The government doesn't create anything; it just redistributes.
Destroying confidance is what the government do best
Tuesday, October 28, 2008
Whenever the government bails someone out of trouble
Whenever the government bails someone out of trouble, they always put someone into trouble, plus of course a toll for the troll.
Every $100 billion in bailout requires at least $130 billion in taxes, where the $30 billion extra is the cost of getting government involved.
Every $100 billion in bailout requires at least $130 billion in taxes, where the $30 billion extra is the cost of getting government involved.
Wednesday, October 15, 2008
A big political event
Last month's $700 billion bailout amounts to more than 5% of U.S.
gross domestic product.
Compare that to Germany's $400 billion to $536 billion rescue package (between 12% and 16% of its GDP),or Britain's $835 billion plan (30%).
The ratio of government debt to GDP in the U.S. runs to
about 62%. For the eurozone, it's 75%; for Japan, 180%.
The U.S. continues to have the world's largest inflows of foreign direct
investment.
Recessions are periodic facts of economic life that tend to last anywhere
between six and 16 months.
Severe recessions or depressions are fundamentally political events that
can last a decade or longer.
Last month's $700 billion bailout was a big political event.
gross domestic product.
Compare that to Germany's $400 billion to $536 billion rescue package (between 12% and 16% of its GDP),or Britain's $835 billion plan (30%).
The ratio of government debt to GDP in the U.S. runs to
about 62%. For the eurozone, it's 75%; for Japan, 180%.
The U.S. continues to have the world's largest inflows of foreign direct
investment.
Recessions are periodic facts of economic life that tend to last anywhere
between six and 16 months.
Severe recessions or depressions are fundamentally political events that
can last a decade or longer.
Last month's $700 billion bailout was a big political event.
Sunday, October 12, 2008
The only way to deal with economic crisis
The only way to deal with economic crisis is to force players to bear the cost of their mistakes.
Saturday, October 11, 2008
Regulators
Regulators try to prevent risk in the market.
Thy start reducing risk then reducing benefits and then reducing the market.
Thy start reducing risk then reducing benefits and then reducing the market.
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