bailouts: did they work?

[Yurt]

i understand proving they worked is not cut and dry, however, why do people think the bailouts that gwb implemented worked?

the supposedly too large to fail companies borrowed BILLIONS and yet a mere year later can repay it....how did they make so much money so fast?

 

[☭proletarian☭]

Moral hazard - Wikipedia, the free encyclopedia

 

[Big Black Dog]

They must not have worked all that well due to the high unemployment rates...

 

[Yurt]

Moral hazard - Wikipedia, the free encyclopedia

wow...wiki...thanks

 

[Yurt]

They must not have worked all that well due to the high unemployment rates...

employment is always a lagging factor....

 

[Kevin_Kennedy]

I'd say the bailouts did exactly what they were intended to do. Namely, protecting the politically well-connected with taxpayer money so that they can avoid the market's natural forces and stay in business longer. Of course now we've simply added to our problems and made our situation even worse than it was.

 

[Kevin_Kennedy]

They must not have worked all that well due to the high unemployment rates...

employment is always a lagging factor....

Yes, it lags because there's no recovery.

 

[Yurt]

They must not have worked all that well due to the high unemployment rates...

employment is always a lagging factor....

Yes, it lags because there's no recovery.

explain....because most, if not all, economist disagree

 

[☭proletarian☭]

Moral hazard - Wikipedia, the free encyclopedia

wow...wiki...thanks

you're an idiot, aren't you?

 

[Kevin_Kennedy]

employment is always a lagging factor....

Yes, it lags because there's no recovery.

explain....because most, if not all, economist disagree

Well it's certainly not all economists that disagree with my point, but most of them certainly do. Most of them are looking at our most current crop of downturns and seeing that employment stayed high while the economy was supposedly recovering. The Great Depression is a good example of this, as FDR's New Deal is said to have saved the economy despite the unemployment numbers remaining high until WWII. But the fact is that a "jobless recovery" is an oxymoron. Without people going back to a sustainable line of employment there is no recovery. The reason unemployment stays high is because government stimulus takes capital out of the private sector, thus destroying wealth and real sustainable job creation. The private sector being where wealth is created. If we allow the market to reallocate resources, which is what it is trying to do in a recession, then our downturns would last around a year and all would be well again. The recession of 1920-1921 is perfect evidence of this. It started out more severe than the Great Depression did, and because of no government stimulus and the market being allowed to correct itself it was over in about a year.

 

[garyd]

The great Depression inspite of all the government could do lasted about a decade for all practicla purposes. Prior to that no period of economic depression since the Dark Ages had lasted more than 18 months.

It is amazing what wonders government can produce when it really puts it's mindlessness to the task.

 

[☭proletarian☭]

Yes, it lags because there's no recovery.

explain....because most, if not all, economist disagree

Well it's certainly not all economists that disagree with my point, but most of them certainly do. Most of them are looking at our most current crop of downturns and seeing that employment stayed high while the economy was supposedly recovering. The Great Depression is a good example of this, as FDR's New Deal is said to have saved the economy despite the unemployment numbers remaining high until WWII. But the fact is that a "jobless recovery" is an oxymoron. Without people going back to a sustainable line of employment there is no recovery. The reason unemployment stays high is because government stimulus takes capital out of the private sector, thus destroying wealth and real sustainable job creation. The private sector being where wealth is created. If we allow the market to reallocate resources, which is what it is trying to do in a recession, then our downturns would last around a year and all would be well again. The recession of 1920-1921 is perfect evidence of this. It started out more severe than the Great Depression did, and because of no government stimulus and the market being allowed to correct itself it was over in about a year.

You sound like an Austrian

 

[garyd]

He is and in most regards that is a good thing.

 

[Kevin_Kennedy]

explain....because most, if not all, economist disagree

Well it's certainly not all economists that disagree with my point, but most of them certainly do. Most of them are looking at our most current crop of downturns and seeing that employment stayed high while the economy was supposedly recovering. The Great Depression is a good example of this, as FDR's New Deal is said to have saved the economy despite the unemployment numbers remaining high until WWII. But the fact is that a "jobless recovery" is an oxymoron. Without people going back to a sustainable line of employment there is no recovery. The reason unemployment stays high is because government stimulus takes capital out of the private sector, thus destroying wealth and real sustainable job creation. The private sector being where wealth is created. If we allow the market to reallocate resources, which is what it is trying to do in a recession, then our downturns would last around a year and all would be well again. The recession of 1920-1921 is perfect evidence of this. It started out more severe than the Great Depression did, and because of no government stimulus and the market being allowed to correct itself it was over in about a year.

You sound like an Austrian

I am indeed a follower of the Austrian school.

 

[☭proletarian☭]

so just how many of us are there around here?

 

[Kevin_Kennedy]

so just how many of us are there around here?

There are actually quite a few. Dude and Paulie come to mind immediately. Then BaronVonBigMeat and gonegolfin show up every now and again, though I haven't actually seen gonegolfin around in a while. Toro is very familiar with the Austrian school, though I'd say he's more in line with the Chicago school and Milton Friedman. Those are the ones I can think of off the top of my head.

 

[Yurt]

Moral hazard - Wikipedia, the free encyclopedia

wow...wiki...thanks

you're an idiot, aren't you?

no.

are you?

 

[Yurt]

am i missing something...or has no one provided a single post that shows the bailouts worked.....

 

[Killuminati]

Yes the bail out worked, it paid back all those who put obama in office. I hope obama doesn't win a 2nd term, Ron Paul 2012 lets get back to hard money.

 

[kyzr]

The "service economy hoax". IMHO we need to bring back a strong manufacturing base, not only to provide jobs for the unwashed masses, but as a matter of self-interest. We no longer create wealth, eventually our economy will collapse when the dollar is worthless.