economy

Want to fix the Economy Washington? End the pissing matches.

Paul Krugman (someone we should have been listening to 18 months ago) pretty much nails it when it comes to politicians and the economy. But are they listening?

Guest host Chip Reid asks Krugman if the recession is actually a blessing in disguise, because it opens the door for a 21st Century New Deal. Krugman agrees, but only if we let go of the myth of “bipartisan agreement”:

He’s [..] not going to get bipartisan consensus. He may be able to get some moderate Republicans votes. He may be able to get the moderate Republicans in the Senate – both of them — to go…vote with the Democrats. The point is, you look at what John Boehner is doing in the House right now, the House Republican Leader. He’s dead set against doing anything constructive right now. He’s actually soliciting on his website, saying if there are any credentialed economists who are willing to you know, say negative things about stimulus plans, please contact me. So no, it’s not going to be bipartisan, in the sense that leaders of both parties are going to get together. Reaching out across the aisle, trying to find some sensible people on the Republican side is not the same thing.

Imagine that, John Boehner is trying to throw a wrench in everything, GET OUT! Someone needs to unplug that guys tanning bed.

Deregulation does not work. Duh.

Another free market conservative is trying to blow smoke by telling us the evils of regulation;

He (Tom Daschle) would form a bureaucratic board that would establish and enforce health care standards much as the Federal Reserve Board and the Securities and Exchange Commission oversee banks and corporations. (Look at our present financial condition to see how this has worked out).

Huh? The Feds and the SEC did NO regulation, and in fact closed offices in charge of regulation, that’s why we are in the shape we are in. Yes, we can overegulate in certain areas and we must be cautious, but having NO regulation whatsoever only results in chaos (Look at our present financial condition).

I may not agree totally with Obama’s or Daschle’s healthcare plan, but you are smoking something if you think the only way to fix the current healthcare industry is by letting them (continue) to do what they want. That has resulted in 15% of Americans having no coverage, bankrupting manufacturing companies because of higher healthcare benefits for their workers and increased premiums for the rest of us.

Something needs to be done, and it’s up to us and our government to reign in the out of control healthcare industry.

Layoffs, Tax and Fee increases, City Debt . . . who cares! Everything is just freaking peachy!

The Sioux Falls Economy is experiencing extreme shrinkage.

According to Dave, and his rose colored glasses, everything is just great!

Munson says “our unemployment rate is still low so hopefully we can take the people that have lost opportunities and jobs and get them back into other parts of the work-force.”

Like holding signs in 40 below windchills on street corners.

“When we saw oil prices start to go up we really started working with all the different departments to cut fuel costs and to really look at efficiencies and how we could conserve inner fuel so we were very successful there and then fuel costs have really dropped dramatically for us which really helped.”

Like not plowing secondary streets, intersections or dropping gravel or salt. We are saving buckets of money!

And all of sudden the lifelong Republican conservative Mayor is Barry’s best friend!

Munson thinks president Obama’s plans will benefit Sioux Falls in a big way.

“next year when we get the stimulus package with some of the infrastructure needs we have there that should help bolster up this area here again, along with some of the preliminary plans we’re seeing we hope it can be another good year for the city of Sioux Falls.”

When there’s money being handed out, Mr. Munson has no shame!

So even though everyone is experiencing economic hardship, mayor Munson remains optimistic about the future of Sioux Falls.

Because, Heck, it ain’t my money I’m spending! “Hey Jodi, need a raise?”

Who is to blame for the economy meltdown? Deregulation and Derivatives

Fellow South Dakota bloggers BOTH make strong arguments in which I partially agree. (If you go to Ken’s story first there is a link to Cory’s post).

I have often said instead of beating our heads against the wall over who is to blame it can be summed up in one word; GREED. Lot’s of greedy people twisting politician’s balls.

You could probably trace the start of the problem all the way back to the Reagan administration. Deficit spending is never a good idea (Hope you are listening Dave Munson).

But it seems all trails lead to five guys;

I’m just going to summarize their roles and you can google and such to fill in the blanks.

Just one of the greedy assholes who f’d up our economy

PHIL GRAMM

– In 1999 dissolved the 1933 Glass-Steagall Act (The act limited different investment companies from merging so if one house of cards fell, they didn’t all fall).

– In 2000 he snuck risky, non-regulated ‘derivatives’ in a 11,000 page appropriations bill that Bill Clinton signed (and apparently did not read- think pre-war Iraq intelligence report).

ALAN GREENSPAN

– As fed Reserve Chair from 1987-2006 he prevented anyone from touching ‘derivatives’ swearing by them (you have to remember Alan idolizes Libertarian Novelist Ayn Rand) even though there was warnings from these guys (you might have heard some of their names); George Soros said he wouldn’t invest in them because he “We don’t really understand how they work.” Investment Banker Felix Rohatyn described them as “Hydrogen Bombs” and back in 2003 Warren Buffet called them “Weapons of mass destruction that will be lethal to our economy” (he must of had a crystal ball).

CHRIS COX

– As SEC chair he eliminated the office that investigates ‘derivative’ problems. It’s kind of like telling cops and citizen watchdog groups not to worry about where sex offenders live, they should be fine watching themselves.

HENRY PAULSON

– Hands bailout money over to the same people who caused this crash. What did Henry do before he got his current job you ask? He was a ‘derivative’ expert that made his employers billions on the crappy pieces of paper. His last paycheck the year before he went to work for Shrub was $37 million.

WILLIAM DONALDSON

– In 2004 when he was still an investment banker and dating Henry Paulson (Ha-Ha) he asked the SEC to remove a tiny little rule. Banks wanted to remove a rule that forced them to keep sizable amounts of money on hand for potential losses (kind of an insurance policy for banks if they run into trouble, and prevents the government (us) from bailing them out if they do). William argued they should be able to invest that money, and the SEC unanimously agreed. Guess where they invested the money? Yup, Derivatives.

There you have it kiddies. It wasn’t poor minorities wanting to buy houses next door to you that caused this problem it was greed. I say when Barry closes Gitmo, we make it a nice permanent vacation spot for these guys. Hope they like Barney and Metallica.