tag:blogger.com,1999:blog-53246864840716464.post6323643276534920605..comments2024-02-29T00:46:38.800-08:00Comments on Washingtons Blog: Quantitative Easing Won't Help the Economy, But Will Just Create Another Wave of Mergers and AcquisitionsUnknownnoreply@blogger.comBlogger3125tag:blogger.com,1999:blog-53246864840716464.post-61980860743996792972010-08-31T05:54:37.656-07:002010-08-31T05:54:37.656-07:00On the precariously foolish value of a credit econ...On the precariously foolish value of a credit economy-<br /><br />`Zombie' Hotels Arise in Ireland as Recession Empties Rooms<br /><br />http://www.bloomberg.com/news/2010-08-30/-zombie-hotels-arise-in-ireland-as-faltering-economy-leaves-rooms-vacant.htmlAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-53246864840716464.post-63609566942151720192010-08-30T15:20:38.250-07:002010-08-30T15:20:38.250-07:00I wonder how this scenario would have played out i...I wonder how this scenario would have played out if instead of just buying the troubled assets the Fed had insisted on buying the necessary banks whole. That was basically the only other option. If a TBTF is failing you can either socialize the losses, socialize the whole thing, or watch the system collapse. We went with the first one.<br /><br />The Fed, or the FDIC or whoever is applicable, could have come in and reorganized the banks, dissolving, merging, renegotiating as needed, and then sold them back to investors. That way instead of socializing the losses of the bank, we would have been socializing the losses of the people the bank was trying to screw.<br /><br />Irresponsible management would have been replaced and a large part of the value of the banks would be regained when they were sold. Instead we basically put their names on our checking account because Americans are afraid of the "S" word.A Southern Gentlemanhttps://www.blogger.com/profile/02262063524394846703noreply@blogger.comtag:blogger.com,1999:blog-53246864840716464.post-13272697927041646992010-08-30T12:01:51.018-07:002010-08-30T12:01:51.018-07:00It is unfortunate that fiscal-year after fiscal-ye...It is unfortunate that fiscal-year after fiscal-year -government operations are funded through increased debt.<br /><br />There's a whole parasitic industry built around servicing government debt.<br /><br />This negligent malady skews the perception of those who look around during a collapse -trying to determine a viable course.<br /><br />The common collapse-solution divined is -easing credit, e.g., loan more money to the thieves who created the problem.<br /><br />Credit can NEVER build a sound economy.<br /><br />In times when economies are far less than sound, easing credit, as the article points out, is a dubious palliative for what ails us.<br /><br />So, what is credit good for?<br /><br />Credit is good for irrationally loosening the pockets of ne'er-do-well consumers who haven't a clue -how debt works.<br /><br />None of us should be in favor of stimulus of any sort, -or- QE as the term has been nefariously double-speak re-branded.<br /><br />Unfortunately there is always a majority who will vote to spend "free" money. Recently there is a pernicious majority of economists -who will too-.<br /><br />This is a time when economists are in big demand. The quality of their work has suffered as a result.<br /><br />The truth is, -jobs- in a sound economy -are not helped by loose credit.<br /><br />Every businessman will complain -credit issues- cost more than anything else.<br /><br />Credit is an innovation of those rapacious marketers who want to sell something above its real value to people who don't have the money to buy it in the first place.<br /><br />And that is what causes big collapses.<br /><br />It is the more insidiously innovative uses of credit that have set the economy up for such a tumultuous collapse this time.<br /><br />EVERY economist saw the demographic shift that was coming. It was the insidiously innovative credit of the subprime mortgage industry that really made the impending collapse take on its colossal proportion.<br /><br />And NOW that the pink-bellied boys, -economists like Greenspan and Bernanke, Summers and Paulson, have encouraged even greater credit innovation. In so doing -they have bivouacked on into -incredibly risky territory-.<br /><br />As such, we're seeing -a social collapse of historic proportion.<br /><br />A thieving bean-counter can really screw things up.<br /><br />But, it takes a thieving bean-counter with loads of computers -who fashions himself an economist, -even a global economist- to ruin everyone's measured faith in the future.<br /><br />GOVERNMENT SHOULD IGNORE the has-been credit-innovating-con-men who have been making all the threats about the conflated consequences of their not getting another massive bail-out.<br /><br />GOVERNMENT SHOULD ONLY HELP CONSOLIDATE those positive gains that are possible -on the economic battlefield that exists today.<br /><br />All Bernanke's ridiculous efforts meant to prop up the massive credit-innovation implosions of the past is why Ben Bernanke is turning out -exactly like- Abraham Lincoln's General McClellan.<br /><br />In ALL this time, with ALL this money spent, Bernanke's has yet to engage the enemy -not even once!<br /><br />Bernanke will NEVER engage the enemy.<br /><br />Bernanke is content to sit in his camp on a stool, playing out his long ago stated strategy -which demands- we THROW TAXPAYER MONEY OUT THE WINDOW OF A HELICOPTER AT THE ENEMY.Anonymousnoreply@blogger.com