Skinny

Grand Illusion: The Federal Reserve (Part 3)

Once again Jim's unbridled optimism shines through. I would like to thank my illustruous Congresswoman allison Schwartz for putting through my $1.2 million earmark for "the study of growing, distribution, and processing of citrus and citrus related products."

I'm going to have the best damn lemonade stand in Pennsylvania.

The Shallowest Generation

Looks like Quinny touched another nerve. Last time he did that, well never mind.

Long time readers of Mr. Quinn (including the founder of a major furniture company who shall remain nameless) can trace his warnings back several years. Back then he also used lots of charts and graphs and he also bemoaned the unprecedented expansion of private and public credit. ("The world economy is balanced on the backs of the U.S. consumer; and the U.S. consumer is up to his eyeballs in debt!") We should have killed this messenger when we had a chance for alas it has all come to pass. This makes it difficult to quibble with Mr Quinn's article; Fortunately, Difficult and Quibble is thy name.

First of all you leave out the credit agencies, those bastions of goodliness whose sleepless watch over every nook and cranny of the financial world make every step safe to trod. They rained down AAA ratings on instruments they could not possibly understand simply because they were told that housing prices would never decline and that even the least credit worthy was not even the slightest risk of default. CDO's, Triple A; MBS', Triple A. Sayeth one such genius "If it were created by cows, we would rate it." I'm sure this is very comforting to the Norwegian fishing villages who invested in this garbage based on a Moody's or S&P rating.

I also need to correct the shot (get it?) you took at Dick Cheney. During the Reagan years Cheney was a Congressman from Wyoming, and a deficit hawk at that. I'm sure if he could turn back the clock the federal expansion prior to September would never have happened.

The inventions you cite predate the greatest generation by quite a bit. In fact it is the greatest generation that welcomed the initial explosion of government during the 1930's. There wasn't a lot of invention going on in the 30's. The reason, government intrusion always limits innovation. If you don't believe me go back and review the Environmental Impact Statements (EIS) filed with the FTC and FCC prior to the invention of the airplane, automobile, and telephone, or the lengthy FDA approval prior to the release of penicillin. Better yet don't bother; before the outrageous expansion of government we got inventions, now we just get initials.

You HOPE President Obama can rise to the occasion? That's a hell of a hope. This guy is a tool of government, and regulation is his middle name. Less regulation? As they say in Brooklyn, fuhgettaboutit.

I must have missed that lurch in Congress on energy. Last time I checked they adjourned and went home. The good news was they at least stopped spending money. The bad news was they came back. I think you already covered what happened when they came back.

Finally I take umbrage at the cure involving me paying more taxes. Why the hell can't the government eek by on the 3 trillion we already send them. The more you give them the more they waste. Why can't we pay less taxes for a change and use the savings to help out the guy next door and make sure our kids get a good education. Right now it costs 50 grand a year to get a lousy education. Weren't all those Wall Street wizards products of IVY League institutions? The less benefits part I'm fine with. I'm pretty much used to that.

Economic Outlook: Is It Safe?

I'm not worried. Just bought me a new shovel and I'm gonna dig ditches for the new Obama WPA. The government can fix anything. If you don't believe me, just ask them.