tag:blogger.com,1999:blog-9430835.post7142214084304483666..comments2024-03-27T18:24:19.683-07:00Comments on Steve Sailer: iSteve: Financial crisis and the candidatesUnknownnoreply@blogger.comBlogger61125tag:blogger.com,1999:blog-9430835.post-91408008773410638302008-09-19T19:25:00.000-07:002008-09-19T19:25:00.000-07:00http://arthurdevany.com/Arthur De Vany's site may ...http://arthurdevany.com/<BR/>Arthur De Vany's site may be of interest on this subject and movie economics too.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-9430835.post-87601230557188971212008-09-18T20:45:00.000-07:002008-09-18T20:45:00.000-07:00Yes, I definitely believe in major tax increases f...Yes, I definitely believe in major tax increases for the (truly) wealthy. And by "wealthy" I don't mean someone earning $80,000 in coastal California...such an individual is hardly "wealthy."<BR/><BR/>For individuals earning over $250,000 (double for couples*), the top marginal rate should be increased from 36% as follows:<BR/><BR/>250k-300k 39%<BR/>300k-350k 42%<BR/>350k-400k 45%<BR/>400k-450k 48%<BR/>450k-500k 50%<BR/>500k-750k 52%<BR/>750k-1M 55%<BR/>1M-2M 60%<BR/>2M+ 70%<BR/><BR/>Additionally, there should be cuts in the marginal rate between $40K and $100K. Also, there should be some kind of deduction for state income taxes (there may be already, I'm not sure) or it should be increased. This would help both to control for cost of living (since high-tax states tend to also be high cost-of-living states) and reduce the effective state tax burden for people in high-tax states. <BR/><BR/><BR/>Yes, the truly rich *should* be taxed. But on the other hand, (say) a typical professor, scientist, doctor, engineer, or lawyer should not considered "rich" and lumped in the same class as multimillionaires. That is plainly ridiculous. Especially because the real rich tend to see the upper middle class as serfs to be kicked around, really just high-tech "migrant workers." I think this really fits, too. Looking in most of my science classes, I see a whole lot of females, Asians, and a surprising number of Latinos (tho I guess in a state that is 40% + Latino you'd expect *some* to do well)...perfect maids/serfs/coolies etc. And hell, even though I am a white male, I have discovered that I am of substantial American Indian, East Asian, Jewish, and possibly even African descent being one of the "30 percent of white Americans who are of less than 90 percent European ancestry" as described by Scientific American's "Does Race Exist" article--tho my grandparents, and even more so my great grandparents, tried to keep this hushed up, thus my being largely ignorant about it. Many WNs have accused my of being part Jewish, East Asian, etc, and I denied it. Well I guess they're probably right.<BR/><BR/>*I think the best way to solve the "marriage penalty" is to allow couples to file *as if* they were single (yes, married people can file as single, but the limits for higher marginal rates are lower than for actual singles)...that way there would be no BS about "increasing the marriage benefit" and/or "not completely eliminating the marriage penalty."Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-9430835.post-16927639716652955542008-09-18T11:41:00.000-07:002008-09-18T11:41:00.000-07:00KlaosOldanburg said... However, he might have m...KlaosOldanburg said...<BR/> <BR/><I>However, he might have more success getting help from Europe.</I><BR/><BR/>Now that is humiliating as a country.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-9430835.post-91027388995292349432008-09-18T06:33:00.000-07:002008-09-18T06:33:00.000-07:00The Gold Standard was pretty good in the 70's. The...<I>The Gold Standard was pretty good in the 70's. The 1770's. No modern nation holds to the gold standard, despite many having ample gold reserves to do so.<BR/><BR/>THAT ought to tell you something.</I><BR/><BR/>It does: that the gold standard keeps government small and people living within their means.<BR/><BR/>--Senor DougAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-9430835.post-15001518682799197342008-09-18T01:07:00.000-07:002008-09-18T01:07:00.000-07:00"Republicans create disasters and then media figur..."Republicans create disasters and then media figures demand Democratic candidates explain how to fix GOP disasters."<BR/><BR/>I am really curious here - could you point me to the Democratic plan to tighten housing loans from 2004 or so, that Bush viciously shot down in an anti-regulation frenzy? <BR/><BR/>/stAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-9430835.post-908509359769922092008-09-17T20:26:00.000-07:002008-09-17T20:26:00.000-07:00Blacks have lower IQs, lower wages, higher levels ...<I>Blacks have lower IQs, lower wages, higher levels of criminality, and lower creditworthyness. I wish it weren't so but wishing is just wishing.</I><BR/><BR/>There is new <A HREF="http://www.youtube.com/watch?v=usvG-s_Ssb0&eurl=http://minx.cc/?post=273689" REL="nofollow">c-span footage</A> out linking the CEO of Fannie Mae and the Congressional Black Caucus. We all know how this is going to end. Obama is going to wreck this country just like his daddy wrecked his car. There is no escaping destiny.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-9430835.post-42214883617334711092008-09-17T19:42:00.000-07:002008-09-17T19:42:00.000-07:00From Ron Paul 07/16/2002: http://www.house.gov/pau...From Ron Paul 07/16/2002: <BR/><BR/>http://www.house.gov/paul/congrec/congrec2002/cr071602.htm<BR/><BR/>"Mr. Speaker, I rise to introduce the Free Housing Market Enhancement Act. This legislation restores a free market in housing by repealing special privileges for housing-related government sponsored enterprises (GSEs). These entities are the Federal National Mortgage Association (Fannie), the Federal Home Loan Mortgage Corporation (Freddie), and the National Home Loan Bank Board (HLBB). According to the Congressional Budget Office, the housing-related GSEs received $13.6 billion worth of indirect federal subsidies in fiscal year 2000 alone.<BR/><BR/>One of the major government privileges granted these GSEs is a line of credit to the United States Treasury. According to some estimates, the line of credit may be worth over $2 billion. This explicit promise by the Treasury to bail out these GSEs in times of economic difficulty helps them attract investors who are willing to settle for lower yields than they would demand in the absence of the subsidy. Thus, the line of credit distorts the allocation of capital. More importantly, the line of credit is a promise on behalf of the government to engage in a massive unconstitutional and immoral income transfer from working Americans to holders of GSE debt.<BR/><BR/>The Free Housing Market Enhancement Act also repeals the explicit grant of legal authority given to the Federal Reserve to purchase the debt of housing-related GSEs. GSEs are the only institutions besides the United States Treasury granted explicit statutory authority to monetize their debt through the Federal Reserve. This provision gives the GSEs a source of liquidity unavailable to their competitors.<BR/><BR/>Ironically, by transferring the risk of a widespread mortgage default, the government increases the likelihood of a painful crash in the housing market. This is because the special privileges of Fannie, Freddie, and HLBB have distorted the housing market by allowing them to attract capital they could not attract under pure market conditions. As a result, capital is diverted from its most productive use into housing. This reduces the efficacy of the entire market and thus reduces the standard of living of all Americans.<BR/><BR/>However, despite the long-term damage to the economy inflicted by the government’s interference in the housing market, the government’s policies of diverting capital to other uses creates a short-term boom in housing. Like all artificially-created bubbles, the boom in housing prices cannot last forever. When housing prices fall, homeowners will experience difficulty as their equity is wiped out. Furthermore, the holders of the mortgage debt will also have a loss. These losses will be greater than they would have otherwise been had government policy not actively encouraged over-investment in housing.<BR/><BR/>Perhaps the Federal Reserve can stave off the day of reckoning by purchasing GSE debt and pumping liquidity into the housing market, but this cannot hold off the inevitable drop in the housing market forever. In fact, postponing the necessary but painful market corrections will only deepen the inevitable fall. The more people invested in the market, the greater the effects across the economy when the bubble bursts.<BR/><BR/>No less an authority than Federal Reserve Chairman Alan Greenspan has expressed concern that government subsidies provided to the GSEs make investors underestimate the risk of investing in Fannie Mae and Freddie Mac.<BR/><BR/>Mr. Speaker, it is time for Congress to act to remove taxpayer support from the housing GSEs before the bubble bursts and taxpayers are once again forced to bail out investors misled by foolish government interference in the market. I therefore hope my colleagues will stand up for American taxpayers and investors by cosponsoring the Free Housing Market Enhancement Act." <BR/><BR/>So someone would rather vote for Obama or McCain because Ron Paul favors the gold standard and was prescient enough in his views to predict the crash 6 years in advance. I find no evidence that any Republican or Democratic candidate for President in the last 20 years has commanded such a forceful and complete view of economics as Ron Paul. Hate him if you will, but did you predict the housing bubble prior to July 2002 and advance a bill to do prevent the burst?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-9430835.post-69982025937760834242008-09-17T19:36:00.000-07:002008-09-17T19:36:00.000-07:00The Gold Standard restricts financial policy, look...<I>The Gold Standard restricts financial policy, look at any 19th Century crisis and how it constricted government policy</I><BR/><BR/>It's a good thing our government hasn't been constricted from growing into the massive behemoth it's become, right? <BR/><BR/>I mean, how are we supposed to win the war with eastasia with a constricted government!KlaosOldanburghttps://www.blogger.com/profile/03914067914798489194noreply@blogger.comtag:blogger.com,1999:blog-9430835.post-62559121752595328902008-09-17T19:22:00.000-07:002008-09-17T19:22:00.000-07:00What is it with paleocons and the Gold Standard?Do...What is it with paleocons and the Gold Standard?<BR/><BR/>Do they really think if only the Feds went back to the standard, politicians would not find alternative avenues to get around the constraints of a true gold standard?<BR/><BR/>The gold standard will not solve any of our problems because the elites will just find neat loopholes to avoid the restraints of a gold standard.<BR/><BR/>And forget about "getting rid of central banking".<BR/><BR/>The Great Depression and WWII could not get rid of The Federal Reserve.<BR/><BR/>If the Depression and the largest war history could not get rid of the Reserve, nothing short of a nuclear war will - if even that.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-9430835.post-228368996740490782008-09-17T18:45:00.000-07:002008-09-17T18:45:00.000-07:00McCain doesn't understand what's going on. Obama c...McCain doesn't understand what's going on. Obama <B>can't</B> understand what's going on. <BR/><BR/>Bill O'Reilly (another clueless pundit) the other night screamed that the government should have kept those financial institutions from making all those bad housing investments. The truth of course is that the government <B>required</B> those bad investments.<BR/><BR/>The government has combated "red lining" for years on the theory that financial institutions were being mindlessly racist. The government believed that blacks would be good credit risks because to think otherwise was well... unthinkable.<BR/><BR/>Blacks have lower IQs, lower wages, higher levels of criminality, and lower creditworthyness. I wish it weren't so but wishing is just wishing. <BR/><BR/>A government that had accepted that poor people were likely to be poor credit risks would never have allowed this kind of stupid housing crisis to develop.<BR/><BR/>It will come to pass that some corrupt people will be uncovered and blamed for the crisis. But the problem isn't from a few greedy officials. It is the systematic and widespread failure to base public policy on what is now called race realism. <BR/><BR/>The price tag for our "nice" ideas that preserve the self image of blacks is now several hundred billion dollars. <BR/><BR/>Obama as a black man intent on expanding the role of government will have great difficulty understanding how government policies based on a mythical race ideology got us into this mess.albertosaurushttps://www.blogger.com/profile/13209465319904999278noreply@blogger.comtag:blogger.com,1999:blog-9430835.post-85753176026147349382008-09-17T17:33:00.000-07:002008-09-17T17:33:00.000-07:00The Gold Standard was pretty good in the 70's. The...The Gold Standard was pretty good in the 70's. The 1770's. No modern nation holds to the gold standard, despite many having ample gold reserves to do so.<BR/><BR/>THAT ought to tell you something. <BR/><BR/>The Gold Standard restricts financial policy, look at any 19th Century crisis and how it constricted government policy, causing huge contractions.<BR/><BR/>Paul is a crank. He knows about as much about the economy as I do about gynecology -- he ought to stick to what he knows.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-9430835.post-76249531012010489722008-09-17T17:29:00.000-07:002008-09-17T17:29:00.000-07:00I'd like to point out that falling Real Estate val...I'd like to point out that falling Real Estate values would be a damn good thing for the masses of American citizens who don't yet own a home. They, of course, generally have less of a say in the public discourse than do people who already own a home (to one degree or another) which is why their interests are being ignored.mnuezhttps://www.blogger.com/profile/10328856077944673860noreply@blogger.comtag:blogger.com,1999:blog-9430835.post-87395755291529360862008-09-17T14:41:00.000-07:002008-09-17T14:41:00.000-07:00"The new system for America is private risk-taking...<I>"The new system for America is private risk-taking by politically powerful groups, with the taxpayers stepping in when necessary to take the losses. This is not the capitalism taught in grade-school. Or in Economics 101. Or Economics 901."</I><BR/><BR/>Correct. It's the choice of capitalism when those "politically powerful groups" stand to gain financially, and the socialism of a taxpayer financed bailout, when they face a loss. We don't get the choice.<BR/><BR/>McCain has admitted that he doesn't know anything about economics, and on that ground, I think he may have meant something different by "fundamentals" than those who are schooled in economics and can place the word academically assume he meant. He may have meant the fundamentals of a capitalist system, hard working Americans who will soldier through the crisis, etc. As in, a football game is being played with a strong, talented team on each side, but the weather sucks and the field is a mess. The fundamentals are in place, but the conditions are bad.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-9430835.post-8490483214790108542008-09-17T13:33:00.000-07:002008-09-17T13:33:00.000-07:00"Who [McCain or Obama] got the most money from the...<A HREF="http://noquarterusa.net/blog/2008/09/17/who-was-in-wall-streets-pocket/" REL="nofollow">"Who [McCain or Obama] got the most money from the two financial giants now in the news–Lehman Brothers and AIG?"</A>Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-9430835.post-46513812686026142072008-09-17T13:14:00.000-07:002008-09-17T13:14:00.000-07:00So much for my prediction of a rally. Yikes.So much for my prediction of a rally. Yikes.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-9430835.post-42672342296649993372008-09-17T12:38:00.000-07:002008-09-17T12:38:00.000-07:00"Ron Paul has knowledge of the economy? Really? Th..."Ron Paul has knowledge of the economy? Really? The Gold Standard? I must stifle my laughter."<BR/><BR/>Is that all there is to understanding economics? The gold standard? <BR/><BR/>The benefit of the gold standard is the government cannot steal the value of your property (i.e. your money) by printing upon demand. Moreover, what will you do when a nuclear bomb takes out DC? What will be the effect on currency valuations? If the currency were backed by Gold, the answer is clearer. <BR/><BR/>Moreover, Paul advocates for competing currencies. How is this a bad idea? The more freedom the better <BR/><BR/>Paul also clearly understood that government backed initiatives for college loans and housing loans increases the total market cost. What other candidate has ever mentioned these dynamics? None. <BR/><BR/>Perhaps you are right to doubt Paul over the Gold standard, but what about everything else? Do you support funneling 90 IQ candidates into university where they will graduate with the same basic skills they possessed upon entry? This is the type of economic prescription promoted by McCain and Obama: pretend HBD does not exist and fight it at all costs.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-9430835.post-50783333171438934202008-09-17T10:43:00.000-07:002008-09-17T10:43:00.000-07:00Anonymous,The talk of anti-regulation "neocons" is...Anonymous,<BR/><BR/>The talk of anti-regulation "neocons" is nonsense. Bush signed a huge package of strict financial regulations into law: Sarbanes-Oxley. It also put a lot of corporate criminals in jail, with tougher sentences than any previous administration. Look it up.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-9430835.post-31238400403045479602008-09-17T10:42:00.000-07:002008-09-17T10:42:00.000-07:00"The fundamentals are strong" has the merit of hav..."The fundamentals are strong" has the merit of having history behind it. It was often asserted in 1929, 1930, 1931.....Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-9430835.post-43091813851411408642008-09-17T10:32:00.000-07:002008-09-17T10:32:00.000-07:00Added to which, McCain just (9/15) told the Spanis...Added to which, McCain just (9/15) told the Spanish-language station Univision that, if elected, he will pass amnesty for illegal immigrants on his first day in office:<BR/><BR/>http://www.univision.com/content/content.jhtml?cid=1669256&pagenum=3<BR/><BR/>McCain and Obama. What exactly did Americans do to deserve these cretins? God must really have it in for us right now.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-9430835.post-42039306238026234902008-09-17T10:11:00.000-07:002008-09-17T10:11:00.000-07:00Republicans create disasters and then media figure...Republicans create disasters and then media figures demand Democratic candidates explain how to fix GOP disasters.<BR/><BR/>The Democrats are off-base or wrong on a bunch of stuff, but it's perfectly legitimate to say, "Democrats should be elected because we opposed the policies that led to the disasters. And Democrats would be less likely to create new disasters."<BR/><BR/>Unfortunately, too many Democrats went along with the GOP disasters like the Iraq War and deregulating the financial sector.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-9430835.post-941349646714197052008-09-17T09:38:00.000-07:002008-09-17T09:38:00.000-07:00I say "near" catastrophe because it was just annou...<I> I say "near" catastrophe because it was just announced twelve minutes ago (at 8:00PM) that the Fred would give an 85-90 billion dollar bridge loan to AIG and take an 80 percent stake in the company. This is the event the financial community (what's left of it) has been waiting for: look for a big rally tomorrow from the current depressed levels. </I><BR/><BR/>wow, didn't take long for that to be proven wrong.<BR/><BR/>Also, Fannie and Freddie were not the cause of what's happened here, the private sector was.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-9430835.post-55164595782034826882008-09-17T08:45:00.000-07:002008-09-17T08:45:00.000-07:00The new system for America is private risk-taking ...<I>The new system for America is private risk-taking by politically powerful groups, with the taxpayers stepping in when necessary to take the losses.</I><BR/><BR/>Whether these deals are wise and good is, um, above my pay grade. But to suggest that such terms would entice managers to go out and risk their entire company on the <I>hopes</I> of a government bailout if they really screw up? Hmmm.<BR/><BR/>Consider:<BR/><BR/><I>The interests of taxpayers are protected by key terms of the loan. The loan is collateralized by all the assets of AIG, and of its primary non-regulated subsidiaries. These assets include the stock of substantially all of the regulated subsidiaries. The loan is expected to be repaid from the proceeds of the sale of the firm’s assets. The U.S. government will receive a 79.9% equity interest in AIG and has the right to veto the payment of dividends to common and preferred shareholders.</I><BR/><BR/>So: your earnings take a big hit, then you teeter on the brink of collapse, then the government comes in and gives you a big loan in exchange for a major equity stake while they break your company apart and sell it off.<BR/><BR/>Yep - I can see CEO's by the hundreds chasing down a deal like that.<BR/><BR/>The only people I can see whose behavior might be seriously affected by such deals are employees who feel they have little to lose by pushing the company to the edge - like, to pick a totally random company, Chrysler employees.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-9430835.post-12565673046828404582008-09-17T08:44:00.000-07:002008-09-17T08:44:00.000-07:00"The longer the properties remain vacant, the more..."The longer the properties remain vacant, the more complicated it becomes. Investment Banks don't maintain their properties, and in many cases they're being looted for pipes and what not. Not to mention hurricanes and wildfires."<BR/><BR/>A colleague is currently looking for housing in the Portland, Oregon metro area. He describes most of the bank owned homes that he sees as wrecks. Bear in mind that Portland’s real estate prices have held firm until the first quarter of 2008 and that it is demographically less vibrant than most metro areas in the US. Also most of these homes have not been in distant, recently established suburbs or exurbs, rather in established and well populated communities. I shudder to think what will happen as the economy sheds jobs and organized; systematic looting of empty houses becomes a shadow industry. Detroit from sea to shining sea, anyone?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-9430835.post-19942056575804942032008-09-17T08:20:00.000-07:002008-09-17T08:20:00.000-07:00Of course, McCain believes in the Blank Slate, too...<I>Of course, McCain believes in the Blank Slate, too, but he is marginally for us and is pro-life. I don't subscribe to the Auster philosophy that we win by losing.</I><BR/><BR/>Objectively, Obama is better for "us" because he is far less likely to deliver on illegal alien amnesty. <BR/><BR/>http://www.slate.com/id/2200209/#ilwmccain<BR/><BR/>http://www.miamiherald.com/news/florida/story/687993.html<BR/><I>ORLANDO --<BR/>Speaking to a predominantly Hispanic audience considered crucial to winning Florida, Republican John McCain vowed Monday to make immigration one of his ''first priorities'' if elected president and accused Democrat Barack Obama of spiking reforms in Congress.</I><BR/><BR/><I>McCain spearheaded a bill in 2006 -- reviled by the right wing of his own party -- that would have allowed illegal immigrants to earn citizenship. Obama supported the overall goal but backed controversial amendments that would have limited a guest worker program.</I><BR/><BR/><I>''The fact is that Sen. Obama proposed amendments that would have killed the legislation. I fought for it,'' McCain told more than 350 people at a town hall meeting.</I><BR/>(...)togohttps://www.blogger.com/profile/02564696576032840221noreply@blogger.comtag:blogger.com,1999:blog-9430835.post-51961467386377259932008-09-17T08:00:00.000-07:002008-09-17T08:00:00.000-07:00t99,Ron Paul and the Austrian school are the ONLY ...t99,<BR/><BR/>Ron Paul and the Austrian school are the ONLY people whose analysis of the US economy is correct. If their thesis is so easily dismissed, kindly type up your syllogism and submit it.<BR/><BR/>--Senor DougAnonymousnoreply@blogger.com