I should do that on the account, thanks for the tip.
"Ben belongs with Bernie" was rhetoric, a bit of hyperbole. As in Ben Bernanke belongs in the same jail cell with Bernie Madoff.
Obviously this isn't true in a literal sense. But for running a legal ponzi scheme 1,000 times larger than Bernie's illegal one, Ben belongs somewhere not as Chairman of the Federal Reserve.
A quote from James Fuchs & Timothy Bosch of the St. Louis Fed in a paper on on "Why Are Banks Failing?"
“Although today's challenges are great, the four underlying reasons for bank failures have not changed from those of years' past, which are:
an imbalance of risk versus return
failure to diversify
offering products and services that management doesn't fully understand
poor management of risks"
Is there any incentive to correct their mistakes? Will Uncle Ben always be there to bail them out?
Frank T.
But we really need major economists to quit this secret church of hush, hush and look at the statistics as well as their macro economic equations.
Unless I went into outer space and I do not think I did...the actual models show the U.S. is the big fat loser, esp. workers and the middle class with our current trade "policies" and the statistics bear it out.
I mean how much denial is there when the U.S. government will not even demand statistics on jobs offshore outsourced and now they are more plain creating jobs in other countries since they have fired so many Americans....so it's pure job creation by MNCs, where, which nation....globally.
Even funding for research into this area is thin. Seems like the last major funder with integrity is the Sloan Foundation.
who are refusing to deal with the outsourcing issue and green jobs. Where is the leadership? There some very serious decisions and a sense of direction is needed:
Where are we going to target our very limited resources?
Are we OK with outsourcing of green jobs (corporate Dems may be ok with this)?
Will government be a partner in the development of new green technology?
Midtowng,
You are one of those ‘doom and gloom’ negative guys that Bonddad and New Deal Democrat are always talking about. Wake up and smell the ‘green shoots!’ is what they say.
Tongue in Cheek of course.
Seriously, what I’m wondering (just wondering) if there are two variables that if factored in may mitigate if not solve the debt problem: (1) massive inflation via Central Banks (plural) operations and (2) the massive wealth of Gulf States that have a vested interest in keeping the US a super military power which entail keeping the US economy healthy. Gulf states may have enough money to cover a significant portion of the debt as it comes due –just a thought.
they refuse to deal with the evidence "green jobs" are already being labor arbitraged, offshore outsourced, or just plain started in China already.
I've put up multiple posts on this...
"green jobs" as the "jobs of tomorrow" is just like any other new incentive and new industry. If they don't protect that industrial agenda with incentives, tax breaks and criteria the company, the plant, the workers must all be U.S. and yes I said the "P" word...
it's offshore outsourced before it's even started. Pretty much same with any new industry.
So, ok, they can confront China's currency manipulation and they should.....that will help with exports...
but they also need to restart some older industries lost to offshore outsourcing as well as new innovations...
and they do nothing to ensure they are here, stay here and hire U.S. citizens here...
i.e. grow the U.S. economy here.
It's like pouring water in a bucket to save for a drought and refusing to notice that bucket is full of holes. All it's doing in this case is adding to the U.S. debt and basically stimulating other economies who got the plant, money, jobs.
These people, it's pathetic. I'm sorry. Note he refuses to mention the obvious! The mass exodus of U.S. manufacturing to China and other cheap labor destinations and the offshore outsourcing of services jobs!
Good god. They will not even mention the "O" word, when we've had manufacturing drop from >15% of GDP to 12.2% and we've lost over 2 million jobs in this recession....BUT....
they refuse to note the massive jobs hemorrhage in manufacturing starting with NAFTA and accelerated on steroids with the signing of the China PNTR.
Just like the dot con bust. They refuse to acknowledge that tech corporations at that time had executive directives to offshore outsource entire divisions, as fast as possible.
You can see this from the total number of jobs in STEM are down ...same with manufacturing and that's before this recession.
It's like the elephant in the room is shitting all over the American people and these supposed "Progressive" economists refuse to even mention the word outsourcing.
Sorry, but he is. We've already shown that "green jobs" is a myth and being offshore outsourced.
Until they deal with offshore outsourcing, curtailing it, making sure industries, critical to the U.S. future and economy will use America's workforce exclusively and stay in the U.S...exclusively....
this is throwing good money after bad. I'm sorry but we're already seeing that evidence in droves.
Who cares if GE has a "smart grid" when they offshore outsource the manufacture and jobs.
Who cares if IBM has some database....when they are offshore outsourcing those jobs in droves. (IBM should be banned from receiving any state and federal contract at this point).
So, instead of real solutions, we get that "green jobs" blow off answer...
I'm sorry it's bullshit. They won't deal with globalization, the race to the bottom on wages, and the middle class squeeze. They won't deal with a single policy to stop this trend.
We just say productivity to 9.5% in Q3 and that is in part due to offshore outsourcing. I've talked a lot about productivity and phantom GDP and there are only a few economists who have worked out those results and shown....
this is coming into play.
The government will not even collect, demand to collect, the statistics on jobs being offshore outsourced, technology moved offshore. It's massive! We literally had Pharmaceutical research move offshore and bear in mind these workers in Chemical and pharmaceutical research are PhDs.....didn't matter, they built advanced R&D centers in China and India and laid off the U.S./U.K./E.U. (U.S. the worst) workforce.
The change in the structural component could, however, be significant. I expect structural unemployment to be higher than it was, particularly in the next few years. We had too many resources in housing, finance, and automobile production, and it will take time for the economy to make the necessary structural adjustments. When this is combined with continuing globalization, as well as the higher savings rate and correspondingly lower consumption expected from households in the future, both of which cause structural change within the economy, the expectation is that the new target rate of unemployment will rise above the 4 percent level it was at before the recession.
And he makes a few suggestions and a sobering warning:
In essence, structural unemployment arises from a mismatch between the supply of jobs in various industries and geographical locations, and the workers available to meet those needs. Thus, job training that promotes a better match of worker skills with available jobs, programs that help workers move to places where jobs exist, and programs to induce firms to locate where there is an oversupply of workers, e.g. Detroit, can mitigate some of the impact. Extended unemployment compensation can also cushion the blow for workers during the adjustment period. But the history of these programs indicates that we shouldn’t expect miracles for workers, and some degree of higher unemployment will need to be tolerated while the economy undergoes the necessary structural adjustments.
To poke a lot of fun at those who kept trying to predict the recovery, screaming "I am right" damn it....I note that I voted for the "L" shape some time ago.
;)
Now, we know, I've written many posts, trying to promote legislation, great policy recommendations, high insight statistical reports....
that we need major structural change for our economy to right itself.
We need: major policy reform to curtail as much as possible the offshore outsourcing of jobs.
We need: trade reform, particularly China, to try to increase manufacturing and exports
We need: a national economic strategy policy, with funds, to invest in new ventures, new industries and KEEP THOSE INDUSTRIES IN THE U.S. for the jobs of tomorrow. Draft Venture Capitalists. Give them incentives. Use their expertise in identifying start-ups which have a good chance of success. Give loans, grants for critical economic development where the criteria is a U.S. based company AND U.S. workers. Revamp the SBA. Give tax breaks to small business who hire U.S. workers (verified!).
We need: to get back from being offshore outsourced, U.S. technology that is critical to both national security and infrastructure.
We need: These idiots to stop saying Americans are not skilled, trained and educated. We have the best universities in the world with many advanced skilled individuals being labor arbitraged, age discriminated and thrown away like disposable diapers. We need strong labor laws to stop this.
We need: Corporations to pay for training. Corporations used to invest in it's workforce, pay not only for training but often entire college degrees.
We need: policy, legislation and incentives to stop corporations from treating their employees like a disposable commodity to increase their quarterly bottom lines. We need executive bonuses tied to employees well being and career stability.
We need: College expenses lowered even more and we need graduate school stipends, for Americans, increased to the point one can live while attending graduate school. One cannot live for 6 years below the poverty line.
We need: A federal jobs program that not only gives people a paycheck, but the work targets very specific critical infrastructure projects, such as bridges and levies, and TRAINS people in advanced skills. We do not need another no-bid contract where they offshore outsource the work or bring in guest workers.
not the total TARP program. According to the last SIGTARP report, we know $50 billion is assuredly lost from the Home Buy assistance and the report stated the auto loans are probably lost as well.
We can't sell our condos because people in New Jersey and PA who want to sell their homes and move here are under water. I saw something similar in England in 1992, when the EC Exchange Rate Mechanism forced interest rates up and home prices down -- people in Manchester couldn't relocate to London or Brighton for new jobs because they couldn't sell their homes. So we are stuck for a while. Here in florida, with 18% of the population 65 and over, we may have new supply coming on stream as people move to assisted living or die. We tell them to look at the bright side, in the long term things will come into balance.
Tax credit? We need to raise the ceiling on capital losses that can be used to offset ordinary income for tax purposes. Real estate investment could then be sold at a loss and offset by higher IRA/401(k) distributions.
Frank T.
But.....COP as well as SIGTARP have been trying very hard, so for them to explicitly state this, I have to give it some credibility.
I don't think they can buy or silence Elizabeth Warren.
In their report, they have a series of charts, spreadsheets which show the outlays vs. the revenues.
But! The black hole is Citigroup, with the largest amount of funds received.
So, if the losses aren't booked yet, I'm wondering why COP doesn't really point to it, but they sure do point to Citigroup and how information is not forthcoming.
Does the Comptroller of the Currency or FDIC Director have an opinion on the suitability of these credit lines for an institution that takes deposits? Does it affext the rating of Wells Fargo's debt? Will banks be allowed to use kneecap-breaking as debt collection in years to come? How about bookmaking? In case no one in the Obama Administration or at the Fed remembers, these are BANKS. Some of them used to be called THRIFT Institutions.
Frank T.
I was fairly surprised TARP is projected to turn a slight profit.
The money that has been paid back has been from the solvent companies. The losses from loans to insolvent companies hasn't been booked yet. If you keep loaning a hopelessly bankrupt company money, then you never have to acknowledge that you've wasted the it.
It's just more wishful thinking as far as I'm concerned. They are sensitive to the public outrage, and this is just one way for them to deflect it.
I should do that on the account, thanks for the tip.
"Ben belongs with Bernie" was rhetoric, a bit of hyperbole. As in Ben Bernanke belongs in the same jail cell with Bernie Madoff.
Obviously this isn't true in a literal sense. But for running a legal ponzi scheme 1,000 times larger than Bernie's illegal one, Ben belongs somewhere not as Chairman of the Federal Reserve.
The word you are looking for is Chreosonomy.
"Rolling risk in America's Chreosonomy"
A quote from James Fuchs & Timothy Bosch of the St. Louis Fed in a paper on on "Why Are Banks Failing?"
“Although today's challenges are great, the four underlying reasons for bank failures have not changed from those of years' past, which are:
an imbalance of risk versus return
failure to diversify
offering products and services that management doesn't fully understand
poor management of risks"
Is there any incentive to correct their mistakes? Will Uncle Ben always be there to bail them out?
Frank T.
But we really need major economists to quit this secret church of hush, hush and look at the statistics as well as their macro economic equations.
Unless I went into outer space and I do not think I did...the actual models show the U.S. is the big fat loser, esp. workers and the middle class with our current trade "policies" and the statistics bear it out.
I mean how much denial is there when the U.S. government will not even demand statistics on jobs offshore outsourced and now they are more plain creating jobs in other countries since they have fired so many Americans....so it's pure job creation by MNCs, where, which nation....globally.
Even funding for research into this area is thin. Seems like the last major funder with integrity is the Sloan Foundation.
who are refusing to deal with the outsourcing issue and green jobs. Where is the leadership? There some very serious decisions and a sense of direction is needed:
Where are we going to target our very limited resources?
Are we OK with outsourcing of green jobs (corporate Dems may be ok with this)?
Will government be a partner in the development of new green technology?
We need answers and leadership.
RebelCapitalist.com - Financial Information for the Rest of Us.
Midtowng,
You are one of those ‘doom and gloom’ negative guys that Bonddad and New Deal Democrat are always talking about. Wake up and smell the ‘green shoots!’ is what they say.
Tongue in Cheek of course.
Seriously, what I’m wondering (just wondering) if there are two variables that if factored in may mitigate if not solve the debt problem: (1) massive inflation via Central Banks (plural) operations and (2) the massive wealth of Gulf States that have a vested interest in keeping the US a super military power which entail keeping the US economy healthy. Gulf states may have enough money to cover a significant portion of the debt as it comes due –just a thought.
Thoma did mention globalization as a cause for higher structural unemployment.
I know he doesn't specifically say "outsourcing" but at least he mentions the next obvious.
RebelCapitalist.com - Financial Information for the Rest of Us.
they refuse to deal with the evidence "green jobs" are already being labor arbitraged, offshore outsourced, or just plain started in China already.
I've put up multiple posts on this...
"green jobs" as the "jobs of tomorrow" is just like any other new incentive and new industry. If they don't protect that industrial agenda with incentives, tax breaks and criteria the company, the plant, the workers must all be U.S. and yes I said the "P" word...
it's offshore outsourced before it's even started. Pretty much same with any new industry.
So, ok, they can confront China's currency manipulation and they should.....that will help with exports...
but they also need to restart some older industries lost to offshore outsourcing as well as new innovations...
and they do nothing to ensure they are here, stay here and hire U.S. citizens here...
i.e. grow the U.S. economy here.
It's like pouring water in a bucket to save for a drought and refusing to notice that bucket is full of holes. All it's doing in this case is adding to the U.S. debt and basically stimulating other economies who got the plant, money, jobs.
These people, it's pathetic. I'm sorry. Note he refuses to mention the obvious! The mass exodus of U.S. manufacturing to China and other cheap labor destinations and the offshore outsourcing of services jobs!
Good god. They will not even mention the "O" word, when we've had manufacturing drop from >15% of GDP to 12.2% and we've lost over 2 million jobs in this recession....BUT....
they refuse to note the massive jobs hemorrhage in manufacturing starting with NAFTA and accelerated on steroids with the signing of the China PNTR.
Just like the dot con bust. They refuse to acknowledge that tech corporations at that time had executive directives to offshore outsource entire divisions, as fast as possible.
You can see this from the total number of jobs in STEM are down ...same with manufacturing and that's before this recession.
It's like the elephant in the room is shitting all over the American people and these supposed "Progressive" economists refuse to even mention the word outsourcing.
his last line:
RebelCapitalist.com - Financial Information for the Rest of Us.
Sorry, but he is. We've already shown that "green jobs" is a myth and being offshore outsourced.
Until they deal with offshore outsourcing, curtailing it, making sure industries, critical to the U.S. future and economy will use America's workforce exclusively and stay in the U.S...exclusively....
this is throwing good money after bad. I'm sorry but we're already seeing that evidence in droves.
Who cares if GE has a "smart grid" when they offshore outsource the manufacture and jobs.
Who cares if IBM has some database....when they are offshore outsourcing those jobs in droves. (IBM should be banned from receiving any state and federal contract at this point).
So, instead of real solutions, we get that "green jobs" blow off answer...
I'm sorry it's bullshit. They won't deal with globalization, the race to the bottom on wages, and the middle class squeeze. They won't deal with a single policy to stop this trend.
We just say productivity to 9.5% in Q3 and that is in part due to offshore outsourcing. I've talked a lot about productivity and phantom GDP and there are only a few economists who have worked out those results and shown....
this is coming into play.
The government will not even collect, demand to collect, the statistics on jobs being offshore outsourced, technology moved offshore. It's massive! We literally had Pharmaceutical research move offshore and bear in mind these workers in Chemical and pharmaceutical research are PhDs.....didn't matter, they built advanced R&D centers in China and India and laid off the U.S./U.K./E.U. (U.S. the worst) workforce.
He explains the term structural unemployment. He is also concerned about high structural unemployment:
And he makes a few suggestions and a sobering warning:
RebelCapitalist.com - Financial Information for the Rest of Us.
To poke a lot of fun at those who kept trying to predict the recovery, screaming "I am right" damn it....I note that I voted for the "L" shape some time ago.
;)
Now, we know, I've written many posts, trying to promote legislation, great policy recommendations, high insight statistical reports....
that we need major structural change for our economy to right itself.
We need: major policy reform to curtail as much as possible the offshore outsourcing of jobs.
We need: trade reform, particularly China, to try to increase manufacturing and exports
We need: a national economic strategy policy, with funds, to invest in new ventures, new industries and KEEP THOSE INDUSTRIES IN THE U.S. for the jobs of tomorrow. Draft Venture Capitalists. Give them incentives. Use their expertise in identifying start-ups which have a good chance of success. Give loans, grants for critical economic development where the criteria is a U.S. based company AND U.S. workers. Revamp the SBA. Give tax breaks to small business who hire U.S. workers (verified!).
We need: to get back from being offshore outsourced, U.S. technology that is critical to both national security and infrastructure.
We need: These idiots to stop saying Americans are not skilled, trained and educated. We have the best universities in the world with many advanced skilled individuals being labor arbitraged, age discriminated and thrown away like disposable diapers. We need strong labor laws to stop this.
We need: Corporations to pay for training. Corporations used to invest in it's workforce, pay not only for training but often entire college degrees.
We need: policy, legislation and incentives to stop corporations from treating their employees like a disposable commodity to increase their quarterly bottom lines. We need executive bonuses tied to employees well being and career stability.
We need: College expenses lowered even more and we need graduate school stipends, for Americans, increased to the point one can live while attending graduate school. One cannot live for 6 years below the poverty line.
We need: A federal jobs program that not only gives people a paycheck, but the work targets very specific critical infrastructure projects, such as bridges and levies, and TRAINS people in advanced skills. We do not need another no-bid contract where they offshore outsource the work or bring in guest workers.
not the total TARP program. According to the last SIGTARP report, we know $50 billion is assuredly lost from the Home Buy assistance and the report stated the auto loans are probably lost as well.
I'm digging around more into it and finding CBO last report was in June, SIGTARP, 10/09.
But frankly I trust OMB like I trust Enron for giving objective data.
SIGTARP says we've lost $50B for the home program and odds are the auto companies won't be able to pay back their loans.
I believe the COP report is focused on guarantees, warrants, loans....
But unless I read something incorrectly that slight profit was total principle.
Still they based their report on OMB projections....
I wonder why they did that and not use the SIGTARP report.
We can't sell our condos because people in New Jersey and PA who want to sell their homes and move here are under water. I saw something similar in England in 1992, when the EC Exchange Rate Mechanism forced interest rates up and home prices down -- people in Manchester couldn't relocate to London or Brighton for new jobs because they couldn't sell their homes. So we are stuck for a while. Here in florida, with 18% of the population 65 and over, we may have new supply coming on stream as people move to assisted living or die. We tell them to look at the bright side, in the long term things will come into balance.
Tax credit? We need to raise the ceiling on capital losses that can be used to offset ordinary income for tax purposes. Real estate investment could then be sold at a loss and offset by higher IRA/401(k) distributions.
Frank T.
a while ago. I haven't heard a word of it from the media or esp. any politician since that time.
Right now, it seems the financial institutions are busy raping the people as much as they can with credit cards, which is what's making the news.
But yeah, they are moving into payday loans.
People do not get a payday loan has the link.
But.....COP as well as SIGTARP have been trying very hard, so for them to explicitly state this, I have to give it some credibility.
I don't think they can buy or silence Elizabeth Warren.
In their report, they have a series of charts, spreadsheets which show the outlays vs. the revenues.
But! The black hole is Citigroup, with the largest amount of funds received.
So, if the losses aren't booked yet, I'm wondering why COP doesn't really point to it, but they sure do point to Citigroup and how information is not forthcoming.
Does the Comptroller of the Currency or FDIC Director have an opinion on the suitability of these credit lines for an institution that takes deposits? Does it affext the rating of Wells Fargo's debt? Will banks be allowed to use kneecap-breaking as debt collection in years to come? How about bookmaking? In case no one in the Obama Administration or at the Fed remembers, these are BANKS. Some of them used to be called THRIFT Institutions.
Frank T.
The money that has been paid back has been from the solvent companies. The losses from loans to insolvent companies hasn't been booked yet. If you keep loaning a hopelessly bankrupt company money, then you never have to acknowledge that you've wasted the it.
It's just more wishful thinking as far as I'm concerned. They are sensitive to the public outrage, and this is just one way for them to deflect it.
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