tag:blogger.com,1999:blog-2098432983500045934.post4690819174871957180..comments2024-03-12T22:19:32.339-04:00Comments on The New Arthurian Economics: Felix Salmon: "we fervently hope" for more lendingThe Arthurianhttp://www.blogger.com/profile/16501331051089400601noreply@blogger.comBlogger9125tag:blogger.com,1999:blog-2098432983500045934.post-25471406641312051232013-01-17T04:13:05.391-05:002013-01-17T04:13:05.391-05:00Oh, Sorry 'bout that, Benjamin! The link is wo...Oh, Sorry 'bout that, Benjamin! The link is working now.<br /><br />Maybe I should say: there are two problems. The obvious problem is that <b>we had the financial crisis</b>. The solution to it might be described as a "solution to out current economic woes" as you put it.<br /><br />The other problem is that <b>we were doing things wrong, which led to the financial crisis</b>. This is the problem I usually address. The solution might be described as a way to prevent such crises in the future.<br /><br />Not exactly what you asked, I know.<br />The Arthurianhttps://www.blogger.com/profile/16501331051089400601noreply@blogger.comtag:blogger.com,1999:blog-2098432983500045934.post-60589561130857447582013-01-17T01:00:39.596-05:002013-01-17T01:00:39.596-05:00Arthurian--
Is that link active?
Benjamin Arthurian--<br /><br />Is that link active?<br /><br />Benjamin Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-2098432983500045934.post-55469077370509617272013-01-17T01:00:03.096-05:002013-01-17T01:00:03.096-05:00The Arthurian_
Is that link workings?
Benjamin The Arthurian_<br /><br />Is that link workings?<br /><br />Benjamin Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-2098432983500045934.post-44449111806939869792013-01-16T22:04:22.894-05:002013-01-16T22:04:22.894-05:00Benjamin, see Thursday's post --
An Alternativ...Benjamin, see Thursday's post --<br /><a href="http://newarthurianeconomics.blogspot.com/2013/01/an-alternative-to-death-by-credit.html" rel="nofollow">An Alternative to Death by Credit</a> -- for my plan to prevent the next great crisis.<br />The Arthurianhttps://www.blogger.com/profile/16501331051089400601noreply@blogger.comtag:blogger.com,1999:blog-2098432983500045934.post-60792594640133777402013-01-16T03:31:30.546-05:002013-01-16T03:31:30.546-05:00JW Mason (I think) had a recent post discussing ho...JW Mason (I think) had a recent post discussing how when bank lending exceeds the growth of safe, govt assets, banks are becoming increasingly less liquid and more risky. The recent trillion dollar deficits have helped reduce the ratio of govt assets to bank debt, but I think there is a still a ways to go.<br /><br />I should also point out that the excessive bank lending and corresponding interest payments have been a huge factor in the upwards redistribution of wealth. In hoping for increased bank lending now, Felix seems to be ignoring the long-run consequences of financial instability and wealth inequality. Anonymoushttps://www.blogger.com/profile/00720722626969395929noreply@blogger.comtag:blogger.com,1999:blog-2098432983500045934.post-78696012734636933392013-01-16T02:54:48.952-05:002013-01-16T02:54:48.952-05:00The money supply - M1 especially - has risen quite...The money supply - M1 especially - has risen quite sharply the past 3 years. Yet, there has not been the hyperinflation some predicted. This extra money is sitting in bank accounts; people don't have the credit to take on debt like they did circa 1982/2000.<br /><br /><a href="http://www.ritholtz.com/blog/2013/01/paul-krugman-our-recovery-or-lack-thereof/" rel="nofollow">Paul Krugman interview with Bill Moyers</a> I think is worth a look.Luke The Debtorhttps://www.blogger.com/profile/07527422933669490001noreply@blogger.comtag:blogger.com,1999:blog-2098432983500045934.post-74209243027609774252013-01-15T12:00:19.962-05:002013-01-15T12:00:19.962-05:00Ben,
The solution is the Federal Government that ...Ben,<br /><br />The solution is the Federal Government that is not constrained financially - to come to the rescue - in other words, #MintTheCoin or print the money - whichever gives you the least heartburn (it shouldn't - but to many heartburn in this regard is a knee jerk reactionClonalhttps://www.blogger.com/profile/18290009954839887975noreply@blogger.comtag:blogger.com,1999:blog-2098432983500045934.post-29349309639556422172013-01-15T07:54:42.396-05:002013-01-15T07:54:42.396-05:00Ask your self this question Ben;
Who are they fer...Ask your self this question Ben;<br /><br />Who are they fervently hoping for more lending to?<br /><br />There are people out there whos debt to income ratio is low enough to take on more debt. Most of those people are quite rich and they are avoiding debt (rightly) because they can just pay cash and avoid interest costs. But if they took on more debt (or just spent more)we would get some activity. <br /><br />Everyone else has no room for more debt and "fervently hoping" for their balance sheet to get to the point where they wish to take on more debt is unfortunately way too many peoples idea of an economic policy.<br /><br />They just need to hope harder I guess.Greghttps://www.blogger.com/profile/03139782404004492965noreply@blogger.comtag:blogger.com,1999:blog-2098432983500045934.post-63548164524703186642013-01-15T07:28:53.217-05:002013-01-15T07:28:53.217-05:00Well, more lending, if for capital expansion, is n...Well, more lending, if for capital expansion, is not bad thing, Although I would prefer corporations issuing stock.<br /><br />Also, more lending is not a bad thing if it is relatively smaller than the growth of GDP.<br /><br />In other words, debt increases by 20 percent but GDP by 30 percent. <br /><br />BTW, what is the proposed Arthurian solution to out current economic woes?Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.com