“The rising debt burden will have some effect on growth.
But I'm more concerned about what happens to our financial sector

at the end of this, what's left of it.

I just don't know what's going to emerge

after the political system works it over.

I hope that we do not throw out
the baby with the bathwater.

If we rebuild a very statist and inefficient financial sector

—as I fear we will—

it's hard to imagine that growth won't suffer for years.”

this is a devils breakfast drink

by the swivel hipped

Rogue

late of what ?? the IMF??

and

now of harvard yard

i hope those with more time
then i

here

will fearlessly

separate the sour cream ivy tower

in it

from the wall street swill

Posted by js paine at 07:57 PM

“Was the financial crisis a fully rational response to a poorly structured environment, or is irrationality a fundamental characteristic of economic behavior? “
doc thoma

take out one loaded word ( “fully “)
and these two are perhaps not really

alternative rival mutually excluding paradigms

isn't market reality complex and contradictory enough
to maintain both simultaneously ???

can't agents themselves
manifest both from time to time

Posted by: paine | Link to comment | January 07, 2009 at 11:50 AM

paine says…
gee but ain't that hard to model ???

yup

par example
my hegelian soft ware project

circa lsd 69

never got off

its gedanken gantry

Posted by js paine at 07:54 PM

guy sez
lets give the corporates an investment tax incentive….

satire commences:

”..let's subsidize investment in manufacturing in China”
as you obviously know bruce w

effectively uncle is already doing just that
by allowing the great east asian dollar forex fiddle

to continue …into its 6 th decade

“…investing in manufacturing in the U.S. wouldn't be as profitable. But, manufacturing jobs in China will still “generate” service jobs in the U.S. selling the stuff and marketing the stuff, so we can still rationalize the subsidies. “

ya manu jobs in hanville are complimentary
to jobs at foreign parts wholesalers

not to mention

Wallmart uber alles

patrick's hat trick

“consumption has fallen of a cliff NOT because consumers are consuming less and saving more …”

just slowing their credit expansion
is increasing household… net saving

zillions of warm blooded american households
are still

“just butting up against their credit constraints “

“Why build a new factory when all the existing ones are closing ..”

exactly today's fun
is all about burial

of

existing norte americano production capacity

not building more for god's sake

varian just wants the big trans nats to get a tax brake
to build up their …..liquid reserves

“Investment tax credits or other subsidies for private-sector investment..”
won't work

the bastards aren't paying much now in corporate taxes

anyway

so they need cash back for past taxes

Posted by: paine | Link to comment | January 07, 2009 at 06:21 AM

paine says…
“provide an environment where private investment can hope to succeed because people with jobs will spend money”

the old accelerator

hat trick completed

————

single payer as macro thruster :

beezer add a med sec mark up
cap and trade system

to your single payer plan

and you got the full restructuring montee

“Through the expansion, even with corporate profits and savings at record or near record levels and profit growth far above the norm for expansions since 1945, even with repeated tax incentives, the growth of non-residential corporate investment was remarkably slow.”

anne as usual strikes a signifigant chord here

but fails to realize we don't invest in industry because
we import our marginal industrial products now

krug's numbers show nothing

the reason we don't have large investment in production here

is the better profit opportunity to build it in asia

our trans nats would rather use thier net cash flow
to buy and sell themselves and each other

why add production capacity in europe or north america
we already got too much…

unless the dolllar spirals down to where its more profitable to build here

then to buy there

Posted by: paine | Link to comment | January 07, 2009 at 11:23 AM

paine says…
“Isn't the answer that returns from physical investments were poorer than financial ones? “

not of the trolley this time alex bravo

Posted by: paine | Link to comment | January 07, 2009 at 11:25 AM

paine says…
“Anne, you miss the point competely. The issue is not U.S. investment in China. It is $500 billion in annual dollar purchases by the Chinese central bank.

This leads to … reduced investment in U.S. import-competing production….”

exactly correct

the imperial dollar must fall to 3 PRC rmb to 1 US dollar

however we have a full employment problem to solve first
and right up front

we need a wage earners rebate

of a trillion dollars per annum

until alls clear on the job markets

“dembos party of working america “

i tire of pub sec spending chitter
when recovery oughta preceed restructuring

dollar policy waits off stage as a big part of the
future

self sustaining big enough to earn its way in the world

clean lean green norte americano production machine

i'm certain the time will come…and soon
for a green production system

part of that will doubtless be clean machines

now not installed but required by greening goals

investment tax credits enter here n'est pas ???
“Competition from China is largely in terms of manufacturing that will not be done in America no matter whether done in China “

that line is pure poison

but i agree first things first

full employment before
re industrialization

the four r's

come in pairs

first
relief recovery

then

reform restructuring

Posted by js paine at 03:50 PM

farmer's job market
is expected profit driven

“To select an

equilibrium and close the model I introduce the idea that households form

beliefs about the future value of productive capital and I show that for any

sequence of self-fulfilling beliefs, less than a given bound, there exists a Keynesian

equilibrium”

hence improve profit expectations and ….

animal spirits in the board room drive prosperity

what a pusillanimous new world he brings us

Posted by js paine at 03:19 PM

i should end this scrap book of comments

now so repeat replete …

but until i can produce something

of novel substance ….

——————————

forget forex fiddles for now

the guns need to be trained on domestic solutions
to our ramapaging job slaughter

this spells fiscal thrusting effective demand
leakages be damned

pour it on till full employment is restored

and

shrewd class politics recommends to obama

hack wage earners payroll witholdings first…and big time

a trillion dollar give back now !!!!
“Finally, if fiscal stimulus and the Fed's zero interest rate policy mainly suck in imports, then the dollar will decline in response to the widening current account deficit”

really ???

u got the politbureau boys over there in people's china
on board here ???

better tactic

we can create full employment and sustain it
regardless of the size of import leaks

the international forex system hardly adjusts CAB's
with optimal speed

and in time this must be rectified

but for now

full fiscal thrusters till the beveridge ratio

is turned on its head

btw
our periods of high flow immigration

are the source of our national greatness

lady liberty welcomes the world

“There is a legitimate fear, I think, that immigration in the face of low rates of public investment and limits on natural resources, entails declining real wages and other congestion effects”

i agree

but we can and i submit ought
to figure out how to accomodate

roughly twice

the share of all the people on earth

than

our share of land area represents

Posted by: paine | Link to comment | December 31, 2008 at 11:56 AM

paine says…
“The New Deal occurred

in a period of low rate of immigration”

i can think of about 6 million euro-souls
we might have gainfully let in

toward the last couple years of that decade

ken

” I have this bridge in Brooklyn to sell your dumb ass”

no
i have bad credit sell it to uncle sam

he's got a dollar mine

———-

why confuse the politically possible
with the economically possible

politics by class
dictates one set of possibilities

the science of commodity production the other

here i try to talk about the scientific possiblity
that contradicts capitalist class interests

“Do you really see no danger in overextended U.S. borrowing? “

frankly no

my take we could handle four times the present public debt

so long as 10 trillion of that was transfered off the backs

of wage earning households

and we implement a serious wealth tax to fund the debt service

“I don't see anything in the models we use in economics to suggest that an optimally growing economy could not find an equilibrium point at a higher unemployment level (20% say).
…..the major reason an economy might find equilibrium at 20% unemployment would be shortage of some other key resource”

bruces are wild
gone loco

the only way a corporation based market economy
would settle down to 20% unemployment

is simple

growth itself for the mid term looks non profitable

ie depression conditions

the still largely unexplained story
of how such an economy

can become stagnant

with idle productive resources

….of any kind

hardly matters

in and of itself

especially
if the way back up to full employment is clear

Posted by js paine at 03:07 PM

js paine presents
will resurface

as a johnsoniam moral essayist

all posts exclusive to this site

Posted by pinky at 03:01 AM

pinky has plans for a brake thru
on cap firm based pricing models

stay tuned

Posted by pinky at 03:00 AM