Earlier quoted context omitted.
The $xxxxB sat in banks as excess reserves that the Fed paid interest on. None of it hit the real economy.
This is my favorite part. This is how most keynesians react when confronted with the harsh realities of QE. This and "the consumers just aren't spending enough." Ofc it's never enough QE and never enough spending. Meanwhile that creaking sound....
Stocks Off Sharply as Market Upheaval Grows
411–420 of 433 posts
Re: Stocks Off Sharply as Market Upheaval Grows
#412Earlier quoted context omitted.
Staggeringly unequal benefits distribution makes for an unhealthy economy. We don't describe the economy of Mexico or Brazil to be healthy even when they are at high employment and growing GDP mostly because the burgeoning economy doesn't produce a similar ripple in their societies.
There's no real reason a 'staggeringly unequal benefits distribution' should lead to an economic crisis, unless you believe in proletarian revolution or something.
There's plenty of reason to believe in proletarian revolution [0] as a thing that happens, whether or not one believes in it as a thing which is an ideologically desirable response to certain conditions.
[0] At least, revolution in which the lower classes are actively involved and where their dissatisfaction is a key lever used by the revolutionary leadership, even if the leadership itself is often from disaffected factions of the elites, either in government, military, academia, or private wealth.
Re: Stocks Off Sharply as Market Upheaval Grows
#413Earlier quoted context omitted.
> Reading Lenin's letters in the Lenin museum in Tampere was very eye opening and educational. Since when is Lenin an authority on communism? He was a thug, same as Stalin. > cottage industries (local farmers and makers etc) existing and operating in a free market. To his credit, they did do some very interesting things in the 20s. Then Stalin came to power and that ended. > Again social ownership of the means of pro…
>There is a "fervent" belief in the free market and the idea that capitalism isn't ideal and that we should tweak that split and reduce government involvement. That we should move toward a free market. That gets people excited. Serious question. How is this any different than unbridled capitalism? No government involvement and a laissez-faire approach to the market is exactly what unbridled capitalism looks like in m…
If you are so attached to ideology, rather than the results those ideologies bring, we can't have a serious conversation.
> Serious question. How is this any different than unbridled capitalism?
"Unbridled capitalism", no matter how unrestrained, denotes heavy government involvement by virtue of the second word in there.
> No government involvement and a laissez-faire approach to the market is exactly what unbridled capitalism looks like in my understanding.
Your understanding is wrong.
Capitalism requires the accumulation of substantial capital in private hands and its application. And not just any hands, very specific hands, where that capital is magnified.
You can't have that kind of distribution and application of capital without government involvement.
Eminent domain, government contracts, grants, regulations, etc. all direct the flow of capital to the few individuals blessed to wield it.
In short, the government controls and directs the flow of capital. That's capitalism.
> Just because Socialism is in the name USSR doesn't necessarily mean anything.
Yes, it does. It means those who were at the center of the creation of the state saw the enterprise as a socialist one. Even your friend Lenin.
> If we are to look at the name Nazi which was the National Socialists Party and their Italian counterpart was a major proponent (even father of) of Corporatism, a rather extreme form of capitalism
https://en.wikipedia.org/wiki/Nazism#Economics
"Nazis also promised social policies like a national labour service, state-provided health care, guaranteed pensions, and an agrarian settlement program."
"To tie farmers to their land, selling agricultural land was prohibited."
"Farm ownership was nominally private, but business monopoly rights were granted to marketing boards to control production and prices with a quota system."
Sounds like state controlled means of production to me. I can go on, but you get the point. They were clearly socialist.
> The Welfare State has it's roots in Socialism.
Yes.
> Socialism is an umbrella term.
No. We defined it a few posts above.
> Anarchism is a main branch of Socialism > to be fair extreme Anarchists don't want a State at all so Socialism cannot and does not mean State ownership
You're skipping steps there. Socialism -> Communism -> Anarchism.
Communists aren't fans of government either. They believe(d) that once all private property is out of the picture, there would be no need for government, since there would be no disputes over private property to mediate ... which would lead to a state without government. Leading to anarchism.
> his is one of the major confusions into what Socialism means and kills any possible meaningful discussion around the topic, especially in the USA where Communism and Socialism are used interchangeably.
What? The front-runner for the Democratic nomination openly calls himself a socialist ... that's clearly not true.
> Also Lenin didn't kill 50m+ people just because he was paranoid. You can't lump them together.
https://en.wikipedia.org/wiki/Vladimir_Lenin#Red_Terror
Ok, so he didn't kill 50m+, maybe 1m?
How do you differentiate between a thug who was responsible for the murder of 50m and one for who was responsible for 1m?
> While Lenin was certainly not a saint, he was an intellectual with brilliant ideas, operating in an extremely difficult environment.
I'm glad to hear he's your hero, but at the end, he's just another murderer. An honest, decent man wouldn't be capable of what he did.
Being intelligent, well spoken, even brilliant ... doesn't excuse you from being a shitty human being.
Stalin was also quite brilliant. That doesn't excuse him either.
Re: Stocks Off Sharply as Market Upheaval Grows
#414Earlier quoted context omitted.
Excellent points. Most people confuse macroeconomics with microeconomics. You cannot apply the principles of personal finance to a national economy.
Macroeconomics is (in my opinion) the science of applying statistical analysis to microeconomics in such a way that it retroactively justifies whatever it is the power-elites are already doing. As such, there is a lot of hand-waving, misdirection, and misuse of language in it. Whenever someone says "deflation," I must immediately ask "of what?" Production costs? Retail prices? Wages? Quantity of circulating currency?…
> This is what monetary authorities and their pet macroeconomists have given us since 1970. The ordinary march of human progress--which has steadily given us an approximate annualized return of 1.5% per year, failing only temporarily due to wars, plagues, or other catastrophes--now goes directly into an annual inflation of the money supply of at least 1.5%.
Someone hasn't heard of the various inflation-caused panics of the 1800s or deflationary economic problems pre-1900. applauds Read some history books.
Please, just stop. You have no clue what you are talking about.
Re: Stocks Off Sharply as Market Upheaval Grows
#415Earlier quoted context omitted.
> 0% interest rate for several years is not healthy That's not healthy or unhealthy. It's just a thing. > QE is not healthy Ask Europe that didn't do quantitative easing (or did too little too late) which economy they'd rather have right now. And it's no longer a thing - because it ran its course and largely worked. >Inflating assets is not healthy Some classes of assets are inflating. Some are deflating. Again it's…
>> 0% interest rate for several years is not healthy > That's not healthy or unhealthy. It's just a thing. I agree with you generally, but this response is a little silly. What does "it's just a thing" even mean? Given that there's no ironclad economic consensus on this question yet, it's more comfortable to not spend too much time sitting on the ZLB. Now that doesn't suggest anything specific about what costs should…
Re: Stocks Off Sharply as Market Upheaval Grows
#416Earlier quoted context omitted.
A vanishing middle-class is not healthy. Everyone's been picking at all your claims except this one, so let me jump in on this part. You've been drinking too much of the kool-aid. It's certainly fashionable for talking heads to spout platitudes about the middle class, but it doesn't match the real world. The picture that's being painted is that the vast majority of us will be living lives as serfs, while a group of o…
When you actually look at the numbers, rather than simply believing the graphic, you will find that your data proves your opponent correct. The income levels that fell during the studied period: 15,000-24,999 25,000-34,999 35,000-49,999 50,000-74,999 75,000-99,999 Income levels that grew: 100,000-100,000+ 100k + increased by 6% 75k-99k decreased by 1.1% 50k-74k decreased by 3.1% But sure, you could make up your own c…
The key is that the number of people in the higher tiers increased, while the membership of the lower tiers went down. That's exactly what you said. But what it shows is people were shifting into those higher tiers.
You're right that in all groups below $75K, the percentage of people in the group went down. While from $75K and up, the membership of each group increased (you've read that part of the data wrong, as the $75l-$99K group also increased.). That's precisely what my linked article says, and exactly what we'd like to see: people are shifting from lower groups into higher groups, across the board.
EDIT: here's the spreadsheet from the census bureau I was working from: http://www.census.gov/compendia/statab/2012/tables/12s0696.x... (Excel spreadsheet)
Re: Stocks Off Sharply as Market Upheaval Grows
#417Earlier quoted context omitted.
A vanishing middle-class is not healthy. Everyone's been picking at all your claims except this one, so let me jump in on this part. You've been drinking too much of the kool-aid. It's certainly fashionable for talking heads to spout platitudes about the middle class, but it doesn't match the real world. The picture that's being painted is that the vast majority of us will be living lives as serfs, while a group of o…
When you actually look at the numbers, rather than simply believing the graphic, you will find that your data proves your opponent correct. The income levels that fell during the studied period: 15,000-24,999 25,000-34,999 35,000-49,999 50,000-74,999 75,000-99,999 Income levels that grew: 100,000-100,000+ 100k + increased by 6% 75k-99k decreased by 1.1% 50k-74k decreased by 3.1% But sure, you could make up your own c…
Re: Stocks Off Sharply as Market Upheaval Grows
#418Re: Stocks Off Sharply as Market Upheaval Grows
#419Earlier quoted context omitted.
Disney stock was down almost 10% this morning. HOW POSSIBLY can it be rational for Disney stock to drop 10% because of a single day of rough trading in the Shanghai market, especially given how much Disney has dropped already in the last few months? I considered that the buying opportunity of the year. (knock on wood...)
If you're gonna look at crazy swings, I have an S&P smallcap 600 index tracking ETF that was down 40% at open. The index itself was only down a few percent, just buy that, wait for liquidity to return, and bam 30% ROI in a few minutes. Just had to be quick enough to get in before the halt.
Re: Stocks Off Sharply as Market Upheaval Grows
#420Earlier quoted context omitted.
Investors are not rational. EDIT> Why would you choose Disney over Google, given the choice? FYI I own both.
I'm actually prone to believe in EMH, so I agree there's very few "bargains" to be had. That said, bargain hunting has worked for me statistically in the past, and even if it's hard to justify rationally I will continue to attempt it, since EMH just argues that I'll likely break even if I'm wrong. > Why would you choose Disney over Google, given the choice? My three big buys early this morning were Disney, Google, an…