confidence is collapsing??

george · Aug 21, 2011

guys i was reading some news at e-journal and i read this
"What the Philly Fed index does show ? along with the selloff on Wall Street, the rally in gold and bond markets, and the gloomy mood on Main Street ? is that faith in the markets and in the economy and in politics have been shaken.

Once confidence is lost, it is not easily regained. And confidence is what we need before we?ll invest in the future.

The world could sure use a leader right now, but whom do you trust to lead us back to prosperity? A technocrat? A prophet? A salesman? Maybe each other"

please share your opinions about this

dabdab · Nov 13, 2011

it is a matter of economic policy it doesn't matter if it was a social economic policy like Sweden . Or a capitalist policy like south korea .all you must do to go back to prosperity is to go back to investing in people and businesses that produce real goods and services . Not in businesses that produce buble and ponzi scheme - product called collateralized debt obligations and sub prime mortgages . in short : close wall street and follow Henry Ford vision .

David · Nov 13, 2011

dabdab said:
it is a matter of economic policy it doesn't matter if it was a social economic policy like Sweden . Or a capitalist policy like south korea .all you must do to go back to prosperity is to go back to investing in people and businesses that produce real goods and services . Not in businesses that produce buble and ponzi scheme - product called collateralized debt obligations and sub prime mortgages . in short : close wall street and follow Henry Ford vision .

I'll take capitalism over fascism any day, thanks.

dabdab · Nov 13, 2011

it doesn't matter "the colour of cat doesn't matter as long as it catches the mice"

myp · Nov 13, 2011

dabdab said:
it is a matter of economic policy it doesn't matter if it was a social economic policy like Sweden . Or a capitalist policy like south korea .all you must do to go back to prosperity is to go back to investing in people and businesses that produce real goods and services . Not in businesses that produce buble and ponzi scheme - product called collateralized debt obligations and sub prime mortgages . in short : close wall street and follow Henry Ford vision .

I suggest you read a bit more about the price mechanism and how it works. Also more about Sweden's economic system too

dabdab · Nov 13, 2011

myp : can you clarify ?

myp · Nov 13, 2011

dabdab said:
myp : can you clarify ?

I suggest you do some more reading on those topics because I feel you are misled. To give you a quick few points on how:
-"Investing" in people/productivity happens naturally through the price mechanism feedback system.
-Sweden is a mixed market economy. Just like most countries.
-Bubbles can happen and will happen either way. Arguably more so with government. The recent crisis was largely the work of government too.

dabdab · Nov 13, 2011

myp said:
I suggest you do some more reading on those topics because I feel you are misled. To give you a quick few points on how:
-"Investing" in people/productivity happens naturally through the price mechanism feedback system.
-Sweden is a mixed market economy. Just like most countries.
-Bubbles can happen and will happen either way. Arguably more so with government. The recent crisis was largely the work of government too.

- it did not happen in Sweden it happened in the USA.
- the bubble did not happen because of any body other than the lending banks creating the so called sub prime mortgages , only to sell it to investment banks , who create a bonzi scheme-like product called collateralized debt obligations that exploded in there face and took the hole economy with it .
-"Investing" in people/productivity never happens naturally through the price mechanism feedback system . it happen only in goods that are flexible and have alternatives . but when population no longer can afford education and no alternatives you have to import talents from or export the jobs to other countries .and you will contenue to grow poverty .
- yes the government is guilty of providing wall street with near 0 interest rate gambling money and it is guilty of bailing those crocks in wall street with main street money .

myp · Nov 13, 2011

dabdab said:
- it did not happen in Sweden it happened in the USA.

What is your point?

dabdab said:
- the bubble did not happen because of any body other than the lending banks creating the so called sub prime mortgages , only to sell it to investment banks , who create a bonzi scheme-like product called collateralized debt obligations that exploded in there face and took the hole economy with it .

The government backed a lot of the mortgages which is why they took on so much risk. The Fed also allowed them to leverage as much as they did.

dabdab said:
-"Investing" in people/productivity never happens naturally through the price mechanism feedback system . it happen only in goods that are flexible and have alternatives . but when population no longer can afford education and no alternatives you have to import talents from or export the jobs to other countries .and you will contenue to grow poverty .

You throw out a lot of ideas here, but you clearly do not understand the feedback system of the price mechanism. Either way, historically the market has been a lot better at allocating resources than governments have (because the price mechanism is so powerful and governments can't come close to processing the information it does). I mean even Sweden still relies significantly on the market as a mixed economy. And are you really going to deny that the industrial revolutions in the private sector and other comparable progresses in the past did not result or stem from investment in production? Please do some reading on it, I really can't explain it all here due to lack of time.

As for education being expensive, that too is arguably the result of government backing.

Oh and the US is still one of the richest nations in the world.

dabdab said:
- yes the government is guilty of providing wall street with near 0 interest rate gambling money

If you see government played a role then how are you just automatically blaming the market?

dabdab · Nov 13, 2011

what did not happen in Sweden is the financial melt down that happen in wall street .
the markets I'm critical of mainly is the financial market and its creation of so called sub prime mortgages and it's creation of bonzi scheme-like product called collateralized debt obligations . and all that has no thing to do with the government government backing it has a lot to do with deregulating this market yes .
AS for industrial revolutions in the private sector and other comparable progresses in the past and wither or not they did result or stem from investment in production
for a start the investment in production of goods and service is what I'm after , I'm only against bonzi scheme -like product regardless of who is doing either of them and historically if we are talking about the USA it was done by both government and some privete sector , Xerox PARC comes in mind and ge used to tran the engeneers they need in house from secondary school gaduates . but FDR and Corps of Engineers efforts and the G.I. Bill cant be eclipsed by private sector and later on nasa and the military did a lot of R&D and , Al Ghore invented the internet according to the media or helped on that according to hem .
As for understanding the feedback system of the price mechanism. it would be helpfull if you can point to a tutorial link , and I'll try to google it later on . but the only people whom ifound talking about this mechanism are those who say that they follow the austrian economic school . bat I can't see them in real life .