Saturday, September 13, 2008

Cartoon of the Day



6 Comments:

At 9/13/2008 11:04 AM, Anonymous Anonymous said...

Absolutely.
This is going to be the cause of the bankrupting of the empire.

Iraq and Afghanistan war cost off balance sheet.
Katrina off balance sheet.
Freddie and his fat little sister Fanny off balance sheet.
Social Security and Medicare off balance sheet.

Monetization of the debt is going to occur and the illusion of wealth threw inflation will be applauded and cheered as growth.
Currency debasement whether called a default or not is still a default.

Time for another round of stimulus checks for the peeps.

 
At 9/13/2008 1:58 PM, Anonymous Anonymous said...

Bravo! And yet given this massive, unprecedented shakedown of the US tax payer, you remain bullish? Hmmm...

 
At 9/13/2008 3:02 PM, Blogger Walt G. said...

Let’s forget about all the bailout talk. Why not use the same comparison that those who downplay the current national debt use?

Let’s compare the cost of the loans, bailouts or whatever you want to call them to the GDP today on a percentage basis. Next, compare the loan costs to two alternative courses of action as it relates to the GDP in five years: 1) With the money loaned, and 2) Without the money loaned. Finally, make the choice on an objective instead of an emotional basis.

I think what tends to happen with these sensationalist issues is that everyone is spending too much time on placing blame instead of attempting to find solutions to problems. Yes, mistakes were made, but usually the person trying to solve the problem is farther down the chain than the person who created the policies that caused the problem. There’s a viable reason why economists ignore sunk costs or the price paid for stock in the past when attempting to make good economic choices for the future: you simply can’t use that information in the current decision-making process.

In essence, we have two separate dynamics occurring. Dealing with the problems today, and making sure the problems are not repeated in the future. It does not matter how much we hope to link these together, it can’t happen that way. A bell once rung cannot be unrung: You just have to figure out a way to deal with it and hope those in charge will get it right the next time.

 
At 9/13/2008 4:19 PM, Anonymous Anonymous said...

so much for the republicans partially losing in 2006 because of a lack of "fiscal responsibility" and the dems saying they would return to it. With either party learn at all?

 
At 9/13/2008 8:37 PM, Anonymous QT said...

Top Recipients of Fannie Mae and Freddie Mac Campaign Contributions, 1989-2008.

Always interesting to follow the money in Washington. Looks like Fannie & Freddie will be around for the foreseeable future.

 
At 9/14/2008 8:39 PM, Blogger juandos said...

"Time for another round of stimulus checks for the peeps"... LMAO!

Excellent! I feel the cynicism of your comment and totally agree...

"And yet given this massive, unprecedented shakedown of the US tax payer, you remain bullish?"...

You mean the previous shakedowns of the taxpayer foisted off by FDR and Congress and LBJ and Congress didn't bother you?

"I think what tends to happen with these sensationalist issues is that everyone is spending too much time on placing blame instead of attempting to find solutions to problems"...

Hmmm, well walt g then there would be an expectation of common sense and cool minds and that ain't happening...

I think you're right though...

Maybe the people casting blame are vegetarians...:-)

Consider how Freddie Mac spent money: Shakedown

Jesse Jackson’s relationship with Freddie Mac began in 1998 when Jackson accused Freddie Mac of racial discrimination and encouraged major shareholders to sell their stock. Although Freddie Mac denied Jackson’s allegations, the company began contributing to Jackson’s groups and signed a $1 million contract for Rainbow/PUSH to run an “Economic Literacy” program, a curious arrangement given the allegations of financial impropriety that have plagued Jackson throughout his career. Thereafter, Jackson’s criticism of Freddie Mac stopped, repeating a familiar pattern.

At Jackson’s Wall Street Conference in January, Freddie Mac was a $100,000 “Platinum” co-sponsor. At Jackson’s annual Chicago conference in June, Freddie Mac was an $50,000 “Ebony” sponsor


qt says: "Always interesting to follow the money in Washington"...

You know qt, if the WSJ is on its game, we can probably follow a lot of tax dollars going to China: The Chinese own about half a trillion dollars in Fannie and Freddie securities and they've put the warning out to Treasury Secretary Hank Paulson they expect to be repaid in full

 

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