How to Explain This?

I will forward this link to my Readers, though I have suffered too great a Saturday inertia to have read all of it myself. I glanced at it, and quickly noticed the 952 Days without a Bank failure, and the 630 Banks started between 2004-2007.Note the emphasis on high-tech IPOs, where the privileged Few were acclaimed as the new Vast Wealth. Daniel Gross waxes large on the impression that Everyone thought a ‘Fundamental Change’ had taken place in the American economy. I possess a different Thought. My surmise goes that marketing bidding was Runaway, with Everyone wanting a piece of the Action. IPOs sold out for huge Price, and a Few could claim huge Wealth. The Problem, here, was that the Few had to pour their wealth back into succeeding IPOs simply to create the huge Sell Out prices of following IPOs. The Concept of ‘Too Big to Fail’ might be interpreted as ‘The accumulated IPOs do not want to lose all their Funds". I might have to Someday write a Piece on the serious Danger of prolonged Periods of lack of specific Taxation. The entire thesis would be that excess Profits can be drained off naturally through rational tax policy over a continuous Period, or explosively in periodic episodes of financial crisis. I would do so, that is, except I doubt it would be a Best Seller, and I need a major IPO Sellout of my own!

Here is sincere attempt to confuse your average Graduate Student, who is bewildered by how much emphasis to palce on the IS-LM model. The Philips curve proves durable, but only under striated Conditions hard to duplicate in functioning economies, and resonant to patterns of economic magnitudes. I won’t even enter into Milton Friedman’s argument about constant assumed Inflation, or what it does to academic stamina. No one really likes to explore the full expectations under conditions of Deflation, though this is only aversion to consideration how their academic expectations could explode. Robert Waldmann explores much of the confusion present in the economic community today, but my own personal bias has channeled my exit from the Post before completion. I can only say it is to be hoped that the Reader understand the ruminate nature of the arguments by the time that he leaves Graduate School.

Greg Mankiw can claim a consistency of complaint about the Deficit, having exited the Bush administration before the real Over-Spending started. I could carp a little bit, and state he was still there for a corruptive reduction of the Tax rates, though I should be generous as I agree with his basic Post of today. My basic Suggestion for handling the long-term Deficit may be to transfer your assets to Gold in Swiss Banks, and move to Mexico where Consumer Prices are still relatively cheap–just don’t get kidnaped by any of the Border gangs; try middle Mexico, where the climate is nice, and the People are wonderfully Polite. The rest of you who are attempting to survive without Movement–become a Doctor; they seem to be able to charge what the market will bear, at least where there is still a market established. lgl