Thursday, April 22, 2010

Cartoons of the Day

Michael Ramirez. (HT: Mike Carlson)



11 Comments:

At 4/22/2010 12:44 PM, Anonymous Anonymous said...

I object and take exception ...

 
At 4/22/2010 1:33 PM, Anonymous Anonymous said...

I can see that 20 bucks, give it here.

 
At 4/22/2010 4:48 PM, Blogger juandos said...

Look at it as a B.O.H.I.C.A. treatment...

 
At 4/22/2010 5:51 PM, Blogger PeakTrader said...

The government is ready to watch Wall Street with a bright spotlight, while a bureaucrat with a blow horn directs financial experts how to perform.

The government created the recession and financial crisis, and got us out of the recession and financial crisis. Yet, the damage is everyone elses fault.

 
At 4/22/2010 6:48 PM, Blogger juandos said...

"and got us out of the recession and financial crisis"...

Call me a skeptic Peak Trader but I got to toss the B.S. flag on that last bit...

Just how did this administration get us out of something (the recession) we've not gotten out of yet?

 
At 4/22/2010 7:04 PM, Blogger PeakTrader said...

Two government failures are:

1. Fiscal policy doesn't operate like monetary policy (i.e. raising and cutting taxes to help smooth-out business cycles).

2. The moral hazard of "too big to fail" (government facilitating risk).

 
At 4/22/2010 7:37 PM, Blogger PeakTrader said...

Juandos:

1. Restrictive monetary policy, contractionary fiscal policy, and foreigners absorbing dollars (or shifting dollars from the private sector to the public sector) caused the recession. The world was flooded with dollars. Yet, there were too few dollars in the U.S. private sector.

2. The U.S. was on a path to a mild recession after the Fed eased the money supply in late '07 and Bush cut taxes in early '08.

3. When Lehman failed, the credit market froze and there were much fewer dollars causing a severe recession.

4. The Fed's quantitative easing, TARP, and a greater fiscal expansion together put a floor on the recession and began a recovery.

5. Fiscal policy squandered so much money on spending rather than tax cuts, the U.S. is in a very weak position. Basically, we used up all the fuel, and an economic boom is needed to fill up the tank, which we didn't get and won't get.

 
At 4/22/2010 8:41 PM, Blogger juandos said...

"Fiscal policy squandered so much money on spending rather than tax cuts, the U.S. is in a very weak position. Basically, we used up all the fuel, and an economic boom is needed to fill up the tank, which we didn't get and won't get"...

Clear, concise, and a thoroughly ugly picture you paint there Peak Trader but I can't see any flaws in your reasoning...

 
At 4/23/2010 2:53 AM, Blogger PeakTrader said...

Juandos, the government is blaming the private sector for problems created by the government.

The Democrats have been adept directing taxpayer anger towards Wall Street, while the Republicans have been incompetent explaining why it's the government's fault.

So, there may be strangulation instead of regulation, that goes beyond the moral hazard of "too big to fail."

 
At 4/23/2010 4:43 AM, Blogger sethstorm said...

Wrong countries.

They should be over the Third World hell-holes, namely the BRIC's.


Basically, we used up all the fuel, and an economic boom is needed to fill up the tank, which we didn't get and won't get.

...and selling the country will not be the answer in whatever form it takes.

 
At 4/23/2010 9:56 AM, Blogger juandos said...

"So, there may be strangulation instead of regulation, that goes beyond the moral hazard of "too big to fail.""...

Yet, 'to big to fail' may still be the political game in Washington today...

Consider the following from the Heritage Foundation blog:

The Fatal Flaws of the Wall Street Bailout Bill

To much hand holding by all the wrong people it seems...

 

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