Comments on: The Great Repression Continues http://www.ritholtz.com/blog/2009/03/the-great-repression-continues/ Macro Perspective on the Capital Markets, Economy, Geopolitics, Technology, and Digital Media Tue, 14 Feb 2012 22:30:38 +0000 hourly 1 http://wordpress.org/?v=3.0.5 By: JohnJay60 http://www.ritholtz.com/blog/2009/03/the-great-repression-continues/comment-page-1/#comment-152083 JohnJay60 Mon, 09 Mar 2009 21:34:43 +0000 http://www.ritholtz.com/blog/?p=20759#comment-152083 The key point of Keynesian economics is to smooth out peaks and valleys. Had we continued with Clinton-Gore balanced budget policies, we'd be in excellent position to borrow now. The failure of Keynesian economics is when politicians accept the 'borrow when times are bad' philosophy but then also 'borrow when times are good' and refuse to run a surplus in the better years. The moaning and complaining about Clinton's temporary surplus ("it's your money, not the government's") was an amazing display of short-sightedness among conservatives. When did they expect to pay back the deficits run by Reagan-Bush? If we accept the need for deficit-funded tax cuts or deficit-funded stimulus and wars, we must accept the need for periodic budget surpluses to balance this out. The key point of Keynesian economics is to smooth out peaks and valleys. Had we continued with Clinton-Gore balanced budget policies, we’d be in excellent position to borrow now. The failure of Keynesian economics is when politicians accept the ‘borrow when times are bad’ philosophy but then also ‘borrow when times are good’ and refuse to run a surplus in the better years.

The moaning and complaining about Clinton’s temporary surplus (“it’s your money, not the government’s”) was an amazing display of short-sightedness among conservatives. When did they expect to pay back the deficits run by Reagan-Bush? If we accept the need for deficit-funded tax cuts or deficit-funded stimulus and wars, we must accept the need for periodic budget surpluses to balance this out.

]]> By: dunnage http://www.ritholtz.com/blog/2009/03/the-great-repression-continues/comment-page-1/#comment-150547 dunnage Thu, 05 Mar 2009 06:44:23 +0000 http://www.ritholtz.com/blog/?p=20759#comment-150547 Keynesian Prescription has nothing to do with the problem. Actually a real stimulus would be nice, and maybe helpful. If the money dumped into I. Banks had been given in cash to each and all - homeless, unemployed, employed, illegal, tourists, Gates and the Oracle - we'd know what a stimulus was and could do. 1. Restructure every damn Investment Bank. We know they plumb the depths of insolvency on the books; imagine the unregulated morass. 2. Principle reduction or extended mortgage chaos. Should have been done a couple of years ago. Here we have commercial banks. Commercial banks actually do banking. Compensate the Commercial Banks for the reduction to protect their reserves, or let them go to hell and give their deposits to Chase. Keynesian Prescription has nothing to do with the problem. Actually a real stimulus would be nice, and maybe helpful. If the money dumped into I. Banks had been given in cash to each and all – homeless, unemployed, employed, illegal, tourists, Gates and the Oracle – we’d know what a stimulus was and could do.

1. Restructure every damn Investment Bank. We know they plumb the depths of insolvency on the books; imagine the unregulated morass.

2. Principle reduction or extended mortgage chaos. Should have been done a couple of years ago. Here we have commercial banks. Commercial banks actually do banking. Compensate the Commercial Banks for the reduction to protect their reserves, or let them go to hell and give their deposits to Chase.

]]> By: leftback http://www.ritholtz.com/blog/2009/03/the-great-repression-continues/comment-page-1/#comment-150410 leftback Wed, 04 Mar 2009 22:12:04 +0000 http://www.ritholtz.com/blog/?p=20759#comment-150410 Niall Ferguson's PBS special was superbly lucid. TV is great at doing ex post facto reviews, not very good at letting people know about black swans (or even bloody obvious brown ducks). But I digress.. Interesting turn-around in GE and in JNK intra-day today. Any ideas on what might have caused these reversals? I assume that concerns about GE credit rating have been dragging a number of bonds down this week. Niall Ferguson’s PBS special was superbly lucid. TV is great at doing ex post facto reviews, not very good at letting people know about black swans (or even bloody obvious brown ducks). But I digress..

Interesting turn-around in GE and in JNK intra-day today. Any ideas on what might have caused these reversals? I assume that concerns about GE credit rating have been dragging a number of bonds down this week.

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