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wkl

wkl
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  • The Federal Reserve Wins Again [View article]
    Why should this come as a surprise. The Fed was created for the precise reason to bail out the rich after the panic of 1907. Our country has been a bailout nation for the last 100 years. The U.S. went from 1834 until 1913 without any central bank. We had many boom and bust cycle's and fortunes were made and lost in a heartbeat. But nobody bailed them out. With the panic of 1907 J.P. Morgan and a handful of other industrial giants put up their own money to save the banking crisis, i.e the rich saved the rich. They devised the concept of the federal reserve systems wereas the federal government would save the crash's, rather than private money. Banking and business could therefore continue to take the risk and reap the rewards and with the establishment of the income tax at the same time the taxpayer would take on the responsibilities. This is our system. Do we really think any new regulations are going to change this system? Why would congress take away the oversight of banks from the Fed, when that is the precise reason why the Fed was created.
    May 22, 2010. 11:19 AM | 3 Likes Like |Link to Comment
  • We're not Greece, Paul Krugman says, but we're looking an awful lot like Japan - deflationary traps aren't hypothetical, and the U.S. is facing its own lost decade of persistent high unemployment and slow growth. "It could happen here."  [View news story]
    This socialist never sees debt as a problem. He keeps clamoring to spend more, more, more. Our savings rate will have to grow 10 fold before we approach the problems of Japan.
    May 21, 2010. 07:25 PM | 6 Likes Like |Link to Comment
  • Building on Current Earnings Foundation, Analysts Project Future Growth [View article]
    I think one key component was left out of the report. The largest growth for the Dow stocks in sale and earnings are coming from outside the US and a weak dollar. I feel with a stronger dollar and weaker Euro, along with Europe's current debt crisis, the future growth rates should be somewhat lower.
    May 21, 2010. 06:57 PM | Likes Like |Link to Comment
  • Can We Grow Our Way Out of Debt? [View article]
    Sorry about the wise crack, I am almost there too. Sad, but true, they may be the only jobs left.
    May 21, 2010. 12:06 AM | Likes Like |Link to Comment
  • Can We Grow Our Way Out of Debt? [View article]
    Yea! New printing presses for all.
    May 20, 2010. 08:25 PM | 2 Likes Like |Link to Comment
  • Can We Grow Our Way Out of Debt? [View article]
    You can not save your way to growth, see Japan. What sectors will lead us to recovery? Just about all except more Walmart greeters.
    May 20, 2010. 08:20 PM | 1 Like Like |Link to Comment
  • Can We Grow Our Way Out of Debt? [View article]
    Is there not one single economist in this country that even considers the individual states and local economies? States and local communities are smothered in debt, and cash poor. Any growth that may occur over the next several years will be eaten away by state and local taxing bodies to pay down debt and service the legacy cost left behind by a generation of early retirement and end of life benefits. They can't print money or say no to the federal government when DC passes legislation such as health care and medicaid then passes much of the cost on to the states.
    May 20, 2010. 07:44 PM | 3 Likes Like |Link to Comment
  • Peak Oil Investments I'm Putting My Money On: Part X, Improving Vehicle Efficiency [View article]
    Your pay per mile may be quite fair for metroplitan commuters, but I think this would place a very unfair economic burden for our rural areas where private transportation is the only option because of availabilty, and cost constraints for public transportation. I think we will continue to have different philosphical and investment opinions on the subject. Were I to invest for this market, I would perfer Precision Cast Parts. This would cover both conventional auto parts and aerospace.
    May 17, 2010. 10:49 PM | Likes Like |Link to Comment
  • The Not-So-Great Recovery [View article]
    Professor Morici, I agree with most of what you say. But, I am perplexed with this article as a follow up to the article you wrote 5-14-10 titled "Stocks Poised For A Big Rally", which you called the Dow reaching 13,000 by 2011. I disagree that the Dow is that unattached from the US economy, especially the job market and the excessive debt that will compete for the investment dollars. Our national economy can not grow at normal stable rates until we find a way for states and local governments to return to sound and fiscal policy. Debt is our biggest enemy, and will kill job creation for the long haul. Would you please explain how you can meld these two articles into one train of thought.
    May 16, 2010. 08:32 PM | 2 Likes Like |Link to Comment
  • Peak Oil Investments I'm Putting My Money On: Part X, Improving Vehicle Efficiency [View article]
    Mr. Konrad you may call yourself a capitalist, but please clarify what kind. A state capitalist or a free market capitalist?
    May 16, 2010. 07:01 PM | Likes Like |Link to Comment
  • Stocks Poised for Big Rally [View article]
    Simmer down my friend. The next time we have a Republican administration you can be a doom and gloomer too. Only from the left.
    May 15, 2010. 03:15 PM | 5 Likes Like |Link to Comment
  • Peak Oil Investments I'm Putting My Money On: Part X, Improving Vehicle Efficiency [View article]
    I believe the weight increase came mostly from the SUV. The SUV has been classified as a truck. Trucks have lower standards for fuel efficiencies, therefore carmakers could market the SUV to meet fleet regulations. I must admit I am a pure capitalist and do not agree about the iron fist of government persausions to bring about change for anything. I still believe in the invisible hand and individuals will determine what is best for them in regards to their own situations. If gasoline gets to $10 a gallon through market forces, they will drive less on their own. If they discover hybrids to be produced at a competitive price and are cheaper to drive and maintain than gas engines, they will purchase them. If all electric cars become cheaper without the hassel of limited mileage to recharge, people will purchase. Let the market place work.
    May 15, 2010. 02:55 PM | 1 Like Like |Link to Comment
  • Stocks Poised for Big Rally [View article]
    Mr. Morici it is time to stop saying "It's the economy, stupid" and start with a new phrase, "It's the debt, stupid". Any growth we see in our economy will need to be transfered through higher taxes to pay down this debt. Before you get to euphoric about the last couple of quarters, I think you should consider the terrible financial situations of our individual states and local communities are in. The fact that our multi-national corporations are showing growth from other economies will not transfer wealth to our states, our cities, or our citizens. We have still only recovered 1 job for the ten jobs that were lost from the last downturn. If all is well, as you state, why was there such a flight to safety in treasuries this past week? In order for the Dow to reach such lofty levels as you predict, money will flood out of treasuries and rates will skyrocket. Regardless of where the Fed puts their target rates, borrowing rates will be substantially higher. This will place even more stress on our federal government, state governments, and local communities to pay off debt. In short, excessive debt always slows growth.
    May 15, 2010. 02:20 PM | 7 Likes Like |Link to Comment
  • Dr. Copper Gives a Big Warning Signal [View article]
    Bill Gross states the 30 year rally in bonds is over. And if copper is telling us of a possible bear market, other commodities will sell off too. What will be left gold and a tin can?
    May 9, 2010. 05:33 PM | Likes Like |Link to Comment
  • New Hiring Should Sustain Recovery [View article]
    WOW! Over the last 4 months our economy has created 1 job for every 10 lost in the melt down. But gotta the love the optimism. Word of caution before your excuberence gets to you. Our state budgets are in crisis mode. Exploding deficits and the only way out is higher taxes on consumers and these new hires.
    May 8, 2010. 01:20 PM | 1 Like Like |Link to Comment
COMMENTS STATS
295 Comments
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