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June 7, 2005
Losing Faith in Greenspan
Greenspan goes on to say "The U.S. economy's response to the terrorist attacks of September 11, 2001, is a case in point. That shock was absorbed by a recently enhanced, highly flexible set of institutions and markets without significantly disabling our economy overall. But that flexibility should not be taken for granted, and every effort should be made to preserve and extend it."
Isn't that just priceless?
What was our problem in 2001?
Two very large office buildings collapsed.
What was our plan?
Lower interest rates to nearly zero! Borrow massive amounts of money!
What is our current problem?
The United States housing market is collapsing. The United States banking system is collapsing.
What is our current plan?
Lower interest rates all the way to zero! Borrow massive amounts of money!
I originally posted this as a comment in response to MAB claiming that he was losing faith. After further reflection, I realized that this is actually the theme of my entire blog.
Friday: No Major Economic Releases
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[image: Mortgage Rates] Note: Mortgage rates are from MortgageNewsDaily.com
and are for top tier scenarios.
Friday:
• At 10:00 AM ET, *University of Michig...
8 hours ago
2 comments:
Stag,
This guy has an interesting take on losing faith.
http://en.wikipedia.org/wiki/Joseph_Tainter
In short, losing faith becomes a preference. More and more folks start to root for failure.
Those ideas would have seemed totally off the reservation to me 10 years ago. Given the debt load many are carrying, I could see that attitude gathering momentum.
I sure hope they don't resort to printing.
mab,
However, Tainter is not entirely apocalyptic...
My girlfriend calls our pantry the "Apocalypse Pantry", lol. Sigh.
Here are some people who have given up even rooting for failure.
Parole fee burdens ex-offenders
http://www.baltimoresun.com/news/local/crime/bal-md.parole23mar23,0,7441412.story
More than 80 percent of parolees do not pay the state parole supervision fee on time and some consider committing crimes to pay the fee, which amounts to an average of $750, according to the Brennan Center for Justice at the New York University Law School. The report recommends that the state abandon the fee or streamline the process for financially strapped parolees to apply for an exemption.
Talk about squeezing blood from turnips. I think it's also spooky that 67% of those taking the poll think the $40 monthly fee is fair when "only about one-third of former inmates have found a job".
"I would suggest that, rather than being abolished, this fee should be raised," said Herb McMillan, president of the Maryland Taxpayers' Association and a former state representative.
Apparently he didn't catch that part about how some are considering returning to a life of crime to pay the debt. I wouldn't exactly take that threat lightly. They've already got the practice and training they need more than likely.
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