Goldman admits we're screwed.

[bfdd]

Cause the White House and its minions always tell the truth. They wouldn't possibly lie to further a political and economic (self) entitlement agenda.

Like I said, Goldman has insider knowledge due to their presence in the White House. Regardless of the fact they may be lying in this article doesn't change the fact that whatever they say or do is in their best interest same goes for the White House making moves "against" Wall Street.

 

[Anarchist420]

GDP doesn't mean jack dempsey shit.

 

[Axon]

Obligatory quantitative easing/T1000 for head of the fed comment

 

[Doppel]

$61B is noise, almost meaningless. It won't magnify out to 2%.

 

[bamacre]

You gotta read between the lines here but what Zebo has been saying for years is we are in a debt death spiral Goldman recognizes too. Cut deficit, plunge economy into disaster. Debt is the only thing keeping us from recognizing a full-on economic depression we are in. How bad? Just extrapolate what Goldman says by taking away $1.7 trillion deficit would result in a decrease of 28x Goldman's estimate, or 50% of GDP would disappear.


Now you know why republicans are RINOs always despite rhetoric.

Worse, there's no way out - If you raise taxes to cover deficit you subtract directly from private spending by same levels plunging us into same 50% reduction in GDP. Refuse to raise taxes and you are forced to continue to borrow.

What happens if Bernanke has to increase interest rates to battle inflation, what would that do to our budgets?

 

[comptr6]

What a bunch of bs. The AMERICAN PEOPLE put the Republican party back in charge to fix the mess that the liberals made. The only way to do that is to stop spending on useless programs, and lower tax rates on employers to encourage them to hire more workers. This report is just an attack on a sound budget by Obummer's puppets at GS. He's gotta get his money's worth I guess!

 

[Patranus]

What a bunch of bs. The AMERICAN PEOPLE put the Republican party back in charge to fix the mess that the liberals made. The only way to do that is to stop spending on useless programs, and lower tax rates on employers to encourage them to hire more workers. This report is just an attack on a sound budget by Obummer's puppets at GS. He's gotta get his money's worth I guess!

Um. How are the Republicans in charge?

The "progressives" still control the executive branch, 1/2 of the legislative brach, and the 4th branch, the regulatory branch.

 

[Craig234]

What a bunch of bs. The AMERICAN PEOPLE put the Republican party back in charge to fix the mess that the liberals made. The only way to do that is to stop spending on useless programs, and lower tax rates on employers to encourage them to hire more workers. This report is just an attack on a sound budget by Obummer's puppets at GS. He's gotta get his money's worth I guess!

The AMERICAN PEOPLE put the fox in charge of the henhouse to PROTECT IT. What don't you get?

Why, they've already uncovered a large number of hens that turned out to be anti-hen traitor agents, and executed them for us!

They even cleaned up for us by eating them.

 

[Jhhnn]

Worse, there's no way out - If you raise taxes to cover deficit you subtract directly from private spending by same levels plunging us into same 50% reduction in GDP. Refuse to raise taxes and you are forced to continue to borrow.

Incorrect. Tax increases at the top have little effect on spending, because that money isn't spent, anyway- it builds factories in China and puffs up the stock market and any other market that the financial elite sets their sights on. Right now, they're just sitting on it, waiting for the effects of the Republican spending cuts to take effect, drive the economy down further. When things get bad enough, they'll spend like misers, because they don't need to make money, anyway. Their lives won't change if they make $50M or $500M- it's just a game.

 

[theeedude]

Fortunately GOP won't get it's way. Obama is going to force them to approve his budget if they want to avoid a government shutdown debacle.

 

[Jhhnn]

Fortunately GOP won't get it's way. Obama is going to force them to approve his budget if they want to avoid a government shutdown debacle.

I figure he'll cave, like he has on every other significant issue, including healthcare.

 

[Zebo]

Incorrect. Tax increases at the top have little effect on spending, because that money isn't spent, anyway- it builds factories in China and puffs up the stock market and any other market that the financial elite sets their sights on. Right now, they're just sitting on it, waiting for the effects of the Republican spending cuts to take effect, drive the economy down further. When things get bad enough, they'll spend like misers, because they don't need to make money, anyway. Their lives won't change if they make $50M or $500M- it's just a game.

J- I'm talking reality here. Even Democrats won't dare raise taxes in 5B dollar a year hedge fund managers. Hell they wrote the tax law that made their income taxed as gains instead of income. No, I'm afraid the burden will be on us. The w2 worker, the small business man, the pensioner pulling his mandatory withdrawls etc which additional taxes will crush GDP.

 

[Zebo]

What happens if Bernanke has to increase interest rates to battle inflation, what would that do to our budgets?

Rape it. Funding our mostly short term, and currently low interest debt to more historically normal 6% would cost us 1.1 trillion a year just to service. All those bankers/rich who own that debt don't have to pay taxes either on money we pay them since treasuries are tax free.

We doomed.

 

[bamacre]

Rape it. Funding our mostly short term, and currently low interest debt to more historically normal 6% would cost us 1.1 trillion a year just to service. All those bankers/rich who own that debt don't have to pay taxes either on money we pay them since treasuries are tax free.

We doomed.

Then the question becomes, "what will Bernanke's choice be?"

 

[Zebo]

All praise be to Charlie Sheen.

You know he's like a serial abuser of women right? Has even shot them? He's lucky none of those girls are my sisters.

May want to rethink sig.

B- you're not asking anything I don't know. It's either hyperinflation or sudden stop both will destroy the middle class. We fooked.

 

[bamacre]

B- you're not asking anything I don't know.

Yeah, but it's something a lot of people haven't figured out yet. Those who have respond with "but interest rates can't go up." Kinda like "home prices can't go down."

 

[Zebo]

Yeah, but it's something a lot of people haven't figured out yet. Those who have respond with "but interest rates can't go up." Kinda like "home prices can't go down."

Uh yea and the scariest part is they are running the show despite being WRONG on everything. I don't think Benny the B has ever been right.

 

[bamacre]

Uh yea and the scariest part is they are running the show despite being WRONG on everything. I don't think Benny the B has ever been right.

http://www.youtube.com/watch?v=9QpD64GUoXw

 

[IceBergSLiM]

Brazil Started over ~20 years ago with the real. we can do the same. no need to panic


Not to mention taking the word of the crooks that started the problem is generally a bad idea.

 

[matt0611]

http://www.youtube.com/watch?v=9QpD64GUoXw

Do not worry. Our wise overlords have everything under control. They know what they're doing and whats best for us. The system is as stable as a rock. Nothing to see here, move along.

 

[Zebo]

http://www.youtube.com/watch?v=9QpD64GUoXw

There's gotta be more current than that? Such as: "there will be no inflation" "there is no inflation" "QE1 will work" "QE2 will work" and so on..

 

[Triumph]

You gotta read between the lines here but what Zebo has been saying for years is we are in a debt death spiral Goldman recognizes too. Cut deficit, plunge economy into disaster. Debt is the only thing keeping us from recognizing a full-on economic depression we are in. How bad? Just extrapolate what Goldman says by taking away $1.7 trillion deficit would result in a decrease of 28x Goldman's estimate, or 50% of GDP would disappear.


Now you know why republicans are RINOs always despite rhetoric.

Worse, there's no way out - If you raise taxes to cover deficit you subtract directly from private spending by same levels plunging us into same 50% reduction in GDP. Refuse to raise taxes and you are forced to continue to borrow.

Did anyone ever think that GDP maybe should go down? We all know that GDP is not a perfect measure of an economy, thus it always being high should not be a goal unto itself. This whole economy needs to be reworked so that it stands on bedrock and not sand. If that requires some growing pains, so be it. No fat person ever lost weight by taking a pill. Well, Anna Nicole Smith did. Now look at her.

 

[bamacre]

Did anyone ever think that GDP maybe should go down? We all know that GDP is not a perfect measure of an economy, thus it always being high should not be a goal unto itself. This whole economy needs to be reworked so that it stands on bedrock and not sand. If that requires some growing pains, so be it. No fat person ever lost weight by taking a pill. Well, Anna Nicole Smith did. Now look at her.

Nice post. :thumbsup:

 

[werepossum]

Did anyone ever think that GDP maybe should go down? We all know that GDP is not a perfect measure of an economy, thus it always being high should not be a goal unto itself. This whole economy needs to be reworked so that it stands on bedrock and not sand. If that requires some growing pains, so be it. No fat person ever lost weight by taking a pill. Well, Anna Nicole Smith did. Now look at her.

LOL +1

There should really be an economic measure for the wealth-producing economy. If only one farmer grows only one watermelon and everyone in the country marks it up 1000% and sells it to the next person, our GDP would be great - but we'd be mighty hungry if we all had to share that one watermelon. As things stand we consume a lot more than we produce and we make up the difference by doing each other's hair and selling each other Chinese imports.

 

[Engineer]

LOL +1

There should really be an economic measure for the wealth-producing economy. If only one farmer grows only one watermelon and everyone in the country marks it up 1000% and sells it to the next person, our GDP would be great - but we'd be mighty hungry if we all had to share that one watermelon. As things stand we consume a lot more than we produce and we make up the difference by doing each other's hair and selling each other Chinese imports.

Yea, that 70% of GDP = consumer spending never really hit me as being straight on. What about spending = product? Meh, I'm not an economist and this shit either confuses or aggravates the shit out of me...usually both.