tag:blogger.com,1999:blog-6616959642391988608.post5768322414481302692..comments2024-03-28T00:18:25.641-07:00Comments on Calafia Beach Pundit: Household balance sheet updateScott Grannishttp://www.blogger.com/profile/14028519647946868684noreply@blogger.comBlogger23125tag:blogger.com,1999:blog-6616959642391988608.post-17181427900012649632011-12-13T07:23:37.788-08:002011-12-13T07:23:37.788-08:00Hi Randy, note that economic depression is not &qu...Hi Randy, note that economic depression is not "armageddon" -- rather, economic depression is just another opportunity to make money and grow one's estate -- keep that front of mind...McKibbinUSAhttps://www.blogger.com/profile/10545798495680527622noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-31077360709919584232011-12-12T09:38:17.522-08:002011-12-12T09:38:17.522-08:00Dr. McKibbin:
I'm confused. You advise loa...Dr. McKibbin: <br /><br />I'm confused. You advise loading up on rent and dividend paying equities, and on guns. Armageddon and great investment environment don't seem to go hand in hand.randyhttps://www.blogger.com/profile/16368254229927808998noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-46477546091868223962011-12-12T07:01:48.859-08:002011-12-12T07:01:48.859-08:00Whether we in the US like it or not, the ECB has d...Whether we in the US like it or not, the ECB has decided our fate here in the US -- what happened in the EU last week was simply a stage play without applause -- ECB Pres Dr Mario Draghi said what he meant, and meant what he said about not bailing out the Eurozone -- more at:<br /><br />http://wjmc.blogspot.com/2011/12/prospects-for-europe-and-us.html<br /><br />The net result is that Southern McKibbinUSAhttps://www.blogger.com/profile/10545798495680527622noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-32402207181788894652011-12-12T06:44:10.402-08:002011-12-12T06:44:10.402-08:00"I'm trying to understand what qualifies ..."I'm trying to understand what qualifies as "wealth creation," vs. "economic activity." <br /><br />If I stick a quarter in a slot and get a $10k payout, is that "wealth creation" or "economic activity?" <br /><br />If I get an FHA loan to have a contractor build my house, is that "wealth creation" or "economic activity?" "Junkyard_hawg1985https://www.blogger.com/profile/18114117558513498514noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-76165609116618231612011-12-12T06:18:34.829-08:002011-12-12T06:18:34.829-08:00"Nebraska's Republican governor Heinemann..."Nebraska's Republican governor Heinemann and Republican Senator Johanns both asked Obama to block the Keystone pipeline."<br /><br />John, I concede the point that Keynesian stupidity is bipartisan. Usually when bipartisan things occur, it is a bad agreement. Exhibit A: B.S. Bernanke. He was appointed by Bush, and reappoined by Obama. In my opinion, he is the biggest thief in Junkyard_hawg1985https://www.blogger.com/profile/18114117558513498514noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-22536343106145826632011-12-11T16:13:55.294-08:002011-12-11T16:13:55.294-08:00Real per capita net worth is at 1999 levels. No do...Real per capita net worth is at <a href="http://economistsview.typepad.com/economistsview/2011/06/this-is-what-a-balance-sheet-recession-looks-like-and-its-not-pretty.html" rel="nofollow">1999 levels</a>. No doubt, mean net worth rose more than the median as <a href="http://danariely.com/2010/09/30/wealth-inequality/" rel="nofollow">wealth became further concentrated</a> in the upper quintile.<brmarmicohttps://www.blogger.com/profile/08277071086056574486noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-57442430482482895482011-12-11T11:11:34.704-08:002011-12-11T11:11:34.704-08:00Which bar represents "savings?"Which bar represents "savings?"Johnhttps://www.blogger.com/profile/06365403570563730880noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-43826476248003313992011-12-11T08:18:00.417-08:002011-12-11T08:18:00.417-08:00The ongoing Main Street depression in America has ...The ongoing Main Street depression in America has taken its toll on middle-class family networth -- the middle-class is learning a lesson at the hands of economic elites that will not be soon forgotten...McKibbinUSAhttps://www.blogger.com/profile/10545798495680527622noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-22927887234371773112011-12-11T07:18:30.701-08:002011-12-11T07:18:30.701-08:00I'm trying to understand what qualifies as &qu...I'm trying to understand what qualifies as "wealth creation," vs. "economic activity." <br /><br />If I stick a quarter in a slot and get a $10k payout, is that "wealth creation" or "economic activity?" <br /><br />If I get an FHA loan to have a contractor build my house, is that "wealth creation" or "economic activity?" <br /><br />Johnhttps://www.blogger.com/profile/06365403570563730880noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-70612834976943454332011-12-11T06:30:20.712-08:002011-12-11T06:30:20.712-08:00Junkyard hit it on the head but failed to address ...Junkyard hit it on the head but failed to address the cause of the problem, the Federal Reserve.<br /><br />The Federal Reserve is a disease in this country worthy of stamping out. Until then, expect inflations, booms and busts, and crony capitalism.Public Libraryhttps://www.blogger.com/profile/00017383928897945054noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-13544561502208087672011-12-10T12:47:37.101-08:002011-12-10T12:47:37.101-08:00@Mr. Hawg:
Nebraska's Republican governor Hei...@Mr. Hawg:<br /><br />Nebraska's Republican governor Heinemann and Republican Senator Johanns both asked Obama to block the Keystone pipeline. <br /><br />Also, I can't wait to hear the Republican presidential nominee come to Ohio and Michigan and bash the cash for clunker program and GM-Chrysler bailout. <br /><br />Auto industry analysts predicted that if GM and Chrysler had been Johnhttps://www.blogger.com/profile/06365403570563730880noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-44887303902672595152011-12-10T11:59:59.989-08:002011-12-10T11:59:59.989-08:00Benji,
While you may not have argued in favor of ...Benji,<br /><br />While you may not have argued in favor of those particular programs, some people have because they were passed in the current administration. That hardly makes this a "straw man." (although you could argue that the current administration is a stram man because it has no brain)<br /><br />One of the most hideous forms of Keynesian stupidity was farm policy during the Junkyard_hawg1985https://www.blogger.com/profile/18114117558513498514noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-59342990305090430572011-12-10T11:44:41.934-08:002011-12-10T11:44:41.934-08:00Squire-
The late 1970s was a period of double-dig...Squire-<br /><br />The late 1970s was a period of double-digit inflation. It was also a time of OPEC, and the quintupling of a commodity that had been very cheap forever.<br /><br />The oil shock problem is still a problem, but we have come a long way. <br /><br />How did you enjoy the years 1982-2007? Those were years in which inflation ran between 2 percent and 6 percent.<br /><br />Sheesh, IBenjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-2480698620840438752011-12-10T10:20:18.893-08:002011-12-10T10:20:18.893-08:00My first financial controller job was during the i...My first financial controller job was during the inflation in the late 70's. It was hell. I felt like we were running as fast as we could and not getting anywhere. It was exhuasting dealing with the purchasing problems and labor problems.<br /><br />Fine. Do inflation. I am on board. But when you stop with inflation the economy will fail again without massive radical reforms.Squirehttps://www.blogger.com/profile/14088030568579672500noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-81495176497409306262011-12-09T14:25:01.770-08:002011-12-09T14:25:01.770-08:00Junk-
I think you are drawing up a straw man. I ...Junk-<br /><br />I think you are drawing up a straw man. I have not argued for wasteful federal programs, civilian or military.<br /><br />I am arguing for an aggressive monetary policy that promotes growth, in balance with moderate inflation. I am not fixated on a "proper" rate of inflation, such as 2 percent. I see no magic in 2, 3, 4, or 5 percent inflation. I see magic in Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-81015459650783907192011-12-09T13:28:10.588-08:002011-12-09T13:28:10.588-08:00Junkyard: you are right. You can't have true g...Junkyard: you are right. You can't have true growth without wealth creation.Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-72985377442817474272011-12-09T12:59:41.979-08:002011-12-09T12:59:41.979-08:00"Government policy must favor economic growth..."Government policy must favor economic growth"<br /><br />I disagree. I think government policy should favor wealth creation. Usually the two go hand-in-hand, but not always. Here are some recent examples:<br /><br />Cash for Clunkers: It creates new car sales (economic activity) by destroying usable automobiles (wealth). <br /><br />Extended Unemployment vs. Keystone pipeline - Junkyard_hawg1985https://www.blogger.com/profile/18114117558513498514noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-42377689273609864382011-12-09T12:30:07.236-08:002011-12-09T12:30:07.236-08:00Squire:
Wages lag inflation. This may be benefic...Squire:<br /><br />Wages lag inflation. This may be beneficial however, in that inflation can offset something called "money illusion."<br /><br />in downturns, employers find it hard to cut wages. It is considered a punitive action, for social reasons.<br /><br />Some inflation accomplishes wage reduction, thus boosting employment. <br /><br />Inflation in the 3 percent to 5 percent Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-61879953321176347362011-12-09T10:50:00.812-08:002011-12-09T10:50:00.812-08:00Prices of household assets go up during inflation....Prices of household assets go up during inflation. Homes , stocks, rental income, small business inome. But do wages keep up? Does that offset the rise in assets, etc. ?Squirehttps://www.blogger.com/profile/14088030568579672500noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-54172976449547521952011-12-09T09:46:35.698-08:002011-12-09T09:46:35.698-08:00I think Scott Grannis may have mistepped in his re...I think Scott Grannis may have mistepped in his reply here on inflation. <br /><br />Inflation does not harm household balance sheets--indeed for homeowners with mortgages, inflation is a great friend. (Same for small businesses that own their own property). <br /><br />Equities rise with inflation.<br /><br />Gold is supposed to rise with inflation, but seems to go hyper. <br /><br />Only bondsBenjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-14684853863485873562011-12-08T14:36:07.772-08:002011-12-08T14:36:07.772-08:00Junk-
Actually, I am for prosperity, of the real ...Junk-<br /><br />Actually, I am for prosperity, of the real kind.<br /><br />Sure, for now I would like some Friedmanite monetary expansionism. Some inflation for next several years would help real estate, and help us deleverage. <br /><br />I am on record many times for the need to hold federal outlays to 16 percent of GDP. <br /><br />What I am against is an unhealthy and peevish fixation on Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-16105923266308102012011-12-08T14:06:47.214-08:002011-12-08T14:06:47.214-08:00Good point about inflation. A little here, a littl...Good point about inflation. A little here, a little there, and suddenly you're talking about trillions of dollars going up in smoke.Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-78856587183883917292011-12-08T12:52:50.861-08:002011-12-08T12:52:50.861-08:00Is the net worth data on a constant $ basis? The ...Is the net worth data on a constant $ basis? The CPI in October 2011 was 226.4 vs. 195.2 for the 2005 average (+15.9%). <br /><br />This is the problem with the lousy Keynesian policies: they make you feel good about a number, but the underlying wealth has been destroyed through inflation. Another way to look at this is despite all the work Americans have done since 2005, we have lost about 16Junkyard_hawg1985https://www.blogger.com/profile/18114117558513498514noreply@blogger.com