"Stimulus" and Fed Rate Cuts - Postponing the Crash Until After November?

[El Pinko]

Here's the way I see it. The subprime mess is only the tip of the iceberg of what's going down with the economy.

There are a whole slew of subprime mortgages that will reset this year.

But wait, there are also the "option adjutable rate" loans, which will reset in droves in 2010 and 2011.





Housing prices, food, gas prices and decades of stagnant wages paired with a credit pinch and plummeting home values (equity) look to make a perfect storm of economic disaster over the next 4 years.

It seems to me that this "stimulus" and the fed's rate cuts are just an attempt to postpone the inevitable until after the democratic president takes office.

And then, despite the fact that this whole fustercluck was engineered by Bushco, THEY WILL BLAME IT ALL ON THE NEW DEMOCRAT PRESIDENT.



Tell me I'm wrong.




And if I'm right, is there any way that the democrat can take office and NOT get saddled with the blame for this? I think very highly of Obama and Hillary, but I just don't see any feasible way either of them can prevent a severe recession of at least 2-3 years' length.

[sutz12]

1. It's tempting to say....

you're being too :tinfoilhat: on this, but I think you're right.

They blamed all of Junior's screwups on hangover from Clinton, but all of the Clinton economic surge was a hangover from Poppa's brilliant term, so neither the calendar nor common sense apply to their "logical" processes. It's all Democrats bad, Republicans good, every day, every hour.

We're going to need some serious Clinton style tax hikes on the rich to get out of this, and it will still take the entire term, or two terms, more likely, or three. They've pretty much shredded the government along with the Constitution.

[Sadie5]

2. Absolutely true

That it will take a Clinton to clean up this mess Bush has left. Last night Hillary answered a question about this and she answered by saying that a repeal of the Bush tax cuts and stopping the war would help with insurance and cleaning up the economy.

[Karenina]

3. Trying desperately to "pass it forward..."

Just run out the clock.

[Demeter]

4. Yes, They Are Trying to Keep the Ball In the Air--But Not Succeeding

and it will come crashing to the ground, one piece at a time, all year long. There will be no letups, no light at the end of the tunnel, no meaningful stimulus, lots of "sucker rallies"; and I hope we have a real election in November, because the country won't take much more of this.

[lurky]

5. I was thinking the same thing.

Remember in California, how the disaster of energy deregulation (created by the Republicans) was used to get Gray Davis out of office when the shit finally hit the fan?

[Strelnikov_]

6. Agree

Bernanke is Scotty to Chimps Kirk.

"Heli-Ben, I need more stimulus to get us through till November"

"But Sir, I'm giv’n her all she’s got."

"Then it's time to deploy the Infinite Improbability Stimulus"

"You mean . . "

"Yes, negative interest rates. Pay them to take the money we are printing".

[Joe Chi Minh]

7. Why hold back the modernisation just as it's bearing its inevitable fruit?

Are they really wanting to take you all back to that old-fashioned, socially-responsible, New Deal kind of politics! Raygun would turn in his grave.

[radfringe]

8. duh-bya's last hope

delay economic disaster long enough to dump it on the next president

[Hawkowl]

9. Get the recession over early. Like Reagan did.

That is the only hope of a Dem president. Make all the difficult decisions and "hard choices" early on and shoot for full blown recovery in the latter half of the third year of their presidency. Now if the president drags it out, and the recession is delayed until 2011, kiss reelection goodbye. Now don't expect any policy statements from "Dr. Hope Everything is going to be Alright Obama" or any concrete policy statements from "Mrs. tell everyone what they want to hear as long as I'm not committing to absolutely anything". But they'd better be planning on the recession and a massive retooling of the economy or else they are completely fucked a la Jimmy Carter. Oh, and so are we by the way, a la Reagan-Bush-Clinton-Bush. Welcome to Argentina my friends! (Sorry for the cynicism but I do not see much to be hopeful about. My optimism has been steadily drying up with the pardon of Nixon by Ford, when I was 10).

Make no mistake though, the recession is already here, and it is building. Now if McCain gets elected. Good gods! The man is on record as saying he doesn't know much about how the economy works. He would be the Herbert Hoover of the 21st Century. We could very well see a Great Depression just like the 1930's.

[SoCalDem]

10. This was the plan from the get-go

First thing on the agenda..TAXCUTS (robs Social Security, making solvency an issue for "restructuring the program" later)

By initiating the series of CUTS, early on, it make double-plus sure that any later RESTORATION of a more sensible tax code (by democrats) will be seen as a tax INCREASE (after YEARS of "good tax policy" from republican leadership)..

That's the same rationale used for war.. Get in FAST and BIG..(even kids know that asking for forgiveness is always easier than permission)

Start a big ole war to gobble up every spare penny in the treasury, and there will be nothing left of anything else..(Two dogs at food bowl..Rottweiler & chihuahua...Rotty eats, chihuahua..not so much)

[tridim]

11. Except this time it's already well established that the economy is in the crapper

Only Faux will be able to run with the "It's the Democrat's fault" meme.

[greyghost]

12. They're attempting to forestall the inevitable but the...

house of cards is crumbling much faster then they anticipated.

Bush Co. simply perpetuated the fiasco, they didn't start it, but they did NOTHING to stop it. Hence Greenspan and Bush Co will bear the brunt of the blame, no matter what they do now.

There may very well be a worldwide depression coming, a recession is a lock!