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Osborne's First Budget? It's Wrong, Wrong, Wrong!

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http://www.independent.co.uk/news/uk/politics/osbornes-first-budget-its-wrong-wrong-wrong-2011501.html

Joseph Stiglitz, the Nobel prizewinner who predicted the global crisis, delivers his verdict on the Chancellor's first Budget and tells Paul Vallely it will take the UK deeper into recession and hit millions – the poorest – badly

Check out this comment.

In threads such as these, here and over at the Guardian, I detect the depression stage of grieving over the death of the Great Socialist Experiment.

After the collapse of Socialism, Brown & co. thought they'd try one last attempt at resuscitation by applying Steiglitz-style defibrillator policies on a permanent basis. But the public called it off.

Brown and his fellow-travellers also thought that the banking sector was just another 'free-market', which could be regulated by a typical OFBANK in the form of the FSA. He was warned, but as a Socialist (aka a permanent late-adolescent with a degree to seal his condition) he knew better.

After this colossal failure, the fool must now realise that banking is not a 'market' but in fact it is a permanent ongoing infrastructural project, with the contract to provide good money being let to a Prime Contractor in the form of the Bank of England, whose job is to keep the hierarchy of subcontractors in line. It does this by close surveillance and behind-the-scenes cooperative action among the various levels of subcontrator down the line, before things get public.

Now the new government has quickly moved to reinstate the natural structure of the banking hierarchy, we should see an end to the ludicrous debauchery of the banking system that has brought the UKstate (whatever that really is any more) to this crisis of personal and corporate debt, which is a species of public moral degeneration, and the destruction of the state itself.

Of course the useful idiots such as the academic economists, sociologists, & co., have gone along with the Brown corruption because they secretly want to see the pure Marxist Dream come true at last, and have been actively helping in the withering of the state .

And we also see the depression and anger phase of the post-socialist grieving process in expressions of millenial doomings such as Peak Oil, Global Warming etc.This abject fatalism denies human creative capacity, and is misanthropic.

For example it is only 100 years since motor transport became feasible, and our current problems with this sytsem are minor side-effects of an amazingly beneficial product of the human creativity. Given a clear incentive, it will take the application of further collective human ingenuity to clear up these side-effects.

As for the millenial 'Peak Oil' lamentation, I would commend mourners of Socialism (RIP) to follow the progress of Shale-gas technology, when they have finished their ritual weeping/wailing/gnashing/garment-rending, etc.

And BTW, for any ex-socialist probably atheist adolescent who still doesn't understand the basics of banking ... look up the etymology of the word 'Credit',and have a bit of a think.

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http://www.independent.co.uk/news/uk/politics/osbornes-first-budget-its-wrong-wrong-wrong-2011501.html

Joseph Stiglitz, the Nobel prizewinner who predicted the global crisis, delivers his verdict on the Chancellor's first Budget and tells Paul Vallely it will take the UK deeper into recession and hit millions – the poorest – badly

Check out this comment.

In threads such as these, here and over at the Guardian, I detect the depression stage of grieving over the death of the Great Socialist Experiment.

After the collapse of Socialism, Brown & co. thought they'd try one last attempt at resuscitation by applying Steiglitz-style defibrillator policies on a permanent basis. But the public called it off.

Brown and his fellow-travellers also thought that the banking sector was just another 'free-market', which could be regulated by a typical OFBANK in the form of the FSA. He was warned, but as a Socialist (aka a permanent late-adolescent with a degree to seal his condition) he knew better.

After this colossal failure, the fool must now realise that banking is not a 'market' but in fact it is a permanent ongoing infrastructural project, with the contract to provide good money being let to a Prime Contractor in the form of the Bank of England, whose job is to keep the hierarchy of subcontractors in line. It does this by close surveillance and behind-the-scenes cooperative action among the various levels of subcontrator down the line, before things get public.

Now the new government has quickly moved to reinstate the natural structure of the banking hierarchy, we should see an end to the ludicrous debauchery of the banking system that has brought the UKstate (whatever that really is any more) to this crisis of personal and corporate debt, which is a species of public moral degeneration, and the destruction of the state itself.

Of course the useful idiots such as the academic economists, sociologists, & co., have gone along with the Brown corruption because they secretly want to see the pure Marxist Dream come true at last, and have been actively helping in the withering of the state .

And we also see the depression and anger phase of the post-socialist grieving process in expressions of millenial doomings such as Peak Oil, Global Warming etc.This abject fatalism denies human creative capacity, and is misanthropic.

For example it is only 100 years since motor transport became feasible, and our current problems with this sytsem are minor side-effects of an amazingly beneficial product of the human creativity. Given a clear incentive, it will take the application of further collective human ingenuity to clear up these side-effects.

As for the millenial 'Peak Oil' lamentation, I would commend mourners of Socialism (RIP) to follow the progress of Shale-gas technology, when they have finished their ritual weeping/wailing/gnashing/garment-rending, etc.

And BTW, for any ex-socialist probably atheist adolescent who still doesn't understand the basics of banking ... look up the etymology of the word 'Credit',and have a bit of a think.

Sounds like a nutjob to me. Surprised he doesnt mention communist infiltrators or some such thing.

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Pro rammming debt down the throats of those that could patently not afford it, FHA / Fannie / Freddie not part of the problem and nothing to do with the bubble.

Beggars belief.

http://wallstreetpit.com/18454-stiglitzs-freefall

His proof that the CRA and other government housing initiative had nothing at all to do with the housing bubble, is proven thusly: AIG failed, and they didn’t issue mortgages, just bought bonds and derivatives. QED. Further, subprime mortgages failed at rates similar to CRA related subprime mortgages. Yet, current law does not allow a bank to charge different prices based on race. To increase the amount of loans in historically underserved demographics–poor people–you have to lower the bar for all loans. Thus, the old and stupid rule of thumb of having certain levels of wealth, credit score, validation of income, and downpayment, were diminished because of the fact that banks historically had low losses on mortgages, because there was little evidence of large year-over-year aggregate declines in real housing prices. Thus, for example, we went from requiring 20% down in the 1990’s, to zero percent down in the bubble (now upped to 3.5% by the US’s FHA). Indeed, Stiglitz himself wrote a white paper arguing that Fannie Mae’s 2% capital requirement was more than adequate in 2002 (he estimated an expected loss on $1 Trillion by Fannie of only $2 Million–pre hindsight). Indeed, Fannie Mae was one of his examples of beneficial government policy in his 2002 book The Roaring Nineties. Fannie and Freddie have already cost the government $127B, and it’s not done. That’s 90 Nick Leesons and counting, but the nice think about being an intellectual is you aren’t accountable for how events that were aided and abbetted by your arguments actually worked, b

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In threads such as these, here and over at the Guardian, I detect the depression stage of grieving over the death of the Great Socialist Experiment.

After the collapse of Socialism, Brown & co. thought they'd try one last attempt at resuscitation by applying Steiglitz-style defibrillator policies on a permanent basis. But the public called it off.

Brown and his fellow-travellers also thought that the banking sector was just another 'free-market', which could be regulated by a typical OFBANK in the form of the FSA. He was warned, but as a Socialist (aka a permanent late-adolescent with a degree to seal his condition) he knew better.

After this colossal failure, the fool must now realise that banking is not a 'market' but in fact it is a permanent ongoing infrastructural project, with the contract to provide good money being let to a Prime Contractor in the form of the Bank of England, whose job is to keep the hierarchy of subcontractors in line. It does this by close surveillance and behind-the-scenes cooperative action among the various levels of subcontrator down the line, before things get public.

Now the new government has quickly moved to reinstate the natural structure of the banking hierarchy, we should see an end to the ludicrous debauchery of the banking system that has brought the UKstate (whatever that really is any more) to this crisis of personal and corporate debt, which is a species of public moral degeneration, and the destruction of the state itself.

Of course the useful idiots such as the academic economists, sociologists, & co., have gone along with the Brown corruption because they secretly want to see the pure Marxist Dream come true at last, and have been actively helping in the withering of the state .

And we also see the depression and anger phase of the post-socialist grieving process in expressions of millenial doomings such as Peak Oil, Global Warming etc.This abject fatalism denies human creative capacity, and is misanthropic.

For example it is only 100 years since motor transport became feasible, and our current problems with this sytsem are minor side-effects of an amazingly beneficial product of the human creativity. Given a clear incentive, it will take the application of further collective human ingenuity to clear up these side-effects.

As for the millenial 'Peak Oil' lamentation, I would commend mourners of Socialism (RIP) to follow the progress of Shale-gas technology, when they have finished their ritual weeping/wailing/gnashing/garment-rending, etc.

And BTW, for any ex-socialist probably atheist adolescent who still doesn't understand the basics of banking ... look up the etymology of the word 'Credit',and have a bit of a think.

wow, has this guy got a surprise in store for him!

a pure gem of pure hubris.

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wow, has this guy got a surprise in store for him!

a pure gem of pure hubris.

So explain why, don't just arrogantly proclaim it's "pure hubris". Is it because his views are contrary to most main stream opinions?

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It's just an opinion piece. Unfortunately for the knockers on here he's a highly respected Nobel prize winning economist. I don't know if he's right but let's put it this way I trust him a lot more than I trust Osbourne. Anyway, in the doomsday persistent recession outcome he describes isn't HPC assured? That's good innit?

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I thought Georges first effort was excellent - C+ at least. Could do with doing a bit more homework and not playing so many silly wall games.

Hope he carries on the good work in October - maybe he can dig an even bigger hole for himself and his chum, Dave!

Off for my hols now - toddle pip old boy!

Will be interesting to see how these free marketeers manage another banking crisis - presumably they'll just let them go bust!

That'll sort things out!

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So explain why, don't just arrogantly proclaim it's "pure hubris". Is it because his views are contrary to most main stream opinions?

I think it will largely be because he is a grade 1 cretin who apparently thinks people on the oil drum haven't heard of shale sands and probably that there is an invisible sky fairy who agrees with him.

Stiglitz is also a cretin, of course.

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I think it will largely be because he is a grade 1 cretin who apparently thinks people on the oil drum haven't heard of shale sands and probably that there is an invisible sky fairy who agrees with him.

that is a fair description of whoever it was penned that comment. Well done.

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that is a fair description of whoever it was penned that comment. Well done.

Thanks Sceppy, I must get back to you on that paradox of thrift stuff. I'm still a bit unsure what properties you attach to it. It was a fun thread.

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Thanks Sceppy, I must get back to you on that paradox of thrift stuff. I'm still a bit unsure what properties you attach to it. It was a fun thread.

not as fun as the tail end of this thread, from about here:

http://www.housepricecrash.co.uk/forum/index.php?showtopic=146041&view=findpost&p=2597625

I strongly suggest you read that and then lets talk again about the paradox of thrift.

Just to whet your appetite, steve cook came to the conclusion that saving is the root of all evil, and I'm inclined to agree (at least from the POV that if you judge the state to be evil, then by following the train of logic, saving is the root of that evil).

Have a look and see what you think. Hopefully then we can get to the nub of the POT, by eliminating money from the equation and considering simply surplus production.

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  • 149 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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