Bureaucrats and the Lying Lies They Tell
By Mr Practical Jul 11, 2008 9:00 am
Bernanke, Paulson truth-challenged.
As I watched Mr. Bernanke’s “um” testimony (I hope the number of times he said “um” has nothing to do with him being nervous) and Mr. Paulson’s “no answer” to the only intelligent question of the day asked by Ron Paul, I got the feeling that we will be hearing from them and others just about every other minute of the day.
Berries learn on the job to obfuscate. I assume they start out in life as normal people and maybe even a bit more altruistic than most of us, but once they become a part of the “system” they almost all morph into professional liars. Remember just months ago when the head of OFHEO lowered the capital requirements for the GSEs, trumpeting the “all clear” sign? Fools went out and bought up the stocks thinking they were going to make more money without thinking the companies could actually lose more. Now the companies have no capital left and are about to crash. Why did people listen to the berries?
How did we get to the point where we think berries know so much? That they can fix and control and natural thing like the markets? Can weathermen control the weather?
The Federal Reserve has mis-managed America’s money supply. They have sucked vast wealth away from the middle class to support rich institutions which they call “the system”. Why would we give vast new powers to the berries that run the Fed when they have proven they don’t know what they are doing?
Ron Paul asked this direct question, but he knew the answer and he knew the Berry Twins would not answer it. Real lending should take place between saver and borrower. A saver will take much better care of lending his money than would a speculator handed free money by the Federal Reserve.
Apologists are wrong when they say savers cannot provide enough liquidity to borrowers on their own and we need a central bank to make up the difference. We already have a fractional banking system to juice up saver liquidity. We do not need a central bank to juice that to infinity and beyond. We are now living the nightmare that our central banks have wrought. Thomas Jefferson cautioned hundreds of years ago not to give the government the ability to create money, for they will always devalue it.
If we didn’t have a central bank, we simply would not have the debt (five times normal) plaguing our country today.
Heresy, you say! Well, read your history. Ron Paul has.
No positions in stocks mentioned.
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Reply
2008-07-11 09:58:06
I take exception to this comment. "A saver will take much better care of lending his money than would a speculator" My belief is that most saving is done in a 401k which involves ordinary people thowing money into the stock market casino and burying their heads in the sand. Many people today lament the losses they have taken but could not tell you why they incurred those losses. We've all become speculators in the end regardless of the source of the funds.
When stocks were first invented, who would have bought stock that provided no dividends?
When stocks were first invented, who would have bought stock that provided no dividends?
2008-07-11 10:00:36
Central Banks
My favorite anti-central bank argument is this:
"All fiat currencies have failed"
Interestingly, so have all specie based currencies! The main reason for the switch to fiat from specie has tended to be due to the limitation of liquidity in times of growth.
I'd like to see examples of specie based currencies that are still in existence today after 1,000 years! How about 500? 300?
Central banks are fine, as is a fiat based currency IF (and ONLY IF) the people running them manage within a transparent and finely tuned regulatory environment.
For years, that is what we had. However, the Fed has been asked (by Congress and the President of each administration) to "do more" to keep the engine running.
In the past, the Fed would "take away the punch bowl" when the party got started. In the last 16 years, the Fed added more grain alcohol, only to water down the mix when the party got out of control.... but the punch remained on the table.
I've worked in several large media outlets (ABC, NBC, Fox, Univision, etc.) over the years. There is one truth to each news organization - sell fear and gloom. While things today are "bad" in the sense that they aren't "as good", they certainly are not horrible.
My experience in other organizations financial departments (and my current one) indicates that credit is indeed tight despite the Fed's lowering of rates. But this situation is changing. For the first time in a long time, the Fed may "take away the punch bowl".
As Schumpeter was famous for saying to (my favorite economist) Robert Heilbroner's class - " A Depression is like a cold shower, sometimes you have to take one". I'd replace Depression with Recession, and make comparisons to 1972/73....and then you've got some idea of our current situation.
I remember the 70's very well....it's when my love of economics began. I seem more correlations to that period than I do to any other. And as bad as the 70's were, they were still pretty good for people who prepared. Remember, after the 70's ended, we had 28 years of substantial growth.
"All fiat currencies have failed"
Interestingly, so have all specie based currencies! The main reason for the switch to fiat from specie has tended to be due to the limitation of liquidity in times of growth.
I'd like to see examples of specie based currencies that are still in existence today after 1,000 years! How about 500? 300?
Central banks are fine, as is a fiat based currency IF (and ONLY IF) the people running them manage within a transparent and finely tuned regulatory environment.
For years, that is what we had. However, the Fed has been asked (by Congress and the President of each administration) to "do more" to keep the engine running.
In the past, the Fed would "take away the punch bowl" when the party got started. In the last 16 years, the Fed added more grain alcohol, only to water down the mix when the party got out of control.... but the punch remained on the table.
I've worked in several large media outlets (ABC, NBC, Fox, Univision, etc.) over the years. There is one truth to each news organization - sell fear and gloom. While things today are "bad" in the sense that they aren't "as good", they certainly are not horrible.
My experience in other organizations financial departments (and my current one) indicates that credit is indeed tight despite the Fed's lowering of rates. But this situation is changing. For the first time in a long time, the Fed may "take away the punch bowl".
As Schumpeter was famous for saying to (my favorite economist) Robert Heilbroner's class - " A Depression is like a cold shower, sometimes you have to take one". I'd replace Depression with Recession, and make comparisons to 1972/73....and then you've got some idea of our current situation.
I remember the 70's very well....it's when my love of economics began. I seem more correlations to that period than I do to any other. And as bad as the 70's were, they were still pretty good for people who prepared. Remember, after the 70's ended, we had 28 years of substantial growth.
2008-07-11 11:59:00
Central Banks
i think you and i are agreeing. i too learned the markets in the 70s. i was also in texas for my first job out of grad school at the now defunct interfirst bank of dallas and witnessed first hand the depression and deflation that occurred. i agree you CAN have a central bank as long as it acts responsibly. i think we only deviate when i say that over long periods of time it will eventually act irresponsibly. please read "What Has the Gov't Done to Our Money" by Murray Rothbard (page 167).
2008-07-11 11:59:40
Berries, Monopoly money and real money
I think you really make the point as to why Minyanville and other financial education is so important. Plus, your comments and analysis are very much appreciated!
The "Berries" play with Monopoly money (in their minds), while we here in the real world we use real money.
Therefore I think we can do two things:
1. Understand what is going on, and prepare ourselves to best handle it. Maybe even profit from it?
2. Get politically active, point out what the real issues are, and try to get a few politicians involved. Who is sitting in the White House and in Congress will make a difference. [Side comment: Am I the only one, or does it seem like the extremes of both parties seem to be winning nominations? It seems to me like the people with common sense are getting pushed aside? Do I sense something wrong with the system?]
The "Berries" play with Monopoly money (in their minds), while we here in the real world we use real money.
Therefore I think we can do two things:
1. Understand what is going on, and prepare ourselves to best handle it. Maybe even profit from it?
2. Get politically active, point out what the real issues are, and try to get a few politicians involved. Who is sitting in the White House and in Congress will make a difference. [Side comment: Am I the only one, or does it seem like the extremes of both parties seem to be winning nominations? It seems to me like the people with common sense are getting pushed aside? Do I sense something wrong with the system?]
2008-07-11 12:01:34
401K's
Are the result of a tax and economic system that encourages spending. People don't put their money into 401K's by choice, exactly. It's more like by coercion. The income tax code forces people to blindly trust 'someone else' to handle their money, because even the IRS doesn't understand all of the rules.
We can only speculate what economics would be like with an alternative, because the entrenched system of Bribes and Berries Forever obfuscates any possibility of a serious reform into oblivion. In a world of diminishing resources, all taxes should be based upon the consumption that creates the need for government in the first place. How much of a sales tax would be required to pay for our efforts in the Middle East oil fields?
A sales tax would probably be less regressive than a dead planet, but then, that's just speculation again.
We can only speculate what economics would be like with an alternative, because the entrenched system of Bribes and Berries Forever obfuscates any possibility of a serious reform into oblivion. In a world of diminishing resources, all taxes should be based upon the consumption that creates the need for government in the first place. How much of a sales tax would be required to pay for our efforts in the Middle East oil fields?
A sales tax would probably be less regressive than a dead planet, but then, that's just speculation again.
2008-07-11 12:11:02
Testimony
I can't believe it - I made the same observations during the testimony. Ron Paul was great - No answer from Paulson. And, I wasn't sure why Bernake was saying so many "ums." He made me nervous. We're toast.
2008-07-11 12:15:05
Central Banks
You comment:
"do more" to keep the engine running.
[Exactly, asking monetary policy to compensate for unsound economic policy]
I remember the 70's very well....it's when my love of economics began. I seem more correlations to that period than I do to any other. And as bad as the 70's were, they were still pretty good for people who prepared.
[I was just a kid then, but I sense that someone has loosened a lot of bolts on our running engine. I think there is a real possibility we will "throw a rod", before this is all over. There are just so many imbalances. Inflation (1970s) could be fixed with tightening and creating a recession. But now we have excess debt, a hollowed out manufacturing base, trade deficits, energy supply issues, people in their peak spending years retiring, housing contracting, etc. Therefore my gut says risk is very high.]
"do more" to keep the engine running.
[Exactly, asking monetary policy to compensate for unsound economic policy]
I remember the 70's very well....it's when my love of economics began. I seem more correlations to that period than I do to any other. And as bad as the 70's were, they were still pretty good for people who prepared.
[I was just a kid then, but I sense that someone has loosened a lot of bolts on our running engine. I think there is a real possibility we will "throw a rod", before this is all over. There are just so many imbalances. Inflation (1970s) could be fixed with tightening and creating a recession. But now we have excess debt, a hollowed out manufacturing base, trade deficits, energy supply issues, people in their peak spending years retiring, housing contracting, etc. Therefore my gut says risk is very high.]
2008-07-11 12:44:09
Central Banks
Excellent commentary. Very reasoned. Thanks.
I have to admit, I'm almost more frightened by the pro-specie Paul/Rothbard fanatics than I am by the actions of the Fed Governors. For all the (many) mistakes the latter have made, they're pragmatic, rather than religious, which, to me, is refreshing. They may be (and often are) wrong, but they're not above changing directions when the writing is on the wall.
For the libs, on the other hand, all writing (on or off the wall) can, nay MUST be translated in to the simple dictum "If Left Alone, Markets Never Fail."
All hail child labor, the gold standard and the tort system!
W
I have to admit, I'm almost more frightened by the pro-specie Paul/Rothbard fanatics than I am by the actions of the Fed Governors. For all the (many) mistakes the latter have made, they're pragmatic, rather than religious, which, to me, is refreshing. They may be (and often are) wrong, but they're not above changing directions when the writing is on the wall.
For the libs, on the other hand, all writing (on or off the wall) can, nay MUST be translated in to the simple dictum "If Left Alone, Markets Never Fail."
All hail child labor, the gold standard and the tort system!
W
2008-07-11 13:02:50
Ron Paul, Joe Biden, Straight Talk, Berries
I too must praise Ron Paul. I watched the same testimony, with a big smile on my face. To be neutral, I have also watched Joe Biden deliver some "straight talk", with a smile on my face.
Does anyone have a good book on how to deliver "straight talk" (i.e. the truth), without getting your head handed to you by the Berries?
As we know neither Ron Paul nor Joe Biden got nominated.
I have read Jack Welchs' books as well as Donald Trumps', and they contain a few nuggets. My favorite so far has been "Synergy and other lies" by Harold Geneen (I also read "Managing".
Does anyone have a good book on how to deliver "straight talk" (i.e. the truth), without getting your head handed to you by the Berries?
As we know neither Ron Paul nor Joe Biden got nominated.
I have read Jack Welchs' books as well as Donald Trumps', and they contain a few nuggets. My favorite so far has been "Synergy and other lies" by Harold Geneen (I also read "Managing".
2008-07-11 13:27:16
Berries, Monopoly money and real money
number 2, a grass roots effort, is unfortunately probably the only chance we have of change. they are not going to change it themselves.
2008-07-11 14:53:29
Berries are incompetent, but not stupid
Has anyomne noticed Paulsons neat trick of "reluctantly" accepting the fact that the toughened regulations he seeks (as of 2 weeks ago) may not be passed until next year? He wants the expanded powers now, of course. Their strategy is to grab the powers now, and pass the regulations later when things have calmed down (they hope) so the regs. can be watered down. This will also get him political support from those berries who will get nice donations/payoffs from the banks who will fight those regulations tooth and nail.
Has there been any word on the investigation into who requested the listing of and who purchased the Bear Stearns far out-of-the-money puts days before the take down? This crime seems to have faded from view.
Has there been any word on the investigation into who requested the listing of and who purchased the Bear Stearns far out-of-the-money puts days before the take down? This crime seems to have faded from view.
2008-07-11 15:08:44
Central Banks
Well, I would have to say that EVERYONE, over the long term, acts irresponsibly. Which is precisely why I prefer Capitalism to Socialism. In Capitalism (as Schumpeter, Smith, Ricardo, Mills, etc. all point out), the irresponsible ones are typically offset by the actions and behaviors of the irresponsible ones.
The issue today isn't necessarily this, however. The issue today is "What do I, as an investor, saver, homeowner, and potential layoff victim, DO?" I'm less concerned, NOW, with fixing the Fed. I'll concentrate on that after I'm OK with everything.
But my point of view is really, when I put things into perspective, that things are just not as bad as we are being led to believe. That is, things are bad relative to 6 months, 1 year, 4 years ago. But relative to the long term historical trend, they really aren't IF we, as individuals, make wise choices and most importantly (thank you Douglas Adams) "Don't Panic".
The issue today isn't necessarily this, however. The issue today is "What do I, as an investor, saver, homeowner, and potential layoff victim, DO?" I'm less concerned, NOW, with fixing the Fed. I'll concentrate on that after I'm OK with everything.
But my point of view is really, when I put things into perspective, that things are just not as bad as we are being led to believe. That is, things are bad relative to 6 months, 1 year, 4 years ago. But relative to the long term historical trend, they really aren't IF we, as individuals, make wise choices and most importantly (thank you Douglas Adams) "Don't Panic".
2008-07-11 16:36:19
berries and lies - wait til your Obama gets home
If you think obfuscation and deception are the order of the day, wait until Barack Hussein, "I don't know anything about economics but man I love that giant new house I got following my election to the Illinois Senate" Obama is annointed President with an entirely Democratic Congress. At least George Bush is in the pocket of the oil industry and the bankers, so while he is also economically ignorant, he won't do anything to destroy his clientele.
We now live in an era where if one's enterprise has donated enough money to government, it is free from responsibility for its actions (Banks, Realtors, Lenders). What will be interesting to watch is the response of the Berries when the holders of our foreign debt begin demanding they dance on their stage instead of ours. It will be here very soon.
We now live in an era where if one's enterprise has donated enough money to government, it is free from responsibility for its actions (Banks, Realtors, Lenders). What will be interesting to watch is the response of the Berries when the holders of our foreign debt begin demanding they dance on their stage instead of ours. It will be here very soon.
2008-07-11 16:44:32
Central Banks
I don't believe in panicking either.
The economy is like a giant super tanker, or a train if you will, with lots of momentum. But we have systematic imbalances that are not sustainable (debt, trade imbalance, for example). These will work themselves out of the system, no matter how much jawboning is done.
It can also be viewed as the old joke about the cannibal who offers the naive tourist a nice bath in his big hot tub (cook pot). He just raises the temperature of the water slowly. The middle class is the naive tourist, you can guess who the cannibal is.
The economy is like a giant super tanker, or a train if you will, with lots of momentum. But we have systematic imbalances that are not sustainable (debt, trade imbalance, for example). These will work themselves out of the system, no matter how much jawboning is done.
It can also be viewed as the old joke about the cannibal who offers the naive tourist a nice bath in his big hot tub (cook pot). He just raises the temperature of the water slowly. The middle class is the naive tourist, you can guess who the cannibal is.
2008-07-11 19:38:36
Fiat currencies
"I'd like to see examples of specie based currencies that are still in existence today after 1,000 years! How about 500? 300? "
Pound sterling comes to mind. The drachma was replaced by the euro but was around a long time before that. Or just gold and silver seem to fit the requested examples. Are there any gold coins that have lost value? Or are the governments that made them gone?
Pound sterling comes to mind. The drachma was replaced by the euro but was around a long time before that. Or just gold and silver seem to fit the requested examples. Are there any gold coins that have lost value? Or are the governments that made them gone?
2008-07-11 21:28:46
take resposibility
When you become an adult you have to take personal responsibility for yourself and what you do and not look for others to blame. A sensible and informed investor should have long since departed this market. The diabolical nature of the problems in the financial system was obvious in August last year.
Bernanke and Paulson are no different from all of those bullish analysts, strategists, so called "legendary" investors and investment gurus of the likes of Cramer, Ben Stein and Abbie Cohen. They get it wrong a lot more than they get it right and if you slavishly follow their advice, you deserve everything you get.
Bernanke and Paulson are no different from all of those bullish analysts, strategists, so called "legendary" investors and investment gurus of the likes of Cramer, Ben Stein and Abbie Cohen. They get it wrong a lot more than they get it right and if you slavishly follow their advice, you deserve everything you get.
2008-07-11 22:19:49
Fiat currencies
Pound Sterling? Since when was the Pound NOT a fiat currency?
As for the coins such as the drachma or even Spanish pieces of eight, most have the weight of value in their rarity, not in the value of the specie.
Loss of control of the money supply, regardless of fiat or specie, represents loss of control of the money itself. As a result, specie based currency for countries that no longer exist is hardly an example of a surviving currency.
I have one silver and one gold coin in my coin collection from countries that no longer exist. Recently, their value went up a little due to the increases in the individual elements themselves, but their value as determined on the market is primarily based on scarcity/rarity. This does NOT a currency make.
As for the coins such as the drachma or even Spanish pieces of eight, most have the weight of value in their rarity, not in the value of the specie.
Loss of control of the money supply, regardless of fiat or specie, represents loss of control of the money itself. As a result, specie based currency for countries that no longer exist is hardly an example of a surviving currency.
I have one silver and one gold coin in my coin collection from countries that no longer exist. Recently, their value went up a little due to the increases in the individual elements themselves, but their value as determined on the market is primarily based on scarcity/rarity. This does NOT a currency make.
2008-07-12 10:35:38
Great discussion points
This topic could become a forum all in itself. Where does value come from? Who pays? Will they be there to pay in the future? What promise does a stock hold if the company it represents needs oil to operate? What promise does a coin hold if the government isn't going to be there to back it?
It all comes down, apparently, to the Promise. The Promise comes from people and the reliability of the interaction between them. One more reason why any country is only 3 meals away from a revolution, and we are on VERY shaky centralized petrofood grounds.
The combination of expensive petroleum (not much else provides energy for our food production system), intellectual property bullying, Berry bribes for regulations, and exploitation of cheap (slave) labor is undermining the Promise that people will be able to maintain an economic system based upon everything BUT necessities.
The current market is based upon one perception: that someone will do something, nobody knows what or who, to make it grow our level of consumption.
It all comes down, apparently, to the Promise. The Promise comes from people and the reliability of the interaction between them. One more reason why any country is only 3 meals away from a revolution, and we are on VERY shaky centralized petrofood grounds.
The combination of expensive petroleum (not much else provides energy for our food production system), intellectual property bullying, Berry bribes for regulations, and exploitation of cheap (slave) labor is undermining the Promise that people will be able to maintain an economic system based upon everything BUT necessities.
The current market is based upon one perception: that someone will do something, nobody knows what or who, to make it grow our level of consumption.
2008-07-12 11:41:20
Specie based currencies
The reason specie based currencies aren't around now has nothing to do with their efficacy and everthing to do with greed and the desire for power.
Economists and other berries want to pretend they are omniscient magicians who can create wealth and prosperity by 'managing' fiat currency. As with all magical acts it is just an illusion. In fact I am coming to believe that all of capitalism is just a giant pyramid scheme that is destined to fail once we run out of slave labor and are forced to confront the mountains of debt created out of greed and as a substitute for real production.
Fiat currency is just a symptom of the problem which is man's innate greed, glutoony and irrationality.
It is possible that fancy accounting will allow us to kick the can down the road for a while but the inherent defects in this economy will have to be confronted sooner or later. Comparisons with the 70s are wishful thinking.
There is a man at the door with a flute and he wants to be paid.
2008-07-14 02:45:38
Central Banks
In part I agree with the premise that the Fed's might be taking away the punch bowl. with central banks wanting compliance with Basel 11 framework and our Congress is working on investment bank financal transparancy laws.
If we are going to bail out the big banks and private investment houses then we certainly will require transparency of their assets
and liabilities.
But, are we ignoring the fact that foreigners hold over 50% of our 13 trillion dollar debt. Even a tiny reluctance to roll over a portion of our debt could have devestating effects on the bond market.
Given the current condition of the Federal Reserve bailing out financial investment houses and banks, private and regulated, sending economic stimulas checks to its citizens and now inevitably bailing out the secondary market, and all by printing money. We are pouring salt on the wounds of the investors who are financing our irresponsible spending habits. This I say, will not stand. The danger we face in this big poker hand we are playing is that they will not continue taking this abuse while their equity dwindles. Wouldn't you be angry? I am waiting for the other shoe to drop. We better suckup much of the pain or risk having out debts called. To begin to solve this problem we will have to raise taxes and interest rates to buy time to convince the Central Banks and Lenders we are serious about about balancing our checkbook.
Other wise our dollar will replaced and no one will want them.
Where did we go wrong after the past administration. We had surpluses, and were retiring the debt.
And the dollar was strong and the economy was humming.
Now we are 13 trillion in debt, now we have, a failing banking system, massive home foreclosures, huge increases in inflation, energy price increases that threatens our economic sercurity and way of life and are now slipping relentlessly into a long recession.
Yes, Ron Paul would be an asset to any new administration, as Treasury Secretary or head of the Federal Reserve, and he certainly couldnt do any worse.
I DON'T HEAR ANYTHING OUT THERE!
McCain or Obama better start addressing these issues and engineer a plan on how we are going to get out of this mess. It would be better to be honest and tell the public about the pain they will have to indure to begin paying our way out of this problem and acting fiscally responsible nation debtor. They should make it center piece to their campaigns. To do less would be unethical.
If we are going to bail out the big banks and private investment houses then we certainly will require transparency of their assets
and liabilities.
But, are we ignoring the fact that foreigners hold over 50% of our 13 trillion dollar debt. Even a tiny reluctance to roll over a portion of our debt could have devestating effects on the bond market.
Given the current condition of the Federal Reserve bailing out financial investment houses and banks, private and regulated, sending economic stimulas checks to its citizens and now inevitably bailing out the secondary market, and all by printing money. We are pouring salt on the wounds of the investors who are financing our irresponsible spending habits. This I say, will not stand. The danger we face in this big poker hand we are playing is that they will not continue taking this abuse while their equity dwindles. Wouldn't you be angry? I am waiting for the other shoe to drop. We better suckup much of the pain or risk having out debts called. To begin to solve this problem we will have to raise taxes and interest rates to buy time to convince the Central Banks and Lenders we are serious about about balancing our checkbook.
Other wise our dollar will replaced and no one will want them.
Where did we go wrong after the past administration. We had surpluses, and were retiring the debt.
And the dollar was strong and the economy was humming.
Now we are 13 trillion in debt, now we have, a failing banking system, massive home foreclosures, huge increases in inflation, energy price increases that threatens our economic sercurity and way of life and are now slipping relentlessly into a long recession.
Yes, Ron Paul would be an asset to any new administration, as Treasury Secretary or head of the Federal Reserve, and he certainly couldnt do any worse.
I DON'T HEAR ANYTHING OUT THERE!
McCain or Obama better start addressing these issues and engineer a plan on how we are going to get out of this mess. It would be better to be honest and tell the public about the pain they will have to indure to begin paying our way out of this problem and acting fiscally responsible nation debtor. They should make it center piece to their campaigns. To do less would be unethical.
2008-07-14 18:40:21
Berries, Monopoly money and real money
Clear speaking and cogent thoughts are a recipe for failure in the world of politics. Once an issue is reduced to its essence and free of obfuscation, any audience for it is immediately polarized into the gainers and the whiners. No politician or bureaucrat can influence people who's minds are made up, especially those who are acting out of their own self-interest. The trick is always to have both sides believe they are the recipients of the solution, and for the monopoly money to never be realistically accounted for. We now have a fix-du-jour, a vintage '74, the excess profits tax being served up for the consideration of the public, whose minds are supposed to perceive the confiscation of oil company profits by government, as though it were equal to a refunding of overpayments by gasoline consumers. If I pay more at the pump, and Texaco keeps less, how is that supposed to help me? Your wealth of understanding is the only one likely to avoid taxation.
2008-07-14 19:02:41
401K's
Stock buyers would have been the same folks that bought U.S. Savings bonds from their payroll departments. Most folks were comfortable with the idea that the gain was at the end, not parceled out along the way. Quarterly payments became necessary because of unanticipated financial needs by the buyers and the favorable treatment of dividend payers by the IRS.
2008-07-14 19:41:18
Central Banks
In the long run we all die. If a central bank does X amount of good when it acts responsibly over and over, and then does Y amount of bad when it acts irresponsibly (also possibly over and over but presumably not as long), if X is a hundred times Y, we're better off with it than without. If Y is a hundred times X, we'd be better off without it.
My father was a teacher of US Government and anthropology. He used to remark that in this country, we get exactly the government we deserve. If the central bank goes astray, it is likely because we, the people, started getting greedy and letting them get away with being irresponsible. Where were the politicians decrying the Fed during the bubbles? Where were the crusading journalists? By and large, their silence has been bought. This country needs a moral reawakening, first and foremost. A taint of corruption ought to be the death knell for any politician!
My father was a teacher of US Government and anthropology. He used to remark that in this country, we get exactly the government we deserve. If the central bank goes astray, it is likely because we, the people, started getting greedy and letting them get away with being irresponsible. Where were the politicians decrying the Fed during the bubbles? Where were the crusading journalists? By and large, their silence has been bought. This country needs a moral reawakening, first and foremost. A taint of corruption ought to be the death knell for any politician!
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