Økonomiske sitat: 1-5 oktober 2008

Lagret under: 1 on oktober 16, 2008 at 8:25 pm

“The financial meltdown the economists of the Austrian School predicted has arrived. 

We are in this crisis because of an excess of artificially created credit at the hands of the Federal Reserve System. The solution being proposed? More artificial credit by the Federal Reserve. No liquidation of bad debt and malinvestment is to be allowed. By doing more of the same, we will only continue and intensify the distortions in our economy – all the capital misallocation, all the malinvestment – and prevent the market’s attempt to re-establish rational pricing of houses and other assets.” 

“It’s the same destructive strategy that government tried during the Great Depression: prop up prices at all costs. The Depression went on for over a decade. On the other hand, when liquidation was allowed to occur in the equally devastating downturn of 1921, the economy recovered within less than a year.” 

“F.A. Hayek won the Nobel Prize for showing how central banks’ manipulation of interest rates creates the boom-bust cycle with which we are sadly familiar. In 1932, in the depths of the Great Depression, he described the foolish policies being pursued in his day – and which are being proposed, just as destructively, in our own:” 

Ron Paul, 1. oktober 

“Now we are hearing the moron, Illuminist bankers in Europe drone on about how doltish the Americans are for rejecting such an excellent plan.  Then there is the Caligula Administration, whining that we don’t like the plan any more than you do, but it must be passed or everyone will suffer great pain (as if that can somehow be avoided and as if they aren’t drooling over the profits to be made when the money is doled out).” 

“As the system implodes, the highly appreciated tangible assets of the Illuminists will be used to purchase property for pennies on the dollar as liquidations continue under the weight of what will be a complete systemic failure of the fiat money and credit system, after the elitists have had their fun.  That is their hope, but we doubt they can hold it up long enough to complete their final rip-off of the sheople. This is why they fear the Derivatives Death-Star, and start mumbling to themselves every time someone in Congress brings that subject up.  They must bail out before this Death-Star detonates, or they will be wiped out, hence their desperation to implement the PP.” (Paulson Plan) 

Bob Chapman, 1. oktober   

Europe is the Next to have Serious Problems…and theirs will be Huge.  The culture of banking in Europe is secretive, and they have not admitted the depth of their problems with bad loans and toxic bonds. This will be a much bigger problem than most realize.” 

Monty Guild and Tony Danaher, 1. oktober 

”The moral hazard implicit in the government’s willingness to re-write troubled mortgages ensures that the plan will spark a wave of new delinquencies by borrowers looking to cash in on the windfall. Since troubled loans will no longer be foreclosed by lenders but instead sold to the government, the rational choice for many homeowners will be to stop making their mortgage payments and wait for a better deal from the government. This reality will eventually push the cost of this bailout well above $2 trillion.” 

“In fact, the Senate version of the bailout bill, which authorizes a suspension of mark- to-market, also increases the dollar limit on FDIC insured deposits from $100,000 to $250,000 (with no extra money budgeted to fund the increased taxpayer liability). Only in Washington would a bill pass which simultaneous makes banks more likely to fail while increasing taxpayer exposure when they do!” 

Peter Schiff, 3. oktober 

“What do these gold investors know? Evidently, the posted price for gold is low. It’s another way of saying that gold is underpriced relative to true demand. In fact, the posted price is clearing the market like a vacuum cleaner.” 

The Daily Reckoning, 3. oktober 

Roosevelt was a better politician, which is to say – he was more shameless. He attacked Hoover for spending too much money – won the presidency – and then spent more. He began so many agencies and projects – from the AAA (Agriculture Adjustment Act) to the CCC (Civilian Conservation Corps) to the SSA (Social Security Act) – he practically ran out of alphabet. He also imposed wage and price controls, as well as limits to executive salaries.  What was the result of all these good intentions? Instead of a panic and quick recovery – a la 1921 – the U.S. economy went into a long, hard on-again, off-again depression that put a quarter of the workforce out of a job. It might have lasted until the ’50s had it not been for the biggest public works program of all time came along – WWII.” 

Bill Bonner, 3. oktober 

“Well, what a surprise, we’ve been sold down the river for the usual “thirty pieces of silver” by our Congress and our President, working together in unison, for the nth time.   The $700 billion bailout, a mere sideshow, sweetened with 150 billion in pork, has now been approved so that Wall Street can continue to game the system and its hapless suckers, the American sheople.  Just put some pork in, and the hungry piranha in Congress would legislate their own mothers into slavery for a nice juicy morsel of that pork.  And never mind the moral hazard dripping from the pork, because that makes it taste all the sweeter.” 

“The Illuminati will now act like drunken sailors at a keg party.  They will drain the keg in short order, and then ask for more.  If they do not get what they want, they will get rowdy, pounding the tables with their mugs and threatening a brawl that will destroy the tavern if they do not get their next round, pronto.  Out comes the next keg, which gets drained even faster than the first because everyone is inebriated, and the next round of table pounding and threats becomes manifest.  This process will proceed until everyone at the party has more than they can handle and passes out.  Then comes the derivatives tsunami that will drown them all in a sea of counterparty risk, an event which will be used to usher in a new Orwellian, corporatist fascist state, where the financial, manufacturing and other major industries are all nationalized.  We, and our European and Canadian counterparts, will all then resemble our fellow fascists, Marxists and dictators in Russia, in China, in the Middle East, in Asia and in South America, and the formation of world government will seem like the most the most natural thing to do, when everyone is on the same page, after the pesky, arrogant United States has been humbled into submission.” 

“Everyone on Wall Street knows that the subprime paper is not the real problem.  The real reason they distrust one another, and will not lend to one another, is the unknown counterparty risk that will go into a plasma state when the Derivative Death-Star detonates.  It is the opaque, unregulated OTC derivatives market that they are really afraid of.” 

“The Fed has informed Bank of America to be ready for a one-week universal shutdown of the banking system, including access to checking accounts, savings accounts and credit cards. This is why you need $5,000 in small bills in your safe at home and small denomination gold and silver coins.” 

Bob Chapman, 4. oktober 

“There is no doubt that some semblance of “normalcy” to return to the markets…eventually. The only problem is, as Keynes once observed, “The market can stay irrational longer than you can stay solvent.”  

Joel Bowman, 5. oktober     

Tips oss hvis dette innlegget er upassende

Denne bloggen blir ikke forhåndsredigert av VG Nett. Bloggens eier står ansvarlig for alt innhold.
Ingenting varer evig og nå er vi dessverre ved veis ende. VGB er lagt ned og vil ikke komme tilbake.
VG Blogg var en tjeneste levert av VG Multimedia AS. Henvendelser rettes til: Magne Antonsen
Ansvarlig redaktør/Administrerende direktør: Torry Pedersen
Redaktør digitalt Espen Egil Hansen. Redaktør avis: Helje Solberg. Politisk redaktør Hanne Skartveit
Digital direktør: Jo Christian Oterhals. Sentralbord VG: 22 00 00 00