World markets about to enter the "Danger zone"...

[Mega]

SEz Bob Zoe-lick (Worldbank/Gold standard bloke)
http://www.bbc.co.uk/news/business-14522634

May Be "Mav & Goose" could help?
http://www.youtube.com/watch?v=V8rZWw9HE7o
Mike

[Starving Steve]

Re: World markets about to enter the "Danger zone"...

Stanford professor and economist, John Taylor commenting on the Fed, said that the economic recovery in America has been "non-existent". He remarked that Bernanke's policies have failed.

So if in the language of Greenspanese, this kind of economic recovery is bi-forkated or in plain English, multi-speed, depending upon country, the economic recovery in America must be in neutral or maybe even reverse gear.

If John Taylor's comments are indicative of the mood in America, the knives may be out for Bernanke soon.

[Verrocchio]

Re: World markets about to enter the "Danger zone"...

Stanford professor and economist, John Taylor commenting on the Fed, said that the economic recovery in America has been "non-existent". He remarked that Bernanke's policies have failed.

So if in the language of Greenspanese, this kind of economic recovery is bi-forkated or in plain English, multi-speed, depending upon country, the economic recovery in America must be in neutral or maybe even reverse gear.

If John Taylor's comments are indicative of the mood in America, the knives may be out for Bernanke soon.

Based on his track record, John Taylor's comments are indicative of the mood of the GOP Powers That Be. That may or may not reflect the "mood of America." Taylor's not just a Stanford econ prof; he's also a Hoover fellow.

The New Republic fingers him as.. ...the man Republicans use to back up their unconventional fiscal program. It's worth keeping in mind that Taylor's basic role is to support Republican fiscal policy in any and all circumstances. He supported it when he worked for George H.W. Bush and proposed deficit-reducing policies. He supported it when the party abandoned those policies. He supported it when it was making highly unpersuasive attacks on the Clinton budget program. He supported it during George W. Bush's presidency, and he continues to support it when Republicans have since decided that Bush was a failed big spender. Here, via Nexis, is Taylor throughout history:

The Reagan economic legacy:

“"The record of very rapid economic expansion in the 1980s is important to emphasize," said John Taylor, a Stanford professor and former White House economist under Bush.” – Los Angeles Times, November 8, 1992

First Bush administration’s economic outlook:

“Those projections also are more optimistic than most private forecasts, [CBO Director Robert] Reischauer said….Boskin and John Taylor, a member of the economic advisers' council, said the interest rate decline will occur if the Bush budget proposals are adopted because the prospect of lower deficits will have a powerful impact on expectations in financial markets about future government borrowing needs. As the government borrows less, a larger share of national savings will be available for use by private households and businesses, and rates should fall, they said. The administration assumes that the Federal Reserve will provide sufficient money to the economy to allow rates to decline if market forces are already pushing them down, Boskin and Taylor said.” – Washington Post, January 30, 1990

[Starving Steve]

Re: World markets about to enter the "Danger zone"...

It certainly would appear the Prof. John Taylor is a Republican, unfortunately. Stanford University has always been a gathering place ( a hot-bed ) of the Repukes, old wealth, privilege, and the elitists.... Be that as it may, I think Taylor has a valid observation about the Bernanke Fed; i.e, the policies of Bernanke at the Fed appear to have failed miserably. Everything has failed: QE I, QE 2, zero interest rates, dollar debasement, the TARP--- everything.

Add to the failures of Bernanke, the failure of this Obama Administration to develop a credible energy plan which would be required as a basis for any economic recovery plan. Then add to that failure, the failure of the Obama Administration to develop a viable alternative trade policy, except for the slogan, "Buy American". And the "Buy American" policy really is trade protectionism--- a step backward to the Smoot-Hawley Bill of the Great Depression which led to tariff barriers, a cessation of world trade, consumer price inflation, and consequently a deeper depression, worldwide. Yet another glaring failure of the Obama Administration is the failure to pass a credible budget in the Congress and the consequent and unprecedented down-grading of U.S. debt.

Republican, Democrat, Christian-right or Social-Democrat, we have to be truthful to ourselves about the failure of governments in Europe, the UK, and America to deal effectively with the Great Recession. It is as if those in government have had it too good, and don't have a clue ( and couldn't care less ) about the suffering that common people are enduring now.

Watching the riots in the UK a week or so ago on television, it would appear that people are at their wits-end. And I sense the same discontent with governments here in America, in Canada, and in Europe, too. And in the Middle-East: in Israel, Egypt, Yemen, Syria and Libya, people have been rioting too..... It is like a Great Awakening is sweeping the world. People have run out of patience with inflation, the cost of living, unemployment, and government attitudes.

So, I think Prof. John Taylor's remarks are timely and valid--- and part of a greater picture of government ineptness and failure, worldwide.

[doom&gloom]

Re: World markets about to enter the "Danger zone"...

I have a friend who (with partners) owns a small chain of fast food places. Biz is up 5% or so this year over last. He has no desire to hir anyone. Obamacare scares the crap out of him.

I mention Obama has done NOTHING for small business, and he agrees.

BTW, he was an Obama voter and a true-blue Democrat.

I bet he don't vote for "hope and change" next time around.


frankly, i just don't see any signs of intelligent life on the presidential parade except Ron Paul.

[Mn_Mark]

Re: World markets about to enter the "Danger zone"...

Watching the riots in the UK a week or so ago on television, it would appear that people are at their wits-end.

I didn't get the impression that the rioting was by people frustrated by the economy, but by young hooligans who have permanently settled into a comfortable welfare lifestyle and were having a great deal of fun breaking, burning, and stealing. You didn't see angry working class people marching down the streets demanding jobs, etc. You saw thugs wearing hoodies and balaclavas furtively breaking into electronics stores.

So I don't think it's a matter of being at wits-end. It's a matter of a society on the verge of collapse as a result of many decades of social engineering policies that taught dependence and enshrined victimhood.

[Mn_Mark]

Re: World markets about to enter the "Danger zone"...

I have a friend who (with partners) owns a small chain of fast food places. Biz is up 5% or so this year over last. He has no desire to hir anyone. Obamacare scares the crap out of him.

I mention Obama has done NOTHING for small business, and he agrees.

BTW, he was an Obama voter and a true-blue Democrat.

I bet he don't vote for "hope and change" next time around.
.

Why would someone intelligent enough to be a small businessman ever think that Obama - considering that he is a Democrat and considering his (short) record of left-wing votes - was going to be good for small business?

[don]

Re: World markets about to enter the "Danger zone"...

good for small business?

30 years of outsourcing the productive economy (lifeblood of small businesses)

FIRE eats the GDP

Corporate retail obliterates mom & pop retail

Manufactured Housing/CRE Bubble kills construction (much of which has proven resistant to corporate ownership)

I'm sensing a trend here . . .

[GRG55]

Re: World markets about to enter the "Danger zone"...

30 years of outsourcing the productive economy (lifeblood of small businesses)

FIRE eats the GDP

Corporate retail obliterates mom & pop retail

Manufactured Housing/CRE Bubble kills construction (much of which has proven resistant to corporate ownership)

I'm sensing a trend here . . .

+1

The idea that small business' problems are all the fault of Obama, or the current administration, beggars belief. As you say don, the root of these problems has been decades in the making, involving the policies of numerous administrations, Democrat and Republican alike. Obama gets to carry the can for the mess because I suspect this is no longer "W's recession", it's now Obama's recession in the minds of most Americans. That the spendthrift Republicans have suddenly discovered austerity is hilarious beyond imagination...

[shiny!]

Re: World markets about to enter the "Danger zone"...

Manufactured Housing/CRE Bubble kills construction (much of which has proven resistant to corporate ownership)

Don, I'm not sure what you mean by this. AFAIK Manufactured Housing is also struggling. Can you please elaborate?

[don]

Re: World markets about to enter the "Danger zone"...

Don, I'm not sure what you mean by this. AFAIK Manufactured Housing is also struggling. Can you please elaborate?

You're misunderstanding me. I'm referring to a manufactured bubble, not manufactured housing. I could have been clearer.

[tallone]

Re: World markets about to enter the "Danger zone"...

I didn't get the impression that the rioting was by people frustrated by the economy, but by young hooligans who have permanently settled into a comfortable welfare lifestyle and were having a great deal of fun breaking, burning, and stealing. You didn't see angry working class people marching down the streets demanding jobs, etc. You saw thugs wearing hoodies and balaclavas furtively breaking into electronics stores.

So I don't think it's a matter of being at wits-end. It's a matter of a society on the verge of collapse as a result of many decades of social engineering policies that taught dependence and enshrined victimhood.

+1 Good point.

[sishya]

Re: World markets about to enter the "Danger zone"...

The rioters who have nothing to lose, nothing gained since birth besides welfare... they will riot. there is such a large underclass. ignore them at your peril.

[shiny!]

Re: World markets about to enter the "Danger zone"...

You're misunderstanding me. I'm referring to a manufactured bubble, not manufactured housing. I could have been clearer.

Ahh, I get it. Thanks.

[flintlock]

Re: World markets about to enter the "Danger zone"...

+1 Good point.

Agree! Perhaps this is the new normal. And its not just England.