In 2008, world capital markets failed.
One central piece was the US banking system (which includes significant non bank lenders, including the GSE (highly regulated and accountable to the US Congress))
There is a playbook for banking failures:
http://www.bis.org/publ/bcbs_wp13.pdf
Read it.
We more or less followed it.
The total cost was in line with other post war banking crisis. TARP was roughly break even. The GSE's are going to lose, but only a couple percent of GDP -- in line with the historical instances cited by BIS.
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Monetary Policy. Bernake gets an A. Great job. There is plenty of liquidity.
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Fiscal Policy. Obama gets a C. Current Congress gets an F.
Per Paul Krugman and others, we needed a lot more in the past and still need a lot.
We need it until we see the first glimmer of wage inflation.
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Structural problems:
Long term serious. Nothing worse than we have seen more than once.
1. Balance of trade - gotta get fixed.
2. Devalue the USD. 25% should do it.
3. Realign and rationalize health care and education.
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And if anyone reads this far, answer the following:
The following countries/regions have better economic prospects:
1. Europe.
2. China.
3. Cuba.
4. India.
5. Brazil.
I left off the Euro States that are the size of Conneticut. Yea, the Swiss have it good, but they don't let anyone in.
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It's a big world. Like commies? We got em in Cuba. We had em in Russia. And we have something vaguely like it in China.
Like no government? Try Africa.
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Japan gutted Detroit via currency manipulation 30 years ago. Now Korea is doing the same to Japan.
China is in a desperate race to develop before demography does them in.
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Meanwhile, the US has problems. But we can borrow.
We can revalue our currency.
We can cut the military and medical bloat.
We can spend a fortune getting off of foreign oil.
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Fuck.
Maybe I'll move to Cuba.
Great beaches. Pleasure is affordible.
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asia rein
Chicago Guy
CatholicGirl
M. C. S.
STATHI STATHI
Kasia Pater
Salon.com
Comments
sounds like master degree
if so, fuck off
You got farther than I expected anyone. Congrats.
Yea, I don't have the patience to write economic shit on OS.
Read the shit from the BIS. They are the fucking gnomes of Zurich.
And fuck you too.
Which country has it dicked?
I mean, really.
The US mixed capitalism with a healthy dose of safety net shit is better than anywhere else. Except maybe our colony Canada.
So -- where is it so great?
And if not, why is adopting one of their losing strategies gonna help?
aND JWoLFmaN is NUtz
say of a Krugman or any real markets writer
OS doesn't deserve you
"It is difficult to get a man to understand something, when his salary depends upon his not understanding it!"
--sinclair louis
"One withstands the invasion of armies; one does not withstand the invasion of ideas."
--victor hugo
occupy party reaches critical mass/seismic effect--now what?
cuba. but only because they start from so far down in the pit. communism will do that to a country.
somebody had a good econ piece here yesterday, saying we need a combination of capitalism and socialism and everybody should stop saying one is perfect and the other is The Work of the Devil. didn't get a lot of eyes or rates because, well, you know. happy sunday, chicago pal.
In your dreams, baby, in your dreams ...