Housing Bubble, credit bubble, public planning, land use, zoning and transportation in the exurban environment. Specific criticism of smart growth, neotradtional, forms based, new urbanism and other top down planner schemes to increase urban extent and density. Ventura County, California specific examples.
Wednesday, January 23, 2008
There once was a Chairman named Ben Who saved whole markets with only his pen When asked to name his reward He said "Oh nothing untoward... Cash, most preferably Yen."
" WASHINGTON – In the 1990s, when Latin America and Asia were rocked by financial crises similar to the one now dogging the United States, Washington officials were quick with stringent advice: Don't bail out bad banks. Don't intervene when stock market and real estate bubbles pop. Let your overblown economies shrink to their natural levels.
"It was all, 'You've got to be tough and take your castor oil,' " said Joseph E. Stiglitz, a Nobel Prize-winning economist, former vice president of the World Bank and member of former President Bill Clinton's Council of Economic Advisers.
To date, U.S. officials haven't followed any of the advice they so readily dispensed to others. They have tried to aid troubled banks. They have slashed interest rates to help the struggling housing and stock markets. They have made it clear that they will go to almost any lengths to keep the American economy out of recession.
But if the current prescription fails to provide long-term relief, what comes next? The answer, many economists say, could be that old castor oil. "
With a group this diverse, you want us to answer in verse? I suspect the results will be perverse.
How about Haiku?
Unchecked sub-prime greed and billions spent in Iraq Who voted for Bush?
Or limrick?
There once was a sub-prime broker who gave money to any old joker I don't care if they can pay, it's the new American way! Now it's "help, where's the economic stoker!"
Ok... not the best, but it's before noon, I'm not fully awake yet.
Wow... REALLY not awake. Let's put that "E" in limerick.
BTW: Rob - The other day you mentioned BER-A going sub 100k. Any reason you think this? Is it just the whole economy going into the crapper or do you think BER-A is over valued by that much?
Like those who once dwelled in old Troy Some homeowners did greatly annoy. They cried of their loans With heartbreaking moans That all that they wanted was koi
Berkshire-A is as exposed to the general economy as any other stock. It is almost a mutual fund in some respects. It enjoys several incremental premiums for both good and specious reasons. I'm thinking BER-A will get hit more than deserved on a crisis of faith event. Insurance industry is going to suffer because of leveraged investments on their part. Consumer reliables like Coke are going to suffer from recession fears and commodity bubbles. Think corn syrup versus ethanol. B-H also has a lot of real estate. sure, long term, low cost basis and all that but still baby with the bathwater. Dow 13k to 10k is BER-A to almost $100k. Add in my loss of faith premium and yes. I'll stand behind my guess.
I remain convinced that most of the pain to come is due solely to the extraordinary efforts to avoid pain in the past. We are right to be afraid of hyperinflation or depressions. Instead we are afraid of deflation and recession. Kudos for the literature BTW.
Chains of bubbles, connected by thread, stocks in trouble, then shock and then dread, houses double-a world of trouble ownership halves, enriching the haves,
Who aboard the great Gold Zeppelin thinks they’re not Led?
There once was a guy named Bernanke When the dollar goes south, he gets cranky He doesn't want thanks When bailing out banks In finance, there's no hanky-panky
There once was a Chairman named Ben
14 comments:
First fish, second fish.
Reddish fishes, bluish fishes.
""Merrill Lynch's figures are way too pessimistic, and they are unprecedented"
http://money.cnn.com/2008/01/23/real_estate/merrill_forecast/index.htm?postversion=2008012317
" WASHINGTON – In the 1990s, when Latin America and Asia were rocked by financial crises similar to the one now dogging the United States, Washington officials were quick with stringent advice: Don't bail out bad banks. Don't intervene when stock market and real estate bubbles pop. Let your overblown economies shrink to their natural levels.
"It was all, 'You've got to be tough and take your castor oil,' " said Joseph E. Stiglitz, a Nobel Prize-winning economist, former vice president of the World Bank and member of former President Bill Clinton's Council of Economic Advisers.
To date, U.S. officials haven't followed any of the advice they so readily dispensed to others. They have tried to aid troubled banks. They have slashed interest rates to help the struggling housing and stock markets. They have made it clear that they will go to almost any lengths to keep the American economy out of recession.
But if the current prescription fails to provide long-term relief, what comes next? The answer, many economists say, could be that old castor oil. "
http://www.dallasnews.com/sharedcontent/dws/dn/latestnews/stories/012408dnbuseconassess.2d63b95.html
With a group this diverse, you want us to answer in verse? I suspect the results will be perverse.
How about Haiku?
Unchecked sub-prime greed
and billions spent in Iraq
Who voted for Bush?
Or limrick?
There once was a sub-prime broker
who gave money to any old joker
I don't care if they can pay,
it's the new American way!
Now it's "help, where's the economic stoker!"
Ok... not the best, but it's before noon, I'm not fully awake yet.
Wow... REALLY not awake. Let's put that "E" in limerick.
BTW: Rob - The other day you mentioned BER-A going sub 100k. Any reason you think this? Is it just the whole economy going into the crapper or do you think BER-A is over valued by that much?
Like those who once dwelled in old Troy
Some homeowners did greatly annoy.
They cried of their loans
With heartbreaking moans
That all that they wanted was koi
NR
Berkshire-A is as exposed to the general economy as any other stock. It is almost a mutual fund in some respects. It enjoys several incremental premiums for both good and specious reasons. I'm thinking BER-A will get hit more than deserved on a crisis of faith event. Insurance industry is going to suffer because of leveraged investments on their part. Consumer reliables like Coke are going to suffer from recession fears and commodity bubbles. Think corn syrup versus ethanol. B-H also has a lot of real estate. sure, long term, low cost basis and all that but still baby with the bathwater. Dow 13k to 10k is BER-A to almost $100k. Add in my loss of faith premium and yes. I'll stand behind my guess.
I remain convinced that most of the pain to come is due solely to the extraordinary efforts to avoid pain in the past. We are right to be afraid of hyperinflation or depressions. Instead we are afraid of deflation and recession. Kudos for the literature BTW.
Rob - Thanks for the info.
I was going to get more into the whole verse thing, but some rhymes are just going to suck:
In Xanadu did Ben Bernanke
a health economy decree...
Casey, Casey, not contrite
leaving ruin and urban blight...
Shel Silverstein may have been able to do these justice, I cannot.
Chains of bubbles,
connected by thread,
stocks in trouble,
then shock and then dread,
houses double-a world of trouble
ownership halves, enriching the haves,
Who aboard the great Gold Zeppelin thinks they’re not Led?
I'm not a poet, but I do know something about fish and fishnets and BS stimulus packages.
Poor girl. Couldn't even afford fishnets. As to stimulus and packages... well let's not go there. Thanks.
There once was a guy named Bernanke
When the dollar goes south, he gets cranky
He doesn't want thanks
When bailing out banks
In finance, there's no hanky-panky
This guy who we all call Benny
Of the dollar he cares not a penny
The banks are his bosses
The rest? We take loses..
His victims? Oh there are many.
Post a Comment