Bailout Bonanza

[Aeson]

If only our Fed was as smart as fed...

[Impaler[WrG]]

Here is a very informative Radio interview with Karl Denenger who is a vocal critic of the Bailout and other monetary policies, he explains economics in a very clear way and he has shown amazingly foresight in the run up to the crisis.

http://fp80.com/rebeltraders/downloads/kfyi_all.mp3

[Agathon]

Haha.. to put the boot into these right wing wankers even more, Paul Krugman just won the Nobel Prize.

[Unimatrix11]

@Impaler: Wasnt it part of many religions, not to take interest? Talking about codifying the economic system and making sure the code isnt broken...

[Kidlicious]

Still no reports of much better credit.

[Imran Siddiqui]

Dow up about 560 today after governments gotten together and pledged new capital in the form of guaranteeing loans, injecting money into banks, and in some cases, taking ownership stakes in banks infusing them with money.

[Impaler[WrG]]

Dow up about 560 today after governments gotten together and pledged new capital in the form of guaranteeing loans, injecting money into banks, and in some cases, taking ownership stakes in banks infusing them with money.

This has been predicted by a number of market watchers. The government capital injection and loan guarantees may simply be accentuating the 'dead cat bounce' of the stock market. I'm doubtful this will be the bottom and don't think the recent government actions are in anyway addressing the root problems, its just a bigger better band aid. Governments are still two steps behind because capitol injection always WAS the obvious first step, the original plan of buying toxic assets was less then stupid so it's hard to get encouraged by this development.

[Imran Siddiqui]

don't think the recent government actions are in anyway addressing the root problems

Of course they aren't. But, what I've heard is that this gives some time for the governments to actually address the root problems (if they do) rather making it so that the root problems have to be fixed immediately as the economy hits absolutely rock bottom (ie, Great Depression mode).

[Aeson]

Originally posted by Imran Siddiqui
Of course they aren't. But, what I've heard is that this gives some time for the governments to actually address the root problems (if they do) rather making it so that the root problems have to be fixed immediately as the economy hits absolutely rock bottom (ie, Great Depression mode).

That's what they said of the Bear Stearns JP Morgan bailout too...

[Imran Siddiqui]

Originally posted by Agathon
Haha.. to put the boot into these right wing wankers even more, Paul Krugman just won the Nobel Prize.

Um... you do realize that he won it for his academic and not political writings, right?

http://www.nytimes.com/2008/10/14/business/economy/14econ.html?hp

The prize committee lauded Mr. Krugman for “having shown the effects of economies of scale on trade patterns and on the location of economic activity.”

He has developed models that explain observed patterns of trade between countries, as well as what goods are produced where and why. Traditional trade theory assumes that countries are different and will exchange only the different kinds of goods that they are comparatively better at producing; this model, however, was not reflected in flow of goods and services Mr. Krugman saw in the world around him. He set out to explain why worldwide trade was dominated by a few countries that were similar to each other, and why a country might import the same kinds of goods that it exported.

In his model, companies get more efficient at producing their goods as they sell more. Consumers like variety, so they pick and choose goods from among these producers in different countries. He developed this work further to explain what effect transport costs, which obstruct trade, should have on migration patterns. He helped explain under what conditions trade would lead to concentration or decentralization of populations.

Mr. Krugman’s models have been praised for their simplicity and practicality — features economists are often criticized for ignoring.

“Krugman’s trade models became the standard in the economics profession both because they fit the world a bit better and because they were masterpieces of mathematical modeling,” said Edward L. Glaeser, a professor at Harvard University who also studies economic geography. “His models’ combination of realism, elegance and tractability meant that they could provide the underpinnings for thousands of subsequent papers on trade, economic growth, political economy and especially economic geography.”

This is akin to saying "haw haw, lefties, Milton Friedman is a Nobel winning economist" while ignoring it was given for his works on monetarism, not on political advocacy.

But I guess I'm just feeding a troll here.

[Kidlicious]

Hint: Economics is politics.

[DanS]

Originally posted by Imran Siddiqui
But I guess I'm just feeding a troll here.

Yes, rather transparently. Why didn't you just say that Krugman is no comrade? He's much closer to Reagan than to Agathon.

[Agathon]

Originally posted by Imran Siddiqui

This is akin to saying "haw haw, lefties, Milton Friedman is a Nobel winning economist" while ignoring it was given for his works on monetarism, not on political advocacy.

But I guess I'm just feeding a troll here.

You believe that, bubs. After all, you manage to delude yourself on an hourly basis.

There ain't a hope in hell some nut like Friedman could win it these days, after the havoc his diseased ideas have caused.

[Ben Kenobi]

There ain't a hope in hell some nut like Friedman could win it these days, after the havoc his diseased ideas have caused.

Obviously only conservative ideas are diseased, and if we were to abandon all of them society would improve, people would be wealthy and more prosperous, and no one would ever doubt their truth.

[Zkribbler]

Let's play a game.

(1) Bank of America
(2) CitiBank
(3) Chase
(4) Wells Fargo.

Okay, who can name another American bank?

(5) _______