Note to the MSM: We are not having a SUBPRIME PROBLEM. We are having a CREDIT PROBLEM as the smart people in the room and many on this blog point out.
SUBPRIME was just the start. Now we move into Alt-A, Option ARMs, Piggybacks, Prime loans, credit card loans, student loans, auto loans, commercial loans and every other credit instrument known to man.
Get those helicopters ready. And say goodbye to the American Dollar, thank you Alan Greenspan and Ben Bernanke.
December 23, 2007
Yum! It's Ben Bernanke Credit Crunch for Breakfast Again! Free helicopter included!
Subscribe to:
Post Comments (Atom)
16 comments:
2 pieces in today's Guardian:
Which way now when the world has shifted?
http://tinyurl.com/23m27p
The changing face of British cities by 2020
http://tinyurl.com/2z4sct
Consider this quote from the former when reading the latter:
"The credit crunch has also prompted more soul searching about our high-consumption lifestyle. Edward Bonham Carter, of fund manager Jupiter Asset Management says ... Not that he is advocating a hair-shirt backlash: 'The more redistributive you are, the less incentive people have for creating wealth. On the other hand, if you have a rampant capitalist state and do not redistribute it at all, you get rich ghettos and ultimately revolution."
My co-worker owes 140K in student loans and makes 20/hr, he is thinking of going back to school just to defer the loan, I told him the interests keeps accuring but he can't pay any of it back, so that is his way of hiding the problem.
'The more redistributive you are, the less incentive people have for creating wealth. On the other hand, if you have a rampant capitalist state and do not redistribute it at all, you get rich ghettos and ultimately revolution."
That's crap. I'm socialist because I think that people need to work together to get things done. Even if I know I am not getting everything back I still work hard because that's how I am.
If socialism is well applied, I will be getting back my hard work through a happier population, a good social net and better infrastructure.
People are so against socialism that they've lost their senses about it. There are industries that are better managed privately but we also need common goods that will never be well produced by private industry. Roads are just an example. The environment is another one. Let corporations decide where the roads go to and how clean things should be and you'll get mediocrity.
I don't want my hard earned money going to people who are getting "subsidized" by the Fed with low rates so they can get themselves a McMansion. That's been the American way of dealing with socialism: the ownership society. Socialisr policies passed through corporations! What a farce! It's no wonder Americans are so deadset against it, they're basking in bad social policies!
Americans have no clue what socialism is all about! And the irony is that the USA carries so much economic weight globally that it has made it very hard for other countries to think long term (a requirement for socialism) with all its short term ways of operating.
Socialist countries are having trouble in large part because of the US. And that's only one of the reasons why the US is hated in many countries.
Americans don't care about foreign opinion but they'll get their day of reckoning! Can't tell you when, but it will happen. Denial is dangerous, always has been.
The government is not going to let us sit on the fence, eating popcorn as this crash unfolds. No, they are devaluing our wealth so that you must get in the game to save your actual net worth. The dollar devaluation will prompt smart people to work harder, and be less conservative in order to keep up with the pace of inflation.
We are now being called on to help keep the system going as they have already tapped out the stupid ones.
There are NO SMART PEOPLE, only SURVIVORS...
Hey December 23, 2007 2:47 PM,
Beat it you socialist pig! Why don't you try working hard and earning it. Stop depending on others to pay your shit! Weasel!
My co-worker owes 140K in student loans and makes 20/hr, he is thinking of going back to school just to defer the loan, I told him the interests keeps accuring but he can't pay any of it back, so that is his way of hiding the problem.
As long as he takes 6 credit hours at a junior college, he doesn't have to pay. The interest only accrues on certain types of loans. I think the Stafford Loan does not accrue while the debtor is in school.
That's crap. I'm socialist because I think that people need to work together to get things done.
We saw how well that worked in the Soviet Union. You socialist morons can't have it both ways. You claim the socialist countries fail because America won't do business with them. Then you claim that American corporations are raping other countries. Either way, America is evil. The reality is that you socialists are hated around the world. You have been kicked out of every country you took over. The only way you can hold onto power is through force, like Kim Jong Il and Fidel Castro. That is why you nutjobs want to ban citizens from owning guns.
HAHAHAHA great pic.
My co-worker owes 140K in student loans and makes 20/hr, he is thinking of going back to school just to defer the loan,
I just cant imagine going into debt 140 large for a fraudulent education and then only to go out into a jobless economy.
More free trade, free markets, it's really working even if we arent.
Eveything's fine. The DOW was up 200 points on Friday. The Central Banks are freaking out for no reason at all.
"if you have a rampant capitalist state and do not redistribute it at all, you get rich ghettos and ultimately revolution."
That's not true at all. The French Revolution of 1789 came about because of heavy taxation by the feudal state on the newly emerging merchant "capitalist" class and farmers alike (both belonged to the Third Estate); the 1848 revolution came about because once again heavy taxation, this time to support a social welfare job program that literally had one work gang digging trenches in the ground, then another work gang filling it back up; the 1871 revolution (Paris Commune) was due to the heavy taxation to fund the Franco-Prussian War; the 1917 Bolshevik Revolution was born of a Russian state torn apart by the heavy tax and levy burden to wage WWI; the 1949 Communist take-over of China was the result of hyperinflation and corruption of the KMT government (as result of poor policies during WWII and civil war); wars in Vietnam and much of Africa were not so much revolutions as old fashioned tribal warfare, overthrowing a class of privileged foreign fuedal overlords that enjoyed government enforced monopolies (which had previously often been granted along racial lines). That just about covered all the big "revolutions" in the past couple hundred years. Not a single one of them was caused by free market capitalism.
Socialism doens't work for a very simple reason: its inability to caculate prices and hence setting priorities.
For example, one of the top items in a socialist agenda is universal heathcare. Sure, most people want healthcare, but it's an abstract concept. In concrete terms, if there were universal healthcare, how much will each individual save and set aside for medical emergencies? Big zippo! so how would doctors be paid? By the government, you say, but how is government going to caculate price for each procedure if there's no price tag for any procedure? Is a liver transplant more important or a facial reconstruction? How about a liver for a alcoholic vs. a facial for a rising news anchor who had an unfortunate accident while covering a natural disaster for us? How and where do you draw those lines? except for a market pricing mechanism? Without such price incentives, what's to make any youth go into medicine, vs. engineering, vs. a life time of couch-potatoing?
Now after that thought experiment, let's see some very concrete examples how competitive free market place is far superior to government management: Soviet Union poured enormous amount of money into computer science, yet what Soviet microprocessor have you used? No, the Russians are not stupid; Serge Brin is Russian, so are many of the word's smartest hackers. Okay, so you are sick of the Soviet counter-sample . . . how about Japan? they supposedly have better education system than we do, right? Their ministry of industry and technology was supposed to be run by sages that can spot future trends and allocate resource in a prescient manner, right? So, did they come up with Intel processors or the internet? Nope. It takes free market competition through the pricing mechnism to set priorities, bring forth products, which may initially be expensive and only avaiable to those who need the limited supply in the most urgent manner and willing to pay for it but over time become more and more affordable to everyone.
Some cheeky fellow should buy a bunch of General Mills' LIFE cereal in bulk and sell it (possibly on HP) in that very box.
Response to Anon @ 2:47 PM (the socialist)
My wife gets mad at me when I try to tell her what she is thinking...but that won't stop me from trying it here with you.
You are a socialist not because you think people need to work together to get things done, but because you think people need to be forced to work together to get things done that you think are important. At its heart, socialism is the belief that people have to be controlled in order to "do the right thing".
Do you not trust yourself to help your neighbor in a time of need? Or, do you not trust your neighbor to help you in a time of need? Why are you afraid of being responsible for yourself? Yes, the World can be a scary place, but the government will never be a replacement for your mom and dad.
Grow up, create a close bound with friends, stop looking for sameness in the World, and create respect by your individual actions. That would do the planet much better than any government mandate.
Post a Comment