View Full Version : Republican Laissez-Faire Economic Policies Dead

Gayle in MD
04-10-2010, 09:46 AM
<span style="color: #000066">The Republican, Alan Greenspan, admits, finally, how stupid he was???? It's about time! </span>
<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">Book Excerpt: Roger Lowenstein's "The End of Wall Street"
The Street isn't dead—but a certain laissez-faire idea of it is. So argues Lowenstein in his new book

"Those of us who have looked to the self-interest of lending institutions to protect shareholders' equity, myself included, are in a state of shocked disbelief." — Alan Greenspan, testimony before the House Committee on Oversight & Government Reform, Oct. 23, 2008

The crash of 2008 put to rest the intellectual model that inspired, and to a large degree facilitated, the bubble. It spelled the end of the immodest faith in Wall Street's ability to forecast. No better testimony exists than the extraordinary recanting of former Federal Reserve Board Chairman Alan Greenspan, the public official most associated with the thesis that markets are ever to be trusted.

In October 2008, 10 days after the first round of Troubled Asset Relief Program (TARP) investments, Greenspan appeared in the House of Representatives in effect to repeal the credo by which he had managed the nation's economy for 17 years: "In recent decades a vast risk management and pricing system has evolved, combining the best insights of mathematicians and finance experts supported by major advances in computer and communications technology. A Nobel prize was awarded for the discovery of the pricing model that underpins much of the advance in derivative markets....The whole intellectual edifice, however, collapsed in the summer of last year because the data inputted into the risk management models generally covered only the past two decades, a period of euphoria."

This remarkable proclamation, close to a confession, was the intellectual counterpart to the red ink flowing on Wall Street. Just as Fannie Mae (FNM), Freddie Mac (FRE), and Merrill Lynch (BAC) had undone the labors of a generation—had lost, that is, all the profits and more that they had earned during the previous decade—Greenspan undermined its ideological footing. And even if he later partly retracted his apologia (in the palliative that it wasn't the models per se that failed but the humans who applied them), he was understood to say that the new finance had failed. The boom had not just ended; it had been unmasked.

Why did it end so badly? Greenspan's faith in the new finance was itself a culprit. The late economist Hyman P. Minsky observed that "success breeds a disregard of the possibility of failure." Greenspan's persistent efforts to rescue the system lulled the country into believing that serious failure was behind it. His successor, Ben Bernanke, was too quick to believe that Greenspan had succeeded—that central bankers had truly muted the economic cycle. Each put inordinate faith in the market and disregarded its oft-shown potential for speculative excess. Excessive optimism naturally led to excessive risk.

The Fed greatly abetted speculation in mortgages by keeping interest rates too low. Meanwhile, the willingness of government to abide teaser mortgages, "liar loans," and home mortgages with zero down payments, amounted to a staggering case of regulatory neglect.

The government's backstopping of Fannie and Freddie, along with the federal agenda of promoting homeownership, was yet another cause of the bust. Yet for all of Washington's miscues, the direct agents of the bubble were private ones. It was the market that financed unsound mortgages and collateralized debt obligations (CDOs) that spread their contagion globally; the Fed permitted, but the market acted. The banks that failed were private; the investors who financed them were doing the glorious work of Adam Smith.

Rampant speculation in mortgages was surely the primary cause of the bubble, which was greatly inflated by leverage in the banking system, in particular on Wall Street. High leverage and risk taking in general was fueled by the Street's indulgent compensation practices.

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04-10-2010, 10:09 AM
A Liberal Guide to Debating Conservatives
Mar 31, 2010 Author Scot Cerullo

Liberals have long since learned that debating Conservatives can be a challenging endeavor, since Conservatives have a penchant for fortifying their arguments with facts, statistics, history and other elements that create convincing and thoughtful arguments.

Not to worry. The following are several tips Liberals can use right away to begin defeating Conservatives in every debate, every time.

Lib Tip # 1: Drop the Race Card: The moment your Conservative opponent begins crafting a cogent, air-tight argument buttressed in fact, drop the race card. This technique is designed to stifle further discussion, impugns your opponent and puts him on the defensive. Often, this is enough of a distraction to direct attention away from your lack of qualitative, quantitative evidence.

Lib Tip # 2: Impugn the Source: When debating a Conservative, content is less important than character. When your Conservative opponent states a compelling argument, do not address the argument and instead attack the Conservative personally. Since we are all sinners, it shouldn’t take long to find something wrong with your opponent. Use it.

Lib Tip # 3: Social Justice Trumps Logic: Argue every issue from a “Social Justice” or “Moral” high-ground. The Conservative will attempt to show that your ideas are unworkable, unsustainable or downright illogical. Don’t worry about any of that. Just stay on message by arguing from the moral, social justice perspective.

Lib Tip # 4: Exploit the Weakest Link: Define your opponent by his weakest link. If 10,000 Tea Partiers hold a rally, and one guy has a placard that is inappropriate, that is all you need to characterize the entire group as radical, racist militants. See how that works? It’s simple and fun and, most importantly, deflects all those awkward facts and articulate points away from the discussion and leaves the Conservative in a defensive mode.

Lib Tip # 5: Use “New Speak”: If health care is not a right according to the Constitution, and you want it to be a right, claim it is and then raise your voice. Raising your voice is always the best course of action in lieu of a good argument. Redefine words to suit your needs, and always be on guard for any stray, powerful fact or statistic the Conservative may use to support their position.

Lib Tip # 6: State the Opposite of what you believe: If you are in favor of taking money from producers and giving it to non-producers, that’s fine, but make sure your wording is a bit more obtuse than that. Try saying you are in favor of moral and social justice, and characterize everyone who earns a good living as somehow having won the lottery in life, and all those who want as being desperately hard-working folks who have an almost allergic reaction to hand-outs. Never imply or point out in any way that people can change their situation simply by making better decisions.

Lib Tip # 7: Define America by it’s Errors, not its Successes: Taking a cue from Lib Tip # 4, it is important to characterize America by it’s errors in judgement and misdeeds. It is critical that you completely overlook the good things America has done, and the manner in which it has beaten back one dictatorship after another. In fact, you must go to some lengths to divert people from the notion that without America, the world would be a far more dangerous, hostile, sad place. So talk about Indians and Slaves.

Lib Tip # 8: Blame talk radio and FOX news for fanning hate and racism: Avoid at all costs the fact that both talk radio and FOX news stand in defiant refutation of an otherwise fully agreeable media that presents only one template, a liberal template. Also, attempt to divert attention should someone ask why Conservative Talk Radio and FOX news is growing exponentially, while traditional, liberal media is closing offices, thinning their employees and running deficits like, you know, the government.

Lib Tip # 9: Government is Good: Insist that a massive expansion of government is a good thing. Assert that it is our patriotic duty to pay ever more in taxes so that a centralized government comprised of east and west coast Liberal elites can decide what is best for the unwashed masses, since it would be sheer lunacy to allow individuals the right to make decisions for themselves. If you run into problems, see Tips 1-8.

Lib Tip # 10: Assign Blame away from Yourself: Always assign blame to the other guy, preferably a Conservative. This may require rewriting history so that people may one day believe that Reagan did NOT usher in 25 years of prosperity, or it may require still more retooling of the content of public school text books. But over time we’ll get there.

Remember: The ends justify the means. No matter how cruel and violating the means may be, if it results in a mediocre society where all citizens ultimately suck off the the government for their most meager needs, it will all be worthwhile.

There is of course the small matter of where all the money for all these programs will come from. Right now, they come from spirited entrepreneurs, dreamers with drive and other people whose passion poses a direct threat to the new world we want to usher in.

But first things first. Learn the ten tips to squelch free speech, hurt your opponent with the intellectual equivelant of a kick to the groin and avoid facts, statistics and studies altogether, as those will get you in trouble.

Good luck Liberals! Battle on and remember what Dennis Prager said: The bigger the government, the smaller the citizen. Oh wait, no. You don’t want to remember that. My bad. Here, try this: From each according to his ability, to each according to his needs. Yeah, that’s the one. Whew!

04-10-2010, 04:24 PM
Gayle -- No Nobel prize haz ever been one by a Krappynomicyst, and never will, unless it iz say a peace prize or some other Nobel category. There iz no Nobel category for Krappynomix -- which iz az it shood be -- bunch of prix.

04-11-2010, 04:17 AM
Well ... as we enter the age of economic fascism brought on by dearest leader, G is right that the good old days are over in the short term.

I suppose the left can only hope that the capitalist economy is crushed by a 21.5% prime and 17% 30 year mortgages similar to the last great dolt in chief Jimmuh Cahtuh.


04-11-2010, 05:21 AM
Dubb -- Carter inherited the lowest usofa % debt of GDP since WW2 -- and when Jimmy left office it woz even lower -- and the % debt skyrocketed during reagon etc etc etc etc.
Re inflation -- how shood Jimmy hav lowered inflation????????????

04-11-2010, 05:34 AM
usofa debt az % of GDP went down during every prezidency since WW2 -- 8 prezidents -- except that it went up during 3 prezidents.....
Bush 1.
Bush 2.

04-11-2010, 06:05 AM

04-11-2010, 07:31 AM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: cushioncrawler</div><div class="ubbcode-body">Dubb -- Carter inherited the lowest usofa % debt of GDP since WW2 -- and when Jimmy left office it woz even lower -- and the % debt skyrocketed during reagon etc etc etc etc.
Re inflation -- how shood Jimmy hav lowered inflation????????????
madMac. </div></div>

1 - When Carter took office Iran was ruled by a staunch ally of the US who made sure the oil flowed freely and maintained a military capable of stabilizing the region. By removing the Shah and installing the Ayatollah, Carter brought the flow of oil into perpetual turmoil and led immediately to a huge run up in oil prices.

It also destabilized the region to a point that it has not yet recovered from. This debacle led directly to the Iran-Iraq War, Saddam's invasion of Kuwait, Saddam's invasion of Saudi Arabia, and the US invasion or Iraq. With Iran under the Shah Saddam's adventures would most likely never have happened, and would have been dealt with sans US blood if they had happened.

2 - Carter got us involved in Afghanistan initially, another entanglement we have yet to find a way to get free from.

3 - Carter Signed the "Depository Institutions Deregulation and Monetary Control Bill" into Law. This reduced he reserves lenders must keep on hand as a hedge against future losses. This fueled easier lending and more risky speculation in real estate markets and directly led to the S&L bailout a few years later.

4 - Carter appointed Volker to the fed. Volker drove short term rates far higher than long term rates. This increased the costs of autos, credit cards, and student loans as well as all small consumer loans. It also crushed the S&L industry as they made their profits by borrowing at short term rates and loaning on long term loans. And remember the left loves to demonize Volker because he was there for more than one R administration ... but they are completely blind to who put him there.

5 - Carter gave away the Panama Canal which caused costs of nearly all imported goods to rise along with nearly all US exports to become more expensive abroad.

I could go on, but those were more than sufficient to inflict great damage upon the citizenry.


04-11-2010, 07:46 AM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: cushioncrawler</div><div class="ubbcode-body">http://i165.photobucket.com/albums/u57/hlauss/homeless.jpg </div></div>

That may very well be where we are heading under this administration.


04-11-2010, 08:21 AM


04-11-2010, 08:22 AM


04-11-2010, 08:23 AM


Gayle in MD
04-11-2010, 08:57 AM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: cushioncrawler</div><div class="ubbcode-body">usofa debt az % of GDP went down during every prezidency since WW2 -- 8 prezidents -- except that it went up during 3 prezidents.....
Bush 1.
Bush 2.
madMac. </div></div>

The right has conveniently short memories. Some of us still recall who broke all previous earmark records before Democratics won the majority. Some of us recall who lied us into the war with Iraq, and are aware of how that war hur our country, economically, and in every other way. Some of us recall that our economy was strong when Bush took office, and collapsed when he left. Some of us recall that it was under Richard Nixon that we had oil shortages, and gas lines, and that it was Repiglicans who propped up more radical dictators than any other presidents.

Ronald Reagan was the all time deregulation czar, and his policies caused the declines in our standard of living which have continued, save a brief eight years of Democratic administration under Bill Clinton. Ronald Reagan, and liar in chief of all times, destroyed the unions which were the only voice of the American Workers. Richar Nixon opened up the opportunites for China to chear the USA for decades. Bush et al were in bed with oil for decades before W. crashed into the WHite HOuse, with the dictation of the most activist judges in history, on the Supreme Court, who broke with the laws of our land, in order to install a Republican President, who didn't even win the popular vote!!!

Repiglican is synonymous with LIARS and THIEVES!

Repiglicans always grow the government, run up our debts, destablized the world, destroy our jobs and then look around for someone else to blame.

Repiglicans have bailed out more thieves, and installed more corrupt dictatorships than any organization in history, and than any other American ppolitical party. From the Savings and Loans, to the Wall Street pigs!


04-11-2010, 09:46 AM
<span style='font-size: 20pt'>b...b..b....BUT BUSH!!!!!!

LMAO! </span>