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Where are you Buffy

Oh where is our fave vampire slayer??? 

The undead Cheney is trying to be relevant and I think he is gathering his minions (very very old vampires)  to make an assault on the bastions of American sensibilities.  I they may need to get some Fixadent first.

Cheney is out saying Obama is all wronng in not wanting to continue torture.  I am thinking prosecuting  this old vampire is going to be easy.  He has admitted on National TV that he ordered the torture.  Yet he is undaunted and is now saying that his minions must not become moderate.  I mean if you are going to suck the blood out of tthe economy, then do it with unbound efforts.

Oh well another intro to a econ rant.

Conservative Republicans are outraged with the prospect of a $1.5 trillion deficit this year.  Hmmmm did GEE Whiz give Obama this nasty dsituation? 

Obama is now including the wars in the Fed Budget.  These are the wars that Gee Whiz got us into.  Gee Whiz never included the wars into the budget.  What Congress got was bi annual emergency funding request for the ongoing wars.  I mean the first funding ok, but after that shouldn/t this be part of the budget?  Well if the wars were includeded, the deficit assumptions would be huge.  Oh what a joy to cook the books.  I think they hired a bunch of ENRON guys to run the finances.

The conservatives are still complaining about the STIM and Bank bailouts. 

First everyone hates to have us bail out banks when they were the ones that created the mess.  The big HOWEVER is reasons for bailing out the Banks.  In about 1928 -29 Herbert Hoover was faced with the same issue.  The stock market was beyond over valued and there were loans that were bad.  So Herbie had the choice....Bail out the banks or suffewr the consequenses.  Well ole Herbie did absolutely nothing.  What happen was th3e Great Depression.

The banks lost liquidity and closed.  The remaining banks were beyond risk adverse and stopped lending and this stopped the flow of money in the economy. 

Herbie was kicked out and FDR had to handle the mess.  Sound familiar.

So now we are facing the same issue.  The Dow was way overvalued and you had banks holding toxic assets that they created.  There are hedge funds that were betting on the curve and the assumption was that this would never end.  Well it did and banks were facing massive liquidity issues.  

Let's just assume that if there was not a bank bailout and continued support, the days of 1929 would be de ja vu' all over again.  We are still in a recession, primarily due to the colapse of the housing marked and banks lending grinding to a stop. 

What Obama is doing makes monerterists happy.  First he is stablizing the banking system.   Without this system we are screwed.  He then pumped massive money into the system, AKA the STIM.  He is trying to fix the broken health system and finally trying to end and fix the Gee Whiz wars.  Add to this a sensible look at the tax system and there is hope.

So kids this is my Saturday Econ rant.

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