Walker on CN-BS ths morning.. "We need tough love and to make tough choices in Wash"

Discussion in 'Wall St. News' started by gnome, Nov 7, 2008.

  1. David Walker, former Comproller General...

    LOL! Hahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahaha

    Tough love? Tough choices? All the Gummint knows is to PRINT MORE MONEY...

    Walker... "The current liabilities and unfunded social liabilities of the Federal Gummint now exceed the net worth of ALL AMERICANS".

    Does that mean we're BROKE? Does that mean we've "spent ourselves into oblivion" just as Bernard Baruch predicted around the turn of the century?

    So... NObama runs on the platform of "spreading the wealth around"... sure hope he intends to spread the liabilities around, too.
  2. plugger


    Just plain wrong.

    What's needed is a bigger stimulus package. The government needs to "bridge" this collapse in consumer spending with their government spending.

    If the taxpayer is unable to borrow, then the government should borrow for them.

    If the taxpayer is unable to spend, then the government should spend for them.

    If the taxpayer is unable to BORROW and then SPEND, then the government should do it for them.

    Oh wait a minute, the government that is doing all the borrowing and spending is backed by the people who are broke and can't borrow or spend.

    Hmmm, me thinks I see a problem. Oh well, maybe the U.S. will just grow their way out of it (still waiting on the Reagan balanced budgets to kick in.....)
  3. Sounds like, "I know I'm losing money on every sale, but I'll make it up on volume"...
  4. plugger


    Pretty close.

    It seems the government is intent on "bridging" this collapse in consumer spending. But where does this bridge lead? To me, there's nothing on the other side.

    "If only houses would stabilize in value, all our problems would be over". But people would still be unable to afford them. The government is trying to stabilize asset prices but the whole problem is that ASSET PRICES ARE TOO HIGH RELATIVE TO INCOMES. Asset prices were supported by a humungous build up in debt and now that the debt financing is cut off, asset prices must fall. The government doesn't seem to get this.

    I don't need to be telling you this (you already know) but a lot of well paid analysts and economists don't (just how does Brian Westbury still have a job?). Well at least it makes for interesting reading.

    On a different note, Kate Bilo who does the weather report on Bloomberg news is a little fox.
  5. Bernanke has chosen inflation....rather than what should be happening...DEFLATION...

    Deflation is good because the prudent and skilled replace the inefficient minded.....

    Deflation is redistribution of assets by bankruptcies....

    Inflation is redistribution by money dilution.....

    When deflation occurs....the names of the failed are front page news....as are the winners in waiting....ie China firm makes electric cars for $15.000 with what used to be Ford Manufacturing Plants.......

    When inflation occurs....the winners and losers are not labeled on the front page....and is like an invisible robber to the losers....
    ie...the Ford Plant remained and continued to make a few gas powered cars....for $30,000....
  6. I think the Gummint "gets it"... they just don't want to face an electorate whose home and 401k have tanked... trying to "hold everything up at any price"..

    Jimmy Rogers says the Gummint will do more harm, more widespread, and longer lasting by trying to hold things up... and will ultimately fail anyway.

    And, the Gummint needs to be "seen as doing something" to ease people's difficulties...

    Seems the Gummint's prop-up efforts are destined to fail for the reason you said.. incomes too low vs. housing prices.
  7. CORRECTAMUNDO... on all points.
  8. ssblack


    Misleading title. I thought you meant Walker, Texas Ranger. :p
  9. His choice is inflation but as the song goes
    "you don't always get what you want"

    This is all one giant experiment in that nobody knows what the outcome of each action will be until it is applied.

    Two things that I do know are ...

    ... the problem is immense in that the markets (that is us) want to deflate to a lower more manageable level and PTB are trying to inflate back to near the good old levels.

    ... the path to inflation lies through deflation.
    The question is can PTB summon sufficient strength to blast their way clear through the current deflationary period.
    So far the answer is NO NO NO because none of the bailout money has blasted it's way through the black holes of the banking/insurance/investment sector and out the other side into the retail (that is us again) sector where it can be applied to the daily economy.
    Perhaps they need to nuke the black holes with a Trillion or two instead of pissing around with silly little figures.

    So, right now I do not see inflation on the horizon yet.
    Maybe it will appear and then again, maybe not.

  10. Yeah, well he don't talk no SHIT either!!
    #10     Nov 7, 2008