As he battles the economic downturn, President Barack Obama is bracing Americans for a recovery different than any in recent memory – not a go-go return to prosperity like the 1990s but a slow, steady climb to stability.
“We know that an economy built on reckless speculation, inflated home prices and maxed-out credit cards does not create lasting wealth. It creates the illusion of prosperity, and it’s endangered us all,” Obama said recently.
But what Obama rarely says about ending the “cycle of bubble and bust” is this: He’s prepared to intervene to make sure that kind of red-hot growth doesn’t occur.
And he’s willing to do it with added government regulation if needed to prevent any one sector of the economy from getting out of balance – the way the dot-com boom did in the 1990s and the real-estate market did earlier this decade.
According to Austan Goolsbee, a key Obama economic adviser, the president plans to focus on stopping bubbles along with preventing busts.
Should we really kill the ups of our economy to get rid of the downs? Do we really want our economy to be like the kiddie ride pictured above? Safe, but with no thrill or chance of solid gains.
Increasing the money supply only creates bubbles…inflation, not wealth creation…that is the testimony of history…everyone knows it…they all qualify their statements about the “stimulus” by saying “i hope it works.”
It won’t work…never has in history…inflation, not job growth, is what Obama & crew set in motion…and if you have unsecured debt pegged to the PRIME…get out of debt now…you have about a year before inflation begins, and perhaps 2 before hyper inflation begins…and the Fed will raise the PRIME back to levels seen during Jimmy Carter’s day…or higher.
Alfred 1 may be right. Dang this wib site is truly bleeped!
Before he bursts any bubbles we have to have bubbles to burst.
Of course bursting bubbles needs to be done carefully or we will never prosper.
Obama’s “bubble speech” is no doubt meant to ease the concerns of those who know bubbles are the natural result of printing money based upon thin air…the Chinese were fooled…neither should we be…I fear for our future…I recall stagflation…it was depressing to say the least.
The Chinese were NOT fooled, they stopped buying our debt and are buying into mining companies…an investment I hope to do myself once I’ve gotten out of the approx 80K debt, by the end of this year.
SN asks:
…
“Should we really kill the ups of our economy to get rid of the downs? Do we really want our economy to be like the kiddie ride pictured above? Safe, but with no thrill or chance of solid gains.”
…
To paraphrase Larry Niven, “People <i><b>die</b></i> in stock market crashes. People <i><b>die</b></i>!”
…
There’s a reason cars come with shock absorbers. If precipitous enough, upturns can be bad as well as downturns, and the combination is a killer. Try riding in a wooden horse-drawn wagon with steel-rimmed wooden wheels with no suspension, so springs, no shock absorbers except your own behind, over a cobblestone road and tell me we don’t need _any_ regluation.
…
There was a story in the news a year or so ago about a guy who sued the Commonwealth of Kentucky over regulations they put on his coal mine. He had donated the land the mine was on to the Parks Department to get out of some taxes. Then, when they applied the same regulations as in other parks, he sued because he said the extra cost amounted to an illegal “taking”. His story sounded to me exactly as if a highwayman had sued because laws against highway robbery were depriving him of his livelihood without compensation.
…
Regulation starts with simple prohibitions against violence, theft and robbery, extortion, and so on and goes all the way up to Sarbanes-Oxley, John C.’s favorite <i>bete noire</i>. What is needed is some compromise between “irrational exuberance” and a stifling burden.
In the real world, regulation stops or hinders wealth creation…and just as unfortunately for our economy, politicians have found regulation (or the threat thereof) to be cash cow…business pay protection money lest they be driven out of business…through blind trusts which in turn pay exorbiant speaking fees ect till the regulating politician has acreage in Ireland…for example, Chris Dodd.
They need a reason to justify taking over companies. Even banks that want to repay bailout money are being told no.
Alfred1 said:
.
“My point? Whatever the teleprompter says through him, means nothing, what he does indicates his real intent…talking about bubbles is misdirection…smoke…to hide his desire to take wealth from the top, and redistribute it to the bottom…unfortunately, history proves that course of “fairness, ecconomic justice” results in a third world economy.”
.
So you’re saying that the United States in the 50s 60s 70s 80s etc., after FDR’s New Deal, the biggest economy IN THE WORLD, was a third world economy? If so, the rest of the world was 4th, 5th, 6th, 7th 8th 9th and 10th!
“Solid gains”?
ARE YOU COMPLETELY DERANGED???
The markets LONG ago ceased being a mechanism to capitalize businesses. Most of have corporations already have billions in saving, from profit taken by monopolization and other underhanded tactics, and are clearly NOT in need of further capitalization.
The market has become a flat out Ponzi scheme. It now operates as a system used by insiders to try and hype certain companies, in order to inflate the value of these companies way, WAY beyond their real value, only to dump the stocks, leaving those that aren’t inside players to suffer the losses. Ponzi scheme… plain and simple.
Greedy assholes like you are the cause for all the problems we now face.
Hey Alfred1… I’m amazed you can function with so much dog shit in between your ears.
Alphie,
Has anyone ever mentioned you might have a slight problem with reality?
Regulation is not a bad thing. Tell me Alphie, do you care if people drive at highway speed on the right side of the road in this country? Do you care if hamburg suppliers include liberal doses of cow shit in the packages? How about if the doctor you see is even competent to treat people medically?
Troublemaker…sorry to disturb your prostrations before Obamadule…no doubt it was meant to be a restful time for your pointy head…
Put this under your hat…I know you got lots of room under there…Greedy politicians, like the Democrats who took over in 06, and the Republicans who slimed their way in for another shot at that trough…caused this mess, by not enforcing regulations already on the books…
Maddoff is an excellent example…the SEC was told there was illegality there, and they did nothing.
Fannie Freddie, ..Chris Dodd, Barney Frank (no doubt your idea of good time) , Franklin Reins, Barrak Obama…all got big bucks to look the other way while Rome burned…
But the real cause of the meltdown, ultimately, is stupid assholes lke you who pout the party line instead of knowing its Congress (both houses) that controls the economy…not the President…and therefore you slavish love affair with the porkulus crowd, is unrequited.
They are the ones who are bankrupting us all.
Troublemaker…sorry to disturb your prostrations before Obamadule
Correction: sorry to disturb your Obamadule prostrations before your Obama icon….
I should have left you standing as you were…when others are near…they can hear oceans in your ears….
Mr. fusion…you have learned from your master…the fallacy of equivocation…the regulation I referred to is the onerous regulation that prevents buisness from operating…for example the endangered species act is so poorly written eviornuts are able to stop nuclear power for decades in endless lawsuits…
That was a sop to the trial lawyers and eviormental nuts that PAY big $$$ to Democrats…
Even rain water pools are considered “wet lands” and are allowed to stop exploitation of oil etc….
I blame Democrats for the poverty of the third world…we are forced buy the world’s oil (and so drive up the price) rather than use our own…YOU are to blame for their poverty…
In a fair and just world, both you and Obama would be taxed into poverty and your wealth rightly, justly distributed to every ACORN crackhead that has successfully avoided getting a job these years of the Bush booming economy.
Alphie, your Obama Derangement Syndrome is flaring up. Plus the rest of ALL your posts are nonsensical and devoid of point. If I was religious I would thank “god” you haven’t reproduced. Instead, I’ll thank Darwin for explaining why your kind likes to self destruct.
.My wallets empty regulations will after whats left of your dough
Mr. Fusion…there are three kinds of people: those who make things happen, those who watch things happen—and people like you, who wonder what happened…
I’ll try dumb down my posts so the elementary logic and patently obvious that escaped your notice will make sense to you.
Did your parents have any children that lived?
Mr. Fusion…I apologize…I just learned you differed from the other five year olds in your kindergarten class. You were twelve.
Alphie,
You’re an effen ijit that doesn’t have a clue. You have been bloviating for some time about nothing except this is all Obama’s fault. Please, for the sake of the other DU readers, put your brain in gear before engaging your mouth.
(sorry for the long post)
what a load of crap.
as long as The FED exists there will be
bubbles.
the next bubble to pop will be
US Treasuries & Bonds,
-not to mention the commercial realestate
bubble that should start erupting by summer
after they all pop, obama will create a government,
security-funded-infrastructure terror bubble.
-which he’ll most like sell off to private foreign
interests in some bullshit public-ptivate scam.
i garuntee you as soon as this idiot cons
all the states to fix/build/rebuild their
public infrastructures with his faux
stimulus-ala tax-payer monies, either he
or the republicans will sell them to private
corps under the guise of small government,
we will see the entire country littered with toll
roads and th elike, and none of ot will ever go back
into public coffers. -only campaign warchests.
here is a taste of what’s to come:
http://texastollways.com/
and for all those singing the praises about the
stimulus bill *mandates* ..it only funds 60% on avg.
the states, broke as they are, are expected to come up
with the other 40% -that’s why you hear of some states
refusing money or in part, making soverignty claims.
the stimulus bill is just going to fuel another
credit/debt bubble. -only this time it will a
government backed bubble. -and we’ll all be
paying for it until we die.
—
oobama and his banker buddies are singing “the
“good times are just ahead” in the news.
-what a bunch of lying sacks of sh*t.
anyone notice NOT A PEEP from MSM about the second
largest mall operator going bankrupt this week?!!
-that’s 158 malls filing for chapter 11 this week.
ONE HUDRED AND FIFTY EIGHT!
-WTF!?
plus:
“The company’s collapse is not expected to be an isolated event.
About $814 billion of commercial mortgage debt is expected to
mature over the next two years, according to real estate research
firm Foresight Analytics.
“We will see a significant rise in delinquent and defaulted mortgages in
commercial real estate above and beyond what we already experienced,”
said Sam Chandan, president and chief economist at Real Estate
Economics.” !!
http://finance.yahoo.com/news/General-Growth-files-for-rb-14945510.html
-anyone remember the 60minute special almost 2 years ago
that showed the subprime fiasco was just the tip of the
iceberg?
why do you think they’re dragging out this bullshit
pirate crap in the news? -or all this “EPA carbon crap/
“the ice caps are gonna melt if we dont start thinking
about spraying pollution in the air soon??
it’s all a distraction.
has anyone not noticed these outrageuosly absurd
headlines in the news??
imo, we are being forced down the same dark path
Argentina went.
banks and foreign private interests are going
to own us. -they’re having a field day buying
up everything now as it is for pennies on the dollar.
—
anyone notice we have a bank faling about every
1.8 weeks this year? 25 banks failed to date already
in 2009. -just wait until the commerical bomb
real takes hold..
http://fdic.gov/bank/individual/failed/banklist.html
small stores have been shuttering all over manhattan as
i speak. how long can the landlords go with no rent being
payed?
—
and all this bull about more regulation…we dont need
anymore news ones. just put back the depression era regs
we had before.and for those with short memories, obama has
hired back pratically everyone on the left side of aisle
who played a major role in getting those safety’s removed
in the first place.. you think we can trust these bastards
to fix *anything*? -pleeease.
Oh i know…lets limit CEO bonues…yeah..that’ll fix
everything. -idiots.
funny how you dont hear squat about making these banks EAT
the derivitive bombs they created and then outlawing them
them from the system, do you? only that we should
regulate them..wtf? GET RID OF THEM.
we could have let them fall to bankrupcy and takin’
the what, $12 trillion so far and capitilized 20 NEW
banks at 12 to 1, and started brandy new with GAAP
rules in place and show the world we mean business..
instead we have countries wanting to remove the USD from
reserve currency status because any 8th grader could see that
we’ve allowed our government to become the biggest bunch crooks
known to man.. -did anyone notice the complete :ACK of respect
our President got at the G20?? why do think that is?
you know, Canada did not engage in any of this crap.
-know how many banks have failed there? NONE..they even have
a TARP like fund setup and none of them have even tapped it.
they dont need to. -call them overly conservative and boring
but at least they’re sound.
what is it going to take for everyone to open their F’n eyes
and get angry?
-and no, just because your a moron and a minority doesnt
mean you deserve sqaut, let alone a house.
—-
BOTH parties are at fault. we need to fire the lot of them
start new. -and before next years $3tn budget gets pushed
through. -
all the regulation in the world will not make a hill of beans
difference so long as we keep letting the corrupt bastards
who have helped to cause this mess mind the house and laws
within.
truly sickening.
WAKE UP.
-s