tag:blogger.com,1999:blog-4815867514277794362.post87536420080459127..comments2024-03-08T06:18:28.125+11:00Comments on Bronte Capital: Reaction to the Helicopter postJohn Hemptonhttp://www.blogger.com/profile/03766274392122783128noreply@blogger.comBlogger15125tag:blogger.com,1999:blog-4815867514277794362.post-55890798478311916132009-01-31T02:19:00.000+11:002009-01-31T02:19:00.000+11:00i wonder whether you have considered the alternati...i wonder whether you have considered the alternative, which is to drop a lot of helicopters into a pile of money. would that help anything?babar ganeshhttps://www.blogger.com/profile/01898299856773302141noreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-73245610820717908562009-01-29T07:46:00.000+11:002009-01-29T07:46:00.000+11:00Wonderful proposal. Captivating comments. But I ...Wonderful proposal. Captivating comments. But I think we HAVE TO crash and burn via a depression. My reasoning is that the now broken system does have the machinery and laws in place for massive bankruptcy liquidation via Chaper 9. But our economy is not set up for controlling massive stimulus. The FED does not know how to steer that course. The last time it was tried in Japan or in the Depression it was not particularly successful and may have contributed to the run-up to the butchery of WWII. We fear the crash and burn liquidation because we can model and anticipate the horrendous costs to society and the economy. Quantitative easing may be the best solution - or Uncle Ben may be pis..ng in the wind. Collapse tells us that everything will hit the ground - but also that there will be real assets left standing once the dust settlesAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-8434270832726875482009-01-28T20:23:00.000+11:002009-01-28T20:23:00.000+11:00Isn't the helicopter scenario similar to the old j...Isn't the helicopter scenario similar to the old joke about 2 economists walking down the street...they both see a 10 dollar bill on the floor but neither of them picks it up because 'there is no such thing as a free lunch' <BR/><BR/>If i saw Bernanke throwing money out of a helicopter i wouldn't bother picking up the cash.<BR/><BR/>hence this policy response would be ineffectiveAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-29644946481932245532009-01-28T15:17:00.000+11:002009-01-28T15:17:00.000+11:00Why can't people get the simple idea that deflatio...Why can't people get the simple idea that deflation is not a menace. It is the natural way the economy heals itself. Things become cheaper so that people can actually afford things. I might be able to afford to buy a house on an acedemic salary if they drop another 30%.Davidhttps://www.blogger.com/profile/02748470636151914185noreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-23693077101639528572009-01-28T14:02:00.000+11:002009-01-28T14:02:00.000+11:00Giving money to average Americans to spend any way...Giving money to average Americans to spend any way they wish is far more just than what we're doing now, which is to reward those who failed spectacularly.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-40207140554086774762009-01-28T13:57:00.000+11:002009-01-28T13:57:00.000+11:00I must confess I didn't "get it" because I skimmed...I must confess I didn't "get it" because I skimmed the article late at night while on cold medicine. (Yes, I'm using a weak variation of the Oxycontin defense.) I didn't realize you entertained the helicopter part literally. Even though you used the word "literally" in the headline, I still interpreted it as a rhetorical flourish.<BR/><BR/>My bailout plan recommendation was/is to simply give everyone an equal amount of money per capita (tax credit or check) rather than to give it to failed banks (TARP). And to keep giving until Americans' private and public debts become slightly more servicable again.<BR/><BR/>Why any bailout at all? I believe we'll eventually default (either a huge number of people individually and/or as a nation) in the absence of significant inflation. I expect most of the US will become like Detroit unless we do something. I would rather relive the 1970s than the 1930s, which I think is the choice we have to make.<BR/><BR/>---<BR/><BR/>If you don't mind, I'll post this on the original thread and the "Reaction" thread.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-3589535737532660062009-01-28T11:48:00.000+11:002009-01-28T11:48:00.000+11:00wasn't there an artist who got NEA funds and hande...wasn't there an artist who got NEA funds and handed out $20s at the mexican border and nearly got the NEA shut down when gingrich came in?babar ganeshhttps://www.blogger.com/profile/01898299856773302141noreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-61135802294483421642009-01-28T11:11:00.000+11:002009-01-28T11:11:00.000+11:00A little introspection says that if I see a centra...A little introspection says that if I see a central banker throw money from helicopter I would move my savings to GOLD... if others also did the same it could lead to a severe depression... although I have no way to know what others would chose.. park money in commodities or spend it?sugamhttps://www.blogger.com/profile/03212719829213090424noreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-8363856430245988952009-01-28T05:45:00.000+11:002009-01-28T05:45:00.000+11:00Brilliant, I loved the idea if nothing else for th...Brilliant, I loved the idea if nothing else for the pure radical nature of the proposal. Can I suggest that it may be useful if some of the money is dropped in big heavy packages preferably on top of a selection on bankers - Ken Lewis, Vikram Pandit, Fuld, Thain , Mack, Lloyd Blankfein, add Paulson in for good measure, take a couple of guys from the UK like Varlet, Diamond and of course Sir Fred. Might not solve the problem but it sure would be a serious deterrent to the moral hazard problem in the future.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-59358356542507093042009-01-28T05:29:00.000+11:002009-01-28T05:29:00.000+11:00BC wrote:> Nonetheless I wish I could get > ...BC wrote:<BR/>> Nonetheless I wish I could get <BR/>> that sort of reaction to a more <BR/>> serious post. <BR/><BR/>Your serious posts are typically accepted, because they make sense.<BR/><BR/>It's when you post something which people think doesn't make sense that you get reaction.<BR/><BR/>It's actually a testament to the quality of your normal material.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-13923664257981227772009-01-28T01:46:00.000+11:002009-01-28T01:46:00.000+11:00Just wondering whether we read the same version of...Just wondering whether we read the same version of Adam Smith's Theory of Moral Sentiment, cos the one I read seems to imply that moral laws are made by God instead of man.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-72195287653315179042009-01-28T00:46:00.000+11:002009-01-28T00:46:00.000+11:00i dont think paulson or berneke would get arrested...i dont think paulson or berneke would get arrested for that. <BR/><BR/>I would camp out on the white house lawn if I thought i could get those blokes arrested for what they did with teh TARP. <BR/><BR/>in other news, you might be able to reintroduce trust (i agree thats the main danger)..if you had some kind of plan like weimeir germany saying the dollar is now being structured and is going to be backed by land or whatever. <BR/><BR/>I would however not agree with such a severe maneuver and honestly, I wouldnt trust those corrupt political inept beurocrats to get it right and not use it to screw the people further anyway.<BR/><BR/>sorry, they get 0 faith or trust from this taxpayer..they have however had to earn that..Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-86183269989629186402009-01-28T00:44:00.000+11:002009-01-28T00:44:00.000+11:00You should write a book called "John Locke, Market...You should write a book called "John Locke, Market Fundamentalist."Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-68814672982077676492009-01-28T00:18:00.000+11:002009-01-28T00:18:00.000+11:00Frankly, my problem with the scheme is that I don'...Frankly, my problem with the scheme is that I don't see how we could possibly induce inflationary expectations - we're clearly within a very deep liquidity trap (the United States has doubles its monetary base, and all of it has ended up as banking reserves, with reduced lending to boot). I'd love to believe we can get inflation - but is it possible with direct government investment?Joehttps://www.blogger.com/profile/09816232003568487172noreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-79813541373905252092009-01-27T22:50:00.000+11:002009-01-27T22:50:00.000+11:00I cannot see why you should be so worried about th...I cannot see why you should be so worried about the response when your ironic and seriocomic piece reveals the fundament of America's political and moral structure. Does that not prove that it is very serious?Anonymousnoreply@blogger.com