"The Worst is Over Without a Doubt"The timing of the quote is nearing analogous to where we sit today:
- James J. Davis, U.S. Secretary of Labor, June 1930
We should hear the same remark from a prominent individual or two in the coming months. There is nothing new under the Sun.
FDR for your additional amusement:
ReplyDeletePlease see (google) 1927-1933 Chart of Pompous Prognosicators. Davis' quote does not appear but there are some other real gems.
looks like Elliot Wave International will be getting the erasers out for Fridays update of the count. The good thing about Elliot Wave is you can always just change the count after the market moves.
ReplyDelete"looks like Elliot Wave International will be getting the erasers out for Fridays update of the count. The good thing about Elliot Wave is you can always just change the count after the market moves."
ReplyDeleteThey erase a lot in the short term. probably too much. Although this time I think they have it right.
Certainly they've had it right from Bob's 200% long call in 1982 to his 200% short call in Jul 2007, then again more recently at 10.7K for anyone who missed his last one.
Bob is one of the best traders in the world today. I have no affiliation. To bad he doesn't put his name on their short term update, but that's probably smart.
A skeptic
ReplyDeleteProbably a huge Cramer fan
Surprised they have any chips left
http://pragcap.com/mosler-just-print-more-money
ReplyDeletejd said:
ReplyDeleteMosler is not opining on the big gov’t/small gov’t question, so I think some here are missing his point. Likewise, he is not taking sides on the “raise spending” or the “cut taxes” question. Leave that to the politicians.
Instead, he is simply pointing out that running a fiscal deficit is necessary when we are running a trade deficit in order to replace the net financial assets in the system that are “parked” by our trading partners (think Chinese if it helps) in treasury securities (debt).
The “debt” is simply the cumulative mathematical difference between gov’t debits and credits over time (cumulative deficits). It has no significance whatsoever (except for politics); and could be paid off entirely in 1 minute by commuting the “savings accounts” (bonds) to checking accounts (bank deposits w/in the Federal Reserve system). Then the holders of the bonds would simply no longer accumulate interest. Could this be quite inflationary? Yes, but that is a separate question, and could be offset as needed by austerity measures (fiscal surpluses).
For additional clarity, he points out that the “deficit” in a given year (or any given time period) is by definition the increase in net financial asset savings of the non-government sector…to the penny!
If one stops and thinks about it, he is 100% correct. Galileo was persecuted for a while too for his blasphemous view that the Earth traveled around the sun!
"If one stops and thinks about it, he is 100% correct. "
ReplyDeleteAnd the obvious solution to all the bankrupt Californians who are underwater on their mortgages is simply, "just sell your house to pay off your debt in a minute."
If one thinks about it, it's 100% correct.