More Active Posts
Front Page
Economic see-saw
 |
 24 Comments |
Oil prices fell sharply today—again. The stock market is on a surge. But inflation is on the rise, and food prices are higher than ever. The market is in a 6.0 Richter scale level flux. Opinion abounds on how to fix it, including doing nothing, but it might be that even the power of the United States government is no match for juggernaut market forces.
Light crude oil has dropped nearly $15 a barrel this week from its high of $147 last Friday. Despite the collapse of Fannie Mae and Freddy Mac, financial institutions issued positive reports, spurring a rapid recovery of Wall Street stocks. Wells Fargo, Washington Mutual, Bank of America, JPMorgan Chase, Wachovia, and Citigroup all were on the rise Wednesday morning.
Still, inflation reports this morning were bleak, up 5 percent on the year. And food prices continue to increase, up 1 percent in June after growing just 0.3 percent the month before. While a stronger stock market is encouraging news for the economy, most Americans feel the real effects in their wallet at the grocery store. Even if we haven’t hit a technical recession, doesn’t mean Americans the perception that we have isn’t real.
Politicians specialize in putting band-aids on these perceptions, and the recent round of federal regulations is a perfect example. Not wanting major banks to fail, the Fed has stepped in to prop up what amounts to a business failing because they did not operate well. While this would never be done for a failing hardware store, banks (and airlines, according to the government) are critical components of American infrastructure that must be supported.
Not all in Congress agree with the government’s recent decisions. Sen. Jim Bunning (R-KY) lashed out against the takeovers in a hearing Tuesday: “Giving the Fed more power is like giving the neighborhood kid who broke your window playing baseball in the street a bigger bat and thinking that will fix the problem. When I picked up my newspaper yesterday, I thought I woke up in France. But no, it turns out socialism is alive and well in America. The Treasury Secretary is asking for a blank check to buy as much Fannie and Freddie debt or equity as he wants.”
The politically hot nature of the economy is fast becoming central to the Presidential campaign. With talks of a troop withdraw from Iraq already in the works, the war on terror may take a back seat come August and September. No matter who wins, they will face an array of economic problems, from the continuing fallout of the mortgage crisis to high energy costs to inflationary concerns.
 |
Topic: Front Page, The Nation |  |
Email a friend |
 |
Keywords: economy, oil prices, recession |  |
RSS 2.0 |
 |
You can skip to the end and leave a response. Pinging is currently not allowed. |  |
Share this: |
Soul searching
. . . it might be that even the power of the United States government is no match for juggernaut market forces.
Fine. The U.S. government needs to stop meddling in most of these affairs, because the government tends to just screw up things even worse when it becomes involved.
After the 201K cartoon earlier this week, what a surprise I got when I opened a statement from Prudential and saw ZERO as the value of my account. Then I realized this was because I transferred the account from one Prudential group to another and this was the last statement.
Please don’t panic. Remember the IF poem: if you can keep your head while those are around you are losing theirs…..
I do wish the government wouldn’t constantly approve the purchase of smaller banks by bigger banks. It puts all the eggs in one basket, so to speak.
Look what a mess the Chrysler bail out was.
Look at what a success public education and Social Security have been.
Looking forward to hearing all of you weigh in onk the Fannie Mae Freddie Mac fiasco. Everyone knows who Ken Lay was, but who can name the CEOs of both of those quasi-govtal ripoff organizations? Can you tell me the salaries paid to those execs?
Prepare to be shocked
Ah! A bright spot in the economic darkness:
http://www.sheldoncomics.com/archive/080716.html
I fought the urge to gloat but lost so here’s a link
http://tinyurl.com/6omydq
While the rest of the world is affected, much of the economic problems facing America are facing America only. Compare Republican deregulation and plutocracy versus the so-called socialism of the EU the results seem to point to the viability of the latter’s management rather than the former’s lack of management.
BTW the Senator should wish he lived in France — their economy is better and they have a health care system that works.
HRW
Why don’t you move to one of those socialist countries?
Oh, I forgot…
Tell us again about how socialism works.
http://forums.military.com/eve/forums/a/tpc/f/409192893/m/6640081051001
I was wondering myself why HRW hasn’t moved to France, since he finds their economy and healthcare system so glowing.
Toronto to Quebec?
Outkast
Maybe the price is to high even for socialism.
Bob - great link and an interesting thread, it seems Canada’s health care brings better results for less money.
All of you have chosen to avoid my central point and instead comment on my nationality. The economic problems experienced in America are American made and an American phenomena. The rest of the world only seems to be in trouble in so far as their economic ties to the US create economic problems. The Senator from Kentucky rails against socialism and the EU yet their economy is in better shape hence I suggest he might learn something from their gov’t practises in this case as it relates to banking regulations.
As for Canada political ideology is irrelevant as is our health care (which does produce better results) since we are sitting on the second largest reserve of oil after the Saudis.
For what its worth I along with most socialist oppose gov’t bailouts to put it simply if the poor must pull themselves up by the bootstraps so then must the corporate world.
http://tinyurl.com/6rtwos
http://tinyurl.com/6h2l9r
I’m much rather be paying $4 — or even $6 — a gallon than what they pay for gas over in Europe.
We’re not trying to make fun of your nationality, HRW, but rather your political philosophy (socialism), which has failed wherever it’s been tried all over the world.
You all know, don’t you, that the “founder” of Canada’s single payer health system is now leaning toward free market solutions. He says the current system is in crisis.
In what way has the social democratic countries of Europe failed? In comparison to the current economic woes in America, how is Europe worse?
Using the Human Development Index, http://tinyurl.com/jkhug we can see that EU, Australia, Japan and Canada provide and maintain a n equal or better living standard than the US. Much of this is not due to ideologically motivated economics but pragmatic application of policies for the common good. Ironically, its the US adherence to neo-conservatism and an irrational fear of socialism that leads it to trail several nations and has caused economic problems today that other countries do not have.
The founder of Canadian Medicare is Tommy C Douglas, who passed away some years ago. His window and children continue to be staunch supporters of the system. The link references a Quebec bureaucrat, Claude Castonguay, who published a report in 2007. In his report he advocates changes - some private services but still defends the public health system and calls for more gov’t funding.
http://tinyurl.com/5mf2×6
Anecdotal stories provided by the link are not evidence, look to the overall statistics — infant mortality is lower and life expectancy is higher in Canada.
In what way has the social democratic countries of Europe failed? In comparison to the current economic woes in America, how is Europe worse?
Using the Human Development Index, http://tinyurl.com/jkhug we can see that EU, Australia, Japan and Canada provide and maintain a n equal or better living standard than the US. Much of this is not due to ideologically motivated economics but pragmatic application of policies for the common good. Ironically, its the US adherence to neo-conservatism and an irrational fear of socialism that leads it to trail several nations and has caused economic problems today that other countries do not have.
In what way has the social democratic countries of Europe failed? In comparison to the current economic woes in America, how is Europe worse?
Using the Human Development Index, we can see that EU, Australia, Japan and Canada provide and maintain a n equal or better living standard than the US. Much of this is not due to ideologically motivated economics but pragmatic application of policies for the common good. Ironically, its the US adherence to neo-conservatism and an irrational fear of socialism that leads it to trail several nations and has caused economic problems today that other countries do not have.
The founder of Canadian Medicare is Tommy C Douglas, who passed away some years ago. His window and children continue to be staunch supporters of the system. The link references a Quebec bureaucrat, Claude Castonguay, who published a report in 2007. In his report he advocates changes - some private services but still defends the public health system and calls for more gov’t funding.
http://tinyurl.com/5mf2×6
Anecdotal stories provided by the link are not evidence, look to the overall statistics — infant mortality is lower and life expectancy is higher in Canada.
my link in 16 wasn’t allowed so here is a link to the raw data
http://tinyurl.com/yqffwc
According to the document you need to start at page 229 and the PDF file calls it p. 243
Then check p. 241 or PDF page 256 for a breakdown of poverty rates, life expectancy, functional literacy, in the OECD. Then check p. 261 or PDF p. 276 for more info on life expectancy and infant mortality. What’s interesting is the comparision between 1970 and 2005. Countries such as Italy, Spain and Austria were far behind the US and now have a better infant mortality rate and under five mortality rate.
If the US were to go to nationalized health care where would we send our extra patients? Does Canada treat all Canadians in-country or do they send some to other countries?
As for socialism in Europe, read that book by, what’s the name of the author that is in court in BC because some muslims don’t like what he said? Oh, yeah, Mark Steyn “America Alone.”
PS I am still proud that Grandpa was Canadian.
I’ve always argued that free speech allows the ignorant to open their mouths and reveal their ignorance hence I would allow Mark Steyn and other cultural warriors the privilege to reveal their ignorance as well as the Muslim conservatives who are “offended”.
Does each state treat its residents or do they send them out of state? Canadian geography and demographics make sending patients south a more efficient choice plus closer to the patients home. Hence people in my region would be sent to Buffalo rather than a similar hospital further away.
But Bob you and the others have failed to answer my economic question (the supposed theme of this thread)
In what way has the social democratic countries of Europe failed? In comparison to the current economic woes in America, how is Europe worse?
Perceptions and judgements about culture and society are based on one’s personal bias but when judging economies we can compare stats
Again how is Europe’s economy, right now, worse than America’s? How has America’s deregulated free-market economy performed against Europe’s tightly regulated semi-planned economy? Look at the stats, forget the ancedotes — Europeans live longer, die less, are healthier, have more leisure time, better functional
HRW: Europeans DIE LESS? Wow. In America, every person who is born, dies. How are Europeans bettering that?
Seriously, if you account for the demographic racial groups which predominate in America, the difference in ‘health’ between Europe and America pretty much goes away. The fact is that Black-Americans suffer from more health problems (cost any involved health system more and burden the system more) than European-Americans. (The reasons for this are not really an issue here, since whatever tact one takes on it, that is not really a health care system issue.)
Also, you fail to mention that the European system is a complete and utter disaster, as a whole - talk to most Europeans. The income tax rate is between 50 and 80% in Denmark, as an example. As a consequence they have the quality of life of pigeons, i.e. if all you do is go to the cafe and drink latte and work 30 hours weeks, fine. The average American pays around 12% in income tax. Now, say you DO tax the average American 80% of his or her income and, in exchance, provide mediocre Statist healthcare - taking 8 dollars of every 10 he or she earns.
That makes a FAT lot of sense - unless you are a Socialist where the health care issue is just a step toward the absolute State - then your model would better be the leftwing paradises of Mao’s China and Stalin’s USSR, where health care generally involved brain surgery using bullets.
In other words the European system, which is flat out Socialist, is lousy and getting lousier.
The MAJOR problem with the US health care system are liability and malpractice and associated lawyering and corruption - and a growing federal welfare system that encourages ill health by paying people to claim disability, even when they are not (meet several of my neighbors).
All of that is EASILY addressed - unfortunately the politicans (especially Democrats and also establishment Republicans) don’t actually want that. Angst and dependence generates their votes.
sorry, die less — “infants” die less ie infant mortality.
In looking at survival rates for under 2, America fares worse but isn’t far behind. However the under 5 survival rate places America far behind.
There are regional variations in any set of data. Your typical white American living in the upper mid-west or new england would have similar health statistics as the average European. However if you withdraw the poor from urban Europe (of middle eastern and european background), the European health stats would also improve in comparision to their small town rural counterparts in America. All you are suggesting here is urban living may not contribute to longevity — an assumption I won’t argue with.
Other posting Danish tax rates, you are not providing much proof that the European system is broken. You have mastered rhetoric but you need to muster up some evidence. Again if you would compare the American economy to the EU economy, the EU comes out stronger. Demonstrate through the results ie GDP, trade surplus/deficient, growth, bankruptcies, foreclosures etc., how the US is doing better than the EU. In the social sector, look at infant mortality, life expectancy, functional literacy,etc.
People tend to migrate to where economies offer promise. In the 1990s, many eastern europeans flooded North Americans, however, they are now staying home or more importantly migrating to north west europe. The largest internal migration in post war Europe occurred about three years ago when Poles were given the opportunity to work in Sweden, England and Ireland — over a million moved within a year — vs the near collapse of polish immigration to north America which to them held less promise.
Tort and litigation is stronger when consumer protection and regulation is weak. Improve regulations and enforcement of regulations and litigation will be less frequent. This points to the underlying problem — a lack of central authority. With overlapping bureaucracies of federal, state, local, charities, corporations, and insurance companies, much of the US health dollars disappears in the middle management sector non-existent in universal health care. And as each person wants to justify their existence,turf wars etc result.
As for people scamming disability programmes — whether they are private or public, there are always people who will attempt to get a free ride.