Comments on: Grace, No Grace http://ceruleansanctum.com/2008/09/grace-no-grace.html Looking for the 1st century Church in 21st century America Sun, 12 Feb 2012 12:37:15 +0000 hourly 1 By: Dan Edelenhttp://ceruleansanctum.com/2008/09/grace-no-grace.html#comment-41631 Dan Edelen Tue, 30 Sep 2008 21:50:32 +0000 http://ceruleansanctum.com/?p=1016#comment-41631 Ken, Some very wise money-minded people are convinced this country would be much better off economically if we got rid of the IRS, the Treasury, the Federal Reserve, and most of the "supervisory" organizations that deal with money in our nation. In fact. many of them believe it was the wranglings of those organizations that led to this mess. The government ruins most everything it touches save for precious few things it does well. Ken,

Some very wise money-minded people are convinced this country would be much better off economically if we got rid of the IRS, the Treasury, the Federal Reserve, and most of the “supervisory” organizations that deal with money in our nation. In fact. many of them believe it was the wranglings of those organizations that led to this mess.

The government ruins most everything it touches save for precious few things it does well.

]]> By: Dan Edelenhttp://ceruleansanctum.com/2008/09/grace-no-grace.html#comment-41626 Dan Edelen Tue, 30 Sep 2008 21:37:09 +0000 http://ceruleansanctum.com/?p=1016#comment-41626 Dee, American more than most because so many countries have their investments and currency tied to American interests. This latest unrest, though, is undoing that reality. We may see more people putting their stock in euros after this is all over. The trend was that way anyway. Dee,

American more than most because so many countries have their investments and currency tied to American interests. This latest unrest, though, is undoing that reality. We may see more people putting their stock in euros after this is all over. The trend was that way anyway.

]]> By: Ken Smithhttp://ceruleansanctum.com/2008/09/grace-no-grace.html#comment-41621 Ken Smith Tue, 30 Sep 2008 19:23:00 +0000 http://ceruleansanctum.com/?p=1016#comment-41621 I'm a big fan of "moral hazard" and of letting the market correct itself -- whenever the market is functioning, and <i>can</i> recover by itself, without taking everything down with it. I'm concerned because the market clearly isn't functioning well, and the process of deleveraging that needs to happen might very well take down the US economy with it. As I posted on my blog recently, the deleveraging that resulted in the Great Depression was like a three story wooden house collapsing. The deleveraging that will be required here could very well be like the Twin Towers collapsing. If the markets aren't functioning, you don't let the markets take care of themselves. It's the same reason we have an SEC, a Federal Reserve, and FDIC: the Great Depression proved that there are certain times when the markets don't function correctly, and when that happens, the government <i>has</i> to step in, with money in the short-term, and regulation in the long-term. Most economists seem convinced that this is one of those times, and from everything I know (having worked in the mortgage industry for 8 years, and with direct exposure to corporate finance for another 8), I fully agree. I’m a big fan of “moral hazard” and of letting the market correct itself — whenever the market is functioning, and can recover by itself, without taking everything down with it. I’m concerned because the market clearly isn’t functioning well, and the process of deleveraging that needs to happen might very well take down the US economy with it. As I posted on my blog recently, the deleveraging that resulted in the Great Depression was like a three story wooden house collapsing. The deleveraging that will be required here could very well be like the Twin Towers collapsing. If the markets aren’t functioning, you don’t let the markets take care of themselves. It’s the same reason we have an SEC, a Federal Reserve, and FDIC: the Great Depression proved that there are certain times when the markets don’t function correctly, and when that happens, the government has to step in, with money in the short-term, and regulation in the long-term. Most economists seem convinced that this is one of those times, and from everything I know (having worked in the mortgage industry for 8 years, and with direct exposure to corporate finance for another 8), I fully agree.

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