Quote of the day
posted at 10:02 pm on October 12, 2008 by Allahpundit
“With no desire to exaggerate, this might be considered the financial pre-conditions of a depression.”
“With no desire to exaggerate, this might be considered the financial pre-conditions of a depression.”
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Ruh roh.
Dr.Cwac.Cwac on October 12, 2008 at 10:04 PM
I hope Mav’s plans for the economy include cutting capital gains and corporate tax rates. (I know. Insert Barry’s evil rich people rhetoric here.)
Dr.Cwac.Cwac on October 12, 2008 at 10:05 PM
Harvard?
IMF?
Next expert, please.
GoHskrs on October 12, 2008 at 10:06 PM
Banks nationalized in the UK
Dr.Cwac.Cwac on October 12, 2008 at 10:07 PM
Among others, Rogoff’s advising McCain, for what it’s worth.
DrSteve on October 12, 2008 at 10:09 PM
Here’s a fine solution from an upstanding individual.
Dr.Cwac.Cwac on October 12, 2008 at 10:10 PM
Depends on if he suggests those capital gains cuts for people making under 250,000. Then Barry can’t complain. That that I want a progressive capital gains rate, but whatever.
I’d prefer socialist lite to full blown socialist.
lorien1973 on October 12, 2008 at 10:11 PM
How many days after the election till we see stories about how the financial crisis was in large psychological and things are turning around? I imagine this will be accompanied by a bunch of polls showing how much the world loves us again.
D0WNT0WN on October 12, 2008 at 10:11 PM
1. Drastically reduce or preferably eliminate the capitial gains tax
2. Eliminate all taxes on personal savings interest
3. Phase out all taxes on business
johnsteele on October 12, 2008 at 10:11 PM
Adopt socialism completely or you will all die!
MB4 on October 12, 2008 at 10:13 PM
I bet the nutters out there are having a field day with this stuff. Who was it, Russo guy who made the documentary on the Federal Reserve called “Freedom from Fascism”?
I bet ALex Jones thinks this is just a phase of the Bilderbergers attempt to kill off most of us
jp on October 12, 2008 at 10:14 PM
What about that wacky “Fair Tax” idea? Hmmmmmm??? Any takers (after 16th amendment repealed)?
What’s Huck been doin’ lately?
Dr.Cwac.Cwac on October 12, 2008 at 10:14 PM
Even if we come out of this somehow, seems to me we’ll have painful inflation on the other side.
Spirit of 1776 on October 12, 2008 at 10:14 PM
If I truly beleived in Global Warming, I’d be thrilled about the coming Depression. We would be “Saving the Earth” and all
jp on October 12, 2008 at 10:15 PM
And that oil would still be in the ground undiscovered if it wasn’t for the Christian Western Civilization coming over and finding it, drilling it and providing a market to sell it.
JellyToast on October 12, 2008 at 10:15 PM
Guaranteed. There will hardly be another negative word about the economy.
Even if there’s a depression, the coverage will be positive and optomistic, with all credit aimed at Democrats.
Kensington on October 12, 2008 at 10:15 PM
McCain needs to promote something to create JOBS fast.
An Energy For America Program, specifically building Nuclear Plants, would immediately kickstart the economy and spur fresh employment.
Obama promises EVERYTHING.
Mac better get moving to trump the Annointed (by the MSM) One, quick.
profitsbeard on October 12, 2008 at 10:16 PM
1) Obama poised to win
2) Our enemies obtaining nukes
3) Deperession on the horizon?
I don’t know–is God (or as AP says, god) judging America?
jgapinoy on October 12, 2008 at 10:16 PM
It’s not politically viable right now.
lorien1973 on October 12, 2008 at 10:17 PM
“There’s no hyperbole that can describe it,” said Kenneth Rogoff, a Harvard University professor and former chief economist of the International Monetary Fund.
Harvard?
IMF?
Next expert, please.
GoHskrs on October 12, 2008 at 10:06 PM
+++++++++++++++++
You’ve nailed it. A lot of sensible people are not near so doom and gloom.
fabrexe on October 12, 2008 at 10:18 PM
good question, our leaders are a judgment on us is one way to look at it.
jp on October 12, 2008 at 10:18 PM
Nope
VolMagic on October 12, 2008 at 10:18 PM
Yeah. I know. I threw it out there for sh!ts and giggles.
Dr.Cwac.Cwac on October 12, 2008 at 10:19 PM
I really don’t know, but I’m sure if it’s not judging, it’s disciplining.
jgapinoy on October 12, 2008 at 10:19 PM
Maybe its just because I’m sick in the head, but I really get a kick out of experiencing a global crisis.
jimmy the notable on October 12, 2008 at 10:20 PM
I hope so too. So called “rich people” know what to do if they don’t cut capital gains, it goes out of the country. Corporations don’t pay taxes. We do. Before the ink on any legislation dries, they know what to do to legally get around it. And while McCain is at it the Death tax should go also. It is triple taxation on the heirs of business owners. The family business should not have to pay the government that had nothing to do with the success of the business or, sell the business to pay the taxes. Out of breath.
sheriff246 on October 12, 2008 at 10:22 PM
I have a feeling things will look much rosier to the “experts” on November 5.
Ronnie on October 12, 2008 at 10:22 PM
Jim Treacher put it well. The “deathbed media” see this as their last chance. Unfortunately, it looks like they will succeed.
D0WNT0WN on October 12, 2008 at 10:22 PM
Asian markets more up than down and futures up so I guess they didn’t get the end of world missive.
MB4 on October 12, 2008 at 10:22 PM
Gee, do ya think.
Viper1 on October 12, 2008 at 10:23 PM
I can’t speak for everyone, but I see this as a buyer’s market right now. No bragging, but I’m doing pretty darn good.
Fear is a killer.
wccawa on October 12, 2008 at 10:23 PM
This might be the death of us all! We’re all going to end up selling pencils and spending all day in the soup kitchen lines for the rest of our days!!!!/s
wise_man on October 12, 2008 at 10:25 PM
It seems to me that even if we unfreeze the credit institutions and they lend money to businesses, we still have the problem of consumer spending.
Or the lack of it.
Granted, credit extended to businesses will mean they may expand operations (order new equipment, hire new workers) and that will eventually put money in the consumers pockets.
I can’t see a depression. But it sure looks like a long, deep recession that will last longer than the previous ones.
Like one or two years.
Ugh.
SteveMG on October 12, 2008 at 10:26 PM
Sorry guys. OFF TOPIC
Ugly on October 12, 2008 at 10:27 PM
Absolutely! A good time for bargain shoppers.
Just have to figure out how to hide the profits, should Obama be elected. Guess we’ll have to look hard at tax-frees and stay out of stocks. Why assume the risk if the feds are going to take the profit out of it?
obladioblada on October 12, 2008 at 10:27 PM
Investor message boards are hinting that the market may go on a bull run tomorrow morning. Plus, as MB4 noted, Eastern markets are starting the day out well. Who knows if it will last, though.
BadgerHawk on October 12, 2008 at 10:32 PM
I’m guessing you don’t have much put away for a rainy day, or college funds, or retirement…
Not much fun when you lose several years worth of savings and investments.
IrishEi on October 12, 2008 at 10:32 PM
What a crock. The Dhimmicrats have been saying recession for the last few years and we STILL haven’t had one. This quarter, yes, but all the others no.
Sheesh! It’s like they just want us to line up for a tattoo on our heads and forearms so the Antichrist will let us by food. I guess this is how the sheeple do it.
Mojave Mark on October 12, 2008 at 10:34 PM
Folks, I wouldn’t be too flippant about this. I’m a free-market guy, but a free market requires confidence in the transaction (lines/letter of credit, etc), and that has all been shot to hell right now.
What you’re seeing now is a nearly-unique disease occurring that hasn’t happened since the 1930’s. There is the “paradox of de-leveraging” going on. To reduce risk, and stay solvent, it is rational and required for every individual financial institution to individually de-leverage (sell assets to reduce debt)…… but if all institutions do so together, and at the same time, it is collectively irrational and it makes the problem worse b/c it deflates asset prices, and destroys equity…which then requires even more individual institution de-leveraging to solvent, which further deflates asset prices and destroys equity even more, etc….. Rinse, repeat.
What you REALLY do need now is for a coordinated sovereign (govt’s) effort to take the other side of that trade and leverage up and risk up. You have to break this spiral or it will seriously, and irreversibly get out of control.
aquaviva on October 12, 2008 at 10:34 PM
I like the background music.
BadgerHawk on October 12, 2008 at 10:34 PM
Barry’s plan…
Barack Obama tells (NY) Daily News how he’d lead us through the economic meltdown
No, Senator, we can’t afford four more years. The years I reference are 1977-1980.
WPA 2.0, baby. This time it’s forevah!
Ahhhhh…..There’s the evil rich people rhetoric. I don’t know about you, but I never obtained a job from a poor person.
30-40% already don’t pay taxes. How can you give 95% a break? Math doesn’t jive (turkey). No tax increase, but he’ll let Bush cuts expire and then give his tax “cut”. I guess it’s a wash, right? He’ll increase taxes and then cut them again?
Don’t raise taxes on middle class. What constitutes as “middle class” in Barryland? Also, note another subtle evil rich people jab.
Yeah….’cause protectionism always works. Great. How about doing what McCain says and lowering corporate rates so that business will want to move here?!
Like in the movie “Dave”?
Eliminating programs that don’t work = Defense spending cuts (massive)
Are you ready for more gubmint (aka more jobs for his cronies)?
FIFY
This can’t be going anywhere good.
Blatant pandering for socialism, folks.
YES.WE.CAN elect someone other than you.
Overcome the broken policies? Like the Community Reinvestment Act passed by a Democrat President and expanded by a Democrat President to which there where calls by Republican Senators and a Republican President to reform?
Renew an economy that rewards work? Isn’t he proposing expansion of welfare, S-CHIP, universal health care, college tuition, unemployment benefits, etc.? Why would I want to work? All that stuff will be provided for me!!!
Next plan please….
Dr.Cwac.Cwac on October 12, 2008 at 10:37 PM
BadgerHawk on October 12, 2008 at 10:34 PM
Monty-Pythonish
Ugly on October 12, 2008 at 10:37 PM
I think he means welfare.
We’ve spent $5 trillion on welfare and we still have poor people. Clearly the program doesn’t work.
lorien1973 on October 12, 2008 at 10:40 PM
Hopefully the massive inflow of liquidity by central governments is enough to stave off any deflationary effects, and we’ll only have to deal with a recession plus inflation a few years later.
The collective America is going to learn a tough lesson about running a private or corporate life off of credit. The companies that have extremely large debt balances are going to struggle to survive, and it’s going to be a lot tougher to get a car or student loan for some time. If, in 2010, we can fight off the drive towards socialism, we’ll probobly be a stronger nation when all is said and done.
BadgerHawk on October 12, 2008 at 10:40 PM
After McCain wins, things should look rosier.
The death-wish media may paint things rosier if Obama wins, but Obama’s job-destroying tax increases on the rich and protectionism could make him the dems Herbert Hoover for president.
Right_of_Attila on October 12, 2008 at 10:42 PM
I like how his spending plans haven’t changed as a result of the coming recession. How is going to save 64,000 jobs by building infrastructure in NY with falling tax revenues? Where is the money for that project, not to mention his health care plan or the plan to pump 150bil into wind, solar, and ehtanol, going to come from?
BadgerHawk on October 12, 2008 at 10:44 PM
That’s what Reagan said……..back in ’64!
Reagan Zombie/Palin ’08!
Dr.Cwac.Cwac on October 12, 2008 at 10:44 PM
Let’s hope so. There are $55-$60 TRILLION dollars in unregulated, un-reserved credit default swaps out there on balance sheets. CDS’ are like an insurance policy on debt, but unlike a regular insurance company/contract, it’s unregulated, and requires no reserves. It’s an extremely serious problem, and it’s why “AIG was too big to fail” (it’s believed they hold a bunch). Noone knows (or is admitting) that they own them b/c noone knows what they’re worth b/c they may be written on assets that are worthless. Friday’s auction for failed Lehamns CDS’ went for about $0.09 on the dollar, which means that the entity that wrote those CDS’ were forced to pay about $0.91 apiece to the other side of the contract holder for a worthless security (Lehman’s debt). This could bring down the entire global financial system, and I’m not just engaging in hyperbole. This, as much as anything, is why you saw Paulsen and Bernanke panic last week.
aquaviva on October 12, 2008 at 10:52 PM
Pooh!
On another topic less pooh infested, the Patriots are getting their butts handed to them by the Chargers! LOL! This is one crazy Sunday!
freeus on October 12, 2008 at 10:53 PM
I should run for President! LOL
lorien1973 on October 12, 2008 at 10:54 PM
Five fishes and two loaves, and the mob shall be satisfied. What? Oh, wrong candidate. Silly me!
OldEnglish on October 12, 2008 at 10:55 PM
How about we do to the megarich what they appear to be doing to us. Choose some nice number — say $25,000,000.00 in 2008 dollars. It’s a number which, if put in the bank at 1% interest would let you live the rest of your life without working at the level Obama says ought to be taxable. Anything you own that is above that amount each year is confiscated and goes into the Treasury. The amount is indexed to inflation, so the value corrects itself properly. That makes Soros, Buffet, Burkle, et al. worth a maximum of $25,000,000.00, and they have to be far more careful about how they spend their nest egg. If you die, you can give a maximum of $25,000,000.00 to your heirs — the rest goes into the Treasury.
No corporations. No foundations. No trusts. No mutual funds. Nothing is allowed to have an endowment that lasts past a year except human beings. No aggregation of weath by anyone to the point where they can unilaterally affect our economy, like happened during the Savings and Loan fiasco a few years back and which may be happening now.
unclesmrgol on October 12, 2008 at 10:57 PM
“All your Short Hairs are belong to us”
eeyore on October 12, 2008 at 11:00 PM
Let the redistribution begin. Please turn in all valuables on your way to reeducation camp.
Laura in Maryland on October 12, 2008 at 11:02 PM
I got rid of my Discover Card about a month ago and started to regret it.
Then Discover Card sent me a letter asking me back, so I accepted their offer and reopened my old account with them.
I’m still getting credit card offers from my bank and airlines.
Why would there be a credit crunch if I’m still getting cards?
How soon will cards stop working?
Kini on October 12, 2008 at 11:04 PM
Accept every CC offer you get in the mail and they’ll stop. I opened up like 9 accounts in the past 6 months. I don’t get any more offers LOL. I did end up getting like $60,000 in credit though LOL.
lorien1973 on October 12, 2008 at 11:06 PM
I said it all during the bailout crap sandwich……
You can remove all the bad debt, bad loans (they made), bad GSE’s (they bought), and now buy all their preferred stock and own the bank……
but in the end, you cannot force a bank to loan money.
They are not loaning. That is the problem. They are hoarding.
Starlink on October 12, 2008 at 11:06 PM
The plans so far haven’t built confidence in the minds of Americans. Here’s the solution. Jail: Frank, Dodd, Raines, Johnson, all ceo’s that had a hand in the fannie freddie deals, schumer, meeks, waters, obama, I know there are many more but if these folks were dealt with swiftly it might ignite the market and economy. Sadly they are in power and Waxman, the neutered nerd won’t conduct hearings against democrats. Home Depot sells pitch forks.
wepeople on October 12, 2008 at 11:06 PM
Yep. Imagine if Republicans were at the bottom of thousands of fake voter registrations. Chris Matthews would have a stroke.
Starlink on October 12, 2008 at 11:08 PM
Nationalize. Standardize. Unify.
Good times.
spmat on October 12, 2008 at 11:09 PM
Trust has not been restored because no one in authority has demanded proof that any of these banks are trustworthy!
I believe a few Congressional resignations, indictments, and a repeal of “affirmative action” mortgages would go a long way to restore trust.
PattyJ on October 12, 2008 at 11:10 PM
this is a SCENARIO
got a dictonary? I hear they have them online now….
my SCENARIO is that I will be doing ( yes, doing ) Keira Knightley AND Elizabeth Hurley at the end of a rainbow in County Wicklow on a fine Fall afternoon
I like mu SCENARIO better than the one here…….
Janos Hunyadi on October 12, 2008 at 11:13 PM
Lubak from MSN is saying Oct. 23 is a big date, because by then most of the financials will have had to come public with their numbers and everyone will finally know who has what bad debt. So even if it is really bad, at least everyone will know and the irrational fear should dissapear.
As long as the debt isn’t enough to completely overwhelm the system things will be ok. The weak companies will go under or be taken over and the strong will survive. The recession is inevitable, as is the inflation from the massive level of cash being pumped into the system and the 1% interest rates. Hopefully that’s all we get.
BadgerHawk on October 12, 2008 at 11:15 PM
I was against the bailout also, but ultimately it or something like it had to pass. You can see just how afraid the guys in power are of deflation by their purposely following policies to bring about inflation.
BadgerHawk on October 12, 2008 at 11:19 PM
Anytime I see or read he or she is from Harvard, or a graduate of that institution, I immediately think, in this age and time, “Overated.”
Travis1 on October 12, 2008 at 11:19 PM
God (or god) has nothing to do with it. This isn’t some divine being squishing America like a grape. I’m sure that whatever surpreme being may be out there, he/she has better things to be doing than worrying about what’s going on here.
This is plainly and simply, us reaping what we have sown. Clinton, Pelosi, Bush, Dodd, Obama, McCain… when you leave the nuts to run the aslyum, why is anyone suprised when things go to hell in a handbasket?
E L Frederick (Sniper One) on October 12, 2008 at 11:20 PM
Wow. Things look bad.
Maybe we should raise the American flag upside down like Tommy Lee JOnes did at the end of “In The Valley of Elah”, co-starring Susan Sarandon, Charlize Theron, Jason Patric and W’s own Josh Brolin.
Mr_Magoo on October 12, 2008 at 11:21 PM
What seems unthinkable about this meltdown,is the fact that
foreign Terrorists haven’t brought this about,but Domestic
Terrorists!
With what started out, as a hem,a noble idea,on justice on
the so-called street,do-gooder bleeding heart Liberals,step
ped over the line,and through their so-called rights groups
and poverty “Community Organizing” groups stepped out from
politics,and went into a Militant political style of street
operations!!
And from there,it went into a full-blown stealth operation
and reached into the highest offices of the land,and noth-
ing wasn’t touched or poisoned,by the Liberal Democratic
Party!!
In my opinion,the economy in America was by design,those who
go out on the plank,and the Moonbats who repeat it,this is
not the “New World Order” set about by the so-called Dirty
Rotten Filthy Rich trying to control the World,but by the
“Community so-called Organizing” of every human being that they touch through the incentives of money,payoffs!
And setting up,with payoffs on the street as well as the border,as in illegals,the systematic inrollment in expand
ing the voter list of the Democrats,through corrupt voter
drives!
Untill,America rids the “Yes We can” voter fraud,corruption,
and the Liberal “Social Engineering” that has tentacles that
reach into Rains,Pelosi,Barney,Dodds and every other Lefty
political offices, and also with the Ministry of Liberal
MSM,and the take over of the banks,a la”ReWriting the Rules”
its going to be a looooooooooooooooooooooooooooooooooong,
looooooooooooooooooooooooooooooong time,before the economy
gets back on track,because the Liberal Leech’s(financial
bloodsuckers)will still be in control,their apparatus in
place,and their ever expanding voter lists!
Its no wonder,Liberals and the Moonbats don’t want war,or are always protesting,they have the same goals,justice for
all,and “We Want Our Power Back At All Costs!
And they have found the winning formula,”The Economy”,and
how serendipity,just 5 weeks before the American Persident
ial Election!!!!
canopfor on October 12, 2008 at 11:22 PM
Probably because McCain is creeping back up in the polls a little. I think the world is scared to death of Obama’s financial policies/Big Govt. Obama leading big in the polls – market goes WAY down. McCain creeps up some – market goes up some. I don’t believe it’s a coincidence.
Oink on October 12, 2008 at 11:25 PM
You forgot to blame Bush and his failed policies.
Mr_Magoo on October 12, 2008 at 11:26 PM
Loans applied, credit denied!
Laura in Maryland on October 12, 2008 at 11:36 PM
Hmmmm, never thought of doing that. In the past, I would just put their offers into their prepostage return envelope and send them back.
Kini on October 12, 2008 at 11:38 PM
Ahh, how cheerful of them to write that up like that.
kahall on October 12, 2008 at 11:41 PM
Here’s a fine solution from an upstanding individual.
Dr.Cwac.Cwac on October 12, 2008 at 10:10 PM
An obama dream come true.
christene on October 12, 2008 at 11:44 PM
Ok when the MSM become the doomsayers its time to buy. Vix hit 75 on friday, friday had a key reversal day. the DOw ans SP500 are both in massive oversold conditions per RSI charts and now the MSM is in full pledged panic. It is time to buy stocks.
Bought some Fri. Will buy more on weakness. the rally is coming not sure how long it will last but a short rally is a think to behold possible a 10-15% rise from these levels than a slow drift downward to restest lows. If Obama is elected expect the lows to be broken and a race to Dow 7,200ish if that is broken the next level would be Dow 5,000 before a new bottom. ride the coming rally or get out if you are still in aqt the rally’s top.
unseen on October 12, 2008 at 11:45 PM
You’re “sure”? How do you know? Who told you?
jgapinoy on October 12, 2008 at 11:51 PM
I would think that the fillibuster proof senate would be more important than Obama’s election for your technical scenario to play out or not. Generally, though, I take and appreciate your point.
aquaviva on October 12, 2008 at 11:55 PM
…I base my beliefs on a book that has been banned, burned, & attacked for 2000 yrs, yet every effort to discredit it has failed, & it’s prophecies prove to be true time & again, & it’s wisdom has shaped Western civilization.
What do you base your, uh, interesting conclusions on?
jgapinoy on October 12, 2008 at 11:55 PM
I’ll take the bible for 200 Alex!
Kini on October 12, 2008 at 11:58 PM
Incidentally, Alex is a Christian.
jgapinoy on October 13, 2008 at 12:03 AM
1. Gin bottle……check!
2. Tattered Hat….check!
3. Tin Cup………check!
4. Cardboard & duct tape……check!
5. Sewing kit……check!
OK, I’m ready……bring it!
Limerick on October 13, 2008 at 12:03 AM
Sky, meet Chicken Little.
Egfrow on October 13, 2008 at 12:04 AM
Next week is buy time.
Mark my words. Not full rally. But buy time.
VolMagic on October 13, 2008 at 12:04 AM
Will the civil war next year help or hurt the economy? It won’t take long to overthrow Dear Leader Comrade Obama since the military will join us and libtards hate those icky guns so much lol.
bill30097 on October 13, 2008 at 12:05 AM
Reagan had a way of making plain sense of the conservative point of view. How come McCain cannot explain liberal manipulation of FNM and FRE in terms of do good liberals attempting to make housing more affordable and available to the poor, only to achieve the opposite.
BryanS on October 13, 2008 at 12:05 AM
Unfortunately, the media is running stories about keeping spare cash on hand and such during this crisis. That kind of behaviour is what causes depressions–individuals all making the same prudent decision to protect themselves out of fear of the collapse of the system.
FDR was right. In times like these the only thing we have to fear is fear itself.
BryanS on October 13, 2008 at 12:08 AM
BryanS,
I feel your pain.
Egfrow on October 13, 2008 at 12:09 AM
What, for a couple hours or so before any move up gets quickly slapped down by short sellers? The only good thing about lifting the short sale ban is that when the market goes up, that is when they get scared and buy shares to close out their short positions.
BryanS on October 13, 2008 at 12:12 AM
That works too. but I decided I wanted CC’s again, for no good reason other than my wife has a ton of credit and I had none LOL, so did everyone that came in.
I actually got 2 WAMU accounts (retards) too.
lorien1973 on October 13, 2008 at 12:14 AM
He needs to start pushing the FairTax.
Hard.
Dave R. on October 13, 2008 at 12:15 AM
If Bush had had half a brain he would have presented such a plan expecting it to be negotiated toward the middle to achieve speedy passage. Instead, right out of the gate he presented the socialist’s dream plan, which unsurprisingly slid still further to the left.
Nearly eight years in office and he still hasn’t learned the basics….
FloatingRock on October 13, 2008 at 12:16 AM
BryanS on October 13, 2008 at 12:08 AM
Igf the crap hits the fan the cash will be worthless anyway. Or you will need a wheelbarrow full to buy a loaf of bread.
We are in a deflationary environment aty the moment. a dollar buys more and more of the same thing. It has been many many years since we have had a deflationary event. 9/12/01 came close and one reason Greenspan cut rates to the bone. However during a delfationary event fixed loans are bad, non fixed loans are good. Thus ARM’s come on to the seen.
This being government. I am sure they will save us from a deflationary event (you know things like lower gasoline, lower food costs, lower housing costs lower job rates, lower income) My fear is for the massive inflationary event that is going to hit the system as soon as the deflationary event is fixed by the gov. During a inflationary event you do not want to be in cash. You want assets that are going up with inflation like stocks, gold, homes, food, oil etc.
So during this deflationary event cash is king, 6 months – a year from now inflationary assets will be king and cash and ficed income will be bad.
Thus if you are a long term buyer. The time to buy is now and during the next 1-3 months.
unseen on October 13, 2008 at 12:19 AM
Never happen. I think he should spend his time trying to instill confidence in the market. Reducing/eliminating capital gains (under 250,000 so barry doesn’t whine).
I’d also suggest a corporate tax cut. Down to 20% as well. But the negative ads would hit the fan after that.
lorien1973 on October 13, 2008 at 12:21 AM
I want one with a diamond coating so that I won’t miss any of the action while having to stop and sharpen it every so often.
Or, maybe I’ll open a mobile pitchfork sharpening service! See? The economy never ends, it merely transforms.
FloatingRock on October 13, 2008 at 12:24 AM
Nearly eight years in office and he still hasn’t learned the basics….
FloatingRock on October 13, 2008 at 12:16 AM
you all keep on forgetting that bush was/is a liberal IRT spending and governmental growth. He become a fiscal conservative only after the 2006 elections. But the bailout really showed his true side IRT governmental spending and power.
Reagan and Bush 1 did not see eye to eye. At least Bush 1 raised taxes to pay for his spending. bush 2 was spend and borrow. Obama will be a tax and borrow and spend person. So we will have higher debt, higher taxes and higher spending. Great. who would have thought that by 2012 the most fiscal conservative president in the whitehouse in the last 24 years would be a Clinton?
unseen on October 13, 2008 at 12:24 AM
lorien1973 on October 13, 2008 at 12:21 AM
masssive multi year tax cut to buy a home. would help stabilze home prices and stop forclosures.
unseen on October 13, 2008 at 12:26 AM
That is, assuming 6 mo to 1 yr from now, we aren’t in a deflationary death spiral. The government sure is pumping a lot of money into the system which I would think is inflationary in the long run. I wonder, though, will it be enough? We seem to be very close to a process of contraction spending feeding on itself that occurs in a depression (as opposed to a normal recession).
BryanS on October 13, 2008 at 12:29 AM
Kini on October 13, 2008 at 12:30 AM
Are you deliberately trying to prove media caricatures about the Right are true?
jgapinoy on October 13, 2008 at 12:30 AM
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