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How McCain's economic advisor, and Bill Clinton's, screwed the American economy

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  • How McCain's economic advisor, and Bill Clinton's, screwed the American economy

    How McCain's economic advisor, and Bill Clinton's, screwed the American economy

    Finance, insurance, real estate

    by Bruce Fisher (Artvoice)

    There’s this scary economist named Eric Janszen whose Web site is iTulip.com. He doesn’t care if you think he’s nuts, because he’s been correct about every economic up and down for the past decade, including the tech-stock crash of 2000. Smart rich people I know swear by him. Other economists respect him.

    Janszen says that we’ve been in a “bubble” economy fueled by insane, irrational, irresponsible speculation on real estate. He predicts housing values to drop by almost 40 percent. That may not sound like much of a problem up here in the North, where housing prices never went nutso as they have in the large metro areas of the East and West Coasts and in the Sun Belt.

    But therein lays the problem. There has been so much of what Janszen calls “fictitious value” created by the real-estate boom—and then so much speculation by big hedge funds and other financial institutions based on that fictitious value—that the fantasy of real-estate riches came to dominate our economy.

    His Web site can be a tough read. But in the February 2008 issue of Harpers magazine, he wrote a long article in fairly plain English about how the housing bubble came about and why, in the era of Republican-led deregulation and federal budget deficits, it’s a huge problem.

    “The housing bubble has left us in dire shape, worse than after the technology-stock bubble, when the Federal Reserve Funds Rate was 6 percent, the dollar was at a multi-decade peak, the federal government was running a surplus, and tax rates were relatively high, making reflation—interest-rate cuts, dollar depreciation, increased government spending, and tax cuts—relatively painless,” Janszen wrote earlier this year.

    In other words, the Clinton years of surpluses, and Clinton’s 1993 tax increases on upper-income earners, plus the technology-driven economic expansion, made recovering from the dot-com collapse of March 2000 a relatively easy adjustment. more...

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    Ed.

  • #2
    Re: How McCain's economic advisor, and Bill Clinton's, screwed the American economy

    Thanks Fred
    I enjoyed that!
    Mike

    Comment


    • #3
      Re: How McCain's economic advisor, and Bill Clinton's, screwed the American economy

      Sweet!, EJ is starting to get the respect he so richly deserves.
      http://www.NowAndTheFuture.com

      Comment


      • #4
        Re: How McCain's economic advisor, and Bill Clinton's, screwed the American economy

        I am soooooo, sooooo, looking forward to hearing my "unbelieving" conservative relatives explain to me this week... that even though the Feds have nationalized three banks, and the banking system as a whole needs a 3/4 $TRILLION "bailout" which is fundamentally due to millions of people not being able to pay their mortgages...
        ..."But we're still not in a recession, you see, because we haven't had two quarters of negative growth yet. These economic terms have specific definitions, and if you hippie pinko commie sympathizers don't want to use the definitions, I'm taking my ball and going home. The Bush Economy is doing just fine."

        My gawd, if anyone ever needed proof that Federal economic statistics were being manipulated...


        Also... "WELL DUHHHHHHHHH"

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