clear exit strategy from its unprecedented credit expansion. It has too few Treasury securities left to sell in order to pull the credits back in, the traditional method for contracting bank reserves.\" I would love to here White go into more depth on the above. \" The Fed has no clear exit strategy from its unprecedented credit expansion. It has too few Treasury securities left to sell in order to pull the credits back in, the traditional method for contracting bank reserves.\"

I would love to here White go into more depth on the above.

]]> By: Roger McKinney http://www.thefreemanonline.org/featured/the-financial-bailouts-%e2%80%9csee-the-needle-and-the-damage-done%e2%80%9d/comment-page-1/#comment-3793 Roger McKinney Fri, 06 Mar 2009 02:28:23 +0000 http://www.thefreemanonline.org/?p=8668#comment-3793 I can't help but wonder in the future how much blaim Bernanke and Paulson will get for screaming fire in a crowded theater. B&P ran around screaming their heads off like teenage girls in a haunted house. They frightened the media so badly they were wetting their pants, and the media in turn did their best to frighten the public and convince everyone that the world was ending. All of this even though quite a few people, including the Minneapolis Fed, couldn't find a crisis in the data. Did the horror duo of B&P turn a minor crisis into an all out disaster? I can’t help but wonder in the future how much blaim Bernanke and Paulson will get for screaming fire in a crowded theater. B&P ran around screaming their heads off like teenage girls in a haunted house. They frightened the media so badly they were wetting their pants, and the media in turn did their best to frighten the public and convince everyone that the world was ending. All of this even though quite a few people, including the Minneapolis Fed, couldn’t find a crisis in the data. Did the horror duo of B&P turn a minor crisis into an all out disaster?

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