Comments on: To fix the economy, fix the housing market http://blogs.reuters.com/lawrencesummers/2011/10/24/to-fix-the-economy-fix-the-housing-market/ Sat, 21 Jun 2014 15:30:06 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Sechel http://blogs.reuters.com/lawrencesummers/2011/10/24/to-fix-the-economy-fix-the-housing-market/#comment-510 Tue, 27 Mar 2012 22:36:50 +0000 http://blogs.reuters.com/lawrencesummers/?p=100#comment-510 Ironic that so much of what’s wrong is the result of policies Summers supported.

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By: russwinter http://blogs.reuters.com/lawrencesummers/2011/10/24/to-fix-the-economy-fix-the-housing-market/#comment-272 Mon, 31 Oct 2011 12:40:33 +0000 http://blogs.reuters.com/lawrencesummers/?p=100#comment-272 It is sad commentary at this last stage that this person is even given a forum on Reuters. It is absurd that he is an “advisor” to Presidents and chief mucky muck of one of the “learning” institutions most responsible for the dearth of American “leadership”. Just go to the Cayman Islands, Larry, you’ve caused enough damage.

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By: WalterW http://blogs.reuters.com/lawrencesummers/2011/10/24/to-fix-the-economy-fix-the-housing-market/#comment-271 Sun, 30 Oct 2011 10:23:43 +0000 http://blogs.reuters.com/lawrencesummers/?p=100#comment-271 Interesting: currently there are 13 comments – and not a single one of those in support of Summers’ nonsense

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By: ckeeble http://blogs.reuters.com/lawrencesummers/2011/10/24/to-fix-the-economy-fix-the-housing-market/#comment-270 Sat, 29 Oct 2011 22:09:42 +0000 http://blogs.reuters.com/lawrencesummers/?p=100#comment-270 Why would anyone listen to someone who helped create the too-big-to-fail banks is beyond me. One sure fire cure for our economy and curing the crony capitalism mess we’re in is to stop listening to Larry Summers.

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By: wootendw http://blogs.reuters.com/lawrencesummers/2011/10/24/to-fix-the-economy-fix-the-housing-market/#comment-269 Sat, 29 Oct 2011 18:53:06 +0000 http://blogs.reuters.com/lawrencesummers/?p=100#comment-269 “…can only be resolved with more confidence, more borrowing and lending, and more spending.”

Mr. Summers, the only cure for the bubble that will bring about an (eventual) end to future bubbles is to go back to the gold standard and set the price of gold to around $7000/oz – or whatever it takes to make every ‘printed’ dollar convertible to the 261 million ounces of gold the US presumably holds in reserve. At this very high price level, far above the current market price, everyone holding gold will suddenly have a lot more ‘dollars’ and miners around the world will go into overtime to dig up more ‘dollars’ with which to buy American products or pay off dollar-denominated debts. That’s because a gold standard would not only make dollars convertible into to gold but also the reverse – gold would be freely convertible into dollars – lots of dollars. The ‘money supply’ would thus increase (inflation), causing prices to rise. Workers would be paid with cheaper dollars but that is better than losing their jobs as is happening now. Lenders would be repaid with cheaper dollars but that’s no worse than not being repaid at all via bankruptcies and foreclosures. After a few years, other prices and wages would catch up to gold and perhaps there would finally be some stability – until the government finds another way to screw things up again.

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By: EconomicsJunkie http://blogs.reuters.com/lawrencesummers/2011/10/24/to-fix-the-economy-fix-the-housing-market/#comment-268 Sat, 29 Oct 2011 17:18:41 +0000 http://blogs.reuters.com/lawrencesummers/?p=100#comment-268 “fiscal policy turns contractionary (…) and monetary policy is constrained by concerns about excess liquidity”

See, it’s stuff like this that you can’t just blurt out if you want to be taken even remotely seriously. You would unfortunately need to back up such claims with numbers (annoying, I know).

The numbers I find say that from 2007 through now fiscal policy has grown annual US government spending from $5 to $6 trillion, the gross public debt has grown from ~$11 to ~$16 trillion (http://www.economicsjunkie.com/us-taxes -spending-debts-historical-charts/) and the total reserve bank credit at the Fed (=the total dollars originated by the Fed) has grown from $800 billion to $2.8 trillion (http://research.stlouisfed.org/fred2/se ries/WRESCRT?cid=32215).

What I would love for you guys to do is to give me a number. How much more are you asking for? How many more government dollars are gonna be just enough to make things better?

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By: OneLessZombie http://blogs.reuters.com/lawrencesummers/2011/10/24/to-fix-the-economy-fix-the-housing-market/#comment-267 Sat, 29 Oct 2011 16:17:57 +0000 http://blogs.reuters.com/lawrencesummers/?p=100#comment-267 “When plunder becomes a way of life for a group of men living together in society, they create for themselves in the course of time a legal system that authorizes it and a moral code that glorifies it.”

Fredric Bastiat

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By: oldscool http://blogs.reuters.com/lawrencesummers/2011/10/24/to-fix-the-economy-fix-the-housing-market/#comment-265 Sat, 29 Oct 2011 00:17:07 +0000 http://blogs.reuters.com/lawrencesummers/?p=100#comment-265 He can’t distinguish irony from error. He might as well say that sticking his finger into an electrical socket caused shock, and the cure is more electricity. Try that cure, Larry, and get back to us on how well it works in the real world.
One answer to too much debt is to stop spending beyond your ability to produce and start producing and saving more than you spend for a while. Another is default. Continuing to incur more unsustainable debt is just not a viable option. (Planning to inflate the debt away will just cause currency debasement, which has an even bigger set of problems.)
The solution to falling prices is to make sure your market is transparent and governed by laws that actually punish fraud, which will bring products to a sustainable level. Whether you like that level or not, it is a reality you must respect. A false market you try to create in its stead will ultimately fail. That’s exactly how we got here, remember? It might be an unpleasant process, but the alternative — extend and pretend — is going to be even more unpleasant because it’s really just blowing a bigger bubble.
This is not rocket science. We need to stop pretending these self-styled economic rocket scientists can get us out of this. We screwed up. We can expect to suffer for it. Screwing up more is not the answer. TIme to take the medicine and do the right things for a change.

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By: Linechronix http://blogs.reuters.com/lawrencesummers/2011/10/24/to-fix-the-economy-fix-the-housing-market/#comment-264 Fri, 28 Oct 2011 21:41:17 +0000 http://blogs.reuters.com/lawrencesummers/?p=100#comment-264 “The central irony of obesity is that while it is caused by too much doritos, too much icecream and pudding, and too much McDonald’s, it can only be resolved with more doritos, more icecream and pudding, and more McDonald’s.”

Brilliant…

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By: RSDallas http://blogs.reuters.com/lawrencesummers/2011/10/24/to-fix-the-economy-fix-the-housing-market/#comment-263 Tue, 25 Oct 2011 14:29:32 +0000 http://blogs.reuters.com/lawrencesummers/?p=100#comment-263 I’m going to be blunt here. You are a fascist pig. We are in this mess because of your past policies. I am beginning to believe that your sole desire is to impose a form of fascism, socialism and communism all wrapped into one onto the American system. It’s perplexing and quite comical that you openly make suggestions such as these. Your suggestions are exactly what you suggested before. It is obvious that your level of intellect is WAY over rated.

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