Comments on: Barack Obama: “if we keep on adding to the debt… that could actually lead to a double-dip” http://www.creditwritedowns.com/2009/11/barack-obama-if-we-keep-on-adding-to-the-debt-that-could-actually-lead-to-a-double-dip.html Finance, Economics and Markets Fri, 10 Feb 2012 00:37:00 +0000 hourly 1 By: Anonymous http://www.creditwritedowns.com/2009/11/barack-obama-if-we-keep-on-adding-to-the-debt-that-could-actually-lead-to-a-double-dip.html#comment-57882 Anonymous Mon, 28 Dec 2009 18:21:00 +0000 http://www.creditwritedowns.com/2009/11/barack-obama-if-we-keep-on-adding-to-the-debt-that-could-actually-lead-to-a-double-dip.html#comment-57882 Well unless you advocate going back to the consumption binge during the housing bubble, you are crazy. That kind of economy is long gone since housing market has been destroyed. The consumer economy has reached it limits. It can't consume without going into massive debt, like the consumption binge during the housing bubble. Stimulus doesn't work. It takes ages for the money to be channeled through the gigantic bureaucracy, and as far as the bail outs, it only created zombie banks scared to lend probably for good reasons. Living on debt is unsustainable. What business, and the consumer want is stability in the economy, not stimulus. As for job creation, the size of the government is already 58% for all people who work for it, or dependent on it. It's socialism that requires a lot of funding to keep it going. Of course you don't want to end up like bankrupted countries in the EU like Greece which had it's credit rating reduced. It's not sustainable, because the US is soaking up all the world's US dollars. It can't keep adding more debt. The only other solution is print more money. Well unless you advocate going back to the consumption binge during the housing bubble, you are crazy. That kind of economy is long gone since housing market has been destroyed. The consumer economy has reached it limits. It can’t consume without going into massive debt, like the consumption binge during the housing bubble. Stimulus doesn’t work. It takes ages for the money to be channeled through the gigantic bureaucracy, and as far as the bail outs, it only created zombie banks scared to lend probably for good reasons. Living on debt is unsustainable. What business, and the consumer want is stability in the economy, not stimulus. As for job creation, the size of the government is already 58% for all people who work for it, or dependent on it. It’s socialism that requires a lot of funding to keep it going. Of course you don’t want to end up like bankrupted countries in the EU like Greece which had it’s credit rating reduced. It’s not sustainable, because the US is soaking up all the world’s US dollars. It can’t keep adding more debt. The only other solution is print more money.

]]> By: Scott http://www.creditwritedowns.com/2009/11/barack-obama-if-we-keep-on-adding-to-the-debt-that-could-actually-lead-to-a-double-dip.html#comment-57624 Scott Thu, 19 Nov 2009 08:46:00 +0000 http://www.creditwritedowns.com/2009/11/barack-obama-if-we-keep-on-adding-to-the-debt-that-could-actually-lead-to-a-double-dip.html#comment-57624 The reality is is that the man on the street does not manage his life with a stimulus package in mind. He manages his life with the money in his pockets and he is not comfortable with the fact that government spending redistributes income. Who cares if the government needs to pick up the slack to make up for a drop in consumption? I stopped consuming and money still gets taken away. That's why these philosophical arguments are so misguided. I love your input and your analysis and this is not pointed at you, but all this "what we should do" just makes the "man on the street" feel insignificant. He'd rather have the money he made in his pocket. Obama is catering to tha sentament, regardless of a double dip because he is a politician that needs votes. Scott The reality is is that the man on the street does not manage his life with a stimulus package in mind. He manages his life with the money in his pockets and he is not comfortable with the fact that government spending redistributes income. Who cares if the government needs to pick up the slack to make up for a drop in consumption? I stopped consuming and money still gets taken away. That’s why these philosophical arguments are so misguided.

I love your input and your analysis and this is not pointed at you, but all this “what we should do” just makes the “man on the street” feel insignificant. He’d rather have the money he made in his pocket. Obama is catering to tha sentament, regardless of a double dip because he is a politician that needs votes.

Scott

]]> By: Edward Harrison http://www.creditwritedowns.com/2009/11/barack-obama-if-we-keep-on-adding-to-the-debt-that-could-actually-lead-to-a-double-dip.html#comment-7192 Edward Harrison Wed, 18 Nov 2009 21:25:37 +0000 http://www.creditwritedowns.com/2009/11/barack-obama-if-we-keep-on-adding-to-the-debt-that-could-actually-lead-to-a-double-dip.html#comment-7192 Joel, you could be right. After all, we have seen Obama visit Japan and China in the past few days. Time will tell what policy is, but you have to worry whether the Administration understands we are in a very fragile economic state. reducing demand through higher taxes and/or spending cuts will certainly make things worse over the short-term. Joel, you could be right. After all, we have seen Obama visit Japan and China in the past few days. Time will tell what policy is, but you have to worry whether the Administration understands we are in a very fragile economic state. reducing demand through higher taxes and/or spending cuts will certainly make things worse over the short-term.

]]> By: Joel http://www.creditwritedowns.com/2009/11/barack-obama-if-we-keep-on-adding-to-the-debt-that-could-actually-lead-to-a-double-dip.html#comment-7191 Joel Wed, 18 Nov 2009 20:57:27 +0000 http://www.creditwritedowns.com/2009/11/barack-obama-if-we-keep-on-adding-to-the-debt-that-could-actually-lead-to-a-double-dip.html#comment-7191 I think you need to take what he said with a grain of salt. Perhaps he was talking up the need to tackle the deficit to appease his major creditor. This seems more likely considering that he has been in China this week. Actions speak louder than words and as WPEconomy said, his actions have all spoken of increased deficits. Ed, thanks for your insightful posts and for this wonderful blog. It has become a daily read for me. I think you need to take what he said with a grain of salt. Perhaps he was talking up the need to tackle the deficit to appease his major creditor. This seems more likely considering that he has been in China this week. Actions speak louder than words and as WPEconomy said, his actions have all spoken of increased deficits.

Ed, thanks for your insightful posts and for this wonderful blog. It has become a daily read for me.

]]> By: WPEconomy http://www.creditwritedowns.com/2009/11/barack-obama-if-we-keep-on-adding-to-the-debt-that-could-actually-lead-to-a-double-dip.html#comment-7188 WPEconomy Wed, 18 Nov 2009 18:52:00 +0000 http://www.creditwritedowns.com/2009/11/barack-obama-if-we-keep-on-adding-to-the-debt-that-could-actually-lead-to-a-double-dip.html#comment-7188 This author is totally off-base. The analysis would be good (well-written for sure), if only its underlying assumption - that Obama is going to cut the deficit to avoid recession - were accurate at all. The author took one little snippet from an entire interview (FoxNews nonetheless - where you have to know Obama is going to say something different to appease right-wingers a little) where Obama said he worried about the deficit possibly causing another recession because of fears about the dollar. Did the author not read the rest of the article? Obama proceeded to talk about tax incentives for businesses and other stimulus-like measures. Obama has done ANYTHING BUT decrease aggregate demand. Remember, we had a several billion dollar stimulus earlier this year (albeit, it was a little smaller than I think was needed). And, if the author was paying attention to the news, rather than basing his or her entire analysis on a snippet, the author would know that a new jobs bill is likely around Christmas time or early next year. Obama, Harry Reid, and House Democrats started discourse on the jobs bill LAST WEEK. So, I just find this post uninformed and mostly irrelevant, however insightful and fruitful it would be if the assumptions were accurate. More here on jobs bill by Christmas at my blog: http://www.wpeconomy.com/2009/11/jobs-bill-legislation-by-christmas.html This author is totally off-base. The analysis would be good (well-written for sure), if only its underlying assumption – that Obama is going to cut the deficit to avoid recession – were accurate at all. The author took one little snippet from an entire interview (FoxNews nonetheless – where you have to know Obama is going to say something different to appease right-wingers a little) where Obama said he worried about the deficit possibly causing another recession because of fears about the dollar.

Did the author not read the rest of the article? Obama proceeded to talk about tax incentives for businesses and other stimulus-like measures. Obama has done ANYTHING BUT decrease aggregate demand. Remember, we had a several billion dollar stimulus earlier this year (albeit, it was a little smaller than I think was needed). And, if the author was paying attention to the news, rather than basing his or her entire analysis on a snippet, the author would know that a new jobs bill is likely around Christmas time or early next year. Obama, Harry Reid, and House Democrats started discourse on the jobs bill LAST WEEK. So, I just find this post uninformed and mostly irrelevant, however insightful and fruitful it would be if the assumptions were accurate.

More here on jobs bill by Christmas at my blog: http://www.wpeconomy.com/2009/11/jobs-bill-legislation-by-christmas.html

]]> By: Jo http://www.creditwritedowns.com/2009/11/barack-obama-if-we-keep-on-adding-to-the-debt-that-could-actually-lead-to-a-double-dip.html#comment-7187 Jo Wed, 18 Nov 2009 18:48:50 +0000 http://www.creditwritedowns.com/2009/11/barack-obama-if-we-keep-on-adding-to-the-debt-that-could-actually-lead-to-a-double-dip.html#comment-7187 I'd cut spending AND force The Liquidation Scenario. The 'pain tomorrow' scenario no longer cuts it. I’d cut spending AND force The Liquidation Scenario.

The ‘pain tomorrow’ scenario no longer cuts it.

]]> By: LavrentiBeria http://www.creditwritedowns.com/2009/11/barack-obama-if-we-keep-on-adding-to-the-debt-that-could-actually-lead-to-a-double-dip.html#comment-7186 LavrentiBeria Wed, 18 Nov 2009 18:47:17 +0000 http://www.creditwritedowns.com/2009/11/barack-obama-if-we-keep-on-adding-to-the-debt-that-could-actually-lead-to-a-double-dip.html#comment-7186 This guy is just a disaster. And you knew it before he was elected what with his obsequeous AIPAC speech and his assetion that the "surge" had worked. Soon he'll have 40,000 more troops buthering kids in Afghanistan. But for now its his utter incompetence with economics. From the Summers/Geithner/Bernanke appointments to this lunacy on debt reduction over jobs, he's setting up the circumstances for genuine political unrest in the very near future. One wonders whether Rosenberg would up his 13% unemployment prediction in light of this idiocy. This guy is just a disaster. And you knew it before he was elected what with his obsequeous AIPAC speech and his assetion that the “surge” had worked. Soon he’ll have 40,000 more troops buthering kids in Afghanistan. But for now its his utter incompetence with economics. From the Summers/Geithner/Bernanke appointments to this lunacy on debt reduction over jobs, he’s setting up the circumstances for genuine political unrest in the very near future. One wonders whether Rosenberg would up his 13% unemployment prediction in light of this idiocy.

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