Trickle Down Economics, 2008-Style (Depression risk might force U.S. to buy assets - Reuters)

[NashVegas]

Fear that a hobbled banking sector may set off another Great Depression could force the U.S. government and Federal Reserve to take the unprecedented step of buying a broad range of assets, including stocks, according to one of the most bearish market analysts.

...
In the late 1980s and early 1990's Connolly worked for the European Commission analyzing the European monetary system in the run up to the introduction of the euro currency.

"Avoiding a depression is, unfortunately, going to have to involve either a large, quasi-permanent increase in the budget deficit -- preferably tax cuts -- or restoring overvaluation of equity prices," Connolly said on Monday.

"If conventional monetary policy is not enough to produce that result, the government may have to buy equities, financed by the Fed," Connolly said.

http://www.reuters.com/article/newsOne/idUSGOR27660220080212


There is so much that's fucked up with this, let alone the merging of corporate and government interests ...

[JHB]

1. So the Great Free Market Solution is goverment ownership of business?

Up next: another bedtime story about the eeeeeeeevils of "protectionism".

[peacetalksforall]

3. U.S. citizens - OWNED and OPERATED by international corporations.

And NO TALKING BACK because we have special toys, secret prisons, and special procedures for dealing with you. Plus, our own private military.

Orwell didn't get it exactly right, but the flavor and theme was there.

[sicksicksick_N_tired]

8. Yeah. Isn't that called "communism"?

:shrug:

Fascist-forced communism?

:shrug:

It is utterly bizarro!!!

[mother earth]

2. It's incredible. We go from denial & now an actual article speaking

to the threat of "depression"....ya think? The great unraveling begins.

[jaksavage]

4. Restoring overvaluation?

Maintaining excessive consumption.
Does no one see the insanity in these statements?

Let it fall.

[NashVegas]

7. Yes - That's What *Floored* Me

Unfuckingbelievable.

If Wall Street truly wants this, they need to be prepared to permanently ban all of the corporate officers and board members responsible for the current fiasco from ever again doing business from any entity with a corporate charter.

But really: no fucking way.

[sicksicksick_N_tired]

9. .

[endarkenment]

5. or restoring overvaluation of equity prices?

WTF?

These people are completely whacked.

[sicksicksick_N_tired]

6. I don't understand how the proferred choices fix anything.

Large (excerpt HUMONGOUS) permanent deficit or tax CUTS or overvaluation?

Are you fucking kidding me?!!!!

OH, or,...the corporate-controlled government is going to use tax funds to buy equities?

What the hell? :mad:

There is way WAY too much shit going down to avoid fearing complete democratic downfall, right now.

[mmonk]

10. That's ridiculous thinking. More debt or overevalued stocks.

First off, if people aren't making money, they aren't paying much in taxes anyway on the federal level. Don't they need the income first? How is an overvalued stock price going to help? That means a person will pay more than it's worth. The prevailing ideology in this country is certifiably insane.