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Thread: Inequality

  1. #1
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    Default Inequality

    The only economist to be canonized a saint was Saint Thomas Aquinas.
    He stated that while the distribution of wealth may appear to be unfair,
    it is the concentration of capital that provides economic growth through
    job creation.

    He also upheld that was equally immoral to steal from the wealthy to give
    to the poor and economically dangerous to do so as well. In effect, Russia
    adopted such a system with communism. By taking the wealth from wealthy
    people, it destroyed progress and guaranteed economic collapse.

    My note: these are some of my old notes. I believe they are from a speech
    of Martin Armstrong at Princeton Economic Institute, October 1998.


    My second note: in my opinion, he might be right if he referred to wealthy
    entrepreneurs, who created businesses and jobs. Question marks appear
    though when the wealth was accumulated through ill gotten gains, like
    money laundering...or other dishonest means.

  2. #2

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    Rich bureaucrats, lawyers that make laws (politicians/lobbyist )and bankers of fiat seems to be where communisim gets It's footings.
    Small business is the incubator of employment. As it declines, so too do opportunities for first jobs, second chances and economic independence.

  3. #3
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    Quote Originally Posted by oak333 View Post
    The only economist to be canonized a saint was Saint Thomas Aquinas.
    He stated that while the distribution of wealth may appear to be unfair,
    it is the concentration of capital that provides economic growth through
    job creation.

    He also upheld that was equally immoral to steal from the wealthy to give
    to the poor and economically dangerous to do so as well. In effect, Russia
    adopted such a system with communism. By taking the wealth from wealthy
    people, it destroyed progress and guaranteed economic collapse.

    My note: these are some of my old notes. I believe they are from a speech
    of Martin Armstrong at Princeton Economic Institute, October 1998.


    My second note: in my opinion, he might be right if he referred to wealthy
    entrepreneurs, who created businesses and jobs. Question marks appear
    though when the wealth was accumulated through ill gotten gains, like
    money laundering...or other dishonest means.
    Do you mean like TARP?
    Who are the righteous? ....Markpti

    What value did Burisma think to gain by hiring Hunter Biden as a Board member vs ALL other choices?

    Those who cannot articulate the other argument do not fully understand their own argument.

    "Much can be done by wise legislation and by resolute enforcement of the law. But still much more must be done
    by steady training of the individual - in conscience and character...." .......T. Roosevelt

  4. #4
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    I have really never understood how the government and financial
    regulatory agencies have not seen coming the subprime mortgage
    crisis. It was so obvious.

    TARP was the remedy of the crisis. How could the financial system
    of USA not see that huge crisis coming ? Beats me.

  5. #5

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    Quote Originally Posted by Markpti View Post
    Do you mean like TARP?
    I don't get the beef with TARP. It was a temporary measure to shore up balance sheets given liquidity was non-existent. This temporary liquidity was paid back in full plus MORE to the govt.

    Inequality is a problem if the divergence gets too great or certain cohorts of society continually outpace others, but I don't think TARP is really a relevant data point in the conversation, particularly given our economic performance post 2008 relative to other regions like Europe that took a more austere approach and have paid for it via lower growth for everyone.

    AIG and the auto companies however are a different story, but I again don't really see them a material precipitator of inequality.
    Last edited by Ryanferr; 02-16-2019 at 11:06 PM.
    The answers are in the data

  6. #6
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    Quote Originally Posted by oak333 View Post
    I have really never understood how the government and financial
    regulatory agencies have not seen coming the subprime mortgage
    crisis. It was so obvious.

    TARP was the remedy of the crisis. How could the financial system
    of USA not see that huge crisis coming ? Beats me.
    Low fed rates (post 2001) and the need to generate a growth engine (and wealth) to replace manufacturing which was lost to Japan. The Government saw housing investment as that replacement and did not care how it possibly could go out of control. All it took was to expand MBS beyond Fannie Mae and Freddie Mac and all that took was government guarantees of the private (banking) sector of those MBS's, backed by the Treasury and default swaps. The rest was history.

    There was a comedy made in the early 60s called "A Guide for the Married Man". In it is a scene where the wife catches the husband in bed with another woman. She shrieks and accuses him as he and his lady friend calmly make the bed and get dressed (all while the wife wails). The lady leaves and the man calmly turns to his wife and denies everything. With no apparent evidence and his constant denials, the wife soon begins to doubt herself and calms down. Now, she assumes nothing happened. Deny, deny, deny.
    Who are the righteous? ....Markpti

    What value did Burisma think to gain by hiring Hunter Biden as a Board member vs ALL other choices?

    Those who cannot articulate the other argument do not fully understand their own argument.

    "Much can be done by wise legislation and by resolute enforcement of the law. But still much more must be done
    by steady training of the individual - in conscience and character...." .......T. Roosevelt

  7. #7

    Default

    Probably lobbyists, health care industry/pharma, food industry, the largest, I can only guess bankers are close behind.

    Quote Originally Posted by oak333 View Post
    I have really never understood how the government and financial
    regulatory agencies have not seen coming the subprime mortgage
    crisis. It was so obvious.

    TARP was the remedy of the crisis. How could the financial system
    of USA not see that huge crisis coming ? Beats me.

  8. #8
    Join Date
    Jan 2010
    Posts
    13,312

    Default

    Quote Originally Posted by Ryanferr View Post
    I don't get the beef with TARP. It was a temporary measure to shore up balance sheets given liquidity was non-existent. This temporary liquidity was paid back in full plus MORE to the govt.

    Inequality is a problem if the divergence gets too great or certain cohorts of society continually outpace others, but I don't think TARP is really a relevant data point in the conversation, particularly given our economic performance post 2008 relative to other regions like Europe that took a more austere approach and have paid for it via lower growth for everyone.

    AIG and the auto companies however are a different story, but I again don't really see them a material precipitator of inequality.
    The problem is less with TARP ish ness than the moral hazard cover it offers risk. So not only was the contrivance of the low-interst carry-trade inequitable with risk, "bail-out" funds provided (also) without risk was just part of the accounting process of an overhyped, over-engineered financial game of "Monopoly" among those in the money printing game.

    The market crashed, naturally scaring the schitt out of millions of little guys who lost so much and rushed to salvage what they could. Scaring them from re-booting in equites as well. Cheap money by the fed to those with access rebooted the game, forcing pensions and IRA, etc into the only game in town.

    When "settlement" date comes, those in charge will recycle the same risk protection and the little guy will get it in the end again.

    I don't mind this scenario in a market that spreads risk and loss across the board. But it is "rigged" to favor driving the dynamism of the game itself.
    Who are the righteous? ....Markpti

    What value did Burisma think to gain by hiring Hunter Biden as a Board member vs ALL other choices?

    Those who cannot articulate the other argument do not fully understand their own argument.

    "Much can be done by wise legislation and by resolute enforcement of the law. But still much more must be done
    by steady training of the individual - in conscience and character...." .......T. Roosevelt

  9. #9

    Default

    Quote Originally Posted by oak333 View Post
    I have really never understood how the government and financial
    regulatory agencies have not seen coming the subprime mortgage
    crisis. It was so obvious.

    TARP was the remedy of the crisis. How could the financial system
    of USA not see that huge crisis coming ? Beats me.
    Beats everybody, that's why they want now a remake.
    They got it that finally the TARP and QE solutions were making more people rich than the original financial subprime bogus at the time...

    Golditiki2+++

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