dagblog - Comments for "The Austerity Blunder?"

I agree wholeheartedly that

SleepinJeezus — Sat, 09 Oct 2010 02:29:41 +0000

I agree wholeheartedly that we need to focus on the mortgage crisis; on the original "toxic asset" that served as the justification for the "Troubled Asset Relief Program (TARP)."

I can't remember the nomenclature, but NPR had a program today talking about the Fed's option of buying back gov't bonds from the bank as a means of printing money and getting it into circulation. Perhaps, the reasoning goes, the banks will THEN use that money to make loans rather than play the carry trade. (Although, when you think about it, the withdrawal of these bonds would limit their availability, thus driving up the price, no? Wouldn't it actually make the carry trade more attractive, not less? But I digress...)

If you're going to print money anyway, why not use it as an instrument to buy the toxic assets, or at least render them non-toxic. Use these funds - not to buy back bonds - but instead to get homeowners right-side-up on their mortgages, whereupon they once again owe less for their house than it's reasoned valuation?

Top-down solutions ain't working. It's definitely about time to get some of that money directed to those who are hurting in this economy instead. You don't cure cancer by going to the beautician for a new 'do. And you ain't going to cure this cancerous economy by making Wall Street shine. Instead, you gotta' direct the effort at excising the tumor and blasting it out of existence. You gotta get rid of all this unsupported debt that is a consequence of the collapse of the housing bubble. Only then can we expect a healthy recovery.

Who’s to blame? Larry

Resistance — Sat, 09 Oct 2010 00:38:49 +0000

In reply to The Austerity Blunder?

Who’s to blame?

Larry Summers?

Summers the same person whose ideology despises Socialism; so of course the people weren't the first thing on his mind

I guess, the Left has their own "heck of a job Brownie"?

K.I.S.S

Help the homeowners first.

With help from the government, in the form of housing assistance, 80/20 or /70/30 faster recovery 50/50? The homeowners could purchase needed products, such as carpeting, paint, appliances, roofing home improvement, etc. Creating manufacturing jobs to meet the demands .

When these items are purchased the States would collect sales taxes.

Don’t the States need money?

Any other solution is wasting time and money

'Putting the cart before the horse'

Meaning: Do things in the correct order.

“Don't kill the goose that lays the golden egg”.

The people pay the taxes. Corporations beat you out of them

Government needs tax revenue, or the government is useless.

Is the plan to destroy the government for the people?

So the government better figure out whom they need to serve

“Don't bite the hand that feeds you.”

Either the government directly helps the people or the people will bite back.

Maybe the best Government money can buy is about to be drowned in the bathtub.

The government will run out of money and then what?

Corporations will be all right; the people are expendable, because they have become a burden, nothing but a pain, to the corporate interest.

You aint go no argument from

Richard Day — Fri, 08 Oct 2010 23:30:41 +0000

In reply to The Austerity Blunder?

You aint go no argument from me. If they are working they are contributing to SS and Medicare and our income tax fund. They are purchasing milk from the grocery mart, underwear from K-Mart, silly things from Wall Mart and recreational beverages from the liquor mart. Unemployment will not even cover their mortgages. Oh well.