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Wells Fargo & Company Message Board

  • bondgal00seven bondgal00seven Jan 30, 2013 10:44 AM Flag

    Economic Contraction:

    well, well, well, it had to happen sooner or later, if the auterity/deficit scolds garnered traction. Keep it up and we will be right back in '09.

    I put this squarely on the plate of the budget scare tactics during last quarter of 2012.

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    • Sorry BG, but I disagree completely. Keynesian policies have never cured a recession or a depression. Not in the 30's, not in the 50's, not in the 60's ( remember Guns and Butter ), not in the Jimmy Carter late 70's to 1980, not in 1990s and still not this one either. Having the heavy foot of government on the throat of the economy is not a recipe for a dynamic economy that will pull us out of a recession or keep us from going back into one. If you want to cure either a recession or a depression, historically there are two solutions!

      1. Have a war ( this has not worked well for Owebama )
      2. Follow the lead of JFK and Ronald Reagan - CUT TAXES, CUT SPENDING, CUT EXCESSIVE REGULATION.

      For those who would grump and grinch about excessive regulation being needed to control those rogue capitalists answer the following

      A. Why do we need hundreds of millions of dollars spent on bunny inspectors whose main job seems to be insuring that bunnies used by magicians are not harmed in the course of the show and those raised to be sold as pets are properly licensed. Bunnies raised for food ( for people or snakes ) don't need those licenses!! Those magician shows must be very expensive!

      B. Why are raisin growers required to turn over 47% of their crop to the government each year without compensation. To allow the government to control the price of raisins and thereby the income of the growers? That is the effect of this!

      C. Why does the Department of Customs and Border Patrol enforce a Kinder Egg ban for people traveling into the country? I guess because the people carrying those don't shoot back unlike drug smugglers! We along with Saudi Arabia and North Korea are the 3 countries that I am aware of that ban this candy.

      D. The TSA. They pretend to make travel secure; we pretend to believe them and they are robbing airline passengers right and left. This whole department could be abolished and security given back to private hands.

      E. The cat photographers/inspectors from the Department of Agriculture who took the Hemingway Museum in Key West to court to allow them to license, regulate and review the cats in spite of

      " In fact, when the Agriculture Department sent People for the Ethical Treatment of Animals to #$%$ the situation in 2005, the group’s investigator concluded: “What I found was a bunch of fat, happy and relaxed cats. God save the cats.”

      The appellate court agreed that “the museum has always kept, fed and provided weekly veterinary care for the Hemingway cats.” In their ruling, the three judges even injected a dose of understanding.

      “We appreciate the museum’s somewhat unique situation, and we sympathize with its frustration,” the ruling states. “Nevertheless, it is not the court’s role to evaluate the wisdom of federal regulations.” "

      This is just a short list! A Billion here. A Billion there. And, pretty soon you're talking real money. We have to borrow money from China while also taxing our people to pay for this crapola!!! And where in those examples are we protecting people from the greedy, grasping capitalists?

      • 2 Replies to bridgelm
      • Bridgelm, none of your examples were about the financial industry regulation. Sure we can find regulations that are unnecessary, and I certainly don't like the Hemingway cats being regulated, but I am more concerned that Citibank, Lehman, Goldman, and Morgan Stanley don't get another chance to wreck the economy.

        It is a shame that a good well managed bank like WFC has to fall victim to regulation to keep the idiots running Citibank out of trouble, but what can you do? The well managed banks are making plenty of money, and not "in spite of" the Federal govt. The govt (FED) policies on reserves have benefitted banks hugely. Banks continue to benefit from the excess liquidity. I will not buy the argument that the govt is hurting the banks, the govt is gifting the banks every day since Fall 2008.

        We just cannot allow the financial miscreants to wreck the banks again. In the macro sense, if Citi went down and took the economy and the FDIC with it, then that would not be good for WFC either. WFC does not and cannot prosper when the economy is in a shambles. WFC cannot exist in a vacuum either, it needs a reasonably good economy to reach maximum potential.

        Also, what did NOT work to cure the Great Depression was austerity. We have already had two recent wars, and hopefully we will not be duped into supporting another one like those.

      • bridgelm,
        I agree with your post, however Reagan increased spending from what I remember. In other words he was the king of deficit spending, until Obama just bearly nudged him off the throne. The difference is the type of spending. Reagan spent on military will has a good multiplier plus other economic benefits. From what I can see Obama' deficit spending has been ill conceived, Obama' tax cuts were more Keynsian than supply side. Obama cut taxes for small business' and working poor whereas Reagan cut taxes for corporations for them to invest in becoming more efficient.

        The deficit spending between the two is a great future case study and I am afraid the worst thing that can happen is if history gets it wrong.

    • Only one way to get out of a debt problem and that is growth and it better not be in china:)

    • Frankly, this is the best-looking contraction in U.S. GDP you'll ever see. US economy shrinks 0.1 pct., 1st time in 3 ½ years. I like the spin:)

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