Comments on: The year in review at Credit Writedowns – Crony Capitalism http://www.creditwritedowns.com/2009/12/the-year-in-review-at-credit-writedowns-crony-capitalism.html Finance, Economics and Markets Fri, 10 Feb 2012 00:37:00 +0000 hourly 1 By: John http://www.creditwritedowns.com/2009/12/the-year-in-review-at-credit-writedowns-crony-capitalism.html#comment-57886 John Mon, 28 Dec 2009 19:50:00 +0000 http://www.creditwritedowns.com/2009/12/the-year-in-review-at-credit-writedowns-crony-capitalism.html#comment-57886 Read Barrons "The Bear Truth" I am one of the independents who has lost all confidence in Obama. He has done more damage to the US than Bush, Clinton and Bush ll combined. He has wasted so much taxpayer money with all of his socialist policies thta we will need a devaluation of the dollar to pay all of these debts back. No worries the devaluation is comming just wait for year 2. Read Barrons “The Bear Truth” I am one of the independents who has lost all confidence in Obama. He has done more damage to the US than Bush, Clinton and Bush ll combined. He has wasted so much taxpayer money with all of his socialist policies thta we will need a devaluation of the dollar to pay all of these debts back. No worries the devaluation is comming just wait for year 2.

]]> By: LavrentiBeria http://www.creditwritedowns.com/2009/12/the-year-in-review-at-credit-writedowns-crony-capitalism.html#comment-57881 LavrentiBeria Mon, 28 Dec 2009 16:36:00 +0000 http://www.creditwritedowns.com/2009/12/the-year-in-review-at-credit-writedowns-crony-capitalism.html#comment-57881 "Corruption is what government is all about." It doesn't have to be, anarchist. The problem is sin, anarchist, not government. Structures are not moral agents, only human beings. But if you're talking about corruption, here's a rather drunken public example of what you're getting at: http://www.youtube.com/watch?v=M5Y9X5ggxzA And nobody in government is more corrupt than this pig, Baucus. Now they're so shameless that the depravity is showcased right on the Senate floor. The peoples' time may not be all that far away. “Corruption is what government is all about.”

It doesn’t have to be, anarchist. The problem is sin, anarchist, not government. Structures are not moral agents, only human beings. But if you’re talking about corruption, here’s a rather drunken public example of what you’re getting at:

http://www.youtube.com/watch?v=M5Y9X5ggxzA

And nobody in government is more corrupt than this pig, Baucus. Now they’re so shameless that the depravity is showcased right on the Senate floor. The peoples’ time may not be all that far away.

]]> By: Anonymous http://www.creditwritedowns.com/2009/12/the-year-in-review-at-credit-writedowns-crony-capitalism.html#comment-57880 Anonymous Mon, 28 Dec 2009 16:00:00 +0000 http://www.creditwritedowns.com/2009/12/the-year-in-review-at-credit-writedowns-crony-capitalism.html#comment-57880 Crony Capitalism always existed. Nothing new. Corruption is what government is all about. Crony Capitalism always existed. Nothing new. Corruption is what government is all about.

]]> By: LavrentiBeria http://www.creditwritedowns.com/2009/12/the-year-in-review-at-credit-writedowns-crony-capitalism.html#comment-57879 LavrentiBeria Mon, 28 Dec 2009 15:40:00 +0000 http://www.creditwritedowns.com/2009/12/the-year-in-review-at-credit-writedowns-crony-capitalism.html#comment-57879 "So my opposition to non-jobs targeted stimulus is 'fear the funds will be abused'" Lesson: Never ask Ed Harrison for a one word reply. :-) OK, the quote above resolves my confusion. You would not be opposed in principle, then, to WPA or CCC types of direct government jobs initiatives. That feels better. I had the impression that you and Auerbach were going in two very different directions from what you'd written the other day. By the way, enjoyed your interview with Max Keyser last week. “So my opposition to non-jobs targeted stimulus is ‘fear the funds will be abused’”

Lesson: Never ask Ed Harrison for a one word reply. :-)

OK, the quote above resolves my confusion. You would not be opposed in principle, then, to WPA or CCC types of direct government jobs initiatives. That feels better. I had the impression that you and Auerbach were going in two very different directions from what you’d written the other day. By the way, enjoyed your interview with Max Keyser last week.

]]> By: Edward Harrison http://www.creditwritedowns.com/2009/12/the-year-in-review-at-credit-writedowns-crony-capitalism.html#comment-57877 Edward Harrison Mon, 28 Dec 2009 15:22:00 +0000 http://www.creditwritedowns.com/2009/12/the-year-in-review-at-credit-writedowns-crony-capitalism.html#comment-57877 Lavrenti, This was part of my reply on a different thread: Let's distinguish between fiscal and monetary stimulus, anarchist. Monetary stimulus in the form of quantitative easing doesn't work in a debt deflationary environment. The Fed is pushing on a string. You correctly state that zero rates do not promote saving or deleveraging. So, monetary stimulus is an attempt to re-create the status quo ante. On the other hand, fiscal stimulus causes the public sector to deficit spend and, through the financial sector balance, it causes the private sector to net save. See here: 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 The question is whether, over the longer-term, the specific stimulus policies lead to desirable outcomes, optimal allocation of scarce resources, a fair distribution of income, longer-term economic growth. So my opposition to non-jobs targeted stimulus is "fear the funds will be abused" i.e. misallocated in a way that does not meet longer-term economic goals and thus re-creates the status quo ante. If stimulus is used to misallocate resources and perpetuate a false economy by propping up overcapacity (what I call in the link above the Herbert Hoover solution), I would prefer a liquidation approach. In my view, cronyism is so entrenched that only a downturn of this sort will yield any correction of the current path, which few of us want. Lavrenti,

This was part of my reply on a different thread:

Let’s distinguish between fiscal and monetary stimulus, anarchist. Monetary stimulus in the form of quantitative easing doesn’t work in a debt deflationary environment. The Fed is pushing on a string. You correctly state that zero rates do not promote saving or deleveraging. So, monetary stimulus is an attempt to re-create the status quo ante.

On the other hand, fiscal stimulus causes the public sector to deficit spend and, through the financial sector balance, it causes the private sector to net save. See here:

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

The question is whether, over the longer-term, the specific stimulus policies lead to desirable outcomes, optimal allocation of scarce resources, a fair distribution of income, longer-term economic growth.

So my opposition to non-jobs targeted stimulus is “fear the funds will be abused” i.e. misallocated in a way that does not meet longer-term economic goals and thus re-creates the status quo ante. If stimulus is used to misallocate resources and perpetuate a false economy by propping up overcapacity (what I call in the link above the Herbert Hoover solution), I would prefer a liquidation approach.

In my view, cronyism is so entrenched that only a downturn of this sort will yield any correction of the current path, which few of us want.

]]> By: LavrentiBeria http://www.creditwritedowns.com/2009/12/the-year-in-review-at-credit-writedowns-crony-capitalism.html#comment-57875 LavrentiBeria Mon, 28 Dec 2009 15:03:00 +0000 http://www.creditwritedowns.com/2009/12/the-year-in-review-at-credit-writedowns-crony-capitalism.html#comment-57875 I'll raise this question a second time. Is it that you oppose additional stimuli because you fear the funds will be abused, is that what these two pieces come together to say? A simple yes and no answer will suffice. As to intent and motive, Ralph Nader offered some illumination respecting Obama at Counterpunch last week: http://www.counterpunch.org/nader12222009.html I’ll raise this question a second time. Is it that you oppose additional stimuli because you fear the funds will be abused, is that what these two pieces come together to say? A simple yes and no answer will suffice. As to intent and motive, Ralph Nader offered some illumination respecting Obama at Counterpunch last week:

http://www.counterpunch.org/nader12222009.html

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