Comments on: Fed Reserve Is ALREADY Politicized

By: Herkimer

Herkimer — Wed, 08 Sep 2010 23:45:38 +0000

I’d suggest you do some research on the folly of centralized economic planning (no business was ever allowed to fail in the USSR and look how that ended) and the risks of over-leveraging (especially when the board and executive management at the large banks were firing any risk-manager who raised objections to overly risky business strategies).

By: Public Adjuster

Public Adjuster — Wed, 07 Apr 2010 17:43:52 +0000

I think Greenspan is getting senile, today he said that you can stop asset bubbles by increasing capital requirements. That just increases the cost of credit. The next time you have a real estate bubble, you’ll have the same problem, assuming that banks are still in the business of loaning against real estate. If you want to stop this problem, then eliminate the federal subsidies for real estate development and investment, then require people in that industry to put their own money at risk instead of someone elses. If Greenspan really wants to change the banking system, though, then simply ban 95% and 90% LTV loans. Require a bigger equity cushion. BTW, the “too big to fail” argument is a fallacious one. During the Great Depression, Canada had no bank failures. The reason was that their banks were very large. The banks closed branches, etc., but none of them failed. By contrast, the US was dominated by thousands of very small banks, and we had more than 10,000 of them fail. So there is nothing inherently unsafe about a banking system dominated by large banks. The real problem with large banks is that during good times, they don’t provide enough competition for each other.

By: health insurance

health insurance — Thu, 04 Mar 2010 17:51:46 +0000

If you have 100,000 dollars in your closet, that’s no different than a stack of printer paper, but if you trade those dollars for a yacht, then you have something real and practical. If you trust the dollar, save it. Hold it. If you trust gold, do the same. But if you trust neither, trade the dollars your employer pays you for bars of soap. They have value and are useful. THE BOTTOM LINE: Don’t owe anybody any money, and convert the dollars your boss pays you into something YOU control, like gold (if you want it), land, canned food, etc. Or take your chances on the dollar. It’s your choice

By: health quote

health quote — Wed, 24 Feb 2010 18:06:48 +0000

Someone smarter than I said that insanity is doing the same thing over and over again and expecting a different result. If we are going to spend more money on people out of work, let’s put them to work doing something productive for the country.