tag:blogger.com,1999:blog-6616959642391988608.post2766683558528622826..comments2024-03-28T00:18:25.641-07:00Comments on Calafia Beach Pundit: Fed remains in reactive mode, which is not helpfulScott Grannishttp://www.blogger.com/profile/14028519647946868684noreply@blogger.comBlogger16125tag:blogger.com,1999:blog-6616959642391988608.post-58165851858368413532010-06-24T13:10:12.640-07:002010-06-24T13:10:12.640-07:00Benj,
Either one stays home or holds his/her nose...Benj,<br /><br />Either one stays home or holds his/her nose and votes for somebody. My frustration with this government has me wanting them out more so than anyone in particular being in. We will see who the Repubs nominate to oppose President Obama. They can still blow it.Johnhttps://www.blogger.com/profile/11652253509768573561noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-53818859099715058392010-06-24T12:32:02.097-07:002010-06-24T12:32:02.097-07:00Fellas, I hope your dreams come true.
But consid...Fellas, I hope your dreams come true.<br /> <br />But consider--let's look at Rand Paul, Tea Party candidate for Senate in Kentucky. Kentucky is a state, a red state, that gets back $1.51 for every dollar they send to DC (latest figs from Tax Foundation, right-wingers). That amounts to more than $4,000 per capita in net--net---federal spending (spending in excess of receipts) for every Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-24799218600136464582010-06-24T12:16:39.821-07:002010-06-24T12:16:39.821-07:00John: I agree, Obama is really exceptionally bad, ...John: I agree, Obama is really exceptionally bad, and in a way that's good, because he has ruined the reputation of liberals (progressives) for at least a generation or two to come. The voting is already showing that the public realizes this. This is very big stuff.Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-75564170408281047502010-06-24T12:08:57.155-07:002010-06-24T12:08:57.155-07:00Scott,
I try hard to stay out of politics as I ha...Scott,<br /><br />I try hard to stay out of politics as I have family members who hold opinions that are different from mine. I also believe arguing politics rarely changes anyone's mind. <br /><br />I think your answer to Charles above is spot on. Unfortunately I also do not believe there is a single member of the current administration that holds that view. The same applies to the current Johnhttps://www.blogger.com/profile/11652253509768573561noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-60618416246751898192010-06-24T09:30:15.276-07:002010-06-24T09:30:15.276-07:00Charles: Thanks for bringing that up. The persiste...Charles: Thanks for bringing that up. The persistence of extremely low yields on cash is another sign that demand for money is very high, and the public's willingness to venture into riskier activities is very low. This is a big problem that needs to be overcome somehow. One good way to do that would be to cut taxes on labor and capital, thus increasing the after tax return to engaging in Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-4885087576035938452010-06-24T07:40:18.411-07:002010-06-24T07:40:18.411-07:00The real question about Fed policy is why people a...The real question about Fed policy is why people are content to hold cash at .25% rather than invest. The answer is that people who invest and create jobs are spooked by the Obama administration. They are willing to hold dollars rather than euros because they have even less confidence in Europe. The alternative to dollars at .25% is pricey equity, commodities, emerging markets and gold. There Charleshttps://www.blogger.com/profile/00607057013050715435noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-30689991040207151112010-06-23T18:22:38.639-07:002010-06-23T18:22:38.639-07:00The collapse of the housing market over the past s...The collapse of the housing market over the past several years has had the effect of greatly increasing the public's demand for money. (That is equivalent to the observation that deleveraging is a widespread phenomenon: reduced demand for debt and paying down existing debt means more demand for money.) This increased demand has undoubtedly absorbed a good deal of the Fed's increased Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-45872050240132020992010-06-23T17:12:01.809-07:002010-06-23T17:12:01.809-07:00Scott-
Sorry, I had it backwards, a senior moment....Scott-<br />Sorry, I had it backwards, a senior moment. Does the Great Depression-like graph on new home sales suggest loose money?Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-37007129333790148412010-06-23T16:37:33.469-07:002010-06-23T16:37:33.469-07:00In Tran: thank you!In Tran: thank you!Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-20946572023452307822010-06-23T16:37:03.942-07:002010-06-23T16:37:03.942-07:00Jeff: the bond market is not all-seeing or prescie...Jeff: the bond market is not all-seeing or prescient. Yields were very low in the early 1960s because 1) we were on a gold standard and inflation was 0-1% for many years, 2) the dollar was stable, and 3) economic growth was fairly steady. Confidence was high, inflation was low, the dollar was strong. Those conditions absolutely warrant very low interest rates. Today's rates, however, can onlyScott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-88343912200713425052010-06-23T16:33:00.335-07:002010-06-23T16:33:00.335-07:00Benjamin: when did I ever say money was tight?Benjamin: when did I ever say money was tight?Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-47912503973615618042010-06-23T15:44:09.528-07:002010-06-23T15:44:09.528-07:00Scott-
Look at your previous post. Is that graph ...Scott-<br />Look at your previous post. Is that graph consistent with tight money?Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-25246204083127947782010-06-23T15:06:48.684-07:002010-06-23T15:06:48.684-07:00I know you have said that the Bond market has miss...I know you have said that the Bond market has missed recoveries/inflation in the past, but the level of the 10 year has only been hit once since 1963 (other than the crisis time of last year)...the bond market is clearly pointing to bad times ahead...tough to keep ignoring it.Jeffhttps://www.blogger.com/profile/00939788327871137653noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-80234965931599911902010-06-23T15:01:23.063-07:002010-06-23T15:01:23.063-07:00Mr. Grannis,
I appreciate your posts. I am not wel...Mr. Grannis,<br />I appreciate your posts. I am not well versed in economoics but I appreciate your explanations. Also, it is helpful that you give thoughtful and researched information which counteracts some of the reactionary info found in the general news. Keep up the good work - I am sure there are many you appreciate your posts but do not respond.In Transitionhttps://www.blogger.com/profile/14904228607121436586noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-43898095979271038192010-06-23T14:29:01.979-07:002010-06-23T14:29:01.979-07:00Jeez, MZM is down from a year ago, and unit labor ...Jeez, MZM is down from a year ago, and unit labor costs are sinking not rising, and property in all sectors--retail, industrial, office, industrial--is under water. The Dow is below the Clinton days.<br /><br />And the Fed is too loose? Shouldn't the nominal values of assets rise if there is too much money being loosed on the nation? Should wages go up? <br /><br />Money is not loose. The Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-1406655804708694052010-06-23T13:22:09.146-07:002010-06-23T13:22:09.146-07:00excellent post.excellent post.septizoniomhttps://www.blogger.com/profile/14253705209662419429noreply@blogger.com