tag:blogger.com,1999:blog-7539577136486286096.post5625692427805682403..comments2024-03-28T02:46:41.090-05:00Comments on Supply and Demand (in that order): Parallels with the 1930s? HardlyCasey B. Mulliganhttp://www.blogger.com/profile/03317454408275318282noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-7539577136486286096.post-58930516756860769012010-08-01T16:20:23.208-05:002010-08-01T16:20:23.208-05:00Considering the recession started December 2007, a...Considering the recession started December 2007, and that 2008Q2 was the only quarter of five consecutive quarters to show GDP growth, do you stand by this post?<br /><br />(I just found your site, so I'm only seeing this now.)JCordeshttps://www.blogger.com/profile/04474500632405227394noreply@blogger.comtag:blogger.com,1999:blog-7539577136486286096.post-7220008332175518452008-10-28T18:31:00.000-05:002008-10-28T18:31:00.000-05:00Well, it's not the parallels of the thirties you s...Well, it's not the parallels of the thirties you should be concerned with, it is the twenties. Easy credit, government intervention to keep wages high, leveraged speculation, bailouts and loans. The only thing different so far has been free trade. <BR/><BR/>http://www.youtube.com/watch?v=UO5i4m4uEqcVoice of the GOP Grass Rootshttps://www.blogger.com/profile/01845182326049686452noreply@blogger.comtag:blogger.com,1999:blog-7539577136486286096.post-52479377082007862422008-10-25T20:29:00.000-05:002008-10-25T20:29:00.000-05:00fundamentally different from the 1930s===="differe...fundamentally different from the 1930s<BR/>====<BR/>"different" but not ... insured.<BR/><BR/>Consider:<BR/><BR/>1. It's not clear what you intend the *short-run* import of high productivity to be.<BR/>2. Unless cash-rich companies start to lend to cash-poor, we could see ... production shortages that are broadly destabilizing.<BR/>3. One trouble is that this growth in GDP is perceived to be "low-quality" growth, because it was backstopped by depletion of home-equity to finance consumption, on top of additional revolving consumer credit.<BR/>4. Oil is the new corn?<BR/>5. They won't matter if the banking system is eventually rendered insolvent (in anything but a gentle way).<BR/>6. The general public's beliefs in their deposits can yet be shaken<BR/>7. France is building a "sovereign fund" to prevent predatory takeovers ...<BR/>8. Let's hope it is enough (of course, lending rates in Japan have been at zero ...)<BR/>9. There are no guarantees on the price level, ... <BR/>10. J.P.Chase is a lot smaller in relation to overall financial activity nowadays.<BR/><BR/>However one slices the pie, the financial markets are priced in a way that lends one to think that they are judging that there is a non-zero probability that the "banking" may collapse.<BR/><BR/>That may be an irrational fear or it may not be. And that's the trouble. The known unkown's that would unlock that conundrum are ... locked up.Amicushttps://www.blogger.com/profile/13535211912769378958noreply@blogger.comtag:blogger.com,1999:blog-7539577136486286096.post-82778352965686165352008-10-25T15:41:00.000-05:002008-10-25T15:41:00.000-05:00Parallels:1) There was a crisis dealing with banks...Parallels:<BR/><BR/>1) There was a crisis dealing with banks and investments.<BR/>2) The government got heavily involved.<BR/>3) It impacted the presidential election.<BR/>4) There was disagreement on what caused it and how to fix it.<BR/>5) Investors, who are supposed to understand markets, suddenly appeared very foolish or ignorant.<BR/>6) There were worldwide influences and repercussions.<BR/>7) Average people suddenly felt very vulnerable financially.<BR/>8) People weren't sure what was actually working at the time with the government interventions.<BR/>9) There was a lot of government trial and error.<BR/>10)We eventually came out of it.<BR/><BR/>Don the libertarian DemocratDonald Pretarihttps://www.blogger.com/profile/14493535232127084725noreply@blogger.com