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  • sharon sanders
    replied
    Re: Financial Balance

    The Mutilated Economy
    By PAUL KRUGMAN
    Published: November 7, 2013

    snip

    It?s pretty clear, however, that the blockbuster paper of the conference will be one that focuses on the truly ugly: the evidence that by tolerating high unemployment we have inflicted huge damage on our long-run prospects.

    snip

    What?s more, the authors ? one of whom is the Federal Reserve Board?s director of research and statistics, so we?re not talking about obscure academics ? put a number to these effects, and it?s terrifying. They suggest that economic weakness has already reduced America?s economic potential by around 7 percent, which means that it makes us poorer to the tune of more than $1 trillion a year. And we?re not talking about just one year?s losses, we?re talking about long-term damage: $1 trillion a year for multiple years.

    more...

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  • sharon sanders
    replied
    Re: Financial Balance

    Richard Wolff: Detroit a "Spectacular Failure" of System that Redistributes Pay From Bottom to Top



    Kicking off a series of speeches about the economy, President Obama told a crowd in Illinois on Wednesday that reversing growing inequality and rejuvenating the middle class “has to be Washington’s highest priority.” During his remarks, Obama failed to mention the bankruptcy filing by Detroit, where thousands of public workers are now fighting to protect their pensions and medical benefits as the city threatens massive cuts to overcome an estimated $18 billion in debt. Detroit’s bankruptcy “is an example of a failed economic system,” says economist Richard Wolff, professor emeritus of economics at University of Massachusetts. “There are so many other cities in Detroit’s situation, that if the courts decide that it is legal to take away the pension that has been promised to and paid for by these workers, you have [legalized] theft. It is class war, redistributing income from the bottom to the top.”

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  • sharon sanders
    replied
    Re: Financial Balance

    snip

    Longer term, America cannot restart its economy. Already the top 5% of Americans by income account for 37% of all consumer outlays. This is unsurprising given the top 5% of Americans account for 34.7% of all income. This is similar to 1929 when the top 5% accounted for the top third of all personal income. This is precisely the type of economic structure that Kenneth Galbraith argues in The Great Crash, 1929, transformed the great crash into the great depression. Rather than being able to rely on a broad consumer base to power economic growth, the United States then (as now) was dependent on a high level of investment and luxury consumer spending driven by a small elite. The crash caused that elite to seize up, leaving the American economy paralyzed.

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  • tropical
    replied
    Re: Financial Balance

    Originally posted by sharon sanders View Post
    "With respect to a true culture and manhood, we are essentially provincial still, not metropolitan, — mere Jonathans. We are provincial, because we do not find at home our standards; because we do not worship truth, but the reflection of truth; because we are warped and narrowed by an exclusive devotion to trade and commerce and manufactures and agriculture and the like, which are but means, and not the end."

    Thoreau
    Life Without Principle
    It was better that Thoreau precisely point who are realy the "we",
    and how much of the upper cited "we" folks realy influx the local or global economy fluxes.

    At the moment when the means of commerce payings becames not hard coin but virtual,
    and later their relocation became digitaly instantaneus, all the other implications appears.

    Maybe the banks and the market gurus will have some future performances to show again ...

    Leave a comment:


  • sharon sanders
    replied
    Re: Financial Balance

    "With respect to a true culture and manhood, we are essentially provincial still, not metropolitan, ? mere Jonathans. We are provincial, because we do not find at home our standards; because we do not worship truth, but the reflection of truth; because we are warped and narrowed by an exclusive devotion to trade and commerce and manufactures and agriculture and the like, which are but means, and not the end."

    Thoreau
    Life Without Principle

    Leave a comment:


  • tropical
    replied
    Re: Financial Balance

    Originally posted by AlaskaDenise View Post
    My son says: "We got ourselves in trouble partly by spending more than we make. Some propose the solution is for government to take our money and spend more than they take."
    While it's supposed to work, you must admit it sounds a little crazy.

    Afternoon NPR news said, that for the first time in many years, Americans are saving - yes - they saved 5% of what they made in January.
    While that's a good long term goal, it's a disaster for the short term.
    This also sounds a little crazy.

    .
    Maybe time is came that the G20 would decide to declare an total freeze of the all various values at every Market worldwide at the present value, without further possibilities to buy or sell other than with those concerted fixed values, until this "money eating black hole" dissapear.


    That way the real money and values could not be further damaged by this Markets speculations irrational money burning vortex, at the same time when it is dificult to sustain the real world economy.

    At least, after such an decision, there would be not any more money value "burned", "loosed", "dissapeared", "infected" - so much virtual naming for an mathematic laced science as the economy are ... (or it only seems to be ...)


    Let's us going back to the times of gold coins, and no papers pard.me - data bits fluctuating in the net universe (maybe even in another dimension ...)

    Leave a comment:


  • AlaskaDenise
    replied
    Re: Financial Balance

    This may not be "Beach" video, but you may enjoy it...

    Arlo Guthrie/I'm Changing My Name To Fannie Mae

    .

    Leave a comment:


  • AlaskaDenise
    replied
    Re: Financial Balance

    The middle class - who have not seen a real rise in wages (wage gap) can not spend us out of this problem this time.
    My son says: "We got ourselves in trouble partly by spending more than we make. Some propose the solution is for government to take our money and spend more than they take."
    While it's supposed to work, you must admit it sounds a little crazy.

    Afternoon NPR news said, that for the first time in many years, Americans are saving - yes - they saved 5% of what they made in January.
    While that's a good long term goal, it's a disaster for the short term.
    This also sounds a little crazy.

    .

    Leave a comment:


  • sharon sanders
    replied
    Re: Financial Balance

    We are now reaping what we have sown.


    New York - The Dow Jones Industrial Average fell below 7,000 points for the first time since 1997 on Wall Street Monday, following stock sell-offs across the globe after American International Group Inc (AIG) reported a 62-billion-dollar quarterly loss. The United States' deepening recession and financial crisis mean the blue-chip Dow has now lost more than half its value since reaching a record high of 14,000 points in October 2007. US stocks had already plunged last week to their lowest level since 1997. The Dow index lost 4.2 per cent, or 299.64 points, to 6,763.29. The broader Standard & Poor's 500 Index fell 4.7 per cent, or 34.27 points, to 700.82. The technology-heavy Nasdaq Composite Index shed 4 per cent, or 54.99 points, to 1,322.85. Stocks in Europe and Japan fell sharply earlier in the day. AIG reported a loss of 99.3 billion dollars for the whole of 2008, including 61.7 billion dollars in the fourth quarter alone, due to its exposure to the US housing market downturn. The Treasury said the insurance giant would get another 30 billion dollars in government aid to help avoid bankruptcy, on top of 150 billion dollars already provided to the ailing insurer in the form of loans and guarantees. The US currency rose against the euro to 79.55 euro cents from 78.94 euro cents on Friday. The dollar fell against the Japanese currency to 97.30 yen from 97.57 yen.


    The middle class - who have not seen a real rise in wages (wage gap) can not spend us out of this problem this time.

    Leave a comment:


  • tropical
    replied
    Re: Financial Balance

    Originally posted by Amish Country View Post
    Bill Cosby: (God to Noah), "How long can you tread water?"
    Passengers to the legislators/shipowners:
    "give it to us all at least enaugh lifeboats".

    Leave a comment:


  • Amish Country
    replied
    Re: Financial Balance

    Bill Cosby: (God to Noah), "How long can you tread water?"

    Leave a comment:


  • tropical
    replied
    Re: Financial Balance

    "preparedness for the unthinkable"

    It's time to change that "unthinkable" terminology.
    After an proliferation of artificial organisms and bugs, mixed with relaxed safety, it can't be any more named as that.
    Now it must be called as bug preventing preparedness effort.

    ___

    "Originally Posted by kernel klink
    The lifeboat is a good analogy - better to try to save the few that can be accommodated than leave all to drown."

    It's a good analogy only at the first look.

    1. If we analyze it, we can state that the main responsable in the case of the lifeboat question are the legislators and the scientific advisors who, prior to any thing, pass the safety guideliness laws for passenger ships.

    2. The ship are submited by laws, and controlled by registers/Lloyd/... to have bulted on enaugh lifeboats to receive all the passengers in a number it was registered to carry on before it can be released to navigate.

    3. The ship must not be released to navigate from the port if it does not have achieved the point 2. by investing money to all neccessary things legislated in 1., and the portual officers are in charge of.

    4. The ship crew with the Capitain's supervision must be trained to safely divert ordinary the mass of passengers to the lifeboats, and drive them safely onto the sea surface.
    Prior to leave the passengers to the lifeboats, and abandon the ship, the Capitain/crew must do anything possible to twarth an ship sinking.
    ___


    Only when the nation antipandemic/antiinf.disease chain structure apply and achieve the above points 1. to 4., than it can be inserted an next stat./probability about the lifeboats:

    5. After all the legislating/building/preparing/investing/training/watching and twarthing from 1. to 4, if some lifeboats crashes prior entering onto the sea surface, or other non preventable reasons entering, only than it remains the S.O.S., and the words from the begining:
    "better to try to save the few that can be accommodated than leave all to drown."

    Leave a comment:


  • Amish Country
    replied
    Re: Financial Balance

    GSGS I don't think it is a matter of how many are predicting what over time. IMHO it is a matter of whose predictions come to fruition.

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  • gsgs
    replied
    Re: Financial Balance

    I'd like to see a chart of the amount of crisis
    predictions over time

    google-index or such

    let's say % of experts who predicted the dow would fall >30% within 2 years
    or CDS would redouble

    or such

    Leave a comment:


  • Amish Country
    replied
    Re: Financial Balance

    Apologies GSGS an incorrect link was posted in my original response to your question:

    Originally posted by GSGS
    [there are always some people predicting crisises.

    What was different in 2006 ?
    It has been corrected. Hope this offers more of an explanation. It is somewhat confrontational but represents some prevailing attitudes at the time. It is also interesting to witness the outcomes of those predictions mentioned.

    Originally posted by Amish Country View Post
    http://www.youtube.com/watch?v=LfascZSTU4o


    8/28/2006-Ron Paul Advisor Peter Schiff On Kudlow & Company

    Leave a comment:

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