Искрено јас не се плашам толку за економијата, ќе се врати на претходното ниво само прашање е во кој квартал, мене повеќе ме секира ова:
“Limitless” is an interesting word (see previous page). Is the program really limitless? And is that okay? The stimulus, loans, bailouts, benefits and bond buying that have been announced thus far add up to several trillion dollars. What are the implications of the resultant additions to the federal deficit and the Fed’s balance sheet? To be facetious, the government could send every American a check for $1 million, at a cost of $330 trillion. Would there be negative consequences from doing this, such as burgeoning inflation, a downgrade of U.S. creditworthiness or the dollar losing its status as the world’s reserve currency? If the answer is yes, is there a point below $330 trillion at which those ramifications might kick in? And if so, where? Could we be there already?
I was particularly surprised by these latter actions. What’s the Fed’s purpose in buying non- investment grade debt? Does it want to make sure all companies are able to borrow, regardless of their fundamentals? Does it want to protect bondholders from losses, and even mark-to-market declines? Who’ll do the buying for the government and make sure the purchase prices aren’t too high and defaulting issuers are avoided (or doesn’t anyone care)?
There’s an old saying – variously attributed – to the effect that “capitalism without bankruptcy is like Catholicism without hell.” It appeals to me strongly. Markets work best when participants have a healthy fear of loss. It shouldn’t be the role of the Fed or the government to eradicate it.
“Limitless” is an interesting word (see previous page). Is the program really limitless? And is that okay? The stimulus, loans, bailouts, benefits and bond buying that have been announced thus far add up to several trillion dollars. What are the implications of the resultant additions to the federal deficit and the Fed’s balance sheet? To be facetious, the government could send every American a check for $1 million, at a cost of $330 trillion. Would there be negative consequences from doing this, such as burgeoning inflation, a downgrade of U.S. creditworthiness or the dollar losing its status as the world’s reserve currency? If the answer is yes, is there a point below $330 trillion at which those ramifications might kick in? And if so, where? Could we be there already?
I was particularly surprised by these latter actions. What’s the Fed’s purpose in buying non- investment grade debt? Does it want to make sure all companies are able to borrow, regardless of their fundamentals? Does it want to protect bondholders from losses, and even mark-to-market declines? Who’ll do the buying for the government and make sure the purchase prices aren’t too high and defaulting issuers are avoided (or doesn’t anyone care)?
There’s an old saying – variously attributed – to the effect that “capitalism without bankruptcy is like Catholicism without hell.” It appeals to me strongly. Markets work best when participants have a healthy fear of loss. It shouldn’t be the role of the Fed or the government to eradicate it.
Последно уредено:
...инаше еден чичко Близард, ни кажуваше дека ке има потоп, не му верувавме 
