Comments on: Boom and Bust: Crisis and Response http://www.thefreemanonline.org/headline/boom-and-bust-crisis-and-response/ Ideas on Liberty Wed, 15 Feb 2012 02:51:35 +0000 hourly 1 http://wordpress.org/?v=3.3 By: The Mandated Health Insurance Outrage | The Freeman | Ideas On Liberty http://www.thefreemanonline.org/headline/boom-and-bust-crisis-and-response/comment-page-1/#comment-22804 The Mandated Health Insurance Outrage | The Freeman | Ideas On Liberty Thu, 25 Feb 2010 10:13:16 +0000 http://www.thefreemanonline.org/?p=13930#comment-22804 [...] and many people still without jobs, the Federal Reserve is getting a closer look than ever before. Gerald P. O’Driscoll, Jr., examines the Fed’s conduct since the bust and doesn’t like what he [...] [...] and many people still without jobs, the Federal Reserve is getting a closer look than ever before. Gerald P. O’Driscoll, Jr., examines the Fed’s conduct since the bust and doesn’t like what he [...]

]]> By: The Arthurian http://www.thefreemanonline.org/headline/boom-and-bust-crisis-and-response/comment-page-1/#comment-19425 The Arthurian Sat, 28 Nov 2009 14:04:16 +0000 http://www.thefreemanonline.org/?p=13930#comment-19425 The weak link of your statement, to me: "In October the unemployment rate exceeded 10 percent. A broader measure of unemployment exceeded 17 percent.... Double-digit unemployment rates and double-digit wage cuts are depression statistics." Use of the "broader measure" is not allowed, unless you've been using it for some time <i>before</i> the crisis hit. Maybe you have, I don't know. But I see too much of it now. I saw none of it before. An interesting article nonetheless. The weak link of your statement, to me: “In October the unemployment rate exceeded 10 percent. A broader measure of unemployment exceeded 17 percent…. Double-digit unemployment rates and double-digit wage cuts are depression statistics.”

Use of the “broader measure” is not allowed, unless you’ve been using it for some time before the crisis hit. Maybe you have, I don’t know. But I see too much of it now. I saw none of it before.

An interesting article nonetheless.

]]> By: Jacob Steelman http://www.thefreemanonline.org/headline/boom-and-bust-crisis-and-response/comment-page-1/#comment-19353 Jacob Steelman Tue, 24 Nov 2009 04:13:59 +0000 http://www.thefreemanonline.org/?p=13930#comment-19353 Mr Bernanke and the ruling elite are opposed to allowing the correction to take place with the resulting deflation in over-valued assets and commodities caused by the Fed credit expansion under the Greenspan regime at the Fed. Fiat inflation by the Fed created a false signal to the market that consumers' consumption and savings ratio indicated an increase in savings (deferred consumption). In fact the ratio had not changed at all and when the market realized this capital projects anticipating future demand were no longer an attractive investment but in fact became uneconomic. Profitable companies who made bad investment decisions became under stress and soon experienced insolvency. In August 2007 overvalued assets, commodities and currencies fell dramatically. Immediately the Fed stepped in to stop the downward spiral. Why? The Fed is the manager of the banking cartel. The value of the bankers' collateral securing their loans began to rapidly fall. Soon those financial institutions who were overexposed to such events would have to shut their doors and a bank run would start thereby eliminating many banks. To prevent this from happening and to keep these inefficient banks afloat the Fed stepped in to stop the drop in collateral values and thus prevent the drop in prices that would flow through to the consumer. What consumers need in a recession is lower prices not higher prices. What the Fed did in cooperation with the Bush/Obama administrations was to interfere with the natural market correction and prevent prices dropping to levels favored by the market. The ruling elite, who for years have favored and made money from the inflation of the Fed at the expense of consumers and taxpayers, protected themselves at the expense of the consumers and taxpayers. Mr Bernanke and the ruling elite are opposed to allowing the correction to take place with the resulting deflation in over-valued assets and commodities caused by the Fed credit expansion under the Greenspan regime at the Fed. Fiat inflation by the Fed created a false signal to the market that consumers’ consumption and savings ratio indicated an increase in savings (deferred consumption). In fact the ratio had not changed at all and when the market realized this capital projects anticipating future demand were no longer an attractive investment but in fact became uneconomic. Profitable companies who made bad investment decisions became under stress and soon experienced insolvency. In August 2007 overvalued assets, commodities and currencies fell dramatically. Immediately the Fed stepped in to stop the downward spiral. Why? The Fed is the manager of the banking cartel. The value of the bankers’ collateral securing their loans began to rapidly fall. Soon those financial institutions who were overexposed to such events would have to shut their doors and a bank run would start thereby eliminating many banks. To prevent this from happening and to keep these inefficient banks afloat the Fed stepped in to stop the drop in collateral values and thus prevent the drop in prices that would flow through to the consumer. What consumers need in a recession is lower prices not higher prices. What the Fed did in cooperation with the Bush/Obama administrations was to interfere with the natural market correction and prevent prices dropping to levels favored by the market. The ruling elite, who for years have favored and made money from the inflation of the Fed at the expense of consumers and taxpayers, protected themselves at the expense of the consumers and taxpayers.

]]> By: Louie in Seattle http://www.thefreemanonline.org/headline/boom-and-bust-crisis-and-response/comment-page-1/#comment-19348 Louie in Seattle Mon, 23 Nov 2009 21:08:22 +0000 http://www.thefreemanonline.org/?p=13930#comment-19348 The bank bailout is the wrong target in trying to restart the economy. The government should reduce the taxes of businesses by an amount equal to the expense of hiring the unemployed, e.g. re-hiring the recently laid off. That would increase purchasing, tax revenue, and lower home foreclosures. The bank bailout is the wrong target in trying to restart the economy. The government should reduce the taxes of businesses by an amount equal to the expense of hiring the unemployed, e.g. re-hiring the recently laid off.

That would increase purchasing, tax revenue, and lower home foreclosures.

]]> By: Recomendaciones « intelib http://www.thefreemanonline.org/headline/boom-and-bust-crisis-and-response/comment-page-1/#comment-19345 Recomendaciones « intelib Mon, 23 Nov 2009 19:05:38 +0000 http://www.thefreemanonline.org/?p=13930#comment-19345 [...] Boom and Bust: Crisis and Response. The Fed under new scrutiny, by Gerald P. O’Driscoll Jr. [...] [...] Boom and Bust: Crisis and Response. The Fed under new scrutiny, by Gerald P. O’Driscoll Jr. [...]

]]> By: Boom and Bust: Crisis and Response | The Freeman | Ideas On Liberty « Creative Evolution http://www.thefreemanonline.org/headline/boom-and-bust-crisis-and-response/comment-page-1/#comment-19341 Boom and Bust: Crisis and Response | The Freeman | Ideas On Liberty « Creative Evolution Mon, 23 Nov 2009 14:29:49 +0000 http://www.thefreemanonline.org/?p=13930#comment-19341 [...] via Boom and Bust: Crisis and Response | The Freeman | Ideas On Liberty. [...] [...] via Boom and Bust: Crisis and Response | The Freeman | Ideas On Liberty. [...]

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