The Crash of 2008 didn’t just go away (as too many of us know). It still hangs over the globe. But things have changed. We now have more debt on the books and an even more emboldened political class.
Here comes the Fed…Hooray.
The definition of “helicopter money” appears to be shifting a bit. Generally it means pouring currency (printed by a central bank) into the economic system by directly depositing it into accounts. What type of accounts appears to be an open question. Whatever the Fed chooses (assuming that it does) it is a bad idea however.
How about we let rates adjust to where they should be naturally? How about we let things clear. How about we get real now,
This one isn’t an uplifter but it is a sober assessment which deserves attention. Sobriety is a valuable thing, especially when dodging icebergs.
Loaded up and on the way.
“Dolla dolla bill ya’ll…”
Or is it yen yen ya’ll?
No matter, the helicopters are in the air over Tokyo and currency is about to fall from the sky.
Watch military spending in Japan ramp up. This ought to work. We promise. This time. It’s gonna happen.
It’s your money not the government’s.
Don’t let the politicians and government apparatchiks off the hook. They spent too much for decades and all across the country politicians are calling out for more. Look to Puerto Rico, Detroit, soon Illinois, California, maybe Connecticut. Save us!
Don’t let the politicians bail themselves out. Hold them accountable.
And remember, bailouts for local and state governments are also bailouts for Wall Street which holds the bonds.
How great of the House. Thanks for setting a precedent for states like Illinois, and California which will soon see shortfalls due to overly generous government worker pensions and will soon also be begging Washington to save their overspending posteriors. By which we mean Cali and Illinois will be begging Washington to force US taxpayers to save them. I mean if lowly Puerto Rico can get a “rescue” surely mighty California can get one.
Indeed he must. As Hunter Lewis the co-founder of Against Crony Capitalism has said, Keynesianism is the mother of crony capitalism as we know it. Keynesian economic theory gives intellectual cover to politicians and social theoreticians who want to spend the money of a society anyway. It is an excuse. It is a cult. It is destructive and it is obviously, especially as we see at this late date, as the world slowly succumbs to its ever growing debt burden,
Remember when Japan was going to rule the world? And no I’m not talking about WWII, I’m talking about the late 80s. The Japanese were buying up everything. The world was turning Japanese. Ahem.
That was a long time ago now. Indeed many of our readers don’t remember the 80s Japanese surge because they weren’t even born. Since those heady days Japan has stagnated. It may be looking at significantly worse than stagnation soon. The Land of the Rising Sun,
This is the slow but steady decline of Europe over the last decade. Spain has felt much of the brunt. Not long ago the country was knocking on first tier European status. No longer. But at least Spaniards can find some (cold) comfort in the fact that “Europe” doesn’t end at the Pyrenees as the French used to say anymore. Now it ends, it seems, at the Belgian border.
As I look out the window and see a half completed house across the street that the neighborhood didn’t want I am reminded that real estate guys are debt fiends by nature. (At least that has been my experience.)
During the Crash the Fed should have let things fall. It would have been painful. Very painful for some. But the market would have cleared. Some people would have picked up deals and many people would be in houses now, even many who would have hurt in 2008/2009, with positive equity.
Instead the Fed intervened and tried to put a bottom under house prices. As such we have the situation we have now. Millions of homeowners still underwater and a much less mobile workforce.
That is a pretty significant stat. It certainly does not indicate upward mobility for today’s youth.
It also indicates how completely out of whack our crony system of student debt is. The colleges love it. The students well, they aren’t able to pay the money they were loaned back. So they don’t love it so much.
Now, these statistics do not mean that taxpayers will need to pick up the tab for 46 percent of the outstanding student loan balance,