[DeTomaso] Fwd: fixing the economy (npc content)

[RFogle1 at aol.com]

I guess I don't know how the  government can fix much of anything, and 
lately I've heard the the   economists now think FDR's  spending just 
prolonged the depression....
 
 
It's interesting, it really depends on what economists you listen  too.  I've 
been reading articles, for the last three or four  years, written by 
economists who are followers of the Austrian school of  economics. 
 
<_http://en.wikipedia.org/wiki/Schools_of_economics_ 
(http://en.wikipedia.org/wiki/Schools_of_economics) >
 
Their thoughts make sense to me, and do not rely on complicated formulas  
that only a few people in the world understand.  These guys, and women,  
predicted what we are experiencing today, but their opinions have been  marginalized 
by the mainstream, media, bureaucrats and economists.   They only talk about 
Keynesian economic theory, that in this situation,  prescribes government 
spending to make up for a lack of consumer spending, a la  Hoover.  Keynesian 
economists justify today's spending by saying Hoover's  mistake was that he did not 
spend enough.  We're not going to make that  mistake again!  Most of the 
Austrian guys, say that this will only  make it worse.  The Fed. is in effect 
printing money, and every time they  print a bill out of thin air the one in your 
pocket is worth less, which means  inflation, and lots of it.  Austrians also 
blame the Federal Reserve  for artificially keeping interest rates low.  Low 
interest rates create  cheap money and cause home buyers, investors and business 
people to  make purchase decisions based on the cost of money rather than the 
 underlying value of the asset.  They tend to overpay,  think  Barrett 
Jackson.  That 68 Cuda has been worth 30 - 40K for years, what  suddenly makes it 
worth 200K?  Low interest rates also  discourage savings and the accumulation of 
capital that is needed to  create new businesses and jobs.  In the past when 
people got layed  off, they would tap their savings and start a small 
business.  That's not  going to happen now, most people are tapped out, and upside 
down. 
 
Don't get me started, Ron
 
Ronald M. Fogle

President
Cuyahoga Valley Management, Inc.
PO Box  102
Cuyahoga Falls, OH 44222
330-592-5189 phone
216-581-6494 fax 

 
In a message dated 4/3/2009 2:54:19 P.M. Eastern Daylight Time,  
JDeRyke at aol.com writes:

In a  message dated 4/3/09 11:19:27 AM, Ken Green <kenn_green at yahoo.com>  
writes:

I guess I don't know how the  government can fix much of anything, and 
lately I've heard the the   economists now think FDR's  spending just 
prolonged the depression....

With your elected  representative's vote of yesterday on the "budget". the 
U.S. is now not  qualified to join the European Union (should it desire to), 
due 
to its  overwhelming public debt. Bulgaria is better off debt-wise.... Color 
me  
disgusted- J Deryke





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