Comments on: A question of judgment http://www.dinocrat.com/archives/2007/12/12/a-question/ Mon, 01 Dec 2008 22:36:37 +0000 http://wordpress.org/?v=2.6.3 By: Bob Ramar http://www.dinocrat.com/archives/2007/12/12/a-question/#comment-302210 Bob Ramar Thu, 13 Dec 2007 12:48:48 +0000 http://www.dinocrat.com/archives/2007/12/12/a-question/#comment-302210 Dr. Greenspan is being both disengenous and covering his butt for posterity. Inflation is always a monetary phenemenon; creation of more currency than needed to cover the transactions for goods and services in the economy. People need to read the Constitution and realize that Congress is responsible for creating and providing a sound currency. The Federal Reserve System is a monster that needs to be destroyed. Otherwise, if you are a baby boomer nearing retirement ... well, you can forget about it because inflation will eat up quickly what little savings you have. The taxpayers will not bail you out. Especially the taxpayers who are 'not from around here', don't speak english, don't buy into the political status quo, and will outnumber you as voters shortly if we don't get the borders secure and get the little buggers out! Dr. Greenspan is being both disengenous and covering his butt for posterity. Inflation is always a monetary phenemenon; creation of more currency than needed to cover the transactions for goods and services in the economy. People need to read the Constitution and realize that Congress is responsible for creating and providing a sound currency. The Federal Reserve System is a monster that needs to be destroyed. Otherwise, if you are a baby boomer nearing retirement … well, you can forget about it because inflation will eat up quickly what little savings you have. The taxpayers will not bail you out. Especially the taxpayers who are ‘not from around here’, don’t speak english, don’t buy into the political status quo, and will outnumber you as voters shortly if we don’t get the borders secure and get the little buggers out!

]]> By: Canucklehead http://www.dinocrat.com/archives/2007/12/12/a-question/#comment-302208 Canucklehead Wed, 12 Dec 2007 16:13:45 +0000 http://www.dinocrat.com/archives/2007/12/12/a-question/#comment-302208 I think Greenspan is being honest. I think now is a safe time to try and wring some irrational exuberance out of the fiancial markets. The financial system needs to improve it's health in time for the next global shock. Wars are now fought in the stock markets. Improve a person's lifestyle and you should have a friend (maybe for life). At the very least you may have a customer. Democracy needs healthy stock markets. Back in 1998-2000, there was concern about Russia and how a financial crisis then could change the complexion of those who governed Russia, and maybe escalate world tensions. The pumps were primed to navigate that issue. Next came LongTerm Capital. Once again the pumps were primed. We went from there (through Y2K hysteria) and the market fell hard. Then came 9/11 and the pump was primed. Going through the Afghan and Iraq wars shook the financial system. The primed pump resulted in an asset bubble forming as people saw homes as a safe harbor for value. Now we are trying to prick that bubble and not cause too much damage. Everyone's pensions are now in the stock market. I think the housing bubble is being dealt with as best as can be expected. The financial system figured they could make money on a certain set of rules that said housing prices will always go up. Now is the time to wring a little exuberance out of the system. Clearly the rules are being changed. The old "tells" don't seem to work as well as they once did. I think Greenspan is being honest. I think now is a safe time to try and wring some irrational exuberance out of the fiancial markets. The financial system needs to improve it’s health in time for the next global shock. Wars are now fought in the stock markets. Improve a person’s lifestyle and you should have a friend (maybe for life). At the very least you may have a customer. Democracy needs healthy stock markets.

Back in 1998-2000, there was concern about Russia and how a financial crisis then could change the complexion of those who governed Russia, and maybe escalate world tensions. The pumps were primed to navigate that issue.

Next came LongTerm Capital. Once again the pumps were primed. We went from there (through Y2K hysteria) and the market fell hard. Then came 9/11 and the pump was primed. Going through the Afghan and Iraq wars shook the financial system. The primed pump resulted in an asset bubble forming as people saw homes as a safe harbor for value. Now we are trying to prick that bubble and not cause too much damage. Everyone’s pensions are now in the stock market.

I think the housing bubble is being dealt with as best as can be expected. The financial system figured they could make money on a certain set of rules that said housing prices will always go up. Now is the time to wring a little exuberance out of the system. Clearly the rules are being changed. The old “tells” don’t seem to work as well as they once did.

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