[snip]
Greenspan argued that the country couldn't afford the tax cuts being proposed by John McCain without an equally massive reduction in spending.
"I'm not in favor of financing tax cuts with borrowed money," he said. "I always have tied tax cuts to spending."
The Worst Economy I've Ever Seen: Greenspan
Black Monday
Republicans are leading us into Socialism (corporate-socialism and corporate-welfare). Why do Republicans hate Capitalism so much?
Full Version: It's Black Monday: Greenspan Dogs McCain's Tax Plan
QUOTE (Dan-From-LA @ Sep 15 2008, 08:33 AM) 
[snip]
Greenspan argued that the country couldn't afford the tax cuts being proposed by John McCain without an equally massive reduction in spending.
"I'm not in favor of financing tax cuts with borrowed money," he said. "I always have tied tax cuts to spending."
...
Greenspan argued that the country couldn't afford the tax cuts being proposed by John McCain without an equally massive reduction in spending.
"I'm not in favor of financing tax cuts with borrowed money," he said. "I always have tied tax cuts to spending."
...
Whatever, Alan. Wonder what he was thinking the US was doing when we incurred an extra $5T of debt to finance tax cuts and foreign misadventures. Borrow and spend, borrow and spend. More doublespeak.
Yeah, and Greenspan in 1988 also said (with a straight face) that the spending that should be cut was domestic spending, despite knowing full well that close to 90% of ALL disbursements of the federal government go to what is laughingly referred to as "defense". (To quote the great Gore Vidal.)
What I find more interesting is that McCain's plan is so plainly daft, that EVEN Greenspan can't stomach publicly support a plan which is - on it's face - completely insane.
What I find more interesting is that McCain's plan is so plainly daft, that EVEN Greenspan can't stomach publicly support a plan which is - on it's face - completely insane.
Greenspan thinks we still listen to him? Ha!!
QUOTE (Dan-From-LA @ Sep 15 2008, 08:33 AM)
[snip]
Greenspan argued that the country couldn't afford the tax cuts being proposed by John McCain without an equally massive reduction in spending.
"I'm not in favor of financing tax cuts with borrowed money," he said. "I always have tied tax cuts to spending."
The Worst Economy I've Ever Seen: Greenspan
Black Monday
Republicans are leading us into Socialism (corporate-socialism and corporate-welfare). Why do Republicans hate Capitalism so much?
Greenspan argued that the country couldn't afford the tax cuts being proposed by John McCain without an equally massive reduction in spending.
"I'm not in favor of financing tax cuts with borrowed money," he said. "I always have tied tax cuts to spending."
The Worst Economy I've Ever Seen: Greenspan
Black Monday
Republicans are leading us into Socialism (corporate-socialism and corporate-welfare). Why do Republicans hate Capitalism so much?
Conservatives hate everything.
They destroy everything in their path.
How long until they blame Clinton?
Or The Blacks?
Like all Republicans who are being forced out of office, they only have two choices: (1) rescue their "legacy" - rewrite history so they're on the winning side (or at least far from the losing side), or (2) suck up to the winning side. Bush is in the rewrite category, as is Greenspan. Petraeus is in the "straddle" category - hedging his bets. Sen. Gordon Smith of OR is in the "suck up" category. Don't believe that any of them say what they say for truth value. For Republicans, the only value of an utterance is its utility towards a usually selfish end.
New York's Governor Patterson is giving a news conference right now on Bloomberg.
Mainly talking of AIG right now.
He says he is deeply concerned by finanical turmoil.
He says he will not minimize gravity of AIG situation.
He's urging Feds to fund bridge loans to AIG. Says no tax payer dollars will be involved.
This is just a shifting of capital. They have a liquidity problem.
Mainly talking of AIG right now.
He says he is deeply concerned by finanical turmoil.
He says he will not minimize gravity of AIG situation.
He's urging Feds to fund bridge loans to AIG. Says no tax payer dollars will be involved.
This is just a shifting of capital. They have a liquidity problem.
QUOTE (egghead @ Sep 15 2008, 09:01 AM)
...
He's urging Feds to fund bridge loans to AIG. Says no tax payer dollars will be involved.
This is just a shifting of capital. They have a liquidity problem.
He's urging Feds to fund bridge loans to AIG. Says no tax payer dollars will be involved.
This is just a shifting of capital. They have a liquidity problem.
I don't believe that. Why just liquidity? Why are their short term cash flow problems just short term?
QUOTE
"I guess I should warn you, if I turn out to be particularly clear, you've probably misunderstood what I've said” - Alan Greespan
Go away Greenspan. You are a total failure and so last century...
QUOTE
Mr. Greenspan said that those tax cuts to the top 5% of rich America, put in place by the Bush Administration and sanctioned by the McCain camp, are a bad idea unless they can be offset by cuts in other government spending and America cannot cut her spending unless, or until, we stop this frivolous war in Iraq which is costs us $20 million dollars per day or more. McCain wishes to continue this war and that means America continues to slip further and further into debt. This debt will take many generations to come close to paying off or down. Do future generations deserve to have to pay for mistakes made under the Bush Administration indefinitely? I say not.
more:
http://www.americanchronicle.com/articles/74225
more:
http://www.americanchronicle.com/articles/74225
Ok Obama, now is the time to make Americans forget that McCain/Palin are even running for president and convince people that you're the person that will get us out of this mess.
If this doesn't turn things around for him, nothing will
Trickle Down Economics is sound, in theory. But, in application it has yielded the same results twice.
I really wish they'd stop testing it out because it's not sound in practice.
I really wish they'd stop testing it out because it's not sound in practice.
I don't think the majority of Americans have felt a tickle in a long time
QUOTE (GCurry @ Sep 15 2008, 12:07 PM)
I don't believe that. Why just liquidity? Why are their short term cash flow problems just short term?
Well, you have a point. Long term is not in their immediate horizon, staying solvent is. A lot of their exposure is to European markets, which includes a largely unmeasurable amount of bad debt exposure (that we packaged and sold them, btw).
The move will allow AIG to use those assets as collateral to borrow cash to fund its day-to-day operations. If they do not obtain this (or possibly even if they do), and get downgraded by the rating firms, it will just make it more expensive to raise capital.
Amazing, though. A co. with a market cap of 1T in a fight for its life.
QUOTE (Llydis @ Sep 15 2008, 02:08 PM)
Trickle Down Economics is sound, in theory. But, in application it has yielded the same results twice.
I really wish they'd stop testing it out because it's not sound in practice.
I really wish they'd stop testing it out because it's not sound in practice.
What is your definition of sound? How is it sound in theory? It seems to presuppose people with wealth will spend money in a way that has never been demonstrated in the real world.
QUOTE (Llydis @ Sep 15 2008, 11:08 AM)
Trickle Down Economics is sound, in theory. But, in application it has yielded the same results twice.
I really wish they'd stop testing it out because it's not sound in practice.
I really wish they'd stop testing it out because it's not sound in practice.
Why do you say it's sound in theory?
QUOTE (karaplanet @ Sep 15 2008, 11:28 AM)
Well, you have a point. Long term is not in their immediate horizon, staying solvent is. A lot of their exposure is to European markets, which includes a largely unmeasurable amount of bad debt exposure (that we packaged and sold them, btw).
The move will allow AIG to use those assets as collateral to borrow cash to fund its day-to-day operations. If they do not obtain this (or possibly even if they do), and get downgraded by the rating firms, it will just make it more expensive to raise capital.
Amazing, though. A co. with a market cap of 1T in a fight for its life.
The move will allow AIG to use those assets as collateral to borrow cash to fund its day-to-day operations. If they do not obtain this (or possibly even if they do), and get downgraded by the rating firms, it will just make it more expensive to raise capital.
Amazing, though. A co. with a market cap of 1T in a fight for its life.
Yes, but they are putting a bandaid on the short term symptom. If they'd look at the causes of their cash flow problems, I would bet that they'd find out there is no relief from the factors which are causing short term bleed. Or at least, that the next thing in the wings will generate cash flow problems just down the roads. If they borrow from other subsidiaries, then why are those subs exempt from the factors that are causing so many other businesses grief. Robbing Peter to pay Paul. But it will come home.
QUOTE (GCurry @ Sep 15 2008, 03:26 PM)
Yes, but they are putting a bandaid on the short term symptom. If they'd look at the causes of their cash flow problems, I would bet that they'd find out there is no relief from the factors which are causing short term bleed. Or at least, that the next thing in the wings will generate cash flow problems just down the roads. If they borrow from other subsidiaries, then why are those subs exempt from the factors that are causing so many other businesses grief. Robbing Peter to pay Paul. But it will come home.
Oh, I think you are right. It will come home. Hell, it's pulling in the driveway now.
The only way I see for them to weather this is either a backstop from the feds (which I don't agree with in this case) or merger/takeover. Berkshire looked at them Friday and Saturday, and didn't like what they saw. Not good.
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