Comments on: No Quarter’s Dollars and Sense with LD & Open Thread

By: justsomeone

justsomeone — Wed, 28 Jan 2009 03:38:11 +0000

LD, I can’t wait to hear what you think. Today CNBC was just running over with stories about nationalizing the banks & at Bloomberg Roubini was saying Citi & BofA are bankrupt: “Roubini Sees ‘Nowhere to Hide’ from Global Slowdown (Update 2) by Betty Lui & Eric Martin. Is it my imagination or are the stories getting worse every day?

By: LD

LD — Tue, 27 Jan 2009 10:46:10 +0000

thanks for that link….will check it out…

By: justsomeone

justsomeone — Tue, 27 Jan 2009 06:41:20 +0000

Looking for insight into Obama’s economic plans? Check out this article: “Yes, we Keynes: Will Obama be the first President to implement the ideas of 20th century’s greatest economist?” by John B. Judis. I don’t often read the New Republic but this article was recommended to me & is really insightful. It’s dated until Feb 9th, 2009 so you should be able to just pick it up by going to the New Republic’s web site. This lays out a real tricky way to “reward work not wealth”.If John Judis has this right interest rates are going to remain low for the next 4 years. Check this out.

By: Sammie

Sammie — Sun, 25 Jan 2009 23:56:13 +0000

Due to timing constraints (and other issues), I’m sure we’ll pretty much end up with the stimulus package that’s already been proposed, but it is interesting to read alternate viewpoints. Considering the economic concerns relating to credit flow, lay offs and the potential for a large number bankruptcies, I can’t help but wonder if the plan for reducing the employment tax discussed in this Barron’s article would be more beneficial.

http://online.barrons.com/article/SB123215031962092011.html?mod=b_hpp_9_0002_b_this_weeks_magazine_home_top&page=1

By: LD

LD — Sun, 25 Jan 2009 22:31:01 +0000

Thanks for sharing that link. Lots of very valid points.

By: Sammie

Sammie — Sun, 25 Jan 2009 21:24:53 +0000

I still haven’t been able to find a really informative article explaining how the stimulus package will solve our credit flow problem, however, I did find an interesting interview with the shadow financial regulatory committee:

Economists to Obama: Get the Government out of the Banking Business

http://knowledge.wharton.upenn.edu/article.cfm?articleid=2146

By: mountainaires

mountainaires — Sun, 25 Jan 2009 19:22:38 +0000

The British Pound: Not So Sterling

In November, Willem Buiter warned that the UK could follow Iceland into default:

With the pound sterling dropping like a stone against most other currencies and credit default swap rates on long-term UK sovereign debt beginning to edge up, this is a good time to revisit a suggestion I made earlier on a number of occasions (e.g. here, here and here), that there is a non-trivial risk of the UK becoming the next Iceland.

The risk of a triple crisis – a banking crisis, a currency crisis and a sovereign debt default crisis – is always there for countries that are afflicted with the inconsistent quartet identified by Anne Sibert and myself in our work on Iceland: (1) a small country with (2) a large internationally exposed banking sector, (3) a currency that is not a global reserve currency and (4) limited fiscal capacity.

All of this seems to be coming true.

UK banks are technically insolvent.

The risk of a sovereign debt default is real. As John Higgins, of Capital Economics, points out:

“The 5-year credit default swap for the UK government has widened by 25bp since early January.”

And the Sterling is tanking. Indeed, Jim Rogers is saying:

“Sell any sterling you might have. It’s finished”

For further analysis on the sterling, see this roundup from Nouriel Roubini, and this one from Mish.

http://www.rgemonitor.com/10000?cluster_id=4757

http://globaleconomicanalysis.blogspot.com/2009/01/pound-sinks-as-britain-teeters-on-edge.html

Source for blockquote [links active]:
http://georgewashington2.blogspot.com/2009/01/uk-economy-is-not-so-sterling.html

Euro: Once a Boon, Now a Burden

http://www.nytimes.com/2009/01/24/business/worldbusiness/24euro.html

Iceland Senior Minister Resigns; Gordon Brown Next?

http://www.dailymail.co.uk/news/worldnews/article-1126682/Icelands-senior-minister-resigns-government-global-political-casualty-credit-crunch.html

By: Sammie

Sammie — Sun, 25 Jan 2009 19:19:24 +0000

Speaking of financial and economic issues, so far I haven’t been able to come across a good synopsis or analysis of the stimulus plan that spells out exactly how it will help the economy. From what I’ve read so far, it seems to include tax cuts or rebates, including rebates to those who don’t pay federal income taxes, additional funding for no child left behind and money for contraceptives and infrastructure (which is obviously a more long term investment). Considering the present environment of tight credit, business failures and layoffs, I’m just not sure how the plan is going to stimulate the economy.

Are any economists saying this plan will help? Has anyone come across any good articles on it?

By: lark

lark — Sun, 25 Jan 2009 17:04:10 +0000

A person of real change would perhaps have considered the “historical” value of not being vulgar

But instead he considered honoring vulgarity and received the approval of the majority of voters. So, vulgarity it is and vulgar he is.

By: CG

CG — Sun, 18 Jan 2009 22:47:03 +0000

here is an article from today’s Seattle Times http://seattletimes.nwsource.com/html/businesstechnology/2008641550_schapiro18.html

By: Tricia Spiegel

Tricia Spiegel — Sun, 18 Jan 2009 18:09:07 +0000

This woman is not the right person to be in charge.

Contact Dodd here http://dodd.senate.gov/index.php?q=node/3128

OR

U.S. Senator Chris Dodd 448 Russell Building | Washington D.C., 20510. Tel: (202) 224-2823 | Fax: (202) 224-1083

By: Katmoon

Katmoon — Sun, 18 Jan 2009 13:52:09 +0000

How can anyone, is this economy, justify spending this obscene amount of money for the inauguration? A person of real change would perhaps have considered the “historical” value of not being vulgar in trying to purchase history, on the backs of the citizens of this country. A real person of change may have chosen a route in history that proved their care for their fellow citizen by being different in leaving the pomp and circumstance to others, instead going for a more humble and respectful lead up and ceremony. That would be a cause for history to stop and take notice.

This is probably a low estimate for the cost of the inauguration : ~45 Million + 11.9 Grants for Security= 56 Million
Which could have been spent for the following:
Average cost of Health care: 7900 per person= Coverage for 7088 uninsured Americans
Average salary of a teacher 35,000 = Paid 1600 Salaries
Average salary of a soldier 20,750 = Paid 2698 salaries
Average tuition for public college 6500 = Paid tuition for 8615 Public college students.

Below are the National Poverty Guidelines

HHS Poverty Guidelines[17] which are illustrated in the table below.
Persons in Family Unit 48 Contiguous States and D.C. Alaska Hawaii
1 $10,400 $13,000 $11,960
2 $14,000 $17,500 $16,100
3 $17,600 $22,000 $20,240
4 $21,200 $26,500 $24,380
5 $24,800 $31,000 $28,520
6 $28,400 $35,500 $32,660
7 $32,000 $40,000 $36,800
8 $35,600 $44,500 $40,940
For each additional person, add $3,600 $4,500 $4,140