Here is the latest conversation I had with money manager Andrew Horowitz…. new insights for anyone who invests in anything. We discuss Greece and the future of the EU.
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Click here for non-Flash version.click ► to listen:
Right click here and select ‘Save Link As…’ to download the mp3 file.
The market CAN NOT crash as long as the Fed prints free money, to give to the banks, that it then used to buy stocks!
This is an perfect prescription for unlimited upside!!!
Two wing nuts who don’t know jack squat about economics trying to understand what is utterly beyond them.
Because you know a lot more than they do. Poor troll.
I know what it would take to turn around the US and the EU and they don’t. But I’m sure that Andrew Horowitz has an excellent future in sales. John on the other hand has amply demonstrated his lack of foresight about tech time and time again.
Media personalities don’t have to actually know anything. They just have to act like they do.
Don’t worry, we all know you don’t want to tell us your genius ideas so we don’t steal them from ya
Oh I am no genius that is for sure. You see, the problem is that conservatives like John, Andrew and yourself have got themselves into this place where they need to deny basic elementary science and facts in order to keep their political ideology. So all I need is to know basic macro economics 101 to know more than virtually every conservative pundit who comments on the economy. Just like I only need to know basic elementary climate science to refute every conservative pundit who thinks they know something about global warming.
Conservatives have circled their wagons and declared that 2 + 2 = 5 and they nod solemnly among themselves about how knowledgeable they are. But all it takes is any common idiot like myself to come along and point out that 2 + 2 is not 5, it’s 4. But conservatives are emotionally invested in it being 5 so they are shocked, shocked! that a commoner would DARE question the right honorable Poobah of the Economy! Has he not declared it is so? Therefore it must be so!
To pull us out of our current depression we need jobs. So the government needs to hire all those workers laid off recently. Obama could do that tomorrow. Then we need a second bigger stimulus. The first only gave us a soft landing, to pick us off the floor we need more government investment in the economy. Governments should spend during recessions and down turns. That is just elementary macro econ 101.
Noen..
That’s so wrong on so many levels that my head is still shaking in disbelief.
2+2=4, agreed. Take money we don’t have, (actually, take much more than you need because of undeniable government overhead) and hire people to do things we don’t need done, with what? The hope that once things are good we are going to fire them all later?
First, the only jobs that would make sense would be fixing infrastructure (at least we get something out of it and it has a definitive end point) but try hiring all the unemployed to do construction. Right… they are all going to go for that. You want jobs? Remove government created FUD, reduce regulations. Lock in a budget, so people know where we are going to be 12 months from now.
“That’s so wrong on so many levels that my head is still shaking in disbelief.”
I understand, like many conservatives today you have a false model of the economy. Just like you have a false model for the climate and a false model for human sexuality (re: the previous thread on gay marriage) and god knows what else.
Facts are stubborn things and they don’t care what people *believe*. The economic reality here is that during a depression, which is what we have right now, the government needs to invest in the economy to stimulate growth. Crack open ANY intro to macro econ 101 and that is what it will tell you and you know that is true.
“Take money we don’t have, (actually, take much more than you need because of undeniable government overhead) and hire people to do things we don’t need done, with what? The hope that once things are good we are going to fire them all later?”
(1) Money is not a fixed commodity. It is simply a unit of exchange, nothing more. (2) Government programs have very little overhead and can be highly efficient. (3) There are plenty of government jobs that need being done. We need teachers, policemen, firemen, food inspectors, regulators and all the other essential services that government provides. (4) I am sure that you’ll be happy to know that when the economy rebounds I think we should reduce government expenditures. Spend when the economy is down, save when it is healthy.
“but try hiring all the unemployed to do construction.”
I don’t see why not. Many of the unemployed are capable of doing construction work but even if not it doesn’t matter. Once the economy gets going everyone benefits. Construction workers get hungry and they spend their money on lots of things.
“You want jobs? Remove government created FUD, reduce regulations.”
That’s just another GOP taking point. There simply is no evidence that removing regulations creates jobs. That’s just your corporate masters telling you what to think and like a good dog you OBEY. If anything *more* regulations would help the economy because business would need to hire people and spend money to comply and they don’t like that. THAT is why they tell you it would hurt the economy because they are just greedy bastards.
“Lock in a budget, so people know where we are going to be 12 months from now.”
Ahhh, I see you believe in the magical confidence fairy. Sorry to break it to you but Corporate Tinker Belle never existed. I am a realist. I don’t believe in fairies.
Please all welcome the new lefty loon sheeple to the blog. And this one is filled with ore kool-aid than any previous sheep.
(2) Government programs have very little overhead and can be highly efficient. (Can be) must be the key to this one because I have never seen it.
If you read beyond the headlines of unemployment. You realize that the US is barely treading water three years into a so called “Recovery”. You have unemployment in Spain at 23% you have Greece in denial of needed cuts. Europe in general is in or moving towards recession. The US has shown very weak GDP for what many still call a “Recovery”. The Participation rate is at a 30 year low. The US has a significant problem with its jobs machine.
real unemployment figures in the US starts at around 10 percent.
on another topic, was just watching SquawkBox, the guy being interviewed re JPM starts on how Obama has really dropped the ball on housing and financials, and one of the panel REACHES OVER AND PULLS OFF HIS MICROPHONE, then makes a joke about it and changes the subject!
Like we broadly need more houses.
Actually, what the Gov could do in SoCal is build buildable “land” in the ocean near LA. That would create a new tax base!!!
Yay, more for them.
It would also depress the price of housing in The Valley and dessert, which would realign house values with the tax basis they are being charged.
Which would allow families to move back to SoCal and start earning a living there.
That was easy.
People are leaving because of high taxes, massive over regulation, and lack of jobs. CA is one of the worst run if not worst run states in the nation.
I agree.
It is also one of the worst places to live if you can’t afford a $750,000 house plus a middle class lifestyle.
It is land poor, and the poor live on crappy land.
Hence my suggestion to build more land to rejigger the tax base and open up expansion.
The base problem is that the state is infected with bureaucratic, narcissistic, overpaid, self aggrandized, moronic, douches, that can’t accept the reality that they should all be playing on the same team.
This is not recession, we’re in a depression right now. To get us out and restart the economy we have to do what we did to get out of the last depression, what any country needs to do, invest in the economy. It’s just that simple.
The Great Depression was ended by WWII, not by some “miracle” of government investment.
And during WWII the government spent massive amounts investing in infrastructure resources, industrial plants, agriculture, communication, all the things needed for the war. It is sad that we had to have a war to motivate us into investing in America but that is the thing about objective reality. It doesn’t care whether your motives are good or bad. Cause and effect will deliver the same result regardless of one’s intentions.
Cause — government spending in the economy. Effect — the economy grows.
Cause — government cuts spending. Effect — the economy shrinks.
The purpose of government is to provide for the common good. Destroy government and you destroy all the good government does. But it won’t end there, it’ll leave a void and into that void will step something else. Something that doesn’t serve the public good but private greed instead.
Ya gotta serve somebody. Who’ll it be? Your fellow man or nameless corporate greed? Choose wisely.
right on, Noen! Every conservative flacks the stimulus with the old saw “it didn’t work, WWII was the cause of the end of the Depression”. Well, what happened there, the govt. spending went into high gear! How anyone can ignore the obvious is beyond me, but the level of stupidity of the american public is below any meaningful measure…
So, where did that stimulus worked?
Still waiting for the coming market collapse of December 2009
The market is floating on an ocean of money that can’t find any place to get a reasonable rate of return but the way things are looking even that isn’t going last much longer.
Right now the people who are making money in the market are the ones able to guess or cause price shifts in stocks and profit from same. That means for every winner there pretty much has to be a loser.
“That means for every winner there pretty much has to be a loser.”
Seems that’s always been the case.
What? says:
‘Actually, what the Gov could do in SoCal is build buildable “land” in the ocean near LA. That would create a new tax base!!! ‘
The problem with that is that SoCal suffers from earthquakes, and in most quakes, landfill areas shake worse than areas nearer to bedrock, causing much more damaged and destroyed buildings. Of course, I suppose that could contribute to the economy in a way; it would certainly lead to an uptick in the business of funeral homes….
Also, people talk about government spending enlarging the economy during (and after) WWII, but don’t forget the concomitant up to 90% tax rates, which continued into the 1950s without smothering the economy.
Ooo good point.
“The government needs to hire everyone.” WOW! Just WOW!
What will they pay them with? Maybe you don’t realize that the government has NO money. It’s all OUR money. What they have they took out of the private economy via taxes. Government generates no money.
Then again, why do I bother…
On the bright side, one of my goals of life is to have a picture of a mushroom cloud I shot myself.