Comments on: Barack Obama as Herbert Hoover http://www.creditwritedowns.com/2009/04/barack-obama-as-herbert-hoover.html Finance, Economics and Markets Fri, 10 Feb 2012 00:37:00 +0000 hourly 1 By: Edward Harrison http://www.creditwritedowns.com/2009/04/barack-obama-as-herbert-hoover.html#comment-58214 Edward Harrison Wed, 27 Jan 2010 13:14:00 +0000 http://www.creditwritedowns.com/?p=7883#comment-58214 My recent post on what Obama can do to improve the economy gives you a taste of the possibilities. My recent post on what Obama can do to improve the economy gives you a taste of the possibilities.

]]> By: Anonymous http://www.creditwritedowns.com/2009/04/barack-obama-as-herbert-hoover.html#comment-58206 Anonymous Wed, 27 Jan 2010 01:36:00 +0000 http://www.creditwritedowns.com/?p=7883#comment-58206 Typo first sentence. April 2009 (as your subtitle correctly indicates) This remains an important analogy. I wish Prof Krugman understood your point. Typo first sentence. April 2009 (as your subtitle correctly indicates)

This remains an important analogy. I wish Prof Krugman understood your point.

]]> By: Edward Harrison http://www.creditwritedowns.com/2009/04/barack-obama-as-herbert-hoover.html#comment-58204 Edward Harrison Tue, 26 Jan 2010 23:17:00 +0000 http://www.creditwritedowns.com/?p=7883#comment-58204 I linked to the UMKC econ blog version of that article. He's on the money. I don't see any way out of this without a hiccup in GDP. But the goal is to redirect resources away from FIRE toward the real economy. My preferred way was through public sector investment but that's a non-starter now. Marshall may have more ideas here. I linked to the UMKC econ blog version of that article. He’s on the money. I don’t see any way out of this without a hiccup in GDP. But the goal is to redirect resources away from FIRE toward the real economy. My preferred way was through public sector investment but that’s a non-starter now.

Marshall may have more ideas here.

]]> By: LavrentiBeria http://www.creditwritedowns.com/2009/04/barack-obama-as-herbert-hoover.html#comment-58202 LavrentiBeria Tue, 26 Jan 2010 23:02:00 +0000 http://www.creditwritedowns.com/?p=7883#comment-58202 Agree on the overinvestment in financial and real estate, but as to the demand side of the equation, what other than stimuli - and I mean de jure jobs creating stimuli - can he do. If he does nothing in this latter area, he indeed risks the plunge the 1937 economy took. Michael Hudson discusses these questions in detail today at Counterpunch: http://www.counterpunch.org/hudson01262010.html Your take on his analysis? Agree on the overinvestment in financial and real estate, but as to the demand side of the equation, what other than stimuli – and I mean de jure jobs creating stimuli – can he do. If he does nothing in this latter area, he indeed risks the plunge the 1937 economy took. Michael Hudson discusses these questions in detail today at Counterpunch:

http://www.counterpunch.org/hudson01262010.html

Your take on his analysis?

]]> By: Edward Harrison http://www.creditwritedowns.com/2009/04/barack-obama-as-herbert-hoover.html#comment-58200 Edward Harrison Tue, 26 Jan 2010 22:51:00 +0000 http://www.creditwritedowns.com/?p=7883#comment-58200 Dan: there are two Hoover comparisons here. The one has to do with government spending and taxation where the ideological battle is waged. While I try to see both sides of that issue, I see a need to move away from overinvestment in financial services and real estate and that is going to lower aggregate demand. The government can fill in some of the gap, but it is essential this overinvestment is eliminated. The other comparison is the one I am making here which is non-ideological. Obama is much earlier in the economic cycle. I also think he is earlier in the secular cycle as well (akin to 1937 or 1974 versus 1982 for example). This means he needs to act differently rather than depending upon stimulus to pull him through. Dan: there are two Hoover comparisons here. The one has to do with government spending and taxation where the ideological battle is waged. While I try to see both sides of that issue, I see a need to move away from overinvestment in financial services and real estate and that is going to lower aggregate demand. The government can fill in some of the gap, but it is essential this overinvestment is eliminated.

The other comparison is the one I am making here which is non-ideological. Obama is much earlier in the economic cycle. I also think he is earlier in the secular cycle as well (akin to 1937 or 1974 versus 1982 for example). This means he needs to act differently rather than depending upon stimulus to pull him through.

]]> By: dansecrest http://www.creditwritedowns.com/2009/04/barack-obama-as-herbert-hoover.html#comment-58196 dansecrest Tue, 26 Jan 2010 22:39:00 +0000 http://www.creditwritedowns.com/?p=7883#comment-58196 This is a very good observation. With the recession still young and the economy still falling, Obama is running into a mainstream of opinion (including his own) that does not yet appreciate the seriousness of the economic situation. So there is a tendency to do things in small measures, while promising to reduce the deficit next year. Wall Street is bloodied but unbowed. The electorate is unhappy, but has no clear direction. The economy probably won't bottom for another couple of years, at which point Obama will be looking like a one-termer unless he comes to grips with the Hooverian seriousness of the situation... This is a very good observation. With the recession still young and the economy still falling, Obama is running into a mainstream of opinion (including his own) that does not yet appreciate the seriousness of the economic situation. So there is a tendency to do things in small measures, while promising to reduce the deficit next year. Wall Street is bloodied but unbowed. The electorate is unhappy, but has no clear direction. The economy probably won’t bottom for another couple of years, at which point Obama will be looking like a one-termer unless he comes to grips with the Hooverian seriousness of the situation…

]]> By: flow5 http://www.creditwritedowns.com/2009/04/barack-obama-as-herbert-hoover.html#comment-4723 flow5 Wed, 15 Apr 2009 16:26:57 +0000 http://www.creditwritedowns.com/?p=7883#comment-4723 Pathetic. Hoover & Roosevelt both ran their campaigns promising a balanced budget. Pathetic. Hoover & Roosevelt both ran their campaigns promising a balanced budget.

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