You can virtually see him on his knees praying. PRAYING!!!
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Typical response to severe recession is to increase monetary velocity through lower interest rates and increased spending. Weâve run out of room on that. Iâm not sure what you mean by anti-cyclical policy, but the wiggle room to actively manage a recession has been almost destroyed by running up huge deficits and forcing interest rates downward at periods of low unemployment and relatively ok GDP growth.
Whoever has to take care of this thing is largely screwed.
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By anti-cyclical policy, I mean things such as increased government spending, stimulus programs (such as Obama attempted) and other things meant to artificially shorten the recession.
The recession should be allowed to run its course unabated. Recessions are painful, but necessary to rectify malinvestment and economic bubbles.
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He didnât include a frowny emote. Though it might have been a sarcastic frown which is even more celebratory than nothing.
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Eliminating some of the things causing these bubbles would go a long way to making sure the course stays corrected but when the architects of the manufactured crisis never suffer under the illusion of potentially serving serious jail time the cycle inevitably continues in the name of profits. Remember when the last housing bubble burst and we supposedly put laws in place to keep it from happening again? Iâm sure corporate buybacks and paying people with artificially inflated stock or even tying practically everyoneâs retirement money to the stock market had absolutely nothing to do with the stock market bubble either. Itâs almost like this â â â â was planned. Who wants to bet there are people who will be making bank off this just as there were several who made bank off of selling bad housing loans prior to that collapse?
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Corporate insiders have sold an average of $600 million of stock per day in August, according to TrimTabs Investment Research, which tracks stock market liquidity.
August is on track to be the fifth month of the year in which insider selling tops $10 billion. The only other times that has happened was 2006 and 2007, the period before the last bear market in stocks, TrimTabs said.
Bubbles are an inevitable part of a fractional reserve system, whether a coordinated fractional reserve system or an uncoordinated fractional reserve system.
The only way to avoid bubbles would be to institute 100% reserve banking, which wonât happen anytime soon.
Hmm⌠insiders selling sounds an awful.lot.like insider trading. Wasnât that supposed to be illegal or something?
Why not? Because then the banks could no longer create money out of thin air? That would be a real shame, wouldnât it?
I support 100% reserve. But the only way the government can spend like a drunken sailor is on the back of the free money engine called the Federal Reserve. So it will never happen.
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Youâre right. Unfortunately thatâs 99% of the reason weâre seeing these problems to begin with. I mean it kind of seems like we had problems when our money was still actually backed by something tangible, but at least not to this extent. Wouldnât it be easier just to do a reset at this point? I mean itâs not like our money is actually worth anything anyway.
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There will be a deal.
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This is the result (yield) of the latest Treasury auction for the three different bonds/notes:
Yield from auction of 8/15/2019
30 yr 2.335
10 yr 1.67
3 yr 1.365
Now, maybe some very short term conversion took place on the open market after the auction, but reading a whole recession into that is ridiculous. Which tells me that some people desperately want it to be true.
Indeed. Thankfully no one has done such a thing.
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It only makes sense that stocks donât have much to go up in the short term. They have had a long run with PE ratios getting pretty extended. You donât have to be an insider to not want all of your money in stocks. I believe the old phrase is âtrees donât grow to the skyâ.
I remember everyone being in denial 2006-2007 too
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How would that be harmful to a potential upcoming recession? We made it out of The Great one to where we are now, and there was Obama anti-cyclical policy. (serious question, btw).
This is where Trump Loyalists stick their heads in the sand and go âla la laâ. The 2 1/2 yr âeconomy is great!â is not so clear anymore, so instead of admitting that outlooks are not so great, theyâd rather toss out simple words. Its what they have grown to understand via CEC and AM radio.
This is the point where Loyalists realize that the emperor wears no clothes is coming to roost.
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Just a little more⌠almost thereâŚ!
