Comments on: The New, New Normal http://www.ritholtz.com/blog/2009/06/the-new-new-normal/ Macro Perspective on the Capital Markets, Economy, Geopolitics, Technology, and Digital Media Sat, 21 Nov 2009 20:55:33 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: Economic analysis | Must Reads Monday, June 8, 2009 - Contrarian Stock Market Investing News - Featuring Bargain Stocks http://www.ritholtz.com/blog/2009/06/the-new-new-normal/comment-page-1/#comment-180730 Economic analysis | Must Reads Monday, June 8, 2009 - Contrarian Stock Market Investing News - Featuring Bargain Stocks Mon, 08 Jun 2009 21:30:21 +0000 http://www.ritholtz.com/blog/?p=28402#comment-180730 [...] The new, new normal Big Picture [...] [...] The new, new normal Big Picture [...]

]]> By: Luis_de_Agustin http://www.ritholtz.com/blog/2009/06/the-new-new-normal/comment-page-1/#comment-180350 Luis_de_Agustin Sun, 07 Jun 2009 21:30:33 +0000 http://www.ritholtz.com/blog/?p=28402#comment-180350 The federal government has saddled itself with vast new obligations that have already begun to compromise the ability to service its debt and borrow fresh funds. As time passes, federal debt auctions are likely to become increasingly difficult and disappointing, and the Fed’s power to keep long-term interest rates low is already dissolving. One symptom of the government’s steady march toward insolvency is the persistent rise in the price of gold, which has been re-approaching $1000 an ounce in recent weeks. The federal government did not get itself into this mess because it was insufficiently aggressive. It may be no exaggeration to say that the Paulson-Bernanke campaign forcing Congress to pass the original TARP legislation under the threat of a complete financial meltdown literally frightened the private economy into a recession. Now that the fear of meltdown has proven to be greatly exaggerated, the economy and markets are bouncing back. Washington has engaged in vigorous measures aimed mainly at relieving economic pain. But that has added to financial uncertainties rather than restoring predictability and transparency to the financial markets. Luis de Agustin The federal government has saddled itself with vast new obligations that have already begun to compromise the ability to service its debt and borrow fresh funds. As time passes, federal debt auctions are likely to become increasingly difficult and disappointing, and the Fed’s power to keep long-term interest rates low is already dissolving.

One symptom of the government’s steady march toward insolvency is the persistent rise in the price of gold, which has been re-approaching $1000 an ounce in recent weeks. The federal government did not get itself into this mess because it was insufficiently aggressive.

It may be no exaggeration to say that the Paulson-Bernanke campaign forcing Congress to pass the original TARP legislation under the threat of a complete financial meltdown literally frightened the private economy into a recession. Now that the fear of meltdown has proven to be greatly exaggerated, the economy and markets are bouncing back.

Washington has engaged in vigorous measures aimed mainly at relieving economic pain. But that has added to financial uncertainties rather than restoring predictability and transparency to the financial markets.

Luis de Agustin

]]> By: SWMOD52 http://www.ritholtz.com/blog/2009/06/the-new-new-normal/comment-page-1/#comment-180334 SWMOD52 Sun, 07 Jun 2009 20:37:52 +0000 http://www.ritholtz.com/blog/?p=28402#comment-180334 Another simplistic analysis of American health system. Health care in America cost more because that's what americans want (like bigger cars and bigger houses). To compare longevity of americans you must segment the population and compare by socio-economic strata. America has a much larger and diverse socio-ecomimic population. If you compared college graduates of Americans to the same in other countries I'm sure Americans would be the same if not better. We also value personal freedoms much more than the rest of the world. In america people are free to have bad health (or we are expected to take care of outselves and not rely on the government). A single payer system is always a loss of liberty. Not very american. Besides you can never fully end the private sector health because it would be unconsitutional. The best we can do in regards a single payer system is just expand government roll. Many Americans and employers will keep the private system because the can and it will be better quality. Another simplistic analysis of American health system. Health care in America cost more because that’s what americans want (like bigger cars and bigger houses). To compare longevity of americans you must segment the population and compare by socio-economic strata. America has a much larger and diverse socio-ecomimic population. If you compared college graduates of Americans to the same in other countries I’m sure Americans would be the same if not better. We also value personal freedoms much more than the rest of the world. In america people are free to have bad health (or we are expected to take care of outselves and not rely on the government). A single payer system is always a loss of liberty. Not very american. Besides you can never fully end the private sector health because it would be unconsitutional. The best we can do in regards a single payer system is just expand government roll. Many Americans and employers will keep the private system because the can and it will be better quality.

]]> By: Cursive http://www.ritholtz.com/blog/2009/06/the-new-new-normal/comment-page-1/#comment-180187 Cursive Sun, 07 Jun 2009 04:09:16 +0000 http://www.ritholtz.com/blog/?p=28402#comment-180187 I agree with the inebrieted party guest - Bill Gross, at the helm of PIMPCO, is "filthy" rich. I'm not resentful of Mr. Gross's wealth, I am resentful that he publicly begged and pleaded with the FR to buy Agency debt, of which he was a very large, if not the biggest, private holder. That qualifies him for the league of crooks of whom Balzac was speaking. I'm very dissapointed that anyone on this blog would use him as a credible source. Why don't you just quote Lloyd Blankfein next time? I agree with the inebrieted party guest – Bill Gross, at the helm of PIMPCO, is “filthy” rich. I’m not resentful of Mr. Gross’s wealth, I am resentful that he publicly begged and pleaded with the FR to buy Agency debt, of which he was a very large, if not the biggest, private holder. That qualifies him for the league of crooks of whom Balzac was speaking. I’m very dissapointed that anyone on this blog would use him as a credible source. Why don’t you just quote Lloyd Blankfein next time?

]]> By: impermanence http://www.ritholtz.com/blog/2009/06/the-new-new-normal/comment-page-1/#comment-180175 impermanence Sun, 07 Jun 2009 01:00:53 +0000 http://www.ritholtz.com/blog/?p=28402#comment-180175 The misconception in the health care reform options is in thinking that this is an either/or situation. Both models, private corporate health insurance and government sponsored NHC systems are near total failures. To show you just how inefficient (corrupt) the US private system is, governments around the world have been able to "out-preform" it by a country mile. The answer lies in returning the system back to patients and doctors, while making 'health' the priority of the system instead of disease. It is disease will gives the greatest return on capital investment, and is, therefore, the sticking point in the health care moving forward. There is no money in keeping people healthy in an economic world where capital is the alter at which leadership worships. Not everything, and in my opinion, very few things, can be solved by throwing money at it. It is only when people are willing to take responsibility for their own health, that true reform will take place. As far as the government and the private sector are concerned, fostering complete helplessness creates the perfect environment for separating as much labor power from people as is possible. And this is the name of the game, no matter the -ism. The misconception in the health care reform options is in thinking that this is an either/or situation. Both models, private corporate health insurance and government sponsored NHC systems are near total failures. To show you just how inefficient (corrupt) the US private system is, governments around the world have been able to “out-preform” it by a country mile.

The answer lies in returning the system back to patients and doctors, while making ‘health’ the priority of the system instead of disease. It is disease will gives the greatest return on capital investment, and is, therefore, the sticking point in the health care moving forward. There is no money in keeping people healthy in an economic world where capital is the alter at which leadership worships.

Not everything, and in my opinion, very few things, can be solved by throwing money at it. It is only when people are willing to take responsibility for their own health, that true reform will take place. As far as the government and the private sector are concerned, fostering complete helplessness creates the perfect environment for separating as much labor power from people as is possible. And this is the name of the game, no matter the -ism.

]]> By: Some Great Weekend Reading http://www.ritholtz.com/blog/2009/06/the-new-new-normal/comment-page-1/#comment-180159 Some Great Weekend Reading Sat, 06 Jun 2009 21:39:48 +0000 http://www.ritholtz.com/blog/?p=28402#comment-180159 [...] Must read 3: Mauldin: The new, new normal (Big Picture) [...] [...] Must read 3: Mauldin: The new, new normal (Big Picture) [...]

]]> By: ShortWoman» Blog Archive » Look Great, Feel Good About It http://www.ritholtz.com/blog/2009/06/the-new-new-normal/comment-page-1/#comment-180153 ShortWoman» Blog Archive » Look Great, Feel Good About It Sat, 06 Jun 2009 20:31:16 +0000 http://www.ritholtz.com/blog/?p=28402#comment-180153 [...] of anything labeled a “centrist compromise“, because it isn’t any such thing; an international perspective; be sure to scroll all the way down the charts to see how long people struggle with bills before [...] [...] of anything labeled a “centrist compromise“, because it isn’t any such thing; an international perspective; be sure to scroll all the way down the charts to see how long people struggle with bills before [...]

]]> By: Saturday Reading | Bear Market Investments http://www.ritholtz.com/blog/2009/06/the-new-new-normal/comment-page-1/#comment-180139 Saturday Reading | Bear Market Investments Sat, 06 Jun 2009 18:19:53 +0000 http://www.ritholtz.com/blog/?p=28402#comment-180139 [...] Must read 3: Mauldin: The new, new normal (Big Picture) [...] [...] Must read 3: Mauldin: The new, new normal (Big Picture) [...]

]]> By: holulu http://www.ritholtz.com/blog/2009/06/the-new-new-normal/comment-page-1/#comment-180129 holulu Sat, 06 Jun 2009 17:21:29 +0000 http://www.ritholtz.com/blog/?p=28402#comment-180129 This graph shows how clueless are Obama's economic advisor. http://michaelscomments.files.wordpress.com/2009/06/stimulus-vs-unemployment-may2.gif Truly, Are they clueless or just sinister people ? This graph shows how clueless are Obama’s economic advisor.

http://michaelscomments.files.wordpress.com/2009/06/stimulus-vs-unemployment-may2.gif

Truly, Are they clueless or just sinister people ?

]]> By: BG http://www.ritholtz.com/blog/2009/06/the-new-new-normal/comment-page-1/#comment-180059 BG Sat, 06 Jun 2009 14:19:50 +0000 http://www.ritholtz.com/blog/?p=28402#comment-180059 Below IMO is an excellent interview that is worth a look. Set aside about an hour to watch it. Pretty honest assessment. Sorry I couldn't get the link to paste. Look under the Editor's Video Picks. http://www.bloomberg.com Steinhardt Doesn't See Sustained, Major Gains for Stocks June 5 (Bloomberg) Below IMO is an excellent interview that is worth a look. Set aside about an hour to watch it. Pretty honest assessment. Sorry I couldn’t get the link to paste. Look under the Editor’s Video Picks.

http://www.bloomberg.com
Steinhardt Doesn’t See Sustained, Major Gains for Stocks June 5 (Bloomberg)

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