tag:blogger.com,1999:blog-4477131299817733843.post3043657259546718942..comments2023-05-26T10:44:37.150-04:00Comments on The Bi-Coloured-Python-Rock-Snake: A Terrible Thing To WasteBi-Coloured-Python-Rock-Snakehttp://www.blogger.com/profile/10486453438350039642noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-4477131299817733843.post-29268795679624923642009-01-31T02:15:00.000-05:002009-01-31T02:15:00.000-05:00And here comes Tyler Cowen to knock one of the leg...And here comes <A HREF="http://www.economist.com/blogs/freeexchange/2009/01/blanchard_roundtable_the_econo.cfm" REL="nofollow">Tyler Cowen to knock one of the legs off of my argument</A>:<BR/><BR/><I>First, to the extent that the real problem is fear, this militates in favour of placebo policies. By that I mean initiatives which appear bold and have great symbolic value, but which don't necessarily cost us very much. I haven't seen us make a major attempt to identify such proposals, but it is unlikely that an $800 billion stimulus fits the bill.</I><BR/><BR/>Yup. He's a renowned economist, and I am not.Shanehttps://www.blogger.com/profile/17023519482024334644noreply@blogger.comtag:blogger.com,1999:blog-4477131299817733843.post-30581110333199568542009-01-31T01:57:00.000-05:002009-01-31T01:57:00.000-05:00It may actually be (gasp!) politics as usual. The ...It may actually be (gasp!) politics as usual. The more I watch Obama's team (especially that Rahm Emmanuel), the more I'm convinced that HUGE change is coming. These guys are too politically savvy, with too much political capital amassed, to achieve anything less than comprehensive restructuring of the federal government/bureaucracy.<BR/><BR/>But I think the immediate need for SOMETHING to happen is not overstated by the Democrats. With non-exchange (over the counter) traded securities, confidence really does affect the real health of big finance's balance sheets.<BR/><BR/>ALSO, let's not forget how future cash flows are noted in accounting. Passing legislation that plans spending years down the line is factored into Net Present Value calculations, and may adjust the books enough to stave off margin calls (which are just runs on the non-FDIC-insured "bank"). <BR/><BR/>I'm not saying that this is what's going on, because a) I'm not a finance expert and b) I'm currently in transit from Iraq to the U.S. and don't have time to read up on this particular bill, but I am saying that spending far into the future does not necessarily entail a lower need for immediate passage.Shanehttps://www.blogger.com/profile/17023519482024334644noreply@blogger.com