On 10/04/2010 7:35 PM, nom=de=plume wrote:
wrote in message
...
On Apr 10, 4:53 pm, wrote:
On Sat, 10 Apr 2010 19:27:04 -0400, wrote:
larry kudlow, a far right wing fundamentalist christian who writes for
'national review' admits the economy is booming and that we may be
looking at rapid growth:

http://article.nationalreview.com/43...m-is-coming/la...

Kudlow is Jewish who converted to Roman Catholism in 1996.

Hardly a far right wing fundamentalist Christian.

He's also been wrong more than he has been right.

If you voted for Obama and are unemployed, you deserve to be. SUCKER.


Because the recession, the worst downturn since the Great Depression started
under Bush. Got it.

It started long before Bush Jr. took office actually. Lets skip the
name calling for a minute as it maters little at this point.

This depression is about debt. Too much debt and much of it going
delinquent. How did this occur? Why did it occur? Why are not
politicians (any party) dealing with the causes?

Now ever well engineered system has checks and balances. In 1980 when
interest rates skyrocketed it was a check saying too much debt and rose
to discourage more debt and an incentive to pay off debt. In time the
rates came right back down preventing run-away debt.

In 1980 the high interest rates also gave the banks the cash flow to
absorb the delinquent debt. High rates also kept real estate prices in
check to stabilize inflation. The high rates had a real purpose and
served well.

Trouble is congress being a big debtor didn't like so much money going
to debt services. Hell, any addicted to debt type knows they don't want
high rates. So congress tweeked the banking to allow more leverage,
removing much of the check that creates higher rates when too much debt
is out. This allowed rampant debt growth without regard to sanity.

Over time this created a huge valuation bubble in debt and real-estate.
But like any system not in proper check, it breaks. And in 2007 it
broke when ponzi debt became defunct. Since about September 2008 even
DC can't borrow money, relying on the US Fed to create almost 100% of
its debt needs.

And worse, the problem isn't fixed. It is still very out there.

--
The Liberal way, take no responsibility.