Meet the Real Villains of the Financial
Crisis—the CRA [Community Reinvestment Act], “Affordable Housing”
and the US Government
Revised: Originally
published 4.29.2010
Meet the Real Villains
of the Financial Crisis—the CRA [Community Reinvestment Act], “Affordable Housing”
and the US
Abstract: The
government was directly responsible for the Depression of 2007, a process that
is only half finished at this date. Interestingly, the New York Times has an
opinion that blames the government for much of this mess. We are mired in debt
to the extent that is cannot be accommodated in our budget or even maintained
at its current unacceptable and unsustainable levels without more deficit
spending. Goldman Sachs is singled out for abuse and political grandstanding by
Congress as they made profits and are the biggest investment bank left standing
after the downturn. Most of this interaction between government and the banks
is rooted in the leftist intolerance for capitalism. The leftists proclaim that
they have better ideas to run governments and continually spend too much and
throw their nations into massive debt problems as we see in the EU with the
cases of the U.K. Greece Italy Portugal Ireland US
How to best read my
blogs:
[I
offer extensive quotes in this blog so that the reader can view the exact
language and can be confident that nothing was taken out of context or that
nobody was misquoted. The easiest way to take in the salient points is to read
the emphatic points in the quotes and then peruse my
comments. Comments on my comments are always welcome: ryckki@gmail.com.]
Capitalism
v. Socialism or Success v. Failure.
Unfortunately, we live in a divided world where
there exists a massive crevasse predictably constructed and carefully
maintained almost wholly by political rancor. The divide is the gap between the
‘rich’ and the ‘poor.’ The gulf between these factions provides both relief for
some and a political thrust for others to close the space and engender
‘equality[1]’
for all by some promised sharing in wealth. We have evolved from humble
beginnings where wealth was managed only by swinging clubs and sailing rocks
and arrows, clan wars and the constraining concept of food spoilage time and the
weather. In this trek from unsophisticated hunter-gatherer societies to the
early beginnings of capitalism the gap has continually widened. This process
proceeds on an international scale. Very few governments can play the game and
balance these two attributes; most governments fail.
The gap is a natural consequence of how
societies interact as there are two strongly opposing theories of society that
cannot coexist: capitalism and socialism. Hybrid blends are a small
exception. Capitalism is an entity that forms spontaneously in all societies however
primitive or advanced where sharing and trade are necessary to allow a existence
much beyond starvation and successful wealth accumulation however modest such
as agricultural plots, rice paddies or following wild game. Capitalism
provides a positive group leverage whereas socialism offers the opposite. Capitalism
always forms spontaneously in the form of a pyramid[2] where a few at the apex must make difficult decisions and
assign jobs and duties that are spread around the local community not according
to any notions of equality but to fill the necessary slots of the mechanism
that produces food, shelter and protection.
Food and other commodities in excess of the current needs of a given community
are offered for trade with other similar groups and thus markets and trade are
established. Efficiency is enhanced for all groups. Sharing commodities in
markets allow separate and 0therwisle unrelated groups to participate in constructive
trade and improve their respective lots.
Thus
capitalism moves forward by placing the proper individuals in various key positions
in the organization based primarily on skills. This argues directly
against the left-wing political nostrum of equality where anybody should be
able to do anything in a modern society. The idea that anybody can do any job leads to incompetents
being placed in positions of power where they can wreck havoc and destroy
societies. Our Congress is such a place where incompetents are particularly
safe. Their full time job is to get reelected. For many, their part time job is
to attack capitalism.
The capitalist mechanism demands material
success for the group and tangible outcomes for the members of the group
because failure frequently means starvation, loss of assets or worse. Those who
fail to provide what is required in a capitalist system fall from power and are
replaced by those more fit to do their jobs. The opposition observation and
general argument to this is the socialist position where cooperation among the
masses provides enough wealth for everyone in the system and is more equitable
and this is attained by enlightened leadership. There is no discrete penalty
for failure in the socialist system as some failure in the society controlled
by elitists simply means that blame is to be placed elsewhere and particularly
upon those who have wealth and that assessment is the necessary and sufficient
proof that there was foul and unfair play in the economic system. Capitalism refines
leadership and provides funding and other social processes while socialism tends
toward stagnation, oppression and corruption. The difference is
almost always related to the efficiency differential between the two systems:
socialists have the wrong people in charge and the wrong plan for the economy
among other detracting attributes. The current test for the efficacy of
socialism rests in the outcome of the current financial panic in the EU over
Greek debt. Here, we have the wrong people in charge of a cluster of societies
that are spending too much on various social projects and are ignoring their
debt responsibly. The silly notion that the ‘rich’ can always be taxed at
higher and higher rates to pay for the social programs is at the very core of
their failing system. High taxation[3]
stifles economies and that leads to failure. This theory is elegantly expressed
in the Laffer Curve[4][5]
that shows there is a particular tax rate for maximum tax revenue and another
for the highest growth and efficiency in the economy. Since taxes are the only source of power for
the left this theory which supports ‘supply side economics’ is summarily
rejected solely on a political basis. It works but reduces the power of elitist
governments that believe they can provide a better society with higher taxes
and elitist decision making. The current crash[6] and probable
disintegration of the European Common Market and European Union is proof that
the elites have no long-term ability to run societies.
The current struggle now presents itself as a
political war between those who can generate wealth and those who must tax that
wealth for their existence. This leads to the enviable outcome where those who
are unskilled in the management of wealth become elevated to a class of
decision makers based on a political process where they are chosen by those
whose skill spectrum is limited. Thus, using the nostrums of ‘sharing’ and
‘equality’ many incompetents perturb the capitalist system and damage local
societies in wealth terms. The predictable outcome of this is a disintegration
and subsequent reassembly of the capitalists into different groups and perhaps
in different locations in an attempt to escape the clutches of incompetents and
to start all over again. Two natural processes then compete in this aftermath:
political forces again attempt to promote incompetents to positions of power
over money, assets and business markets and finally win on a numerical voting
basis and the system eventually crashes again. There is no reasonable
expectation that this cycle of construction and destruction will ever cease. The stark realities
of the results of the USSR
We can cite dozens of examples in South America , Asia , Africa and the Caribbean
as case studies to prove this point. The local pyramids form, are refined and become
successful then the hoi polloi view the proceeds with
covetous eyes and demand part of the proceeds usually in the form of taxes that
eventually become too high hence oppressive and confiscative and the system crashes
again. This system could work to the benefit of all if the lower classes could
provide suitable workers to make goods and provides services for commerce, but
politics frequently prevents this. The workable leadership lies in the business
camps as history has shown and political leadership has not been shown to be
beneficial to all in most societies. It is the bad political decision that
frequently crashes the system, forces unemployment and promotes war and
disease. The only time when these opposing systems appear to work cooperatively
are places where government and business are separated by some firewall and
capitalism takes the lead in its own venue while providing profits to run the
government and necessary military factions of a society. This hybrid is
difficult to establish and few countries other than China Europe and the US
Destruction
in our economy from leftist programs
We are now in the process of watching
incompetents destroy our US
We begin discussion in this essay with the
pedestrian scheme of blaming the opposition for the Depression of 2007 and
since this was superficially triggered by a financial crisis then the banks and more
exactly the investment banks must be the culprits since they were driven by
greed and a conspiracy to cheat the poor out of their deserved rights and future. There is only a bit of truth in this notion.
But, the politics of this theme are wildly successful in the politics of the
l0w class.
The Depression of 2007 was initiated by a collapsing real
estate asset bubble that formed not only in the US Europe . Our global economy works such that trading in
real estate is fast and profitable in certain areas. Speculation can be identified by merely
looking at the time property owners hold their properties and if they live in
them. The
driving forces were easy credit, very low interest rates [Greenspanism[8]] and
speculation over housing for decades in some cases. This
social contagion can be defined as the process whereby growth is encouraged by
government directly funding house purchases, maintaining low interest rates and
setting very low to zero level mortgage requirements to buy those houses. Thus,
when people could not or would not pay their mortgage payments then these
mortgages, subsequently bundled into groups as investment instruments, became
‘toxic’ assets. Mortgage defaults continued to grow and that meant that toxic
assets were growing in toxicity and banks would not trust each other in the
credit markets so they froze up. The Libor rates[9]
for inter bank loans shot up. The process was magnified by the fact that although the banks
and lending institutions knew their buyers with low credit standing would not
be able to afford those homes they had the convenient outlet of shedding their
liability by sending these phony real estate instruments to Fannie Mae and
Freddie Mac in discount. This
risk dumping process amplified the bubble as more mortgage money was generated and
this outcome was the result of a vote-for-substance [quid pro quo] bet by
politicians whereby they could trade votes for ‘affordable housing.’ Congress
set this up as a social program for the ‘poor.’ A bursting asset bubble vacates
the intrinsic equity of the asset hence erases wealth within the bubble so home
equities contracted and the credit based on such equity collapsed and so did consumer
spending from this source. Thus, GDP
plummeted as consumption is 2/3 of the GDP .[10]
A typical case would be some person with a $400,000 home [earlier market price]
that was now worth only $300,000 [as the bubble bursts] but sustained with a
$350,000 mortgage. This is called being ‘under water.’ Such negative turns in a
speculative investment prompts flippers to walk away from the mortgage and let
the bank do what it wants with the wreckage.
The house value may actually plummet further later on if the bank does
not protect the house from looters who want copper tubing and wire and
appliances and other fixtures get in and loot the place. Government attempts to fix the problem with
forced principal and interest adjustments leads currently to refinancing recidivism
rates of credit-poor people at 70%.[11]
Such a failure and waste of printed money is no deterrent for the left to proceed
with more projects of this sordid class. Such is also highly predictable as this is one
of the very weak spots in the leftist economic theories and governance.
After the crash, the hunt was on for the guilty who
could only be capitalists and more particularly banks who made fortunes in the
downturn and Goldman Sachs was the first point of the attacks. In markets where there are millions of
willing buyers and sellers the political attack by Senator Carl Levin[12]
was to tell the world that Goldman made money off short positions and failed to
tell their long customers that they were actually betting on a downturn. This is nonsense
and crass political theatre as all brokers and traders are awash in buyers and
sellers for every single product they sell and at any given instance the same
equity or other financial instrument is being sold long or shorted on the same
day and all might be customers of Goldman or any other investment bank.
Note that people like Franklin Del Ano
Raines[13]
and others who ran Fannie Mae into the ground are not on the Senate hot seat
although they along with Barney Frank and others conjured up and orchestrated this ‘affordable housing’ scam that now
results in some 3-7 trillion dollars in worthless mortgages now rotting in
Fannie Mae and Freddie Mac. The scam was fueled by the CRA [Community
Reinvestment Act][14][15]
that created mountains of bad debt by forcing banks to give away
free houses to the uncreditworthy low class in exchange for their votes under
penalty of prosecution by the government. You were supposed to wipe out the
evil process of Redlining[16] and replace it with Greenlining.[17]Minorities must have loans [free if necessary] so they can participate in the
American Dream. This is known as ‘affordable housing’—you, the average taxpayers,
cannot afford this but the illegal aliens and criminals and ‘poor’ certainly
can if it is free. The thrust by the left now is
to ‘suspend’ foreclosures and use some bank or government money [what else from
a socialist?] to fix the problem:
An
absurd plan to help homeowners who are about to lose their homes:
“The
best way out of the current mess that avoids a taxpayer rescue is for lenders
to modify loans.”[18]-- Pia Lopez, Sacramento
“But the role of loans
for people who don't qualify for a lower-cost, prime loan should be to provide them
with a loan so they can build a credit history and refinance
into a conventional loan with better terms when their credit improves.”[19]—Pia
Lopez, Sacramento
See how easily the money from the banks should
flow to rescue the unfortunate from their financial problems! This is the song
and dance of the far left intercalated with racism.[20]
We can loan them money so they can establish credit! Notice that the banks have to absorb the loss here.
Stick it to the greedy banks and if that doesn’t work then loan them the money
to pay their mortgage payments with government backing. This is a classic
example of leftist socialist thinking.
Lopez must have forgotten that the banks were bailed out by taxpayer’s
money just to survive. Where are these loans originating from? The printing of
money??
The point of this exercise, going back two or
three decades was to, in Obama’s words, “spread around the wealth” and
terminated with the usual consequences: incompetents or other people who
receive free assets or money cannot always handle the process properly and
spend it away and then default. The object of the left is to blame the banks
and then secure loans to restore the victims to their homes for another try. Thus
the far left socialists in Congress and Obama wasted trillions and now the hunt
is on inside Goldman Sachs to find the culprits who made billions off an
obviously crashing real estate bubble of political making. This is standard leftist
politics: if you have assets above the
median then that is proof that you gained it unfairly and probably used
racism along the way so you should give it back. The government wastes trillions so they go
after transactions on the billion dollar level as a diversion. Most professional
racists are liberal Democrats.
The standard process of finding any and all ways
to exact wealth from those who have it and
“spread it around for the poor” is being
illustrated in the current and terminal collapse of Greece Portugal Spain U.K. US
This process is unfolding in California Washington California Greece New York , New
Jersey Michigan
This debilitating debt process is not exactly a
new story as we saw the horrible outcome of the French Revolution, the Russian
Revolution, Cuba, the People’s Republic during the Great Leap Forward and many
other examples of how the far left can grab tangible assets and money and spend
it in inefficient ways and bring whole continents down to poverty levels. The
prediction circuits were wired in and the red lights blinking for us all to see
all the way back to the 1890s and somewhat before that era. But, history’s events are not a deterrent to
overspending and poor economic choices.
But, why should we expect any other outcome? It
is a fact that the far left cannot manage the efficiency[29]
of any government or society in a manner that is financially sustaining. There
are no highly efficient socialist or Marxist experiments except for the cases of
China Switzerland Sweden
But, again, why should we expect any other
outcome? The battle between the rich and poor and capitalists and socialists
has been raging on for several centuries. To be quite blunt, we can expect that
the temporary good times enjoyed by the poor as the far left wastes time and
assets and talent actually provides a spate of enjoyment because when the poor
are left to their own devices they tend to create their own form of poverty
though ignorance, sloth, crime and drug addition. Why not have a little fun
until the curtain on this intermezzo comes crashing down? And, what do they have to lose in the long
run? Not much.
The time course of the fun times is shortened
drastically when poverty in mass quantities is imported to stuff ballot boxes in favor of
socialism and massive leftist government spending. California’s far
left majority stems, in a large part, from their enormous illegal alien population
who vote for benefits, participate in benefits and form the power base of the Democrats in
that state. The process works even
better when invading illegal aliens push up living standards and taxes and
those capitalists who cannot make sufficient profits in such a hostile
environment move to a different state, switch their manufacturing off shore or
quit. The exit of productive citizens subject to state taxes both lowers the
tax revenues and increases spending on social programs which encourage deficit
spending and shortens the time when they will go into default. The far leftist
plan, of course, is to spread the taxes around to all US
But, that attitude does not put bread on the
table and keep the lights turned on.
Then, we
look closer at the excuses and explanation of this process using the New York
Times:
“But the transaction at the heart of the S.E.C.’s complaint
[fraud against Goldman Sachs] is a microcosm of the entire credit crisis. That is, there are
no good guys here. It’s dishonest and
ultimately dangerous to pretend that Goldman is the only bad actor. And the worst
actor of all is the one leading the charge against Goldman: our government.”[38]--Meet
the Real Villain of the Financial Crisis By Bethany Mclean Published: April 26, 2010 [Emphasis is mine in
all quotes.]
This is a politically mixed message. How the
government can be at fault as seen from the pages of the Walter Duranty Papers [39] is a mystery
until we probe further.
“Yet, in the end, it comes down to this:
Goldman Sachs, ACA Capital, IKB Deutsche Industriebank and even the rating
agencies never
had any duty to protect us from their greed. There was one entity
that did — our government.
But it was the purported
regulators, including the Office of the Comptroller of the Currency and the
Office of Thrift Supervision, that used their power not to protect, but rather
to prevent predatory lending laws. The Federal Reserve, which could have cracked down on
lending practices at any time, did next to nothing, thereby putting us at risk
as both consumers and taxpayers. All of these regulators, along with the
S.E.C., failed to look at the bad loans that were moving through the nation’s
banking system, even though there were plentiful warnings about them.”-- Meet the Real Villain of
the Financial Crisis
And, this surges to the crux of the problem. Any
yoyo with a 4th grade education might perceive that lending money to
somebody with the surety that they will never pay it back would rebel at this
process. Recess time in my school was a place to get a good future grounding on
the use of money and the propensity for borrowed money to ever get paid back in
my county. Students who played and lost
marbles in ‘keeps’ marble games would want to borrow and promise to ‘pay that
debt back’ the next day if they lost. Such transactions resulted in hurt
feelings, some fist fights and some strict rules against entering the games
without marbles. Play could not continue without marbles in hand. Most of the
promises were false. Kids would go home
and complain to their parents that they needed another bag of marbles because
they lost theirs in a game of skill. The same process happened in the game of
tops where you won a top by knocking it out of the ring. Not everybody has
skill in marbles or tops or investing or home economics. The credit rating is the best indicator of
who can pay off their debts and who cannot so we wonder why the US
And more
blame:
“More important, it was Congress that sat by
idly as consumer advocates warned that people were getting loans they’d never be able to pay
back. It was Congress that refused to regulate derivatives, despite
ample evidence dating back to 1994 of the dangers they posed. It was Congress
that repealed
the Glass-Steagall Act, which separated investment and commercial
banking, yet failed to update the fraying regulatory system.
It was Congress that
spread the politically convenient gospel of home ownership, despite
data and testimony showing that much of what was going on had little to do with
putting people in homes. And it’s Congress that has been either unwilling or
unable to put in place rules that have a shot at making things better. The
financial crisis began almost three years ago and it’s still not clear if we’ll
have meaningful new legislation. In fact, Senate Republicans on Monday voted to
block floor debate on the latest attempt at a reform bill.”-- Meet the Real Villain of the Financial Crisis
This is remarkable and essentially unparallel
heresy leaping off the pages of the most dedicated leftist tome every published
outside of Moscow Peking . Given the performance of Congress we cannot
expect that any ‘reform’ will lead to anything more than more government and
useless taxes on business that will keep unemployment high.
The NYT concludes:
“Come to think about it, shouldn’t Congress have its turn on the hot
seat as well? Seeing Goldman executives get their comeuppance may
make us all feel better in the short term. But today’s spectacle shouldn’t
provide our government with a convenient way to deflect the blame it so richly
deserves.”--Meet the Real Villain of the
Financial Crisis
This last splash of sour grapes is not
convincing or predictive of what the future of our business adventures might
be. The people at Goldman are the ‘best of the best’ and they have their
counterparts in Asia and even a few spots in Europe . Goldman’s traders are free agents and they can
work their magic anywhere on the globe they must go as their skills are highly
in demand. Goldman could fold up shop in a heartbeat and the pieces instantly
and spontaneously reform in distant parts of the world and the processes could
continue without Congressional antagonisms or the exorbitant taxes now imposed
on business in the US
The salient fact here is that, agreeing with
this article, government orchestrated this asset bubble with questionable
intentions given the methods they used and that investors saw an opportunity to
bet against the government folly to make money. This happens daily in the Forex
currency markets. We should bet that Greek
bonds will be safe?? This happens in the bond markets daily. This is like the
game of marbles as some players make major mistakes or lack the talent to
compete. There is nothing indecorous about betting against a loser.
This trend toward destruction by the leftist
elites will continue on until either they lose at the polls or the economy
collapses and they cannot influence the chaos. We must brace ourselves for the next episode
from the Depression of 2007. This will be a new experience in debt
management for us all.
rycK [a 5th generation
Californian in exile]
Comments
to: ryckki@gmail.com
[1] The Futile Attempt of
Forcing Equality Among the Masses.
[2] The Pyramidal Theory of
Capitalism Explained in Simple Terms.http://rycksrationalizations.blogtownhall.com/2010/01/07/the_pyramidal_theory_of_capitalism_explained_in_simple_terms.thtml
[3] Maximizing Both Tax Revenues and Economic Growth: The
Folly of Government and the Generation of Phony Numbers and Class Warfare
[9] LIBOR stands for "London Inter-Bank
Offered Rate." It is based on rates
that contributor banks in London
[10] GDP = C + I + G+ [Ex
–Im] where C is consumption, I is
investment, G is government
spending, Ex is exports and Im is imports all denominated in the
state’s currency.
Inefficiency
in California Greece
[11] ““HSA
is showing high redefault rates on the early offerings,” FHFA director James Lockhart
noted in a Congressional report this week. “Performance on the February through
April offerings shows a redefault [or recidivism] rate of almost 70%, which calls into
question the program’s assumptions that borrowers have the capacity to make
payments going forward.”” -- Fannie Program Sees 70% Recidivism By
Diana Golobay May 22, 2009 .
http://www.latimes.com/business/la-fi-fannie6-2009nov06,0,4259740.story?track=rss
[12] potty mouth Carl.
[13] Obama, quoted in the video
[http://hotair.com/archives/2008/10/06/was-sub-prime-lending-ever-a-good-idea/
] favored this. He comments on the ‘money flow’ and that was largely supplied
by Fannie Mae and Freddie Mac who took in some 3-5 trillion dollars worth of
bad mortgages and paid off the banks and other servicers who structured the
loans. Thus FM & FM supplied trillions of dollars for this obscene
redistribution of wealth to the low class and the system crashed. The phony
mortgages were bundled and sold off as ‘investments’ for cash to create some
more subprime loans. Fanny Mae was the lavatory where bad loans could be flushed
and Franklin Del Ano Raines[13]
as head of Fannie Mae made a cool $90,000,000 dollars off this scam even thought
he was accused of crimes[13]
in this job. Oh, he is black and works for Obama [or did during the campaign]?
Oh, yes. Is Raines a fat cat[13]
under the current Obama tirade? FM made huge cash contributions to Obama and
Chris Dodd and many other Democrats. No corruption here? This was all a vision
of Greenlining.[13]How many
illegal aliens have sub prime mortgages? 5 million?? Those toxic assets were,
in part, bundled and sold around the world and are now ‘toxic” assets and they
will remain toxic until the properties are foreclosed upon and sold for a loss.
[14] “Bear Stearns made the first public securitization of Community
Reinvestment Act (CRA ) loans started in 1997.[6] Editorialists in some American
newspapers[7][8] and US Congressman Ron Paul[9] say the CRA
loans were lent to otherwise un-credit-worthy consumers in the name of ending
discrimination, although an analysis of actual lending patterns does not
generally support this conclusion.[10][11][12]
On June 22, 2007,
Bear Stearns pledged a collateralized loan of up to $3.2 billion to "bail
out" one of its funds, the Bear Stearns High-Grade Structured Credit Fund,
while negotiating with other banks to loan money against collateral to another
fund, the Bear Stearns High-Grade Structured Credit Enhanced Leveraged Fund.[13] The funds were invested in thinly traded collateralized
debt obligations (CDOs)
found to be worth less than their mark-to-market value. Merrill Lynch seized $850 million worth of the
underlying collateral but only was able to auction $100 million of them. The
incident sparked concern of contagion as Bear Stearns might be forced to
liquidate its CDOs, prompting a mark-down of similar assets in other
portfolios.[14][15] Richard
A. Marin, a senior executive at Bear Stearns Asset Management
responsible for the two hedge funds, was replaced on June 29 by Jeffrey
B. Lane, a former Vice Chairman of rival investment bank, Lehman Brothers.[16]
During
the week of July 16, 2007,
Bear Stearns disclosed that the two subprime hedge funds had lost nearly all of
their value amid a rapid decline in the market for subprime mortgages.
[18] Pia Lopez: The party's
over; now comes the big cleanup With state at heart of credit crisis, it's up
to governor to propose bold steps By Pia Lopez plopez@sacbee.com Published:
Sunday, Oct. 12, 2008 http://www.sacbee.com/110/story/1305207-p2.html
[20] Cryptomisoxeny Explained
by Theory and Examples.Posted by rycK on
Friday, May 09, 2008
1:34:01 PM http://rycksrationalizations.blogtownhall.com/2008/05/09/cryptomisoxeny_explained_by_theory_and__examples.thtml
[21] “"Read my lips," Biden said, using Bush's famous phrase while referring to a Barack
Obama administration.”Nobody, nobody making less than $250,000 is going to see
a penny of their taxes go up."—Biden in an incoherent rant at some county fairgrounds near the
campus of Ohio University in Athens on Oct 15, 2008.
[22] California
[23] The Road to Social
Success, Peace and Justice: California
[24] As Predicted: California
[25] Copulating
with Coprolites: The Unveiled Mechanism of Governance by Progressive Liberalism
in California
[26] The Proud March of the Financial Lepers: Greece California
[27] California Becomes the National Leper like Greece
[28] The Proud March of the Financial Lepers: Greece California
[29] Inefficiency in California Greece
[30] Political Lies, Ghouls,
Dictators and the Eternal Quest for your Wealth.
[31] “Keynes himself placed
equal emphasis on redistributive taxation
and a monetary policy of ‘cheap money’ as well as fiscal policy,
and he did not believe
governments should run deficits for current consumption, as opposed to public investment. He was by no means a
socialist in the usual sense and did not advocate big government for its own
sake.”[31]—Wikipedia on the Keynes book: The General Theory of
Employment, Interest, and Money 1936 [3-4 years after the low point of the
depression.]
[32] Paul Krugman Clarifies
the Outcome of the NJ Gubernatorial Race for Us: Spend More! Spend More! Spend
More!
[33] Paul Krugman Mumbles
about Misguided Monetary Mentalities and Offers Other Hokums about our Currency
[34] Krugman Confuses Bacchus, Baucus and Baloney with the Threshold for
Healthcare. Not Enough Big Government in
the Latest Episode
[35] Averting the Worst in
Liberalism as Contrasted by Paul Krugman. Tax and Spend our way to Prosperity.
[36] Rewarding Bad Actors by
More Bad Actors and Higher Taxes: A Krugman Gem
[37] Krugman Applies
Protosimian Logic to Health Care. Big Government and Higher Taxes! Of Course!
Krugman
Boils a Pot Boiler about Boiling Frogs. Another Propaganda Exercise Example.
Tax Alert!
[39] In honor of that celebrated Communist
stooge and liar and winner of the Pulitzer Prize for the NYT . The color RED is used in my essays in honor of Walter Duranty,
a saint, if there could be one, in the Marxist Archives of Honor.
[40] The Bell
by
Herrnstein, Richard J. and Murray,
Charles Free Press of Glencoe , Inc, Old
Tappan , New
Jersey , U.S.A.
[41] Echoes from the
Babbling Brooks Envision a New Conservatism. The New York Times Advises Us on
Society, as Usual: Higher Taxes
Posted
by rycK on Saturday,
February 16, 2008 10:37:49
AM
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