 |
bostonbubble.com
Boston Bubble - Boston Real Estate Analysis
|
|
SPONSORED LINKS
Advertise on Boston Bubble
Buyer brokers and motivated
sellers, reach potential buyers.
www.bostonbubble.com
YOUR AD HERE
|
|
DISCLAIMER: The information provided on this website and in the
associated forums comes with ABSOLUTELY NO WARRANTY, expressed
or implied. You assume all risk for your own use of the information
provided as the accuracy of the information is in no way guaranteed.
As always, cross check information that you would deem useful against
multiple, reliable, independent resources. The opinions expressed
belong to the individual authors and not necessarily to other parties.
|
| View previous topic :: View next topic |
| Author |
Message |
GenXer
Joined: 20 Feb 2009
Posts: 703
|
 Posted: Fri Jul 02, 2010 1:47 pm GMT Post subject: |
 |
|
From Nassim Taleb's notebook:
| Quote: | 130-Stimulus
I just realized that what is called "Keynesian stimulus" works differently when the government is starting off a situation of deficit. The math would produce different results, which makes me wonder why economists cannot spot it (I inject more perturbations and see massive fragility). In one case, to make an analogy to an individual, you can invest money you have on the side(assuming you've had suspluses from the past). In the other, you fragilize yourself by borrowing, and transfer the liabilities cross-generations. Patris delictum nocere nunquam debet filio. [A father should not leave liabilities to his son.]
But you can't expect economists to perturbate their models, or inject rigor in their arguments. They are the very same idiots after all who got us here. |
|
|
| Back to top |
|
 |
mpr
Joined: 06 Jun 2009
Posts: 344
|
|
| Back to top |
|
|
CC
Guest
|
| Posted: Sun Jul 04, 2010 1:35 am GMT Post subject: |
|
|
| That article is a joke. I don't think Tea Party participates want the government to "reward the values of the hard-working and punish the failure of the irresponsible", they don't want the government to be involved in ANY rewarding or punishing interferences! Besides, today's economy problem is about too much debt, from personal, to state and federal levels. Adding more debt to the economy not only solve nothing, but create more problems sooner or later. |
|
| Back to top |
|
|
Boston ITer
Joined: 11 Jan 2010
Posts: 269
|
| Posted: Sun Jul 04, 2010 5:42 am GMT Post subject: |
|
|
| Quote: | | they don't want the government to be involved in ANY rewarding or punishing interferences |
Yes, this is the main Tea Party credo.
Where I disagree with them is that many Tea Partiers have not worked in science and engineering fields and thus, have little concept of what productive, high end is really about. For them, low taxes and low governance equates us being on a similar foot with the burgeoning R&D and production sectors of east Asia. Applied Materials and DuPont will not bring their labs back to the USA, as a result of any Tea Party intervention.
The USA today is a financial economy outside of the Guns 'n Butter govt sectors. The 1995-2000 Telcom/IT build out was the final phase of the development/tech economy, since its subsequent decline was replaced by Greenspan's housing bubble. Today's its mainly oriented around non-tradable goods and services outside of Vermont's Cheese and Ice Cream industries. Thus, you'll know where to find me during the end of days.
The end result, unfortunately, will be that if the govt can't successfully absorb, directly or indirectly, a vast majority of workers outside of the finance/trading sectors, even at reduced pay rates, then we will be a 3rd world society in short order. I am almost certain of this as up and coming Wall St darlings, see Telsa Cars, etc, are feel good stories but in the end are either scams or will end up in Asia, like much of our consumer electronics of the 80s & 90s.
I see a stratified society down the road...
The financiers, traders, and brokers (or 5% of the population) own everything and make money from the global movements of capital and resources.
The next 5-10% of those working for Ben & Jerry's, Wisconsin Cheese and Ginseng producers, Gorton Fish sticks, Napa Valley Wines/Coors-Sam Adams beers, etc. These are niche markets and are export oriented. This is the only place where the US is somewhat competitive, albeit in a non-tech way.
The govt employees (now add in the health care sector which will be nationalized) the next 50-60%.
And finally, the havenots, the ones not employed by the above, many of whom will also be in correctional facilities. If these folks aren't on some social assistance then they'll be a massive rise in gang violence and organized crime, countrywide. |
|
| Back to top |
|
|
mpr
Joined: 06 Jun 2009
Posts: 344
|
| Posted: Sun Jul 04, 2010 2:02 pm GMT Post subject: |
|
|
| CC wrote: | | I don't think Tea Party participates want the government to "reward the values of the hard-working and punish the failure of the irresponsible", they don't want the government to be involved in ANY rewarding or punishing interferences! |
Sure they do. Cutting taxes and spending obviously rewards some people,
while punishing others. Rewardng doesn't have to mean giving a hand
out.
On a different note, my impression is that most Tea Partiers are not
against social security, for example (of course some of them dont realize
this is a govt program). They are just not in favor of programs which
help other (unworthy) people. I guess this is human nature, but it takes
special talent to be that blatant about it. |
|
| Back to top |
|
|
CC
Guest
|
| Posted: Sun Jul 04, 2010 8:23 pm GMT Post subject: |
|
|
| Of course, cutting or increasing taxes and spending certainly "effect" some people, but the main point is we can't afford a big government like the one we have today. The government's increasing power and its spending is out of control for years or decades under the Democratic and the Republic Parties. Why would anyone support a government which will tax our future so much and spend the money we can't afford? |
|
| Back to top |
|
|
mpr
Joined: 06 Jun 2009
Posts: 344
|
| Posted: Sun Jul 04, 2010 9:38 pm GMT Post subject: |
|
|
| CC wrote: | | Why would anyone support a government which will tax our future so much and spend the money we can't afford? |
Because they actually understood how a modern economy using a fiat
currency works. |
|
| Back to top |
|
|
CC
Guest
|
| Posted: Mon Jul 05, 2010 3:40 am GMT Post subject: |
|
|
| mpr wrote: | | CC wrote: | | Why would anyone support a government which will tax our future so much and spend the money we can't afford? |
Because they actually understood how a modern economy using a fiat
currency works. |
Seriously, where did you get your degree from? |
|
| Back to top |
|
|
GenXer
Joined: 20 Feb 2009
Posts: 703
|
| Posted: Mon Jul 05, 2010 5:20 pm GMT Post subject: |
|
|
| They have no clue about how something as complex as our economy works. They are just along for the ride. They wear suits so that people believe them, but nobody with a Harvard MBA will be able to run an economy better than a cab driver. In fact, a cab driver may have a lot more common sense than a Harvard MBA, who never ran anything like a business in his life. The proof is in front of us - our economy, which is being ruined by Harvard MBA types. I think that more common-sense stone age (or Biblical) principals would do a lot of people and countries a lot of good. Innovation in the financial world actually cost us a lot more than it gave us in terms of wealth, in large part due to the fact that governments grow without bounds, eventually consuming the entire economy of the country (England, Ireland are great examples - over 50% of the GDP comes from government spending). Wouldn't want to live in either one of those countries, as they are on borrowed time, and can't spend any more. Why? Because government never creates jobs. Governments can produce 100% of the GDP, but the only way a country like that continues to survive is by cutting spending. Our government thinks that they can spend, since we are still not close to having 50% of the GDP come from government spending. Well, I have news for you. Once it does, cuts will be necessary, and much bigger cuts than are made right now in Europe. And this is where s*t will hit the fan. |
|
| Back to top |
|
|
Boston ITer
Joined: 11 Jan 2010
Posts: 269
|
| Posted: Tue Jul 06, 2010 1:18 pm GMT Post subject: |
|
|
| Quote: | | The proof is in front of us - our economy, which is being ruined by Harvard MBA types. |
GenX, I think even among the academic types, the Harvard-Wharton-Stanford B-schools are networking and recruiting centers for financial and management consulting firms with a *wink wink* towards technology, innovation, and entrepreneurship.
This is no surprise as some professionals, after getting their feet wet, opt for these programs to be a part of an old or a slightly newer boys & girls club to get an executive position. I sort of see it as a mostly out in the open secret but with a cloak of group think which makes 'em see themselves as contributors to society. The idea being is that if McKinsey (management consulting), Lazard (private equity), and Goldman Sachs (banking/HF) are led by this crowd then they've got to be doing something right.
Now, the problem is that finance and management consulting are key main elite career tracks for those Americans who aren't premed or prelaw so it naturally generates a pressure to get into these fields because w/o which, one's on a path of downward mobility since many other jobs could be easily outsourced esp in technology. |
|
| Back to top |
|
|
|
|
You can post new topics in this forum
You can reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum
|
Forum posts are owned by the original posters.
Forum boards are Copyright 2005 - present, bostonbubble.com.
Privacy policy in effect.
Powered by phpBB © 2001, 2005 phpBB Group
|
FAQ
Search
Memberlist
Usergroups
Register
Profile
Log in to check your private messages
Log in
