15 Responses to “Mo’ Money, Mo’ Demand”
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His new target? Banks. Evil banks. Eeeeeeeeaaaaaaavil. Bernero is threatening any bank that won't give money to people that can't pay it back with a guarantee that the state won't do business with them. From The Oakland Press: Bernero says no to banks that won’t lend in Michigan
Democrat Virg Bernero said Thursday he’ll stop the state from doing business with banks that won’t lend in Michigan if he’s elected governor. He specifically mentioned Bank of America Corp., JPMorgan Chase & Co., Citigroup Inc., PNC Financial Services Group Inc. and Wells Fargo & Co., criticizing them for refusing to participate in the state’s Helping Hardest Hit Homeowners Fund. Democratic Gov. Jennifer Granholm has appealed to the same banks to join the federally funded program, which would provide financial assistance for homeowners struggling to keep up with their mortgage payments.In other words, giving money to people that can't pay it back. The angriest mayor in America is going to hunt these banks down, shoot them, and drink their evil blood.
eric seiger
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Wonder how we're going to handle it: A ranking Saudi diplomat told NBC News that he has asked for political asylum in the United States, saying he fears for his life if he is forced to return to his native country. ...
SON says:
September 9th, 2010 at 4:04 pm
DAD I AM HOMOSEX.
DAD says:
September 9th, 2010 at 4:04 pm
SON I AM DISAPPOINT.
Rob Mac says:
September 9th, 2010 at 4:53 pm
Or we could simply “print” money to retire some of our debt. This would reassure people who get freaked out at the size of the debt and would have the same inflationary effect of handing the money out to American citizens. The stimulative effect would likely be a bit less, but I’d take that tradeoff.
JR says:
September 9th, 2010 at 4:54 pm
Aren’t you missing the role of international trade. What you say makes sense if all goods and services are produced locally. Once you take intl. trade into account, more/printed money could simply go into buying more from other countries, who could theoretically hold that money for an indefinite time.
chris says:
September 9th, 2010 at 4:56 pm
It’s true that at some point the money-printing would spark high inflation.
Yes — specifically, after aggregate demand was boosted to the point that it exceeded aggregate supply. We’re nowhere near that point — I think literally trillions of dollars short of it — so there’s plenty of room to play around with helicopter drops. Please do, Mr. Bernanke.
timmie says:
September 9th, 2010 at 4:59 pm
Did that truly huge spike in Fed spending 2008-2009 lead to rapid economic growth? No. What evidence is there that things would be any different now? None.
The Great Reckoning that we are now experiencing was, as your cite points out, only postponed through half a decade of public and private debt increasing by 10% a year and when that became unsustainable our financial system cratered.
Does anyone think we can return to those levels of profligacy for five years or more? Does anyone doubt that even that level of new debt would prove inadequate to cure what ails us?
Our recent history has been one huge Keynesian experiment gone wrong. But to put out the fire in the dining room Matt wants to burn down the house.
chris says:
September 9th, 2010 at 5:29 pm
Did that truly huge spike in Fed spending 2008-2009 lead to rapid economic growth? No.
No, it only halted a once-in-a-century level of economic collapse in its tracks.
But I guess since the first gallon of water didn’t put the fire out, it’s time to abandon that plan and switch to gasoline.
Ape Man says:
September 9th, 2010 at 8:32 pm
“Or we could simply “print” money to retire some of our debt.”
This is incorrect. If you think it through, it will help you understand how money works on the macro scale.
A treasury note is an account at the Fed that bears interest. It has a fixed, often very short, term of maturity.
If you “print money” to “retire” that debt, all you are doing is changing those interest-bearing Fed accounts into non interest-bearing Fed accounts. The people who held those dollars want to hold them as Treasury notes. They will immediately reinvest them in… Treasury notes.
3
zyxw says:
September 9th, 2010 at 8:50 pm
Another structural problem now is income inequality. If income was spread out more fairly there would be a lot more money spent generating more jobs, etc. There’s only so much the super rich can spend–after awhile you really can’t buy that much more stuff, so instead they are hoarding it at the moment waiting for the economy to rebound so they can eventually invest in something and make even more money to hoard.
Shooter242 says:
September 9th, 2010 at 10:33 pm
* You can print all the money you want but if people don’t want to borrow, it doesn’t matter.
* As for throwing everybody a grand, it didn’t work with Bush’s $600 because you and everyone else knows it’s a one-off.
* Then there is the payroll credit for about the same amount of money, how did that work out?
Do you think our problem could be related to Congress serving up legislative pigs in a poke? For all it’s wonderfulness, health insurance in Massachusetts has led to Mass Gen Hospital
to barring new primary care patients. Now imagine that over an entire country. Any chance that would lead to more saving and less spending?
As for income inequality, Al Gore making millions has no effect on anyone that he doesn’t employ. Interestingly, the US is pretty far down on the property rights ladder globally. Apparently we are behind China, Gambia, and Jordan. Having yahoos here threaten to confiscate wealth by hook or crook, isn’t reassuring.
BB says:
September 9th, 2010 at 11:23 pm
So, why do we even keep track of the deficit? I accept the fact that we have a sovereign currency, not on a gold standard, etc., which means that we don’t have to go in debt (i.e. sell bonds) for every dollar we print/create. Thus taxation is merely an anti-inflationary measure. So…shouldn’t we just keep track of inflation and adjust our federal spending accordingly, since the deficit doesn’t actually mean anything?
urgs says:
September 10th, 2010 at 2:23 am
Defraud small savers (thats allright, since so many of them are foreigners nowadays – evil Chinese, many of them living from less than 1$ a day), shovel some windfall gains to big business ===> ?????????? =====> Jobs!
aelkejeellekeleljklejlelje
Evil Twin says:
September 10th, 2010 at 2:35 am
You can print all the money you want but if people don’t want to borrow, it doesn’t matter.
And here we see the return of the invisible bear riding phantom bond vigilantes. Yes, the modifiers are a bit unclear. That’s because Shooter is a fucking moron whose knowledge of financial matters is roughly the same as a four month old.
Hey, dumbfuck, do you know what you do when people don’t want to borrow money from you? You raise the stakes, you promise them more in return for loaning you the money. Do you know what interest rates look like right this moment you dimwitted clod?
Come back when you have something to say that isn’t discredited talking points.
Lewis says:
September 10th, 2010 at 7:45 pm
At the risk of confirming Matt’s views, I think Prof Keen explains it well : http://www.debtdeflation.com/blogs/2010/09/05/back-to-the-future/
Superior Excellence Better Flavor-Organic Kona Coffee | Toilet Safety Rail says:
September 11th, 2010 at 5:50 am
Matthew Yglesias » Mo’ Money, Mo’ Demand