Inor
03-12-2019, 05:40 PM
I just realized this week is the 10 year anniversary of the DOW bottoming out in the "Great Recession". What have we learned in the 10 years since? It seems, very little.
While "experts" claim the 2008-09 recession was caused by a liquidity shortage, I contend it was really caused by a capital shortage. There was plenty of money but investors were not willing to invest it into companies that were forced by the government to use "mark to market" accounting, so they just kept it in cash and PMs. As soon as "mark to market" was relaxed, capital started coming back into stocks and the recession eased.
We saw it further once Trump was elected and gutted some of the worst provisions out of Dodd-Frank. Notice what the economy has done in the last 2 years?
Had they just got rid of Dodd-Frank and got rid of "mark to market", we never have even needed TARP or QE1, QE2, QE3... QE17.
So what is the democrat and big-government republican answer to all of this... impose new and tighter regulations. They never learn. Madness!
While "experts" claim the 2008-09 recession was caused by a liquidity shortage, I contend it was really caused by a capital shortage. There was plenty of money but investors were not willing to invest it into companies that were forced by the government to use "mark to market" accounting, so they just kept it in cash and PMs. As soon as "mark to market" was relaxed, capital started coming back into stocks and the recession eased.
We saw it further once Trump was elected and gutted some of the worst provisions out of Dodd-Frank. Notice what the economy has done in the last 2 years?
Had they just got rid of Dodd-Frank and got rid of "mark to market", we never have even needed TARP or QE1, QE2, QE3... QE17.
So what is the democrat and big-government republican answer to all of this... impose new and tighter regulations. They never learn. Madness!