Widely Conceded: Even Republicans Finally Agree That Federal Market Intervention Is Needed!

[georgephillip]

Yep, Capitalism 2.0. The question is whether the Fed can unwind this shit before it has to do this all again.

So the question is: What is broken in capitalism that the Fed keeps having to do this?

I think the problem stems from two different versions of capitalism; one produces goods and service and the other makes money solely from speculation.

Fictitious capital - Wikipedia.

 

[Mac1958]

Yep, Capitalism 2.0. The question is whether the Fed can unwind this shit before it has to do this all again.

So the question is: What is broken in capitalism that the Fed keeps having to do this?

I think the problem stems from two different versions of capitalism; one produces goods and service and the other makes money solely from speculation.

Fictitious capital - Wikipedia.

Great point. The two are indeed separate, and the latter is simply unnecessary.

There is venture risk (taking an educated chance on innovation) on one hand, and gambling (leveraging up on derivatives that create nothing) on the other.

The psedo-economic libertarians don't understand that.

 

[mascale]

So back to the OP we go! A backdrop is that famous warning of WWII winning General, then Republican President Eisenhower, (source of Nixon visibility, too!). The Keynes economics may have created the Civilian Conservation Corps. Even Republican critics contended that really, WWII is what was needed to bail out the US Economy from the Republican Induced "Great Depression."

"Military" weapons and payloads have basis in pricey engineering payrolls, and those were continuing subsequent WWII, in what became the "Cold War" of Mutually Assured Destruction!

The Trumped-Up Administration likely misses the Madness!
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The Democrats got the message first--actually in the Obama-Biden Administration, when there was the original Stimulus. Now in 2020, Stimulus One needs Stimulus Two. Then notice that Giant Keynesian Public Works spending has not been a feature of anything proposed in 2020. Both sides do agree on arithmetic measures. The arithmetic amounts are in disagreement.
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So when the Fed was intervening, there was a pricey payrolls problem. Then worsening that, fixed percentage pay raises and bonuses even raised those excessively. The road to wealth and riches in California became the State's bureaucracy employment. And they got raises.

Then in the arithmetic, lower income lives didn't matter. Normal market expectations of profits were not being supported. The wipe-out commenced in the Adjusted Rates mortgage crisis, and spread.

That kind of mess has been getting remedied: Both in Obama-Biden's Original Stimulus, and the recent Stimulus One.

Now just math: But The Trumped-Up Administration took that away, just over the weekend.

--THE REPUBLICANS TOOK THE PAYROLL PROTECTION PROGRAM AWAY--INTENDING HARM OF US SMALL BUSINESSES!

--THE REPUBLICANS TOOK THE STIMULUS DEPOSITS AWAY--INTENDING WIDESPREAD HARM OF US NATIONALS!

--THE REPUBLICANS TOOK AWAY THE LIVING WAGE INCENTIVE OF THE $600.00 PER WEEK, AND WITH NO BASIS IN ANY ECONOMIC PLANNING WIDELY WELL-KNOWN!

"Crow, James Crow: Shaken, Not Stirred!"
(If RNC wins, then Arnold can say it: "I'll be Back!"

(Matt 25: 14:30--Convention City Along with RNC!)