Comments on: Bernanke fights phantom problem, ignores real one http://blogs.reuters.com/breakingviews/2010/08/27/bernanke-fights-phantom-problem-ignores-real-one/ Mon, 26 Sep 2016 03:26:00 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Pete_Murphy http://blogs.reuters.com/breakingviews/2010/08/27/bernanke-fights-phantom-problem-ignores-real-one/comment-page-1/#comment-3501 Tue, 31 Aug 2010 00:15:33 +0000 http://blogs.reuters.com/columns/?p=3892#comment-3501 I’m so sick of the parallels being drawn with Japan’s “lost decade.” (Soon to be two lost decades.) There are no lessons to be learned from Japan. The problem for Japan is that China has muscled in on its export business. The problem for the U.S. is that imports dwarf our exports. The U.S. needs to focus on restoring a balance of trade by reducing imports. Which is exactly what Japan and China don’t need. Sooner or later there’s going to be a global smack-down.

]]>
By: bbarnett53 http://blogs.reuters.com/breakingviews/2010/08/27/bernanke-fights-phantom-problem-ignores-real-one/comment-page-1/#comment-3499 Mon, 30 Aug 2010 23:45:48 +0000 http://blogs.reuters.com/columns/?p=3892#comment-3499 No one likes deficits, especially large permanent ones. But those who would claim that reducing deficits are the cure for what ails the economy now have the burden of showing why a dramatic reduction in federal spending would not merely lead to more unemployment and reduced consumer spending, since most federal spending ultimately goes (directly or indirectly) to salaries and entitlements. Moreover, those who would cut the deficit have the burden of saying which programs that are large enough to make any difference)they would cut, and face the political reality that while spending is not popular, the programs it buys invariably are.

]]>
By: Cosmo2000 http://blogs.reuters.com/breakingviews/2010/08/27/bernanke-fights-phantom-problem-ignores-real-one/comment-page-1/#comment-3498 Mon, 30 Aug 2010 23:40:00 +0000 http://blogs.reuters.com/columns/?p=3892#comment-3498 This is after the president’s speech in New Orleans about government rebuilding the levies to prevent another disaster. Tell me if i’m wrong wasn’t the government who built the levies that failed? We are expecting the same here , we want the government to fix what they caused. Are the American people a bunch of a- holes.

]]>
By: paintcan http://blogs.reuters.com/breakingviews/2010/08/27/bernanke-fights-phantom-problem-ignores-real-one/comment-page-1/#comment-3497 Mon, 30 Aug 2010 22:04:20 +0000 http://blogs.reuters.com/columns/?p=3892#comment-3497 I don’t know why the editors have chosen not to print this comment but here it is again.

How are free market forces going to help the comatose housing and construction fields? It should be obvious that free markets failed those industries. The economy is on life support.

Free markets don’t pave the roads or build bridges either. A free market wouldn’t help infrastructural repairs and improvements unless every public street was a toll road. So many developing economies are not free market economies. They can’t afford the high risk adventure of it all. They also can’t afford the waste. Not even this country can afford the so called glory days of robber baron capitalism because we simply do not have the luxury and space to build e.g. multiple rail lines as was done on both sides of the Hudson River toward the end of the 19th century, by rival railroad magnates trying to put each other out of business? Only one of the lines survives today. I think the other died during or while it was being constructed. One line bought out the other.

There are also zoning and land use planning rules in place that prevent too much overt competition for and/or waste of municipal resources. People who know the ropes of local zoning issues can – and I have heard such complaints personally – that a rival business may come into their town and harm local businessmen. These boards are also not necessarily honest either. And land use rules can be used to prevent developers from offering housing options that may undercut existing and pricier development.

And if the first bailout money didn’t help – it seems to be because there is little left here to help. A service economy with little in the way of high value production of it’s own is a parasitic economy. And the only thing most of its participants can feed on are themselves.

And why would any consumer go the high priced and pretentious shop in the most expensive neighborhood in town to buy goods and services that might be got for a fraction of the cost in far less costly neighborhoods? To help them pay their outrageous overhead costs? To help them live securely in their pretensions?

And that describes the predicament of the USA and the developed world vis a vis, the vast majority of the rest of the world.

And not everyone on earth is going to submit for long to the role of laborers for the upper income buyers without learning a thing or two about the capabilities and weaknesses of those folks with money to burn. It must become very obvious that they can be such idiots with their incomes. So many actually count on that fact. Can’t say I’m 100% exempt from that charge either, actually.

If it’s tight now, what will happen in a few more decades when the world population reaches a projected 9 bln?
Have to agree with the comment that corporate America is the piggy at the trough. And their people tend to take the biggest pieces of pie. Wealthy people tend to have an almost unlimited sense of entitlement.

]]>
By: ClaudioBrussels http://blogs.reuters.com/breakingviews/2010/08/27/bernanke-fights-phantom-problem-ignores-real-one/comment-page-1/#comment-3493 Mon, 30 Aug 2010 20:25:30 +0000 http://blogs.reuters.com/columns/?p=3892#comment-3493 What if there were such a thing as the end of economic growth when a country reaches a certain level of development? Maybe the rich countries are approaching this moment given their slowing demographics and already high income per capita ? Maybe Japan was the first country to showcase this phenomenon. After all the Japanese households are not indebted. So, why don’t they spend more ? Maybe they don’t know what to buy since they already have most of what they need. How said that growth should be infinite ? Since our planet is finite it surely can’t be. So why don’t we start thinking about managing our economies and ways of life with zero growth ?

]]>
By: virtue http://blogs.reuters.com/breakingviews/2010/08/27/bernanke-fights-phantom-problem-ignores-real-one/comment-page-1/#comment-3492 Mon, 30 Aug 2010 20:05:33 +0000 http://blogs.reuters.com/columns/?p=3892#comment-3492 The behavior in government reflects the level of understanding and the moral and ethical value in the society that makes up the economy, – United States worries me!

]]>
By: coyotle http://blogs.reuters.com/breakingviews/2010/08/27/bernanke-fights-phantom-problem-ignores-real-one/comment-page-1/#comment-3490 Mon, 30 Aug 2010 19:22:33 +0000 http://blogs.reuters.com/columns/?p=3892#comment-3490 Our real problem is a lack of leadership in Washington. The Congress is too busy pole watching while the President looks in vain for ever harder to find common ground between the parties. As a result we have convoluted polices regarding foreign policy(war), trade, health care, education, infrastructure, energy and the environment.

It would probably be pointless to point out that realigning our commitment of resources to the above mentioned interests with a well thought out approach could solve much of our economic woes.

End the wars and invest in renewable energy, education, and a working health care system for all Americans would be a good start. Expanding and not simply rebuilding existing infrastructure would go a long way to attracting investment and industry to replace some of the jobs this nation has lost. Our communications and transportation systems have not kept up with the rest of the world.

When will we wake up and smell the coffee?

]]>
By: murfster http://blogs.reuters.com/breakingviews/2010/08/27/bernanke-fights-phantom-problem-ignores-real-one/comment-page-1/#comment-3489 Mon, 30 Aug 2010 18:47:09 +0000 http://blogs.reuters.com/columns/?p=3892#comment-3489 Again, we need to look at trade policy. Economic policy is more than just monetary policy.

]]>
By: Jonesy http://blogs.reuters.com/breakingviews/2010/08/27/bernanke-fights-phantom-problem-ignores-real-one/comment-page-1/#comment-3488 Mon, 30 Aug 2010 18:36:55 +0000 http://blogs.reuters.com/columns/?p=3892#comment-3488 I’m paying off my debt and not using credit cards. I save cash for vacations and go without if I don’t have cash. I’m learning new skills like gardening, rain water harvesting and automotive repair. I’m thinking of throwing my TV out and going low tech with books and magazines. I’m not spending UNLESS I ABSOLUTELY HAVE TO! I bought into the American dream once. Not again. I’m creating my own. One word of advice Fed/Guvment: if you are so worried about the defecit then cut dewfense spending and the 2 pre-emptive wars. Until you do that then you are not serious and are only creating a situation where others can take advantage (Hint: Politicians and the 1% ers). I go to restaurants, they’re packed, cars driving everywhere, smartphones abound. I want to yell: “HEY! There’s a great recession people! Somehow I wonder if there is, or is it something else manufactured so the banks can get their money back, and that corporations can reset their payroll expense.

]]>
By: paintcan http://blogs.reuters.com/breakingviews/2010/08/27/bernanke-fights-phantom-problem-ignores-real-one/comment-page-1/#comment-3487 Mon, 30 Aug 2010 18:33:17 +0000 http://blogs.reuters.com/columns/?p=3892#comment-3487 How are free market forces going to help the comatose housing and construction fields? It should be obvious that free markets failed those industries. The economy is on life support.

Free markets don’t pave the roads or build bridges either. A free market wouldn’t help infrastructural repairs and improvements unless every public street was a toll road. So many developing economies are not free market economies. They can’t afford the high risk adventure of it all. They also can’t afford the waste. Not even this country can afford the so called glory days of robber baron capitalism because we simply do not have the luxury and space to build e.g. multiple rail lines as was done on both sides of the Hudson River toward the end of the 19th century, by rival railroad magnates trying to put each other out of business? Only one of the lines survives today. I think the other died during or while it was being constructed. One line bought out the other.

There are also zoning and land use planning rules in place that prevent too much overt competition for and/or waste of municipal resources. People who know the ropes of local zoning issues can – and I have heard such complaints personally – that a rival business may come into their town and harm local businessmen. These boards are also not necessarily honest either. And land use rules can be used to prevent developers from offering housing options that may undercut existing and pricier development.

And if the first bailout money didn’t help – it seems to be because there is little left here to help. A service economy with little in the way of high value production of it’s own is a parasitic economy. And the only thing most of its participants can feed on are themselves.

And why would any consumer go the high priced and pretentious shop in the most expensive neighborhood in town to buy goods and services that might be got for a fraction of the cost in far less costly neighborhoods? To help them pay their outrageous overhead costs? To help them live securely in their pretensions?

And that describes the predicament of the USA and the developed world vis a vis, the vast majority of the rest of the world.

And not everyone on earth is going to submit for long to the role of laborers for the upper income buyers without learning a thing or two about the capabilities and weaknesses of those folks with money to burn. It must become very obvious that they can be such idiots with their incomes. So many actually count on that fact. Can’t say I’m exempt from that charge either, actually.

If it’s tight now, what will happen in a few more decades when the world population reaches a projected 9 bln?

]]>