Matt Yglesias

12 Responses to “Endgame”

1. shabadoo Says:
   May 22nd, 2009 at 6:28 pm

   I’m going rock climbing in the desert. Hooray for three-day-weekends!

2. eric k Says:
   May 22nd, 2009 at 8:10 pm

   Conservatives think Nicholson was the hero in A Few Good Men. Jack’s speech perfectly captures their mentality. What they don’t understand is that it also represents everything that si unAmerican about their views.

   Interesting trivia is that A Few Good Men is based on a true story and the Tom Cruise character is David Igleisas, one of the US Attorneys fired by the Bush Admin for not politicizing his office.

3. DTM Says:
   May 22nd, 2009 at 8:47 pm

   Credit crunch continues to ameliorate.

   Wouldn’t it be crazy if Geithner’s plan actually worked?

4. Duvall Says:
   May 22nd, 2009 at 10:09 pm

   Wouldn’t it be crazy if Geithner’s plan actually worked?

   Well, we may have had to break the dollar to do it, but Goldman Sachs still endures.

5. Shmoe Says:
   May 22nd, 2009 at 10:27 pm

   “Have fun, I’m going to the Outer Banks for the weekend.”

   You couldn’t have picked a better time, the weather’s great here right now; moderately hot days, cool evenings. Ocracoke I presume?

6. rapier Says:
   May 22nd, 2009 at 11:57 pm

   The credit system freeze up is over for now. Now all that’s lacking is credit worthy borrowers who want to borrow for productive uses. Here is where the bailout plan crashes and burns. Because there is little desire or even need for production capacity because there is a vast amount of idle factories, offices, machinery etc. etc. various people including Mancow are telling people price inflation is coming so borrow and spend and consume now.

   This is insane. Borrowing for consumption is what got us into this mess and inflation kills. That the system requires a minimum of $2 trillion in credit annually just to not implode demonstrates how maladjusted it is.

   The shrinking of credit spreads is a fine thing but in and of itself it has little meaning in terms of economic growth because of the severe maladjustments in the US and world economies. The credit crisis was an effect of those maladjustments.

   There is no answer to these dilemmas. No answer that does not include severe economic dislocation. Most think there is some silver bullet which will make things right. There isn’t.

7. bob h Says:
   May 23rd, 2009 at 7:01 am

   Social Security’s in pretty solid shape, all things considered.

   If the SS recipients get a zero COLA this year, there is going to be major grumbling and grousing at a minimum. If it appears that this will continue into a second year, there will be open revolt that politicians will have to address thru special legislation.

8. hostreviewgeeks Says:
   May 23rd, 2009 at 7:39 am

   Going to Vegas today yahoooooooo.

9. JonF Says:
   May 23rd, 2009 at 9:28 am

   Re: Because there is little desire or even need for production capacity because there is a vast amount of idle factories, offices, machinery etc. etc. various people including Mancow are telling people price inflation is coming so borrow and spend and consume now.

   That makes no sense. If people are going on a spending spree (of which I see no sign whatsoever) then those idle factories, offices etc. would be coming back to life due to the increase in demand. And that is why inflation is not (right now) a danger: because we do have a lot of idle capacity, including idle workers, who can be put back to work to increase supply if demand does increase.

10. DTM Says:
    May 23rd, 2009 at 10:44 am

    As I understand, here is the basic Obama economic plan:

    In the short term, household borrowing will be replaced with government borrowing to help moderate the disemployment effects.

    In the long term, household consumption will be supported by a wider distribution of real income gains as opposed to ever-increasing borrowing, and government spending will also provide a somewhat larger fraction of GDP.

11. ThomasH Says:
    May 23rd, 2009 at 1:12 pm

    Aaron argues that SS is solid in that pensioners are likely to be paid and that it a good thing for pensioners to have an inflation protected income source in “retirement.” Agreed. What is the argument for a retirement age that leaves the plan unfunded? Is there a “progressive” argument for it?

12. rapier Says:
    May 23rd, 2009 at 2:47 pm

    JonF. You are missing that I said and all the green shooters are hoping we borrow to consume.

    At this point there seems to be a cognitive inability to understand what debt is or an appreciation of its negative aspects. Despite the fact that bankruptcy is endemic. If only, the hope goes, we can get consumption back up today, tomorrow will take care of itself. It won’t and it’s a mugs game if not magical thinking.