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Metalworking (rec.crafts.metalworking) Discuss various aspects of working with metal, such as machining, welding, metal joining, screwing, casting, hardening/tempering, blacksmithing/forging, spinning and hammer work, sheet metal work. |
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#1
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Hey, Bernanke: Just say no to banks!
On Tue, 25 Mar 2008 19:47:09 -0600, F. George McDuffee
wrote: The question is, can we go back and sue Alan Greenspan for gross monetary negligence and financial malpractice? Sue for what? Have you read Greenspans book Age of Turbulence ? Not a page turner by any means but it does have some interesting insights into the current *perfect storm* . Case in point . The Fed under AG raised interest rates 04-06 which should have acted as a brake on homebuilding but didn't. It was China pumping lots of $$ into our economy that overrode it.. I agreee with Hank Paulson today when he stated that it's a different world out there and an economic regulatory overhaul is needed. Major understatement..... The best part of the book what when he went into how Bush pushed the tax cut at a time with little or no budget deficits and increased spending against the advise of AG....We could have by now reduced the federal deficit to near zero if Clintons economic policys had been continued...911 not withstanding ED Unka' George [George McDuffee] ------------------------------------------- |
#2
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Hey, Bernanke: Just say no to banks!
On Wed, 26 Mar 2008 21:41:47 -0600, ED
wrote: snip Have you read Greenspans book Age of Turbulence ? Not a page turner by any means but it does have some interesting insights into the current *perfect storm* . Case in point . The Fed under AG raised interest rates 04-06 which should have acted as a brake on homebuilding but didn't. It was China pumping lots of $$ into our economy that overrode it.. snip ============= I have indeed. He seems to have been a good journeyman saxophone player... From the book, which I understand was largely ghostwritten, it is evident that Dr. Greenspan is a committed ideologue, although to exactly what is *NOT* clear, although the "free [to do anything you want] market" comes close. http://www.amazon.com/Age-Turbulence.../dp/1594201315 The book is worth reading if you can check out a copy from your local library, most likely not worth spending 23.10$US for your own copy. "Generals are notorious for their tendency to "fight the last war" -- by using the strategies and tactics of the past to achieve victory in the present. Indeed, we all do this to some extent. Life's lessons are hard won, and we like to apply them -- even when they don't apply. Sadly enough, fighting the last war, is often a losing proposition. Conditions change. Objectives change. Strategies change. And you must change. If you don't, you lose." http://www.fandm.edu/x3904.xml This also applies to Federal Reserve Chairmen. As you indicate, Greenspan applied the old elixirs, panaceas, nostrums, etc. which now appear to be largely socio-economic placebos, and when these failed to have any affect, fell back on the traditional central bank remedies of "bleeding" [the real economy] and "snake oil." With the advantage of hindsight, the problem was clearly the creation and rapid inflation of a new speculative bubble, although the focus shifted from time to time, based on the new [internet & global] economies, new economic players [the hedge funds, which have only their name in common with the old hedge funds, and are more accurately named speculation pools], and new financial "products" such as bundled CDOs and derivatives. Dr. Greenspan was still fighting the Carter "stagflation." Clearly what was required was the dousing of speculation, if possible at the source, for example the elimination of stock/bond purchases on margin, and the elimination or significant reduction of the special "capital gains" tax status of "investment" profits, and if this was not adequate, the imposition of much higher interest rates, although this impacts "Main Street" much more than it does "Wall Street." Deflating, or even stabilizing, the bubble was politically impossible, and increasing the discount rates would mean significantly greater interest costs on the Federal debt service. And strengthening the US dollar, so the Fed did, what central banks always do in other than emergency situations -- nothing. Dr. Greenspan also failed to take the simple step of having lunch with the Chairmen of the SEC [Securities Exchange Commission] and the CFTC [Commodity Futures Trading Commission] to discuss the administrative restriction of the proliferation of new stock offerings and novel financial instruments. This would not a new governmental intrusion into the "free market," but simply the application of existing governmental authority to require proof of reasonable safety and effectiveness of consumer products such as automobiles, pharmaceuticals and food, to new financial products and services. This by itself, without any "sanity" or "need" checks, would have kept the bubble within tolerable limits. Society does not permit the manufacture or sale of "crank" [Methamphetamines], and steroids/HGH are banned in sports, so why should financial organizations be permitted to "leverage" their assets to 30 - 40 - 50 times (or more) their capital? Unka' George [George McDuffee] ------------------------------------------- He that will not apply new remedies, must expect new evils: for Time is the greatest innovator: and if Time, of course, alter things to the worse, and wisdom and counsel shall not alter them to the better, what shall be the end? Francis Bacon (1561-1626), English philosopher, essayist, statesman. Essays, "Of Innovations" (1597-1625). |
#3
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Hey, Bernanke: Just say no to banks!
On Thu, 27 Mar 2008 10:11:09 -0600, F. George McDuffee
wrote: He seems to have been a good journeyman saxophone player... Music and math seem to have some sort of a cranial connection, our country's economy is currently in some sort of downbeat jazz jam......:-) From the book, which I understand was largely ghostwritten, it is evident that Dr. Greenspan is a committed ideologue, although to exactly what is *NOT* clear, although the "free [to do anything you want] market" comes close. He leans towards the Alan Smith camp of free marketing. Well supported in his book via the Soviet storys..I agree with his statements regarding governmental central planning and economic growth/stability. See Germany today. The book is worth reading if you can check out a copy from your local library, most likely not worth spending 23.10$US for your own copy. My copy was a gift...Ben Bernanke and the Fed did the correct thing with Bear last week...IMO. I forsee lengthy congessional hearing to remedy this debacle only to see another crisis in 40 years... ED |
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