The last "Stimulus" created a monster.

Will another "Stimulus" just create another Monster?

Edited by Rogerdodger, 08 January 2009 - 12:11 PM.

All attempts to emerge from the crisis by new interventionist measures are completely misguided. There is only one way out of the crisis: Forgo every attempt to prevent the impact of market prices on production.
- Ludwig von Mises, The Causes of the Economic Crisis

Of course, ignoring the Austrian school makes sense in this day and age. Ludwig von Mises certainly discovered there is no popularity gained from being right about economic doom. Being "right" about doom is the quickest way to create more enemies than you can shake a stick at.

That really is the only way to explain why, today, the very people in charge of driving the global economy over the cliff - global central banks and Keynesian economists - are now charged with "rescuing" it from its death dive.

Unfortunately, I'm afraid there's only so much more "rescue" we can take.



Psychology of Deflation

Of course, all of this talk of economic stimulus is moot if the psychology of deflation has taken hold, a psychological state where dollars are saved in anticipation of ever lower prices. A state of mind kind of like, this:

""Forty to 50 percent [discounts] used to excite me," the 43-year-old writer said. "Now, I want at least 70 percent." Turner says she has taken advantage of 75 percent discounts on children's clothes in recent weeks and is willing to wait to get the same type of deals in the coming months."
"Stores Worry Holiday Sales May Be Permanent" - MSNBC


http://www.minyanvil...n/index/a/20552

stocks: you certainly don't want anything to do with von mises in a hard landing long wave cycle such as we have now. ++++++++++++++++++++++++++++++++++++++++++++++ roger: the problem with the last stimulus is that it should have been five times bigger. barrack is on the riight track. this is an epic battle with deflation!

Edited by humble1, 08 January 2009 - 12:18 PM.

Better Hurry.
When Walmart can't make their nut, we're in trouble!
(Besides, CHINA could use the sales!)
http://stockcharts.c...4129&r=5775.png

the very people in charge of driving the global economy over the cliff -are now charged with "rescuing" it from its death dive.

"AMEN!"

Edited by Rogerdodger, 08 January 2009 - 12:24 PM.

agree! but these harvard/princeton people know what they are up against. he will hit the ground running like tim tebow. ™

but these harvard/princeton people know what they are up against.

Like those who ran Long Term Capital Management?

[img]http://tbn2.google.com/images?q=tbn:h6_uEEAQZCpMhM:http://farm1.static.flickr.com/27/35555985_d831e15fca.jpg[/img]

Edited by Rogerdodger, 08 January 2009 - 12:30 PM.

Possible third monster.... ...If they'd just leave things alone ...(as my good pal Jimmy Rogers would say)......we could have got things cleaned up a lot sooner...."let em' fail" as he says.....maybe ...just maybe we are just delaying the inevitable...


http://stockcharts.com/c-sc/sc?s=$INDU&p=M&yr=20&mn=11&dy=29&i=p28213502373&a=119376198&r=9733.png

sort of ... btw: i just put $50k on UF -5. TT is going to EAT YOU ALIVE!!!!!!

teaparty: that may be true. but rogers has been COMPLETELY WRONG. he had no sense of the k-wave/longwave. he was commodity bullish in one of the biggest price collapses in history. post a crb chart and tell me he was right, LOLROTF. p.s. this "delaying the inevitable" squawk is just him trying to rationalize his HUGE MISTAKE!

Edited by humble1, 08 January 2009 - 12:35 PM.