Krugman lying again (Iceland) - page 2.

cypherdoc

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Quote from: ineededausername on September 03, 2011, 11:56:21 PM

Wait wait hold on.
Do I actually hear some of you proclaiming seriously that we should just let all the banks fail and the entire global economy collapse?
"The more parasites removed the better?" Are you fucking serious? Would you yourself even survive if the global economy collapsed again?

actually i would do very well. i have no debt and i've saved lots of cash just waiting for the thing to implode so i could buy assets on the cheap. do you have any idea how many prudent savvy investors have been waiting for this as well? lots i would guess.

NghtRppr

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Quote from: ineededausername on September 03, 2011, 11:56:21 PM

Do I actually hear some of you proclaiming seriously that we should just let all the banks fail and the entire global economy collapse?

If the economy can collapse outside of war, famine or plague, isn't that a sign that it needs replacing?

ineededausername

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Wait wait hold on.
Do I actually hear some of you proclaiming seriously that we should just let all the banks fail and the entire global economy collapse?
"The more parasites removed the better?" Are you fucking serious? Would you yourself even survive if the global economy collapsed again?

amincd

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Quote from: HappyFunnyFoo on September 02, 2011, 11:44:32 PM

Anyone who thinks we should've just let the entire financial system across the globe collapse has very little grey matter up there... imagine a bank failure rate of 60%.

Nothing would have been destroyed. The banks would have gone bankrupt, and been bought by new owners. The shareholders and creditors would have been wiped out, but the economy would have had the same productivity as before, just with better ownership, and hundreds of billions of dollars of capital not being fed to lumbering wasteful giants.

johnyj

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Beyond Imagination

As I know, some VIP of the investment banks already run away several months before the financial crisis shaped, so let the bank fail will only punish those left-over bank employees, which will impact heavily on consumption too

cypherdoc

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Quote from: HappyFunnyFoo on September 02, 2011, 11:44:32 PM

Anyone who thinks we should've just let the entire financial system across the globe collapse has very little grey matter up there... imagine a bank failure rate of 60%.

i would love to see that. the more parasites removed the better. who has the most leveraged amounts to lose? Banks. the avg American would be way better off in the long run.

Quote from: HappyFunnyFoo on September 02, 2011, 11:44:32 PM

Imagine unemployment of 30% or more. We actually have GDP growth - the Austrian alternative is for GDP to contract by up to 40% over the course of a decade, which is a pretty reasonable figure had there been no stimulus or emergency rescue package.

WAY over stated. FUD.

Quote from: HappyFunnyFoo on September 02, 2011, 11:44:32 PM

By the way, do you enjoy your $8.50/bitcoin price? 4 TEH LULZ NUBS

Gonna go troll some more posts now.

yeah, thats what you are; a troll. just wait til when the price explodes.

HappyFunnyFoo

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Anyone who thinks we should've just let the entire financial system across the globe collapse has very little grey matter up there... imagine a bank failure rate of 60%. Imagine unemployment of 30% or more. We actually have GDP growth - the Austrian alternative is for GDP to contract by up to 40% over the course of a decade, which is a pretty reasonable figure had there been no stimulus or emergency rescue package.

By the way, do you enjoy your $8.50/bitcoin price? 4 TEH LULZ NUBS

Gonna go troll some more posts now.

johnyj

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Export based country recovering normally comes from consumption based country in deeper debt

In an island model, A can only save money and get surplus when B's consumption is higher than his production

If A and B are both in debt, they are consuming more than they can produce, their productivity will have to lift to cover the gap
If A and B are both getting surplus, either market is stocking their products or trashing their products (thus taking a capital loss)

hugolp

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So forced by the circumstances (their currency hyperinflated or almost hyperinflated depending on your definitions) Iceland had to repudiate the debt (tehncially it didnt, it refused to acknowledge the debt). This is what most economist of the austrian school of economics recommend and basically is the classical solution: If someone can not pay the debt it has to default on it. But keynesians and others defend the idea that its better to get rid of the debt through inflation promoting ideas like systemic risk and Too Big To Fail, to justify their rejection of defaults. In fact, Krugman defended the bank bailouts in the USA although he had some (sensible I must say) complains at the way it was done.

Well, unsurprisingly the country that did not follow the keynesian ideas and just refused to pay the debt, Iceland, has been the first country to get out of the depression and the unemployment is going dow to normal levels. The situation is still dire, but all the indicators are improving.

But Krugman has no shame to vindicate this contradiction of his ideas as a triumph, lying to his audience about who defends default as a solution.

hxxp://krugman.blogs.nytimes.com/2011/09/01/iceland-exits/

Topic: Krugman lying again (Iceland) - page 2. (Read 2315 times)