Hey Landis- STFU or rather put a sock in it. The Fed is the perpetrator of this dilemma with their unbridled expansion of the monetary base over the past 7 years. Landis do your homework and when you finally have something of value to add to this discussion then offer a submission. Until then your ignorance is intolerable. Just, My2cents
Maybe you need to sit in judgement on yourself intead of me...and yes you implied I worked in a jiffy store. I took offense because you tried to offend me, you idiot. I don't like most jiffy store clerks and don't feel bad about it either, most of 'em aren't honest. I know where my concience is, do you? I wasn't playing the role of anything, you got this started and I replied...No bother...you are a piss ant and you proved that to the entire ET community with one single thread. Some people are like Slinkies (My2Cents), not good for a whole lot but real entertaining when they tumble down a flight of steps. Fuck off little boy, most people stop telling yo mama jokes in 6th grade...
The same place it came from before we had a Fed -- foreign direct investment, corporate and personal savings!! Its entirely the Feds debasement policy that CREATES a nation of consumers. Yes, there are cultural issues at work. But if wealth is compounded when saved, not destroyed, that fact alone encourages investment and savings. Not spending. Imagine that! You act as if the world didn't turn before Central Banks printed money out of thin air.
YES... if they want to blow themselves up, that's their business... responsibility for one's actions... if they take these kinds of risks...investors should get creamed, traders should get fired, reputations should get destroyed, and companies should fail...
Same with counterparty risk. Your hedge was with BSC, tough cookie, you should have done your DD, just gonna have to write down the asset. I recognise that a collapse of the financial system benefits nobody and accept those actions and ONLY those actions which have to be taken to prevent this (was cutting fed funds one of them?), but I do not believe that all actions taken have been to this end or that available solutions such as an available discount window were exlpored or enforced. They cut Fed funds rate because the correct avenue for illiquid banks i.e the Discount window was felt to have a "stigma" and thus not used. The Fed allowed the banks to dictate to the Fed when the Fed if it stood for what it pretends to stand for should have dictated to the banks. i.e. Use the discount window or wind up your business. Additionally, once this is over there should be such nasty teeth pulling retribution on those who profited from recklesness that pulled the financial system to the brink that nobody sees any upside in playing the moral hazard game EVER EVER again. This ridiculous nonsense when somone like O'Neal who was playing golf while this broke can leave with $160m of vested benefits that are directly derived from the bubble that is now collapsing has to end. There are many other examples, and the enquiry should extend to the likes of the boards of MER and C who allowed retirement with vested benefits for presiding over a Ponzi scheme, in other words rubber stamping moral hazard banking and shareholder wealth destruction with a $160m payday.
Government is in the way right now. They used to at least facilitate business with the tax money they took. They built highways, which boosted auto sales, and led to the development of suburbia, which in turn led to construction of shopping malls and large subdivisions, boosting profits of roadbuilders, automakers, car dealers, retailers, home builders, and so forth... What now? The U.S. central government doesn't have a clue. They should look at how Japan or Hong Kong or Taiwan is deploying capital - on information highways, wirelessly hooking up whole cities with free broadband, installing magnetic, high speed, bullet trains, and intelligently subsidizing the technological leaders of tomorrow's economy, rather than doling out pork to the laggard's of yesteryear (think farmer's and ethanol). If you're going to have a central government that's involved in the process, make sure it is not clinically insane like ours is, or just don't have one.
Oh how Tacky- So you have problems with people who work in Jiffy stores? What, you get shortchanged more often than you can count? Look at how personally you have taken all of this. Like I said before, IT'S JUST WORDS! You bit hook line and sinker. You fell for the trap. How smart do you feel now nitwit? You've been sucked in and you've revealed your true self. You don't like most Jiffy store clerks yet you'll show up every morning like clockwork to get your donut and coffee. Hypocrite. Not only a hypocrite but racist a bigot and a liar. You weren't playing the role of anything? What a liar. You reached out and tried to grab the sympathy of masses by saying you were in law enforcement. Puhlease, no self respecting officer of the peace would have dignified a response. You're just a volunteer, not good enough to make it on the force yet seduced by the power for your own head trip. Grow up you great American hero and get a real job. I know exactly where your conscience is. It's so far down your alimentary canal that the only time it sees daylight is when you go to have a bowel movement. This is so much fun I can hardly wait for a reply. I should feel shameful for having such an easy battle of wits with someone who is obviously so unarmed. Just, My2cents P.S. Notice how I was able to take you down without employing a single profanity. So far above you it's not even funny. Let me yank that chain one more time. It's just words.
Well, when you see your government is bailing out everyone, it's obvious that America is rightfully the world's leading advocate of "free" market. So why are Americans bitching about France and other nations subsidizing their own farmers? Go figure!