Here is the latest conversation I had with money manager Andrew Horowitz…. new insights for anyone who invests in anything. We discuss Greece and the future of the EU.
Click here for non-Flash version.click ► to listen:
Right click here and select ‘Save Link As…’ to download the mp3 file.
Click here for non-Flash version.click ► to listen:
Right click here and select ‘Save Link As…’ to download the mp3 file.
Two wing nuts who don’t know jack squat about economics trying to understand what is utterly beyond them.
If you read beyond the headlines of unemployment. You realize that the US is barely treading water three years into a so called “Recovery”. You have unemployment in Spain at 23% you have Greece in denial of needed cuts. Europe in general is in or moving towards recession. The US has shown very weak GDP for what many still call a “Recovery”. The Participation rate is at a 30 year low. The US has a significant problem with its jobs machine.
This is not recession, we’re in a depression right now. To get us out and restart the economy we have to do what we did to get out of the last depression, what any country needs to do, invest in the economy. It’s just that simple.
The Great Depression was ended by WWII, not by some “miracle” of government investment.
And during WWII the government spent massive amounts investing in infrastructure resources, industrial plants, agriculture, communication, all the things needed for the war. It is sad that we had to have a war to motivate us into investing in America but that is the thing about objective reality. It doesn’t care whether your motives are good or bad. Cause and effect will deliver the same result regardless of one’s intentions.
Cause — government spending in the economy. Effect — the economy grows.
Cause — government cuts spending. Effect — the economy shrinks.
The purpose of government is to provide for the common good. Destroy government and you destroy all the good government does. But it won’t end there, it’ll leave a void and into that void will step something else. Something that doesn’t serve the public good but private greed instead.
Ya gotta serve somebody. Who’ll it be? Your fellow man or nameless corporate greed? Choose wisely.
right on, Noen! Every conservative flacks the stimulus with the old saw “it didn’t work, WWII was the cause of the end of the Depression”. Well, what happened there, the govt. spending went into high gear! How anyone can ignore the obvious is beyond me, but the level of stupidity of the american public is below any meaningful measure…
Still waiting for the coming market collapse of December 2009
The market is floating on an ocean of money that can’t find any place to get a reasonable rate of return but the way things are looking even that isn’t going last much longer.
Right now the people who are making money in the market are the ones able to guess or cause price shifts in stocks and profit from same. That means for every winner there pretty much has to be a loser.
“That means for every winner there pretty much has to be a loser.”
Seems that’s always been the case.
What? says:
‘Actually, what the Gov could do in SoCal is build buildable “land” in the ocean near LA. That would create a new tax base!!! ‘
The problem with that is that SoCal suffers from earthquakes, and in most quakes, landfill areas shake worse than areas nearer to bedrock, causing much more damaged and destroyed buildings. Of course, I suppose that could contribute to the economy in a way; it would certainly lead to an uptick in the business of funeral homes….
Also, people talk about government spending enlarging the economy during (and after) WWII, but don’t forget the concomitant up to 90% tax rates, which continued into the 1950s without smothering the economy.
Ooo good point.
“The government needs to hire everyone.” WOW! Just WOW!
What will they pay them with? Maybe you don’t realize that the government has NO money. It’s all OUR money. What they have they took out of the private economy via taxes. Government generates no money.
Then again, why do I bother…
On the bright side, one of my goals of life is to have a picture of a mushroom cloud I shot myself.