Wesbury: Fed Cuts Responsible for Mess

[Desides]

Some interesting (and probably accurate) commentary on the economy. (http://moneynews.newsmax.com/money/archives/st/2008/3/28/142043.cfm) I don't have a great deal of faith in the government's ability to manage monetary or fiscal matters.

One of the leading economists in the U.S., Brian Wesbury of First Trust Advisors, LP, now says the government’s monetary policy is partly to blame for the ongoing malaise in the financial sector.

Non-stop interest rate cuts over the past few months may have created a perverse incentive for businesses to postpone activity, Wesbury noted in a daily briefing.

"Why do something today if rates will be lower next week or month?” asks Wesbury.

"Aggressive rate cutting has been ineffective. Without liquidity and capital, financial institutions and trading vehicles are in trouble.”

[banjo]

Intrest never had a regulator. The up and coming recession should lend us to believe that we should.

[Desides]

Intrest never had a regulator. The up and coming recession should lend us to believe that we should.

Economic cycles are not an excuse for increased government control, especially when government is primarily responsible for the situation right now.

[quelonio]

The blame falls squarely on Wall Street for their investments in complex derivatives. which is essentially a gamble, an invesment on predictions as to how or loans and hedgefunds are going to behive (that is to say they did not actually own loans and hedgefunds with their investment, they where only speculating on whether those loans where going to be paid or not). Due to the strength of the housing market most of them gambled on that the loans and morgages where going to be paid... but then housing crisis came by and well... they weren't. So money was lost. Add to that that for most of these things they had actally insured themselves, but Insurance Companies did not protect themselves in case of the bubble bursting and now did not have the money to cover up those loses... voila... problems.

In a case of something interesting, these complex derivatives are have absolutely no gubernamental supervision, no goverment agency checking them, it is all 100% ran by Wall Street, with no checks and balances per say. And why is that, well because congress passed a bill that insured this would be so, this Bill was written and championed through by Phil Gramm who happens to be John McCain's main economical advisor.

[banjo]

Economic cycles are not an excuse for increased government control, especially when government is primarily responsible for the situation right now.

Proper, uncorrupt regulation has never been tried in this modern day. Clean up the system, and you'll find that things work at much more efficient rate.

[unluckyluciano]

Proper, uncorrupt regulation has never been tried in this modern day. Clean up the system, and you'll find that things work at much more efficient rate.
Easier said then done........

[Desides]

Proper, uncorrupt regulation has never been tried in this modern day. Clean up the system, and you'll find that things work at much more efficient rate.

That's kind of like saying true communism has never been tried, so we don't know if it works or not.

You'll find direct government involvement in the economic issues we face right now. Subprime loans? The government forced their issuance. Skyrocketing energy costs? Government isn't cutting the gas tax, won't allow new oil refineries, won't allow oil exploration and drilling, won't build nuclear plants. Plummeting dollar values? Government monetary mismanagement. Food costs going up? Government paved the way for corn-based ethanol, shrinking the food supply while doing nothing to impact energy prices or supply.

[Lab3003]

No energy policy. No sound health care program. No oversight over the Federal Reserve. No tax relief for small businesses. Yes war in Iraq with no clear objective and against a population who wants us out.

Republicans represent the party of less government, so we can't fault them for being bad administrators since they openly campaign against the size of government. It's hard to regulate what you don't believe in. I'm a Republican but I've yet to hear a sound energy policy w/nuclear power as a cornerstone, a health care policy which will end the 18,000 deaths every year due to lack of health care insurance and a fiscal policy which will end the hegemony of the Federal Reserve.

So I don't know who I'm going to vote for.