Problems with the economy

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Troglodyte
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Problems with the economy

Postby Troglodyte » Wed Oct 08, 2014 9:37 am

Too many people are looking for the BIG killing instead of the meat and potatoes..

World economy menaced by too much financial risk: IMF
Published Bangkok Post: Published: 8 Oct 2014 at 21.44 LINK

WASHINGTON - The world economy needs more productive investment and less in speculative assets, which in many cases are now overvalued and pose big stability risks, the International Monetary Fund said Wednesday.

Jose Vinals, the IMF's top financial counsellor, said that not enough of the easy money pumped into economies by advanced countries' central banks is going into economic activities that support growth.
Instead, too much is going into financial risk-taking that poses challenges to global financial stability, he said, unveiling the IMF's newest assessment of financial risks in the world economy.

Vinals said the world economy is at risk from "the buildup of certain excesses in financial risk taking." Many assets are "richly valued" and "way out of line from fundamentals."

In addition, a lot of risk capital has flowed into emerging-market economies -- $4 trillion in their equities and bonds -- that are more vulnerable to sharp shifts in the direction of flows.

"All of this has the potential of decompressing," Vinals said.


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John Q. Public
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Re: Problems with the economy

Postby John Q. Public » Wed Oct 08, 2014 10:36 am

Some of us have been saying that all along. It's all part of that "Trickle down doesn't trickle down" thing.
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Fordama
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Re: Problems with the economy

Postby Fordama » Wed Oct 08, 2014 11:14 am

Many assets are "richly valued" and "way out of line from fundamentals."

For some reason, the phrase "Facebook stocks" came to my mind when I read this.

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RedFred
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Re: Problems with the economy

Postby RedFred » Wed Oct 08, 2014 11:32 am

This is the fallout from government bailouts, the risk takers never got to feel the real pain, so they're back to taking big risks.

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Wabash
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Re: Problems with the economy

Postby Wabash » Wed Oct 08, 2014 12:19 pm

Trickle down economics is a failure. It has resulted in aggregate demand being accumulated in fewer and fewer of people who don't consume enough to keep the economy moving.

Every recent economic study has concluded that the upper 1% and corporate interests have seen their interests expand while the middle class continually gets squeezed with inflation and stagnant wages.
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RedFred
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Re: Problems with the economy

Postby RedFred » Wed Oct 08, 2014 1:47 pm

Uh Wabash you do know that this is Obama's economy. He's been the prez for 6 years

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John Q. Public
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Re: Problems with the economy

Postby John Q. Public » Wed Oct 08, 2014 2:29 pm

Uh, Fred, you do know that a lot of the money that was lost in the financial collapse didn't just evaporate, right? Many of the "risk takers" the article talks about actually made money on it. Some of them probably could have financed a bailout or two, themselves.
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RedFred
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Re: Problems with the economy

Postby RedFred » Wed Oct 08, 2014 3:26 pm

Uh John, follow the thread, Wabash was blaming trickle down economics which is not supported by our Campaigner-in-Chief. This current economy sucks because of this Chief not a previous one or Reagan or whoever he usually blames.

And those risk takers wouldn't have a lot of their money except our current admin decided to bail them out and then turned around and started giving them money again, great strategy.

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John Q. Public
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Re: Problems with the economy

Postby John Q. Public » Wed Oct 08, 2014 4:04 pm

Can you provide the names of the hedge funds and venture capital companies that received bailouts? It's ok if you can't remember their names. Just point to their private islands and I can take it from there.
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Troglodyte
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Re: Problems with the economy

Postby Troglodyte » Wed Oct 08, 2014 7:54 pm

Doesn't have a damned thing to do with Trickle Down, Wabash. It's all about greed and ego..
Hit a couple of 40 to 1 shots and get crowned a Wall street wonderkind..
The idea behind trickle down is that when business is fat and happy they hire people, pay more and produce more marketable products.
The current crowd want to take the money, hide it in tax shelters and run to a low tax country.
Very little sharing the wealth there...
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Wabash
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Re: Problems with the economy

Postby Wabash » Wed Oct 08, 2014 7:57 pm

That's the theory of trickle down. The reality is much different.
They told me if I voted for Hillary Clinton the president would be emotional, impulsive, and unpredictable. They were right. I voted for Hillary Clinton and got a president that is emotional, impulsive, and unpredictable.

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John Q. Public
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Re: Problems with the economy

Postby John Q. Public » Wed Oct 08, 2014 10:11 pm

That's why it's also called Voodoo economics. You cut costs, maximize returns, give all the money to the guy at the top (and even cut his taxes), and then, magically, money's supposed to appear in the pockets of the people who had to take the cuts. Yeah right.

Milton Friedman wrote an op-ed around 1970 in (I think) the NY Times explaining the concept (and calling anybody who thought otherwise an un-American socialist) that's just appalling to read now that we've seen its effects. I wish I'd saved a copy.
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Wabash
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Re: Problems with the economy

Postby Wabash » Thu Oct 09, 2014 4:32 am

Plutarch (who died in 120 AD) is quoted as saying:

"An imbalance between rich and poor is the oldest and most fatal ailment of all republics."

It was true then as it is now.

It is not a question of big government versus small government, or republican versus democrat.

It is a question of focusing any government funding which is made to the majority of poker players instead of the very few at the very top so that the game can continue. If the hundreds of billions or trillions spent on bailouts had instead been given to ease the burden of consumers, we would have already recovered from the financial crisis.
Last edited by Wabash on Thu Oct 09, 2014 6:48 am, edited 1 time in total.
They told me if I voted for Hillary Clinton the president would be emotional, impulsive, and unpredictable. They were right. I voted for Hillary Clinton and got a president that is emotional, impulsive, and unpredictable.

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Fordama
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Re: Problems with the economy

Postby Fordama » Thu Oct 09, 2014 5:11 am

This country of the United States was not built by those who waited and rested and wished to look behind them.---JFK

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Wabash
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Re: Problems with the economy

Postby Wabash » Thu Oct 09, 2014 6:53 am

This one being a close second.

https://www.youtube.com/watch?v=YlVDGmjz7eM
They told me if I voted for Hillary Clinton the president would be emotional, impulsive, and unpredictable. They were right. I voted for Hillary Clinton and got a president that is emotional, impulsive, and unpredictable.

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Tommy Tar
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Re: Problems with the economy

Postby Tommy Tar » Thu Oct 09, 2014 8:22 am

Trickle Down......

My boss gets a tax brake if he buys new equipment. So he gets a loan and buys a new printing press...

People who make and sell printing press have work.
People who make loans have work.
People who deliver heavy equipment have work.

The boss now need to hire people to sell printing and run the press.

People who make and sell paper and ink have work.
People who make and rent uniforms have work.
People who deliver paper, ink and uniforms have more work.
People who sells gas to the trucks have more work.
Even the taco truck has more work as we now have more workers.

So the tax brake my boss gets is made up 10 times by the growing economy. :victorydance: And "people" have jobs.
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Parrotpaul
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Re: Problems with the economy

Postby Parrotpaul » Thu Oct 09, 2014 8:46 am

Tax "break." Sorry, TT...it's in the genes. :)
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MDDad
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Re: Problems with the economy

Postby MDDad » Thu Oct 09, 2014 8:50 am

In this case, a tax break and a tax brake are kind of the same thing.

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Wabash
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Re: Problems with the economy

Postby Wabash » Thu Oct 09, 2014 9:59 am

TT your example is anecdotal. That isn't being replicated at the national level.
They told me if I voted for Hillary Clinton the president would be emotional, impulsive, and unpredictable. They were right. I voted for Hillary Clinton and got a president that is emotional, impulsive, and unpredictable.

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John Q. Public
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Re: Problems with the economy

Postby John Q. Public » Thu Oct 09, 2014 10:53 am

The reality:

Boss sells company to vulture capital company with an "office" in Dublin
Boss is payed in stock to avoid taxes
Boss stays on as President and draws salary
Vulture capital company says the old machine is just fine, puts operator on overnights and cuts his hours
Operator gets second job renting bowling shoes
Operator gets fired for falling asleep on the job
Boss hires 2 minimum-wage housewives to replace him
Don't look at me, I just work here.

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