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2009-02-11 Home Front Economy

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Posted by ed 2009-02-11 08:29|| || Front Page|| [1 views ] Top

#1 but every wage cut and price reduction is also reducing the cash flows which households and firms need to pay their debts, deepening the crisis.

False statement. What the author fails to acknowledge is that there is some and even a lot of gouging in prices. That 'every' price reduction doesn't reduce cash flows to reduce debt as much as profit margins. Where was it written in stone that companies and stockholders were entitled to double digit profit margins or to operate inefficiently without consequences?

Posted by Procopius2k 2009-02-11 08:44|| 2009-02-11 08:44|| Front Page Top

#2 We are all Zimbabweans now.

Posted by tipper 2009-02-11 09:02|| 2009-02-11 09:02|| Front Page Top

#3 There is something deeply flawed in this way of thinking, having to do with moral hazard and a collectivist mindset. Collectivist in the sense of: the responsible people who didn't take on debt that was unsustainable in a downturn should share the pain of the irresponsible people via inflation, which is a tax on everybody.

Posted by Cynicism Inc 2009-02-11 09:11|| 2009-02-11 09:11|| Front Page Top

#4 Who called inflation the unfairest tax of all?

Posted by Nimble Spemble 2009-02-11 09:48|| 2009-02-11 09:48|| Front Page Top

#5 I am an ant; f*** the grasshoppers.

Posted by AlanC 2009-02-11 10:08|| 2009-02-11 10:08|| Front Page Top

#6 This is deja vu all over again. Carter redux!

Posted by Yogi Berra 2009-02-11 12:47|| 2009-02-11 12:47|| Front Page Top

#7 It is written in stone that corporate insiders are entitled to massive payments & bonuses regardless of consequences.

Posted by Anguper Hupomosing9418 2009-02-11 13:08|| 2009-02-11 13:08|| Front Page Top

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