[Henry Chinaski]

Video of Niall Ferguson speaking at the Petersen Insitute last week.

Should be interesting for anyone with an interest in the issues of this thread. he's a superb speaker and you don't need a doctorate in economics to understand him.

Some interesting stuff about how the US and UK are "outpigging the PIGS" (25 mins onwards), performaing worse than the PIGS in terms of projections for future debt as % of GDP and interest payments as % of GDP. Also some stuff I'd never heard of about huge inflation in food prices in the US.

The key issue from his historical perspective is when a governments start to spend a rising proportion of tax revenues on interest payments. That's when countries start to get in deep shit.

http://paul.kedrosky.com/archives/20...fiscal_cr.html

It's long but a surprisingly easy watch.

[Chip_s_m]

Originally Posted by Henry Chinaski

Video of Niall Ferguson speaking at the Petersen Insitute last week.

Should be interesting for anyone with an interest in the issues of this thread. he's a superb speaker and you don't need a doctorate in economics to understand him.

Some interesting stuff about how the US and UK are "outpigging the PIGS" (25 mins onwards), performaing worse than the PIGS in terms of projections for future debt as % of GDP and interest payments as % of GDP. Also some stuff I'd never heard of about huge inflation in food prices in the US.

The key issue from his historical perspective is when a governments start to spend a rising proportion of tax revenues on interest payments. That's when countries start to get in deep shit.

http://paul.kedrosky.com/archives/20...fiscal_cr.html

It's long but a surprisingly easy watch.

There is absolutely no doubt about it. It's a slow-moving train wreck.

[Chip_s_m]

Originally Posted by Rrrainer

i'm sorry, but if you really believe that the dems' shit regarding all things banking deregulation stinks more than the reps' shit, i just can't help you. spin it all you want, but i'm sure deep down you know fully well that it's the right wing that the banks don't need to worry about, not the left wing.

I apologize for responding so slowly. I've been very busy this week.

Ok then, please point me to the specific legislation passed by Republicans that deregulated the banking industry. W Bush didn't deregulate much, certainly not the financial sector. In fact, with Sarbanes-Oxley it's safe to say he actually imposed more regulations on the industry. In general, he was actually a big regulator. You might find this article interesting:

http://reason.com/archives/2008/12/1...atory-kiss-off

The Bush team has spent more taxpayer money on issuing and enforcing regulations than any previous administration in U.S. history. Between fiscal year 2001 and fiscal year 2009, outlays on regulatory activities, adjusted for inflation, increased from $26.4 billion to an estimated $42.7 billion, or 62 percent. By contrast, President Clinton increased real spending on regulatory activities by 31 percent, from $20.1 billion in 1993 to $26.4 billion in 2001.

Yikes, we've spent almost the last two decades regulating ourselves up the wazoo and we're still in dire economic straits, although I'm sure that's nothing that can't be fixed with even more regulations, right? Right?

It takes a lot of bureaucrats to create and enforce all those regulations. In eight years, Bush increased the federal government's regulatory staff by 91,196 employees. Clinton cut it by 969.

Do you have any evidence that supposed Republican deregulation caused the financial crisis? The deregulation that is most commonly cited is the repeal of Glass-Steagal, but that occurred during the Clinton years. HW Bush didn't deregulate the industry. Not even Reagan passed any major piece of legislation that deregulated finance. However, his predecessor Jimmy Carter, a Democrat, did pass the "Depository Institutions Deregulation and Monetary Control Act". If you believe that deregulation caused the financial crisis (and just to be clear, I don't...see my previous posts) then don't blame Republicans.

Now, don't get me wrong, both parties are in bed with big business. All I'm saying is that when a party that's getting paid by big business is touting new legislation that it claims will crack down on those very same businesses, then we'd be stupid not be skeptical. Why would they bite the hand that feeds them? In my opinion, this legislation just entrenches the big banks, making it harder for smaller local and regional banks to compete. Big banks can just come get a bailout when they screw up, so they don't need to worry about risk. The small banks will still be responsible for their own losses if they mess up, as all businesses should be. These regulations certainly won't help ordinary people, unless of course you work at a big bank. This shouldn't come as a surprise since the big banks are giving money to the people writing the law, Democrats in this case. Republicans do this type of stuff, as well, and it's just as damaging. This time around it's the Dems, though. As I said before, both parties truly do suck.

[Rrrainer]

Originally Posted by Chip_s_m

Ok then, please point me to the specific legislation passed by Republicans that deregulated the banking industry.

well, one of the most era-defining bills, the gramm-leach-bliley act, was orchestrated by three republicans. sure, clinton was foolish enough to actually sign it, but it was masterminded by the pro-business-lobby across the gop. hank paulson and many others have confessed that this thing might've been the actual trigger concerning all the madness in the financial sector.

i'll need to get back to you tomorrow or sunday as it'd take quite some time to check what you've come up with. but i will.

[Chip_s_m]

Originally Posted by Rrrainer

well, one of the most era-defining bills, the gramm-leach-bliley act, was orchestrated by three republicans. sure, clinton was foolish enough to actually sign it, but it was masterminded by the pro-business-lobby across the gop. hank paulson and many others have confessed that this thing might've been the actual trigger concerning all the madness in the financial sector.

i'll need to get back to you tomorrow or sunday as it'd take quite some time to check what you've come up with. but i will.

Yes, the repeal of Glass-Steagal. 90 Senators and 362 Representatives voted for Gramm-Leach-Bliley. That's a lot of Democrats voting for it, not to mention Clinton signing it. Does that make it a Republican bill? Going by that logic, Iraq would be a Democrat war.

And btw what's wrong with being pro-business? What would happen if businesses didn't do well? So long as a business is earning their profits honestly (i.e. not using government officials to stifle competition or funnel taxpayers dollars to it, which I think we both can agree is the case with Goldman Sachs) then what's the big deal? If a business earns it's profits honestly then how are you harmed?

[Rrrainer]

by "pro-business" i meant "pro-wall street big shots" here obviously.

yeah, you're right about the amount of democrat votes. i never said there's no guilt across the aisle. is there any website where they broke down the voting patterns of the two parties? i'm sure reps outnumbered dems pretty easily. i mean, even during the 08 campaign mccain was bragging about how proud he was to have been a part of the party that deregulated the banking business.

[Rrrainer]

http://www.cnbc.com/id/37465186

Greece Unveils Privatizations, to Sell Rail, Water Stakes

so it really is the imf that's in charge in athens.

[Rrrainer]

who needs dubai if greek islands are on the market?

http://www.guardian.co.uk/world/2010...e-save-economy

Greece is making it easier for the rich and famous to fulfill their dreams by preparing to sell, or offering long-term leases on, some of its 6,000 sun-kissed islands in a desperate attempt to repay its mountainous debts...

[Dimitra]

that's bullshit.what a misleading title ..they don't SELL islands they thinking about selling some goverment propery on the islands.
Which has been happening for decades now already with private property.Half of Crete is owned by german pensioners.

[buddyholly]

I was about to say I wanted Mykonos. But the article starts by saying only a part of the island is for sale. I wouldn't want to share it with drunken Brit and German louts. No bid.

[fast_clay]

things are getting unstable again due to the irish discussions taking place... what are the german posters take on this...?

[JolánGagó]

Ireland's time is up.

Portugal, before year's end.

then Spain.

then...

...

...

comes James Blunt and saves us from 3WW again.

[buddyholly]

If Chinaski has to reduce his contributions by 40%, it won't be all bad.

[JolánGagó]

You mean his farting will be affected by the budget cuts?

[fast_clay]

a big welcome to our new european overlords