John Adams Posted October 20, 2008 Share Posted October 20, 2008 He summarized the causes for the crisis: (1) Too much money printed (which caused lower lending standards) in 2004. (2) Treasury not checking the Fed's printing of the money in #1. (3) Mark to market accounting. (4) Naked short-selling. He said nos. 3 and 4 were gas on the fire and fueled the panic rather than starting it. He suggested the following fixes. (1) His biggest emphasis by far was strengthening the dollar. A weak dollar is always bad. He tied a weak currency to several recessions before and argued that a weak currency only helps with exports for a little while, and in the long run is always bad. He did not suggest a gold standard but said we should at least try to make the currency be relatively stable related to the value of gold. (Also pointed out that the dollar has been resilient through this crisis compared to gold, because no one has anywhere to put money). (2) Says we should suspend mark to market and naked short-selling. RE short-selling, we should reimplement the uptick rule that requires a stock to have an up period before you can short it. That slows a panic. (3) Encourages free trade. Is worried about Obama's anti-free trade rhetoric. Pointed out all the wealth created in the last 20 years, even in Africa, and how isolationist policies would be bad for everyone. (4) Lowering corporate tax. Says that the stimulus plans and rebates are worthless. Those are one-time shots in the arm to the economy but giving a break to companies makes them more willing to hire, which creates long-term benefits. He's skeptical of both candidates but more so Obama, though he thinks Obama's advisor Paul Voekler is smart. Link to comment Share on other sites More sharing options...
molson_golden2002 Posted October 20, 2008 Share Posted October 20, 2008 He summarized the causes for the crisis: (1) Too much money printed (which caused lower lending standards) in 2004. ( He's skeptical of both candidates but more so Obama, though he thinks Obama's advisor Paul Voekler is smart. So basically Bush's tax cuts and the Iraq War together caused this mess? That's why they had to print so much money, right? Ya, Volker good. Link to comment Share on other sites More sharing options...
John Adams Posted October 20, 2008 Author Share Posted October 20, 2008 So basically Bush's tax cuts and the Iraq War together caused this mess? That's why they had to print so much money, right? Ya, Volker good. He was plenty critical of Bush. I don't get the impression that Steve Forbes, though conservative, is a big fan of the current administration. Link to comment Share on other sites More sharing options...
DrFishfinder Posted October 20, 2008 Share Posted October 20, 2008 He summarized the causes for the crisis: (1) Too much money printed (which caused lower lending standards) in 2004. (2) Treasury not checking the Fed's printing of the money in #1. (3) Mark to market accounting. (4) Naked short-selling. He said nos. 3 and 4 were gas on the fire and fueled the panic rather than starting it. He suggested the following fixes. (1) His biggest emphasis by far was strengthening the dollar. A weak dollar is always bad. He tied a weak currency to several recessions before and argued that a weak currency only helps with exports for a little while, and in the long run is always bad. He did not suggest a gold standard but said we should at least try to make the currency be relatively stable related to the value of gold. (Also pointed out that the dollar has been resilient through this crisis compared to gold, because no one has anywhere to put money). (2) Says we should suspend mark to market and naked short-selling. RE short-selling, we should reimplement the uptick rule that requires a stock to have an up period before you can short it. That slows a panic. (3) Encourages free trade. Is worried about Obama's anti-free trade rhetoric. Pointed out all the wealth created in the last 20 years, even in Africa, and how isolationist policies would be bad for everyone. (4) Lowering corporate tax. Says that the stimulus plans and rebates are worthless. Those are one-time shots in the arm to the economy but giving a break to companies makes them more willing to hire, which creates long-term benefits. He's skeptical of both candidates but more so Obama, though he thinks Obama's advisor Paul Voekler is smart. Most definitely agree with #4. In my business, if I have more capital to work with, I will reinvest it in the form of marketing, goods and employees. The more I have, the more I spend. Nail me on taxes and I will have to cut back. Link to comment Share on other sites More sharing options...
John Adams Posted October 20, 2008 Author Share Posted October 20, 2008 He also thumped his flat tax drum, which I love but of course is a utopian dream. Link to comment Share on other sites More sharing options...
Peter Posted October 20, 2008 Share Posted October 20, 2008 He was plenty critical of Bush. I don't get the impression that Steve Forbes, though conservative, is a big fan of the current administration. W is not a conservative. Except for the tax cuts, I see very little that would indicate that he is a conservative. Link to comment Share on other sites More sharing options...
Pine Barrens Mafia Posted October 20, 2008 Share Posted October 20, 2008 W is not a conservative. Except for the tax cuts, I see very little that would indicate that he is a conservative. Exactly. Neither is McCain. That's why the Republicans (and rightfully so) are swirling down the crapper. Link to comment Share on other sites More sharing options...
TPS Posted October 20, 2008 Share Posted October 20, 2008 Most definitely agree with #4. In my business, if I have more capital to work with, I will reinvest it in the form of marketing, goods and employees. The more I have, the more I spend. Nail me on taxes and I will have to cut back. So your business is recession-proof? No impact on your sales lately? Where are you geographically located, and what industry? Just curious. Link to comment Share on other sites More sharing options...
Chef Jim Posted October 21, 2008 Share Posted October 21, 2008 So your business is recession-proof? No impact on your sales lately? Where are you geographically located, and what industry? Just curious. You think there are no recession proof businesses? I'm in a recession proof industry. We've thrived during recessions. Link to comment Share on other sites More sharing options...
molson_golden2002 Posted October 21, 2008 Share Posted October 21, 2008 He was plenty critical of Bush. I don't get the impression that Steve Forbes, though conservative, is a big fan of the current administration. I read a left wing op-ed not long ago making the argument that the spending on the war, the tax cuts followed by the Fed printing more money is what got us in this mess, so it sounded like it jived with what you wrote about Forbes, especially with the mention of Volker Link to comment Share on other sites More sharing options...
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