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  • Investment Ideas For Hard Times To Come
    Socialism-boy: you said I was wrong, but said nothing about why. Why is there not blame enough to go around? What you should have said was that that 1970's legislation didn't get teeth until the Clinton administration, which is apparently true. And perhaps without this impetus, Fannie and Freddie would have stayed within acceptable risk tolerances. However, the fact remains that without the big financials packaging and insuring these things, there would never have been a systemic threat to the world's credit markets. And at its heart, this is a a systemic failure of our public education system, which churned out generations of kids who had to demonstrate the ability to cut up a frog, but not to balance a checkbook.

    Like I said, plenty of blame to go around.
    Oct 06 21:22 pm |Rating: 0 0 |Link to Comment |View article
  • Investment Ideas For Hard Times To Come
    Are you still waiting for Republicans in Congress to do the same?
    Oct 06 12:31 pm |Rating: 0 0 |Link to Comment |View article
  • Investment Ideas For Hard Times To Come
    "Inflation may well come close to 12% or higher as the government printing presses roll 24/7 to bail out liberal-inspired social justice programs and to concurrently stave off a severe recession. Circa 1977-80."

    First off, based on the contraction of M3 and the rock-like fall of commodities prices, I think inflation is the least of our worries. The Fed and Treasury are working hard, and should be pumping as much money as possible into the banking system, to cut short a deflationary spiral.

    Second, there's plenty of blame to go around. The "liberal-inspired social justice programs" you'd like to blame have been around since the late 70's, and we went through a significant drop in housing prices in the early 1990s without a systemic banking failure. It was only after the investment banks and insurance companies were let loose to securitize mortgages and trade default swaps that we entered this dangerous ground. Foreclosures are in the 6-7% range - since when does a 7% loss in one market segment bring the world's credit market to a halt?

    Lastly, in thinking about 1977-1980, remember please that we were coming off the most socialist policies ever instituted in this country - Nixon's wage and price controls. This policy skewed markets so dramatically that we were destined to face a multi-year correction as prices regained equilibrium levels.

    I'd like to keep politics out of it. There's plenty of blame to go around.
    Oct 06 11:47 am |Rating: 0 0 |Link to Comment |View article

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