Comments on: Four Questions about the Financial Crisis http://www.ritholtz.com/blog/2009/04/four-questions-about-the-financial-crisis/ Macro Perspective on the Capital Markets, Economy, Geopolitics, Technology, and Digital Media Tue, 14 Feb 2012 23:28:32 +0000 hourly 1 http://wordpress.org/?v=3.0.5 By: tagyoureit http://www.ritholtz.com/blog/2009/04/four-questions-about-the-financial-crisis/comment-page-1/#comment-162319 tagyoureit Wed, 15 Apr 2009 15:07:26 +0000 http://www.ritholtz.com/blog/?p=23685#comment-162319 All the yeast was used up levening the last bubble. We'll all be eating matzo for while. Pass the butter please! The party is over when we run out of wine. All the yeast was used up levening the last bubble. We’ll all be eating matzo for while.

Pass the butter please!

The party is over when we run out of wine.

]]> By: Mark E Hoffer http://www.ritholtz.com/blog/2009/04/four-questions-about-the-financial-crisis/comment-page-1/#comment-162274 Mark E Hoffer Wed, 15 Apr 2009 09:20:50 +0000 http://www.ritholtz.com/blog/?p=23685#comment-162274 Ben Bernanke might do well to read: http://www.debtdeflation.com/blogs/2009/01/31/therovingcavaliersofcredit/ “His observations on the financial crisis of 1857 still ring true today: “A high rate of interest can also indicate, as it did in 1857, that the country is undermined by the roving cavaliers of credit who can afford to pay a high interest because they pay it out of other people’s pockets (whereby, however, they help to determine the rate of interest for all), and meanwhile they live in grand style on anticipated profits. Simultaneously, precisely this can incidentally provide a very profitable business for manufacturers and others. Returns become wholly deceptive as a result of the loan system…”[1]…” ~~ the Keynes v. Friedman dichotomy is as False as the purported schism between (D)s and (R)s. Human Action is the, so-called, 'lifeblood' of any Economy worthy of the nomenclature. Ben Bernanke might do well to read:

http://www.debtdeflation.com/blogs/2009/01/31/therovingcavaliersofcredit/

“His observations on the financial crisis of 1857 still ring true today:

“A high rate of interest can also indicate, as it did in 1857, that the country is undermined by the roving cavaliers of credit who can afford to pay a high interest because they pay it out of other people’s pockets (whereby, however, they help to determine the rate of interest for all), and meanwhile they live in grand style on anticipated profits.

Simultaneously, precisely this can incidentally provide a very profitable business for manufacturers and others. Returns become wholly deceptive as a result of the loan system…”[1]…”
~~
the Keynes v. Friedman dichotomy is as False as the purported schism between (D)s and (R)s.

Human Action is the, so-called, ‘lifeblood’ of any Economy worthy of the nomenclature.

]]> By: Gregman2 http://www.ritholtz.com/blog/2009/04/four-questions-about-the-financial-crisis/comment-page-1/#comment-162234 Gregman2 Tue, 14 Apr 2009 23:04:19 +0000 http://www.ritholtz.com/blog/?p=23685#comment-162234 He says, "credit is the lifeblood..." As most small business people know, spending (aka sales...demand) is the true life blood. With a purchase order, much can be gotten, but without it very little can happen. He says, “credit is the lifeblood…” As most small business people know, spending (aka sales…demand) is the true life blood. With a purchase order, much can be gotten, but without it very little can happen.

]]> By: Simon http://www.ritholtz.com/blog/2009/04/four-questions-about-the-financial-crisis/comment-page-1/#comment-162217 Simon Tue, 14 Apr 2009 21:58:53 +0000 http://www.ritholtz.com/blog/?p=23685#comment-162217 I think it's a good speech and a good summary. I like the way AIG's bailout is emphasized as the least bad of terrible options. I do think that it is extremely important that the origin of the problem, the FED's dual mandate of financial stability and full employment, is carefully explained and the term savings glut is lost. The big BD's must be broken up. Ben knows it, everyone now knows it. It's got to happen. The best way forward for international economic stability and transparency is the swift adoption of an international reserve currency such as the modification and enhancement of the IMF's SDR might provide. Governor Zhou is providing forward looking leadership in this respect. I think it’s a good speech and a good summary. I like the way AIG’s bailout is emphasized as the least bad of terrible options.

I do think that it is extremely important that the origin of the problem, the FED’s dual mandate of financial stability and full employment, is carefully explained and the term savings glut is lost.

The big BD’s must be broken up. Ben knows it, everyone now knows it. It’s got to happen.

The best way forward for international economic stability and transparency is the swift adoption of an international reserve currency such as the modification and enhancement of the IMF’s SDR might provide. Governor Zhou is providing forward looking leadership in this respect.

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