The Dow Jones and Standard & Poor’s 500 indexes reached record highs on Thursday, having completely erased the losses since the stock market’s last peak, in 2007. But instead of cheering, we should be very afraid. Over the last 13 years, the stock market has twice crashed and touched off a recession: American households lost $5 trillion in the 2000 dot-com bust and more than $7 trillion in the 2007 housing crash. Sooner or later — within a few years, I predict — this latest Wall Street bubble, inflated by an egregious flood of phony money from the Federal
Comments: Wow...Stockman takes a swing at every president but Ike...would be great to see how LDotters who know economics/finance dissect this...
Basically, we need a flat tax, which would spur growth, and get the Congress out of the business of selling tax breaks for campaign money. Good for starters. Then we could pull our military out of Europe and let the Eurpeans push back against Russian ambitions. Ease up on the rampant regulations (repeal Obama Care), balance the budget, and slowly reduce the debt. Social Security and Medicare would have to be tweaked mildly.
Within a few years? More like within 12-18 months.
The markets are not well understood by most. They are not driven by the economy. They are driven by fear. The bottoms in markets are caused by the fear of losing everything (and ironically, they are the best times to buy) and the tops are caused by the fear of missing the boat - what we are likely seeing now.
The ´top´ will take months to take shape, at which point those who bought at the bottom will slowly unwind their 100% gains into the hands of the retail investors who will once again, as they have so often done in the past, end up buying the top. 18-20 months later they will give up on it all over again, just as they did in early 2009.
The markets are purely driven by human nature. Presidents have little to do with it.
#2 has just about got it! If our candidates for House and Senate in 2014 adopted this and answered any question on any topic with this basic litany, we´ll wind up with a super majority. Gotta add a specific rationale for closing some departments and agencies and get a wonk to put zero based budgeting as a starting point for each remaining domestic agency into layman´s terms...wouldn´t hurt to add severe cutbacks in the use of the "full faith and credit" guarantees either, like FNMA, OPIC, Ex-Im Bank, etc. #3, isn´t Stockman really referring to the Fed policies and the chairs the presidents appoint?
#4, the majority of the replies could simply be the constitution doesn´t authorize it. And when the smarmy libtard medidiot makes most any comment, say rule of law means if you want to do it then you have to pass an amendment, not ignore the constitution.
"FTA: The Great Fear — manifested by the stock market plunge when the House voted down the TARP bailout before caving and passing it — was purely another Wall Street concoction. Had President Bush and his Goldman Sachs adviser (a k a Treasury Secretary) Henry M. Paulson Jr. stood firm, the crisis would have burned out on its own and meted out to speculators the losses they so richly deserved. The Main Street banking system was never in serious jeopardy, ATMs were not going dark and the money market industry was not imploding."
BINGO!! The beauty of free markets is that they correct themselves. There was no need for TARP. Unless of course you´re a politician looking to take care of your donors.
I was with Stockman´s until he said to get out of the stock market and into cash. What good will useless paper be in a worldwide depression? Gold and silver are great until you need to spend it, and have to get change. Face it, we´re screwed.
I share Mr Stockman´s sense of gloom and doom, but I don´t agree with his class warfare rhetoric, including the 99% vs the 1% notion. He is exactly right to lay the blame on government intrusion into the free markets and to say that Keynesian economics is to blame for much of our ills, but he doesn´t lay enough blame on the welfare state and the steep slide we´ve made towards socialism, starting with FDR, proceding stealthily for 70 years, and now getting hopped up on steroids with Obama at the helm.
I´m glad to hear him say cash is king, because I went almost 100% cash before the election last year. But I still fear hyper-inflation and what makes anyone think the green back is a good place to have your money, especially after Stockman spent most of his treatise slamming the counterfeiting of greenbacks as an enormous part of our problem.
I don´t own gold, but it almost seems like gold would be the place to be when the world curencies assume their proper value - that of paper, and not even toilet paper.
´´If my people, which are called by my name, shall humble themselves, and pray, and seek my face, and turn from their wicked ways; then will I hear from heaven, and will forgive their sin, and will heal their land.´´ II Chronicles 7:14
First, this is not the "NYT" speaking. It is David Stockman promoting a new book where, unsurprisingly, he is the hero. Secondly, if you search "Sundown in America" you find this essay has provoked outrage...on the right. Stockman was a doctrinaire "Supply Sider" during his Reagan tenure and is now very unpopular with many in the economics field and the financial industry. It was under his tenure with Reagan that the current dilemma of larger and larger annual deficits began. Notice how he only mildly rebukes Obama who is running up $1+ trillion deficits/year and saves almost all his scorn for other economists, focusing on Bernanke and including even, God help us, Milton Friedman. David Stockman is not remotely as smart as Milton Friedman. I agree America is in very, very bad shape financially but listening to Stockman trying to settle old scores is not productive. Here is an example of the criticism:http://finance.yahoo.com/news/david-stockman-writes-huge-unhinged-170523835.html
I don´t agree with Stockman on the stock market. The p/e multiples of stocks are not too high - around 14. Historically they have gotten up to the low 20s. I think corporate balance sheets are MUCH safer than any government I know of. If companies have too much Obamacare cost, or the US raises the cost to do business in the US too much, they´ll just cut back on US labor and/or US operations. Outsource it. If US taxes get too high and you sell your product around the world - like Coca Cola, you just move your corporate HQ offshore or defer bringing profits back to the US.
Stockmans selling a book. We have to unshackle the private sector. Less government, lower taxes. We need to radically alter the healthcare industry. Get government out, stop allowing the hospital industry to dictate policy.
We are witnessing the destruction of the middle class. Very few small investors in the stock market anymore... most already lost it all.
I read about gold, silver & other precious metals being intentionally depressed, to improve the performance of the $$ & the stock market.
The stock market knows business is holding onto boatloads of profits, waiting to see what damage Obama´s regulations & EO´s will do.
The killer in the mix is losing the dollar as the ww index because once that happens, the fed no longer can print useless money. The Anti-NWO Alliance met last week & agreed to establish their own monetary index & IMF. This is China, Russia, India, Brazil & others... maybe the new Korea & Japan...
So... ever since the NWO Progressives partnered with The Muslim Brotherhood to run Africa for them, the Anti-NWO Alliance was formed. If Cananda & the UK remain neutral, who doe the NWO have? The EU & the US... Oh... and the Muslim Brotherhood.
WW3 will probably be a very quick win for Anti-NWO Alliance.
In my search for the truth about how much ObamaCare will increase how many Americans’ health insurance premiums I came upon a frightening map of the United States that projected what the percentage hikes would be state by state for people with individual coverage. The projections, prepared by the Society of Actuaries in March, 2013 predicted some pretty outrageous premium increases for people with individual coverage in the likes of California (62%), Alabama (60%), Texas (34%) and Arizona (41%). Only in New York, Massachusetts and New Jersey would the premiums decline slightly for people with individual coverage, a segment of
For many Republicans, the most frustrating aspect of the government shutdown that lasted from Oct. 1 to Oct. 16 wasn´t that it was a fight that couldn´t really be won. Nor was it that the Republican Party took almost all the blame, even though President Obama and congressional Democrats were just as intransigent as Tea Party conservatives. (Snip) Only three weeks ago, the liberal commentariat —joined by some hand-wringing Republicans—proclaimed the death of Tea Party, but not before it had stampeded the GOP over the precipice of extremism. Yet, in our fast-moving world, the government shutdown of 2013 already
President Obama made an emphatic plea for Congress to pass the Employment Non-Discrimination Act (ENDA) in an article published by Huffington Post on Sunday. The legislation would make it illegal to fire people because of their gender identity or sexual orientation. “Millions of LGBT Americans go to work every day fearing that, without any warning, they could lose their jobs,” Obama wrote. “It’s offensive. It’s wrong. And it needs to stop, because in the United States of America, who you are and who you love should never be a fireable offense.” Obama further pointed out that a majority of Fortune
Washington — A year after his reelection triumph, President Obama is facing an awkward question from friends and foes alike: Why can´t he run the government as well as he ran his campaign? What with the IRS targeting of tea party groups; the poor security at the U.S. mission in Benghazi, Libya; the eavesdropping on close allies; and the botched rollout of the landmark healthcare law, Obama increasingly seems to be battling top-level management failures as much as policy or political problems. On each of these controversies, Obama has claimed ignorance before the fact and outrage afterward, leaving even some
Millions of people could qualify for federal subsidies that will pay the entire monthly cost of some health care plans being offered in the online marketplaces set up under President Obama’s health care law, a surprising figure that has not garnered much attention, in part because the zero-premium plans come with serious trade-offs. Three independent estimates by Wall Street analysts and a consulting firm say up to seven million people could qualify for the plans, but federal officials and insurers are reluctant to push them too hard because they are concerned about encouraging people to sign up for something that
Former foreign minister Avigdor Liberman has hit back strongly against an announcement by South African International Relations Minister Maite Nkoana-Mashabane of a moratorium on government visits to Israel, accusing the country of hypocrisy and fostering anti-Semitism, and urging South African Jews to come to Israel. “The comments by the South African foreign minister at the weekend, that South African government ministers will no longer visit Israel as an expression of solidarity with the Palestinians, are a combination of hypocrisy and classic anti-Semitism,”
The Republican professional political class increasingly views Chris Christie, who is on the verge of a sweeping reelection victory on Tuesday in the Democratic-friendly state of New Jersey, as its best — and maybe only — hope to win back the White House in 2016. Here’s how one plugged-in Republican consultant responded when asked how we should rank the current 2016 field: “Christie is in the [one] slot now and forevermore — he’s about to get huge margins in his historic reelection in a blue state — he’s the successful model for our party (from a political perspective) and his
Sen. Dianne Feinstein says the shooting at the Los Angeles International Airport underscores the need for an assault weapons ban and greater gun control measures. Appearing on CBS´s "Face the Nation" Sunday, Feinstein paid tribute to fallen TSA officer Gerardo Hernandez, the first TSA employee to die in the line of duty, then turned her attention to guns. A strong supporter of an assault weapons ban, the California Democrat said, “the weapon was a .223 MP-15, where the MP stands for military and police, clearly designed not for general consumption … Same gun that was used at
Lowering expectations, White House senior adviser Dan Pfeiffer this morning said on “This Week” that the first Obamacare enrollment numbers would not be as high as the administration would like. “I can promise you that the first enrollment numbers which will be released later this month are not going to be what we want them to be. There’s no question about that,” Pfeiffer said. “The website hasn’t worked the way we want it to work. But we take responsibility for that, we take responsibility for the errors, we take responsibility for fixing it. And if we get that website working
A slew of media organizations have petitioned the government to release ObamaCare data that the White House has refused to make public. CNN, ABC, MSNBC and others have filed Freedom of Information Act (FOIA) seeking information on the beleaguered healthcare.gov website. They have also asked for government documents revealing how many people have enrolled in the new healthcare exchanges. Journalists have repeatedly pressed the White House and the Department of Health and Human Services (HHS) for the enrollment data, but the administration says it won´t do so until mid-November. Republicans have noted that President Obama has dropped hints he is
Washington-Echoing her Republican colleagues in the Senate, Sen. Kelly Ayotte said Sunday that the entire country needs to slam the brakes on implementing the Affordable Care Act and re-evaluate President Barack Obama´s signature health care law. "It´s time to call a timeout," Ayotte told CNN´s Candy Crowley on "State of the Union." Calling the rollout of the federal health exchange a singular "mess," the New Hampshire Republican said the problems with the law run far deeper than the headline-generating failures with the HealthCare.gov website. (Snip) "My constituents are writing me,
In the Oct. 28 Daily Times, Cathy Keim wrote an excellent column expressing concerns about ObamaCare, the Affordable Care Act, possibly being purposely designed to fail. Why? In order to replace it with a single-payer system. Certainly the idea is not far-fetched, stated both by several congressional Democrats prior to its passage and in recent writings by, among others, columnist Robert Reich. ObamaCare has already given us largely socialized medicine, with government controlling almost every segment of the health care industry. But single-payer is a euphemism for total socialized medicine, with the government being the only provider and controller of
President Barack Obama´s approval ratings have dipped to a record low in another poll — this time from Quinnipiac University. According to the poll, respondents disapprove of Obama´s job performance by a 54-39 margin. His approval rating of 39% is worse than his previous all-time low of 41% in the Quinnipiac survey, which came after a bruising fight over raising the nation´s debt ceiling in 2011. And for the first time ever, most people (52%) say that Obama is not honest and trustworthy. Only 44% say that he is honest and trustworthy. The only individual issue on which Obama scores
Washington: A woman, who claims to have been a classmate of Barack Obama, said that the president was gay and used cocaine in school. In a bizarre interview, Mia Marie Pope told right-wing preacher James David Manning that she believes Obama was not only active within the gay community, but also a heavy cocaine user during his years in Hawaii. Pope said that Obama always portrayed himself as a foreign student, adding that girls were never anything that he ever was interested in, but he would get along with older white gay men. She added that Obama at that time was also
Amazing stuff via Mediaite. The “Keep Your Plan Act” is Fred Upton’s bill, which Jay Carney spent a few minutes attacking at today’s press briefing because it would make canceled plans available to all consumers, not just the ones who’d been enrolled in those plans before. That would be a disaster for the insurance industry. Healthy people would flee the new, more expensive plans for the resurrected cheaper ones, leaving no one in the new risk pool except sick people with very expensive treatments. That means either heavy losses for insurers, steep premium hikes next year to make up the
Sen. Kay Hagan (D-N.C.) will ask two oversight agencies for a full-blown investigation into the problems surrounding the ObamaCare launch. Hagan, who is up for reelection in 2014, is asking her Senate colleagues to co-sign a letter asking two agencies to conduct “a complete, thorough investigation to determine the causes of the design and implementation failures of HealthCare.Gov.” “These problems are simply unacceptable, and Americans deserve answers and swift solutions,” Hagan writes in a letter obtained by The Hill. “Taxpayers are owed a full and transparent accounting of how the vendors contracted to build the site failed to launch it
Swampscott, Massachusetts Selectman Barry Greenfield is pushing a measure to give police the authority to conduct home searches to check proper storage of firearms. Greenfield said "state law requires Massachusetts gun owners to keep their firearms locked away or rendered inoperable." There are "600 registered gun owners in [Swampscott]," and the selectman wants police to be able to drop in unannounced, enter the homes of each gun owner, and verify compliance. According to the Swampscott Patch, Greenfield has spoken with Swampscott Police Chief Ron Madigan about this issue, and has spoken with other selectmen. At least one of the selectmen-
WASHINGTON — While the country is immersed in Obamacare headlines and a congressional tussle over delays and mandates, the Obama administration is stealthily moving toward unprecedented control over private property under a massive expansion of the Environmental Protection Agency’s Clean Water Act authority. The proposed rule, obtained by the House Science, Space, and Technology Committee in advance of EPA Administrator Gina McCarthy’s testimony at a Thursday oversight hearing, widely broadens the definition of waterways over which the federal government has jurisdiction to as little as a water ditch in a backyard. The Clean Water Act redefinition of “waters of the United States”
Those sophisticates at Time magazine made a funny. They put Chris Christie on their cover with the headline, "The Elephant in the Room." Get it? Elephant. Christie. Time magazine did a junior high fat joke right there on its cover. Time´s executive editor Michael Duffy explained the cheap shot this way: "Well, he´s obviously a big guy. He´s obviously a big Republican. But he´s also done a really huge thing here this week." The "huge thing" wasn´t only winning re-election as New Jersey´s governor, but doing it by appealing to a broad range of voters in a very blue state
Fourteen years ago, I was asked to be a keynote speaker at the Richmond County Women´s Republican Club annual dinner. I had started my column at the Staten Island Advance the year before, and as an Hispanic who had grown up in Spanish Harlem, many Republicans were surprised that I was a conservative. It was my first speaking engagement and one I accepted reluctantly, but I felt that it was an opportunity to offer some advice to the Republican Party about winning over the voters in the barrios and the inner city.
Last week, the media went apoplectic after a 60 Minutes report on the terrorist attacks in Benghazi, Libya on September 11, 2012, turned out to be mistaken. Much of the report was based on the testimony of one Dylan Davies, a security contractor who said that he had climbed over the wall of the consulate in Benghazi and seen the body of Ambassador Chris Stevens. It turned out that Davies was lying, and 60 Minutes was fooled. Media Matters, which uncovered the lie, promptly declared victory in its war on behalf of former Secretary of State Hillary Clinton, with founder David
Protesting and getting arrested for civil disobedience wasn’t enough to move the needle on immigration, so activists announced Tuesday they are beginning a hunger fast to try to pressure Congress to pass a bill legalizing illegal immigrants. Saying they’ve done all they can to try to shift the political debate, the activists said the only option left is to pray and fast. “It is being blocked, and the political commentators will tell you it would be a miracle — that’s what they say — a miracle for immigration reform to pass. Sometimes you can organize and struggle and march as hard as
Naderev "Yeb" Sano, representative for the Philippines at the UN Climate Change talks, broke down in tears as he addressed delegates in Warsaw. Mr Sano, whose family is from Tacloban--one of the worst hit areas--announced that he was going on hunger strike until "a meaningful outcome is in sight". Representatives from 190 nations have gathered in Poland to try and thrash out a new pact to fight global warming. "What my country is going through as a result of this extreme climate event is madness. "We can fix this. We can stop this madness. Right now, right here," Mr Sano
President Barack Obama issued a statement yesterday congratulating Hawaii for legalizing same-sex marriage, a move he said "exemplifies the values we hold dear as a nation." "I want to congratulate the Hawaii State Legislature on passing legislation in support of marriage equality," said Obama. "With today’s vote, Hawaii joins a growing number of states that recognize that our gay and lesbian brothers and sisters should be treated fairly and equally under the law. Whenever freedom and equality are affirmed, our country becomes stronger. By giving loving gay and lesbian couples the right to marry if they choose, Hawaii exemplifies the