tag:blogger.com,1999:blog-2761684730989137546.post2893977542358182850..comments2024-03-28T07:50:06.102-04:00Comments on Mike Norman Economics: Volker's remarks from a speech last week at Drew Universitymike normanhttp://www.blogger.com/profile/03296006882513340747noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-2761684730989137546.post-36106848367985151252008-11-26T23:49:00.000-05:002008-11-26T23:49:00.000-05:00Hi Mr Norman :Looks like you are in Schiff's b...Hi Mr Norman :<BR/><BR/>Looks like you are in Schiff's boat with only one foot :<BR/><BR/>I researched your blog and in June 2008 you presented evidence of your forward thinking yet your other shoe was not running to the hills and out of the U$D where Schiff bit the dust. <BR/><BR/>Instead you answer my question in the other comment of mine on this page :<BR/><BR/>Quote from Mike Norman blog August or June 2008 :<BR/><BR/><BR/>----------------------------------------------------------------------<BR/>> > 4) Most of us off wall street folks could get behind some form of > assistance for financial's if we heard more conversation> > about what would come after. Business as usual? Are the same people > already working on the next scam?> > Many wallstreet indians may be suffering but the chiefs who stole the > apples remain in place, or leave with more than> > enough booty to open up a new scam across the street.> > As for the point of B. Sterns goes down, I will feel it in my middle > class life..... I already do... Commodities went up,> > disrupting my life and business because money fled from financial's. It > had to go somewhere. I had to make dramatic> > adjustments.. Just tell me what will change on wall street and who will > change it.<BR/><BR/>ASSISTANCE IS NECESSARY BECAUSE OF THE SYSTEMIC RISKS THAT WE NOW FACE. IN THE FUTURE, GREATER REGULATION AND OVERSIGHT SHOULD PREVENT THESE EVENTS OR KEEP THEM TO A MINIMUM. AND, (DARE I SAY THIS), WE SHOULD RETHINK TAX POLICY THAT ENCOURAGES THIS TYPE OF SPECULATIVE EXCESS.<BR/><BR/>----------------------------------------------------------------------<BR/><BR/>seems like this is a generic answer that you would have said 2007 or 2008 or 2001 what have you.googleheimhttps://www.blogger.com/profile/14459089745473598235noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-18929404250004974452008-11-26T15:57:00.000-05:002008-11-26T15:57:00.000-05:00Mr NormanCan you please entertain my 20/20 hindsig...Mr Norman<BR/><BR/>Can you please entertain my 20/20 hindsight and tell what effect the following would have had and if it would have been positive :<BR/><BR/>1. China floated it's currency 3 years ago on the exchange so it could appreciate as such ?<BR/><BR/>2. Extra Special taxes on excessive leveraged instruments so that gov would have had some insight to what was going on ?<BR/><BR/>3. Boone Pickens' plan implemented 3 years ago such that 30% of US consumption of diesel on rig trucks diverted to nat gas with the big push to nonrenewables ?<BR/><BR/>4. Increased Spending especially foreign spending reduced and brought home with massive infrastructure renewal for bridges, environmental clean ups, roads, etc around 3 years ago ?<BR/><BR/>5. Minimum wage increased, tax cuts on middle class, tax increase on Warren Buffets, etc such that more money on the bottom to afford the houses that all the leverage was placed ?<BR/><BR/>6. Fine, liar loaners existed because of legislation - but what IF the leverage instrumentation was prohibited such that 30:1 leverage could not be allowed ( i.e. the amplification of the liar loans into commodities ) by wall street ? <BR/><BR/>When the subprime reared it's head in May 2007 Paulson was on radio and TV saying that the market would be able to clean that out and make the market stronger.<BR/><BR/>Would this process of cleaning up the subprimes had been more possible if there was no leverage allowed on backs of liar loans ( like if the ratings agencies rated the loans appropriately ) ?? <BR/><BR/>IF TRUE, that IF it had been prohibited that wall street could not make debt instruments of investment ( and the 30:1 leverage associated with it ) on the backs of liar loans say with real ratings, THEN it is not the fault of politicians for the legislation to get liar loaners in homes and the fault entirely is that of Wall Street and the leveraged instruments.<BR/><BR/>If there had been no leverage and amplification of the debt risk, then the legislation would not have been a big deal and truly the market would have cleaned itself up.googleheimhttps://www.blogger.com/profile/14459089745473598235noreply@blogger.com