"Bill McKee" wrote in message
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"nom=de=plume" wrote in message
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"Bill McKee" wrote in message
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"nom=de=plume" wrote in message
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another couple hundred million from the meltdown. The head of Goldman
Sachs bought a bunch of shares in GS when he found out about the AIG
bailout. A lot of insider trading? Kashkari was named to lead the
Bush $700 billion bailout (that did not seem to help much). Another
GS exec. GS is one of the architects of the meltdown and
Derivitives. Paulson came from GS. So we have put the people who
made a fortune off the bubble in charge of fixing the popping of the
bubble. They should have been banned from the Securities industry,
not rewarded.
Ok, let's assume that all you've said is factually accurate. You
can't seriously think that causes a world-wide financial meltdown is
the right course of action. That's what was about to happen. As much
as I was distrustful of Paulson (in a large measure of the Bush
company he was keeping), he, Geitner, Bernanke, and Summers acted to
restore confidence. As someone said in a previous thread, in essence
the financial system is a confidence game. I'm not disputing that,
but it is also the grease that keeps things moving. You can't have a
complex and robust financial system without having confidence in it.
The debt is large and growing larger. No doubt. But you can't cut off
your nose to spite your face. Debt can be paid back, reduced,
mitigated, but people's lives and their survival (which is ultimately
what was at stake) can't be put back together so easily.
You're right. Some of the people who caused the crisis or allowed it
to happen are around. In some respects they're the ones who have to
fix it. I'm certainly not qualified, and I doubt you are (or anyone
else in this forum). They're making their best efforts for the most
part to fix things. We need to get things stablized and we need
business to start hiring. That's the bottom line.
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Nom=de=Plume
He has not inspired confidence in the dollar. And that is what you
say is required. Just look at Gold, oil and all other dollar
denominated commodities. They have soared in price. A direct result
of the overspending without real merit.
http://moneycentral.msn.com/detail/s...?Symbol=/EURUS chart of
the euro vs. $.
The relative price of the dollar isn't the issue.
Sometimes a weak dollar is good, for example for tourism or for selling
goods in foreign markets. Sometimes a weak dollar is bad, for example
foreign investment in the US. If it were get really out of wack down,
then there might be a problem with our largest foreign creditors, since
they might decide to pull their funds. (This is unlikely if we're
working on the problem, since they would take a huge loss if they
removed their funds precipitously).
Sometimes a strong dollar is good, for example for our tourism abroad
or for buying imported items. Sometimes a strong dollar is bad, for
example foreigners travelling here are discouraged.
It's always a double-edged sword with respect to the strength of the
dollar.
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Nom=de=Plume
Is not the strenth of the dollar presently but why is the dollar falling
and dollar denominated commodities rising.
Actually, it really doesn't matter why it falls (or strengthens) unless
either condition is a symptom of an underlying condition that is not
reversable. There's no reason why the underlying conditions that are
causing the fall is unfixable, and again, spending had to be increased to
stave off an even worse short term problem..
Here are a couple of links...
http://www.npr.org/templates/story/s...oryId=14901181
http://www.etftrends.com/2009/07/5-r...n-be-good.html
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Nom=de=Plume
The 2nd link, says it is good for those betting on the dollar falling.
Makes our trade deficit even worse. Takes more dollars to buy the same
Chinese stuff.
Yes, as I said, it has good and bad side-effects. If you want to argue that
a continually shrinking dollar is a bad thing in the long run, that's
certainly a reasonable argument. A continually expanding dollar would also
be a bad thing.
We certainly have a growing deficit, and that's certainly a problem that
needs to be addressed, but it can't be the entire focus when 'fixing' the
economy, esp. in the short-term. It's a long-term problem.
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Nom=de=Plume