9/18 So, the lesson of the fed rate cut is: borrow as much as you can, get
way over your head, make risky investments as well. make big bucks on
the way up. if you get into trouble, the Fed will bail you out. if
you're a saver you're a sucker... your life savings just took a hit
through dollar devaluation.
\_ If you are a saver you ALWAYS take a hit through dollar devaluation
\_ I've been busy the last few days... I thought they were going to
let everyone bite it. What sort of bailout did the Fed do?
\- "If you owe your bank a hundred pounds, you have a problem.
But if you owe your bank a million pounds, it has." --jmk
BTW, this is an example of why taxes should be progressive.
\_ It's amusing that you jump on progressive taxation to remedy
this particular problem rather than, you know, eliminating
bailouts. -- ilyas
\- progressive taxation isnt a solution to this.
this is an illustration of the fallacy of some of
the "how should we split the dinner bill" type bogus
analogies.
\_ The best argument for progressive taxation I know is
that marginal benefit increases exponentially, but
hedonic value increases logarithmically (if that),
for money. -- ilyas
\_ Investors and risk takers will always do better than nervous
nellies. You would rather the whole economy suffered a recession?
\_ They're not taking risks if the government bails them out. And
considering that the only reason the economy is in danger of
suffering a recession is *because* of this kind of risk taking,
it shouldn't be encouraged. -tom
\_ I think you'd have a hard time substantiating your last
sentence.
\_ Investors, probably, risk takers? That's ridiculous. The kind
of fevered speculation that goes on in these "booms" is not
sound business and should not be encouraged. But unless those
who do this feel pain, it won't stop. And it does endanger the
economy. The "lemming" mentality should not provide safety
from stupidity.
\_ Yeah, I don't approve of fevered speculation and lemming
mentality either. Feel better? |
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