Comments on: "The prudent will have to pay for the profligate" http://www.nakedcapitalism.com/2008/04/prudent-will-have-to-pay-for-profligate.html Mon, 23 Nov 2009 08:18:14 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: foesskewered http://www.nakedcapitalism.com/2008/04/prudent-will-have-to-pay-for-profligate.html#comment-6273 foesskewered Thu, 03 Apr 2008 03:01:00 +0000 http://www.nakedcapitalism.com/2008/04/the-prudent-will-have-to-pay-for-the-profligate/#comment-6273 Perhaps, the silent solution (combining public indebtedness and inflation) has already began. Perhaps, US consumers haven't noticed it much but the rest of the world, particularly Asia is seeing alarming interest rates. No one wants a recession, but if it means that ultimately, the US economy can regain some real health, it should be preferrable to unhealthy doses of bailout morphine Perhaps, the silent solution (combining public indebtedness and inflation) has already began. Perhaps, US consumers haven’t noticed it much but the rest of the world, particularly Asia is seeing alarming interest rates. No one wants a recession, but if it means that ultimately, the US economy can regain some real health, it should be preferrable to unhealthy doses of bailout morphine

]]> By: Moopheus http://www.nakedcapitalism.com/2008/04/prudent-will-have-to-pay-for-profligate.html#comment-6268 Moopheus Thu, 03 Apr 2008 00:54:00 +0000 http://www.nakedcapitalism.com/2008/04/the-prudent-will-have-to-pay-for-the-profligate/#comment-6268 ""I doubt that there will be much resistance."<br/><br/>All of that is true, but when you threaten an American's wallet, then they sit up and notice. “”I doubt that there will be much resistance.”

All of that is true, but when you threaten an American’s wallet, then they sit up and notice.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/04/prudent-will-have-to-pay-for-profligate.html#comment-6263 Anonymous Wed, 02 Apr 2008 21:22:00 +0000 http://www.nakedcapitalism.com/2008/04/the-prudent-will-have-to-pay-for-the-profligate/#comment-6263 "But as we go down this road in America, we are likely to encounter a great deal of resistance."<br/><br/>Maybe once upon a time that would have been true. But given that Americans have looked on like drugged sheep as our leaders launched a trillion-dollar unprovoked war on another country, tapped all our phones and email without warrants, and handed over billions in taxpayer dollars to the people who ran Bear Stearns into the ground, I doubt that there will be much resistance. “But as we go down this road in America, we are likely to encounter a great deal of resistance.”

Maybe once upon a time that would have been true. But given that Americans have looked on like drugged sheep as our leaders launched a trillion-dollar unprovoked war on another country, tapped all our phones and email without warrants, and handed over billions in taxpayer dollars to the people who ran Bear Stearns into the ground, I doubt that there will be much resistance.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/04/prudent-will-have-to-pay-for-profligate.html#comment-6260 Anonymous Wed, 02 Apr 2008 20:11:00 +0000 http://www.nakedcapitalism.com/2008/04/the-prudent-will-have-to-pay-for-the-profligate/#comment-6260 You said inflation was a possibility. to transfer burden to creditors. That already is happening as foreign holders of US financial assets, bonds and stock (such as China, etc) lost 30% of their wealth as the dollar depreciated... You said inflation was a possibility. to transfer burden to creditors. That already is happening as foreign holders of US financial assets, bonds and stock (such as China, etc) lost 30% of their wealth as the dollar depreciated…

]]> By: Anonymous http://www.nakedcapitalism.com/2008/04/prudent-will-have-to-pay-for-profligate.html#comment-6259 Anonymous Wed, 02 Apr 2008 20:06:00 +0000 http://www.nakedcapitalism.com/2008/04/the-prudent-will-have-to-pay-for-the-profligate/#comment-6259 Epicurean,<br/><br/>I rather disagree with your statement that the prudent have benefited significantly.<br/><br/>I hold a fairly good but not spectacular job (IT for a bank), have worked since 1998, never participated much in the dot-com madness, have invested a bit here and there but mostly in fixed income. Didn't buy any real estate (not much money when it was reasonable, and by the time I saved around $500,000, it got just way too expensive for my tastes).<br/><br/>Now, with a lot of sadness I watch my savings being wiped out by the government through USD inflation. <br/><br/>So, who was supporting whom?<br/><br/>Apart from a reasonably good job market (not forgetting being laid off post-dot-com crash), I have not benefited in this much at all. <br/><br/>Regards,<br/>R.T. Epicurean,

I rather disagree with your statement that the prudent have benefited significantly.

I hold a fairly good but not spectacular job (IT for a bank), have worked since 1998, never participated much in the dot-com madness, have invested a bit here and there but mostly in fixed income. Didn’t buy any real estate (not much money when it was reasonable, and by the time I saved around $500,000, it got just way too expensive for my tastes).

Now, with a lot of sadness I watch my savings being wiped out by the government through USD inflation.

So, who was supporting whom?

Apart from a reasonably good job market (not forgetting being laid off post-dot-com crash), I have not benefited in this much at all.

Regards,
R.T.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/04/prudent-will-have-to-pay-for-profligate.html#comment-6258 Anonymous Wed, 02 Apr 2008 19:57:00 +0000 http://www.nakedcapitalism.com/2008/04/the-prudent-will-have-to-pay-for-the-profligate/#comment-6258 Far from "tacking with the wind", I believe business interests were either running or reaching with the prevailing winds, however far this may have pushed them off-course. When one tacks to port or starboard, it is with the intention of making headway against the prevailing winds. When doing so it is possible - through mishandling, misjudgement, or simple misattention - to wind up in irons, and one can easily find that the craft has completely stalled or is even moving backwards. Far from “tacking with the wind”, I believe business interests were either running or reaching with the prevailing winds, however far this may have pushed them off-course. When one tacks to port or starboard, it is with the intention of making headway against the prevailing winds. When doing so it is possible – through mishandling, misjudgement, or simple misattention – to wind up in irons, and one can easily find that the craft has completely stalled or is even moving backwards.

]]> By: eh http://www.nakedcapitalism.com/2008/04/prudent-will-have-to-pay-for-profligate.html#comment-6256 eh Wed, 02 Apr 2008 19:46:00 +0000 http://www.nakedcapitalism.com/2008/04/the-prudent-will-have-to-pay-for-the-profligate/#comment-6256 <i>But as we go down this road in America, we are likely to encounter a great deal of resistance.</i><br/><br/>Something sort of like an 'immovable object' is what I have in mind. But as we go down this road in America, we are likely to encounter a great deal of resistance.

Something sort of like an ‘immovable object’ is what I have in mind.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/04/prudent-will-have-to-pay-for-profligate.html#comment-6253 Anonymous Wed, 02 Apr 2008 19:19:00 +0000 http://www.nakedcapitalism.com/2008/04/the-prudent-will-have-to-pay-for-the-profligate/#comment-6253 Why just bail it out? Let's take some lasting action and get things going again in a sane, productive manner. The Fed is the source iof the problem, not the solution. It is the banking system, under the Fed's watchful eyes and support that created the subprime crisis to create paper to feed the derivatives monster.<br/><br/>Mark<br/>www.TakeBackTheFed.com Why just bail it out? Let’s take some lasting action and get things going again in a sane, productive manner. The Fed is the source iof the problem, not the solution. It is the banking system, under the Fed’s watchful eyes and support that created the subprime crisis to create paper to feed the derivatives monster.

Mark
http://www.TakeBackTheFed.com

]]> By: Anonymous http://www.nakedcapitalism.com/2008/04/prudent-will-have-to-pay-for-profligate.html#comment-6250 Anonymous Wed, 02 Apr 2008 16:48:00 +0000 http://www.nakedcapitalism.com/2008/04/the-prudent-will-have-to-pay-for-the-profligate/#comment-6250 Speaking as one of the prudent, it wasn't fun to try to buy a house in the inflated market. We snagged a good deal because we are prudent, but if housing prices fall far enough we could go upside-down through no fault of our own. Speaking as one of the prudent, it wasn’t fun to try to buy a house in the inflated market. We snagged a good deal because we are prudent, but if housing prices fall far enough we could go upside-down through no fault of our own.

]]> By: S http://www.nakedcapitalism.com/2008/04/prudent-will-have-to-pay-for-profligate.html#comment-6245 S Wed, 02 Apr 2008 15:32:00 +0000 http://www.nakedcapitalism.com/2008/04/the-prudent-will-have-to-pay-for-the-profligate/#comment-6245 truckers causing major diruptions and talking about slowing deliveries. I thought this only happend in France. truckers causing major diruptions and talking about slowing deliveries. I thought this only happend in France.

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