THOSE WHO IGNORE HISTORY….
by ilene - September 2nd, 2010 12:46 am
THOSE WHO IGNORE HISTORY….
Courtesy of The Pragmatic Capitalist
My position over the last 2 years has been as follows: this is a Main Street debt crisis. I have been highly critical of the government’s incessant interventionist policies over the last few years largely because they ignore the actual problems at hand. First it was Mr. Bernanke saving the banks because he believed the credit crisis started with the banking sector. The great monetarist gaffe ensued. Tim Geithner piled on with the PPIP. FASB jumped on board the bank rescue plan by altering the accounting rules. And then the icing on the cake was the Recovery Act, which, in my opinion, just shoveled money into the hole that had become the output gap, without actually trying to target the real cause of the crisis – those burdened by the debt. In essence, the various bailouts primarily targeted everyone except the people who really needed it.
A year ago I posted a story citing the many reasons why we were sinking into the deflationary Japanese trap. The primary flaw with the US response to the crisis was that we never actually confronted the problem at hand. I have often cited Japanese economists such as Richard Koo who appear to have a good grasp on the problems in Japan and now in the USA. In this case, I cited Keiichiro Kobayashi who is now looking most prescient:
We continue to ignore our past and the warnings from those who have dealt with similar financial crises. Keiichiro Kobayashi, Senior Fellow at the Research Institute of Economy, Trade and Industry is the latest economist with an in-depth understanding of Japan, who says the U.S. and U.K. are making all the same mistakes:
“Bad
debt is the root of the crisis. Fiscal stimulus may help economies for a couple of years but once the “painkilling” effect wears off, US and European economies will plunge back into crisis. The crisis won’t be over until the nonperforming assets are off the balance sheets of US and European banks.”
Read that last paragraph again. These are scarily accurate comments. While the USA claims to have many economists who understand the Japan disease and/or the Great Depression the policy actions we’ve undertaken do not appear to be in line with any understanding of this history.
What we’ve done over the last few years is repeat the mistakes…
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Voters Madder Than Ever; 63% Say Better If Congress Not Reelected; Can Republicans Retake The House?
by ilene - February 26th, 2010 11:08 pm
Voters Madder Than Ever; 63% Say Better If Congress Not Reelected; Can Republicans Retake The House?
Courtesy of Mish
Here are a few polls from Rasmussen in January and February that many will find interesting.
75% Are Angry At Government’s Current Policies
Voters are madder than ever at the current policies of the federal government.
A new Rasmussen Reports national telephone survey shows that 75% of likely voters now say they are at least somewhat angry at the government’s current policies, up four points from late November and up nine points since September. The overall figures include 45% who are Very Angry, also a nine-point increase since September.
Just 19% now say they’re not very or not at all angry at the government’s policies, down eight points from the previous survey and down 11 from September. That 19% includes only eight percent (8%) who say they’re not angry at all and 11% who are not very angry.
63% Say Better for Country If Most of Congress Not Reelected
A new Rasmussen Reports national telephone survey finds that 63% of likely voters believe, generally speaking, that it would be better for the country if most incumbents in Congress were defeated this November.
Just 19% disagree and say it would be better if most congressional incumbents were reelected. Another 18% aren’t sure.
59% Say Cut Taxes to Create Jobs, 14% Expect Congress to Listen
The latest Rasmussen Reports national telephone survey finds that 59% of voters nationwide believe cutting taxes is better than increasing government spending as a job-creation tool.
Only 15% of voters hold the opposite view and believe that increasing government spending is the better approach.
However, while voters overwhelmingly think cutting taxes is the better approach, they also overwhelmingly expect Congress and President Obama to take the opposite approach. Seventy-two percent (72%) say the nation’s elected politicians are more likely to increase government spending than cut taxes. Only 14% think they’ll cut taxes instead.
Only 21% Say U.S. Government Has Consent of the Governed
Seventy-one percent (71%) of all voters now view the federal government as a special interest group, and 70% believe that the government and big business typically work together in ways that hurt consumers and investors.
45% Say Random Group From Phone Book Better Than Current Congress
More voters have greater confidence in the telephone book these days
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Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...
Ilene is editor and affiliate program
coordinator for PSW.