would you take the same position wrt those mortgage holders who borrowed more than they could afford?
How about the mortgage companies that wrote those mortgages not because they were sound credit decisions, but because they could make money by selling them off? How about the secondary market buyers that then bundled the mortgages together and sold shares of the bundle because they could make money? Also, you (of course) ignore the multitudes that bought houses, made the payments until LIBOR spiked to a level higher than anybody thought it would go and the ARM rates adjusted accordingly...higher than people thought they would go. It was at that point that borrowers began defaulting. What is affordable at 7% is unaffordable at 16%.
Yes. I'm also in denial that somebody who doesn't know how to spell the word "stimulus" is lecturing people on how markets reacted to it.
Every one of your posts that I have seen today contains a personal attack. Let's try this. Do you deny that the markets held the stimulus package in disfavor?
Really? That's a personal attack? Not really stan... Anyway, yes. Not only do I deny it, I know it's wrong. Conventional wisdom, for whatever it's worth, is that fears of bank nationalization (and sh-tty earnings from tech stocks) is what caused today's drop. Trust me, I'm in a better place to know than you are. Not because I'm a financial markets wizard, but because in my job it is hard to avoid explanations as to why the market drops. In fact they pipe it in while I'm on the toilet, as they broadcast it around the globe. Seriously. Anyway answer my question stan - how much money have you made shorting the market due to the Stimulus plan? you do know that it's a tiny sum compared to what you would have made, had the stimulus failed, right?
I think you are in the minority with that opinion. The CBO thinks the stimulus plan will hurt the economy over the next 10 years. http://www.newsroomamerica.com/politics/story.php?id=444552 Wall Street doesn't like this- "The CBO estimated that by 2019, the bill would reduce gross domestic product - the entire measure of U.S. economic activity - by 0.1 to 0.3 percent. The agency said the bill would create jobs but by 2011 such job creation would be negligible. "CBOs basic assumption is that, in the long run, each dollar of additional debt crowds out about a third of a dollars worth of private domestic capital," the paper said, "
OK - two reasons why you're wrong 1. The CBO stands for the "Congressional Budget Office" - they are not "the markets" so you are failing to prove your basic premise (that the recent drop in the markets was due primarily or entirely to the stimulus plan). 2. The CBO didn't really say that. As has been pointed out for weeks, the right wing blogosphere has payed it very fast and loose and cherry picked the CBO report to the point of it being absurd. Here's a litany of false claims about the CBO from just the past few weeks: http://mediamatters.org/issues_topics/search_results?qstring=CBO Here's some actual non right-wing altered data PS given your unfamiliarity with economics I highly doubt you understand much of theory behind crowding out without googling it.
Seeing as no money from the stimulus has been spent, I doubt the markets have much say in that right now.
Yes, I know that CBO is the congressional budget office. I did not say that the recent drop in the markets was due to the stimulus package. I said that Wall Street did not like the stimulus package. PS given your unfamiliarity with economics I highly doubt you understand much of theory behind crowding out without googling it That is just another personal attack. Never mind- have a nice day.
Evidence? The market drop. So you're not saying that the stimulus caused the market to drop, you're just saying that you can tell from the market drop that the stimulus is a failure. No further comment necessary.
LOL, this is a waste of time, because all I get from you are personal attacks and straw man arguments. I never once said the stimulus is a failure due to a negative Wall Street reaction to the announcement, although markets are an excellent predictor of future events.
