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  • Operation Twist: A Solution in Search of a Problem

    From wsj.com

    In many of the analyst and economist notes hitting our inbox after the Fed’s decision to squash the yield curve and drive longer-term interest rates lower, a common theme emerges: There’s really not much practical point in doing this. Here’s Ian Shepherdson: We expect the Fed’s actions to have very little visible effect on the economy, because the level of interest rates and the shape of the curve are not the key constraints on growth. Mr. Bernanke wants to be seen to be doing something, but his hand is not on the fiscal policy lever. Here’s Brown Brothers Harriman: On the margins, Operation Twist is ... (full story)

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  • Comment #1
  • Quote
  • Sep 21, 2011 7:15pm Sep 21, 2011 7:15pm
  •  egadsforex
  • | Membership Revoked | Joined Aug 2011 | 134 Comments
Now it all falls in the hands of the politicians. And we all know that if something can be F*ed up, they will find a way to do the F*ing up thereof
 
 
  • Comment #2
  • Quote
  • Sep 21, 2011 10:52pm Sep 21, 2011 10:52pm
  •  JohnnyBSmart
  • Joined Apr 2009 | Status: Member | 4 Comments
I find it interesting that the market had any thoughts that Mr. Bernanke could do anything to spur economic growth beyond what he has already done. Interest rates are not the problem and haven't been a problem in years. He obviously didn't want to say he couldn't do anything more but that's really the truth.

I'm afraid the idiots in Congress have control of the throttle and the steering wheel. They don't know the difference between the brake and the gas pedal and are like the 90 year old lady driving in rush hour traffic and is totally lost. They haven't a clue to direction and like the old lady in the car are running out of gas in the bad part of town.

The old lady wouldn't have gotten into this trouble if she had just hired a taxi and get got rid of her expensive big luxury car. This old lady will eventually get run over by a big rig and she'll never see it coming as she is legally blind.

Much like the old lady, Congress isn't any better and is just as blind. Before this economic downturn they had numerous economist telling them that the bubble was going to burst. They not only didn't listen but they fired a few of the most vocal.

To me it's all a very simple game. If you're a grain farmer and you make your money from your land why would you sell your land? The farmer would be out of business and his expensive equipment would be left idle collecting dust. Buying more seed to plant would be a totally pointless endeavor.

Congress has sold their tax base by letting our jobs and industry go overseas. At the same time they increased the debt by over spending and lowering taxes. Our infrastructure is collapsing, our social security and medicare is going bankrupt. They have passed bills that make us buy light bulbs that now cost over $15 at Walmart where we use to spend a dollar or less. They used $528 million of TARP funds for guaranteed loans to a solar panel company just before it declared bankruptcy. This only insured the owner of a nice retirement.

So let's compare Congress to the grain farmer. If this Midwest farmer's decisions were along those same lines of intelligence he would have sold half his land, bought twice the seed that he needed and bought brand new very expensive equipment. He would have done all this after hiring a couple dozen Harvard graduate's that specialize in consulting in the farm business. He then would take an extended European vacation thinking he's done all the right things and has the world by the tail. His plan is to plant his new seed in the fall to avoid any chance of a summer drought. This he learned from the consultants was a real possibility this year. He can't wait to see his profits from his corn crop.

Of course any farmer operating his business this way would soon be bankrupt. Unfortunately for the American people this isn't the case with Congress. They will still be in business tomorrow and their stupid decisions will continue which seem to be endless.

It is a well known fact even by the dimmest of the world's population that anything run by the Federal government is totally screwed up. Voting new just as dumb people into this club just isn't getting the job done. Even electing a smart one doesn't work as it's like sending a perfectly sane person to a nut house. Soon you can't tell the sane from the insane.

Historically Congress has made horrible decisions like buying single shot rifles in the civil war instead of the 7 shot repeating rifle. Their thinking was the union soldier would waste less ammunition. That he did as many were shot and died before they could reload their guns. They could have saved a lot more money issuing bows and arrows. Must be nobody thunk of it.

It would seem that common sense isn't so common nor has it ever been behind the walls of congress. So what's the answer? Whatever the answer is it better be quick or the younger generation better learn to speak Chinese.

The only thing our government has achieved is a way of getting Americans to quit buying foreign products. The problem is we aren't buying anything as we are out of work and out of money.
 
 
  • Comment #3
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  • Sep 21, 2011 11:12pm Sep 21, 2011 11:12pm
  •  Jolly Roger
  • | Joined Jun 2011 | Status: Member | 1468 Comments
JohnnyBSmart,

I agree in all parts, congress , senate and President is not the best bunch to run things. Your description I can fully agree with on all points...but it is missing the solution.

If we have a congress, senate, and President...they are in the state they are, and any new people voted in would then be same same...

Would the solution be to change the people we vote in, or abandon the system.

One of those two has to be the solution...unless there are more options.

What do you think will fix it?
 
 
  • Comment #4
  • Quote
  • Sep 21, 2011 11:32pm Sep 21, 2011 11:32pm
  •  Binyamin
  • Joined Jun 2011 | Status: Consistency With Discipline | 47 Comments
What ever is going on now is not the result of stupidity, it has been planned in advance.
Riding the order flow
 
 
  • Comment #5
  • Quote
  • Sep 22, 2011 3:25am Sep 22, 2011 3:25am
  •  JohnnyBSmart
  • Joined Apr 2009 | Status: Member | 4 Comments
Jolly Roger,

One of the problems as I see it is that nobody is really held accountable unless they get caught in a sex scandal. The American public voting in a President is a joke as seen with our present President. The American public would be my last choice to have this responsibility as they don't have a clue as to how the government works.

Any President must have Congress connections or nothing he wants gets done. It's a buddy system and if he doesn't have many buddies he is a lame duck President.

Sarah Palin would be no better and probably even worse. Their intelligence, education or management ability never enters into the equation whatsoever except for the effect of respect from Congress and Senate members.

We should vote for members of both houses but the vote for the President should be from them. I suggest two Vice-Presidents which would one would be from the House of Representatives and the other from the Senate thus always having a majority rule on decisions. The two Vice-Presidents for example could over-rule the President.

Having a lame duck President brings this country to a standstill and we as a country just can't tolerate this lack of decision any longer. Why wait four years to get anything accomplished. It's killing us.

These three leaders at the top would be like the CEO's of companies and would run this country like it should be run. To do that they must be given the power to get it done. Responsibility given without the power is a job without anything ever getting done.

Let's say you're given the job of cutting down trees and your only tool was a dull axe. The people voted you to do the this job and you were called the President. If your continued request to Congress was to have the axe sharpened was ignored then no trees would ever get cut.

This is the same scenario as we have seen in our government time and time again. The only solution is to fix it before it's too late.

If the top three executives of the country request an axe grinder and the request is completely ignored by the House Leader or some committee then somebody should get the axe himself. This would eventually rid the Congress and Senate of the do nothing idiots.

Try doing this sort of thing once in a company and see what happens. You'll have five minutes to clean out your desk before security escorts you to the front door. Se la vive MF.
 
 
  • Comment #6
  • Quote
  • Sep 22, 2011 3:36am Sep 22, 2011 3:36am
  •  JohnnyBSmart
  • Joined Apr 2009 | Status: Member | 4 Comments
Binyamin,

So you're saying this was planned stupidity. I don't think Congress has to plan for stupidity they just do it naturally. It's called "I'm untouchable" so I can do whatever I want and still get my cake and ice cream and stay up all night if I want.

Until this attitude is changed we will continue down this road to poverty. Our poverty and their toll road. Voting in the best possible man in the entire country for President won't change anything.
 
 
  • Comment #7
  • Quote
  • Sep 22, 2011 3:40am Sep 22, 2011 3:40am
  •  AaronWard
  • Joined Jun 2011 | Status: Chilling in Florida | 1387 Comments
Johny -- reading your post was a lot of fun. I think our founding fathers were more worried about tyranny than stupidity. Of course, what we now have might be described as the tyranny of stupidity...
 
 
  • Comment #8
  • Quote
  • Sep 22, 2011 5:44am Sep 22, 2011 5:44am
  •  JohnnyBSmart
  • Joined Apr 2009 | Status: Member | 4 Comments
AaronWard,

That's funny but true. The truth is that the system was broken long before Obama was born. The sad fact is he won't be included in the fixing of the problem either which means we sit and wait and hope for something other then a lame duck. I for one am tired of all the quacking. The last one wasn't a lame duck but a chicken little.

Now we have to pull down our pants and take off the bras to check to make sure the bulges aren't a bomb. Well I only have one of those things to do at the airport security check point but I swear the next guy who puts his hands down the front of my pants is going to get a busted nose.

I just love it when they say take your belt off and then ask you to put your arms out. What do they think is going to hold up my pants? I wonder what they do with the fat guys with suspenders? I guess it's time to tell Leroy to close his eyes as you ain't gonna want to see what's going to happen next. It's like a cop catching a thief stealing a box of nitroglycerin and telling him to drop the box and get his hands up. I said to a security agent one time "Are you prepared for the worst possible scenario Dude if I put my arms out straight without my belt or hands holding up my pants" "Do you feel lucky? Cause I don't".
 
 
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  • Posted: Sep 21, 2011 4:30pm
  • Submitted by:
     Newsstand
    Category: Fundamental Analysis
    Comments: 8  /  Views: 3,579
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