Re: #OT# Spondulicks about to go back on the banks books as capital

On Fri, 13 Mar 2009 15:51:14 -0700 (PDT), topbassdog@xxxxxxxxx
wrote:

On Mar 11, 6:41 am, mich <compu...@xxxxxxxxxxxx> wrote:
On Mar 11, 2:39 am, F. George McDuffee <gmcduf...@mcduffee-



associates.us> wrote:
On Tue, 10 Mar 2009 19:58:27 -0700 (PDT), mich

<compu...@xxxxxxxxxxxx> wrote:
It was to be hoped that after the S&L deregulation something was
learned, but no such luck. It's like Communism; every time it fucks up
they just argue that it wasn't applied properly and next time they
will get it right.

So when do we get another wave of 'improved deregulation'?

-------------
Right after the taxpayers finish paying to get this mess cleaned
up, and the market starts back up.

Humans are the only animals known that you can skin more than
once....

Unka' George [George McDuffee]
-------------------------------------------
He that will not apply new remedies,
must expect new evils:
for Time is the greatest innovator: and
if Time, of course, alter things to the worse,
and wisdom and counsel shall not alter them to the better,
what shall be the end?

Francis Bacon (1561-1626), English philosopher, essayist, statesman.
Essays, "Of Innovations" (1597-1625).

The previous meltdown being the S&L (a picnic compared to this one),
when was the meltdown before that one? I can't think of another except
for the Great Depression ...

As an extra, I believe that the Great Depression was considered to be
so bad because Hoover though that is would be best to just let it work
it's way out (no stimulus, the market knows best).  By the time  FDR
came in (1933) the crisis had become entrenched into the economy.

Mich, I'm glad you mentioned this.

I don't know about the U.S. "Great Depression" as it was called. But
it does seem rather strange that during that time, the banks didn't
have a dime to loan to anyone for about any reason. No money. however,
when World War II broke out. The U.S. banks seemingly found Billions
of dollars to LOAN to the government to fuel the war machinery to
defeat tyranny.

Odd.
-----------
Much of this was the magic ability of our Federal Reserve Bank to
monitize the debt.

Basically the US FRB issues money [Federal Reserve Notes] against
the Treasury securities it has on deposit, generally at the ratio
of 10 dollars in FRB notes to every 1 dollar of Treasure
securities. They then take 1 of the ten dollars they just
generated and buy another Treasury security to start the cycle
again. Every loop through the magic money machine multiplies the
money available by 10. During the war there were stringent
wage/price controls and rationing to prevent massive inflation,
albeit with some black market activity. After the war, the US
dollars flooded the world economy as the new reserve currency in
many countries, removing them from the US economy, thus avoiding
a hyper inflation.
Unka' George [George McDuffee]
-------------------------------------------
He that will not apply new remedies,
must expect new evils:
for Time is the greatest innovator: and
if Time, of course, alter things to the worse,
and wisdom and counsel shall not alter them to the better,
what shall be the end?

Francis Bacon (1561-1626), English philosopher, essayist, statesman.
Essays, "Of Innovations" (1597-1625).
.