Comments on: Wall Street Number Theory http://blogs.law.harvard.edu/philg/2009/04/01/wall-street-number-theory/ A posting every day; an interesting idea every three months... Sun, 29 Nov 2009 03:22:04 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Preston L. Bannister http://blogs.law.harvard.edu/philg/2009/04/01/wall-street-number-theory/comment-page-1/#comment-116427 Preston L. Bannister Fri, 03 Apr 2009 04:48:03 +0000 http://blogs.law.harvard.edu/philg/?p=1268#comment-116427 Hopefully, we will have (a little) inflation, Our problems are more emotional than real. If the risk of inflation forces capital off the sidelines and into active use, that by itself may go a long ways toward solving our current economic malfunction. Hopefully, we will have (a little) inflation,

Our problems are more emotional than real. If the risk of inflation forces capital off the sidelines and into active use, that by itself may go a long ways toward solving our current economic malfunction.

]]> By: Mike Woods http://blogs.law.harvard.edu/philg/2009/04/01/wall-street-number-theory/comment-page-1/#comment-116386 Mike Woods Thu, 02 Apr 2009 18:38:42 +0000 http://blogs.law.harvard.edu/philg/?p=1268#comment-116386 @2 >In his view, you must have the Federal Reserve buying the government’s bonds in order to generate inflation. Umm... how about $300 Billion? "Fed to Start Purchasing Treasuries to Unfreeze Credit" http://www.bloomberg.com/apps/news?pid=20601103&sid=aFPWoyj5b708&refer=us I'm definitely not a 'serious' economist, but as an arm-chair economist, it seems clear that the Fed will do everything in its power to ensure we don't get deflation in the short term and is willing to gamble on being able to control the inevitable inflation on the other side of the crisis. Unlike the 'serious' guys, I have much less faith in the Fed... they've consistently brought too little, too late to the party and Greenspan's actions after the .com crash almost certainly contributed (added Miracle Gro?!) to the current crisis. @2 >In his view, you must have the Federal Reserve buying the government’s bonds in order to generate inflation.

Umm… how about $300 Billion?

“Fed to Start Purchasing Treasuries to Unfreeze Credit”
http://www.bloomberg.com/apps/news?pid=20601103&sid=aFPWoyj5b708&refer=us

I’m definitely not a ’serious’ economist, but as an arm-chair economist, it seems clear that the Fed will do everything in its power to ensure we don’t get deflation in the short term and is willing to gamble on being able to control the inevitable inflation on the other side of the crisis.

Unlike the ’serious’ guys, I have much less faith in the Fed… they’ve consistently brought too little, too late to the party and Greenspan’s actions after the .com crash almost certainly contributed (added Miracle Gro?!) to the current crisis.

]]> By: andrew http://blogs.law.harvard.edu/philg/2009/04/01/wall-street-number-theory/comment-page-1/#comment-116255 andrew Thu, 02 Apr 2009 04:00:13 +0000 http://blogs.law.harvard.edu/philg/?p=1268#comment-116255 > “I earned nothing last year,” said the hard-working bank employee. Perhaps he meant "earned" literally. The $500k was just an honorarium for allowing the use of his name on the business cards. > “I earned nothing last year,” said the hard-working bank employee.

Perhaps he meant “earned” literally. The $500k was just an honorarium for allowing the use of his name on the business cards.

]]> By: philg http://blogs.law.harvard.edu/philg/2009/04/01/wall-street-number-theory/comment-page-1/#comment-116250 philg Thu, 02 Apr 2009 03:31:13 +0000 http://blogs.law.harvard.edu/philg/?p=1268#comment-116250 Patrick: People asked about inflation and White said that he thought the Fed could and would control it. He said that wild government spending could not by itself generate inflation. In his view, you must have the Federal Reserve buying the government's bonds in order to generate inflation. Hardly any serious economists seem to think that inflation is a possibility. They all have faith in the Fed. Of course, none of them were short the S&P 500 during 2008, so we probably can't use their predictions for investment purposes... Patrick: People asked about inflation and White said that he thought the Fed could and would control it. He said that wild government spending could not by itself generate inflation. In his view, you must have the Federal Reserve buying the government’s bonds in order to generate inflation. Hardly any serious economists seem to think that inflation is a possibility. They all have faith in the Fed. Of course, none of them were short the S&P 500 during 2008, so we probably can’t use their predictions for investment purposes…

]]> By: patrick giagnocavo http://blogs.law.harvard.edu/philg/2009/04/01/wall-street-number-theory/comment-page-1/#comment-116249 patrick giagnocavo Thu, 02 Apr 2009 03:28:04 +0000 http://blogs.law.harvard.edu/philg/?p=1268#comment-116249 Curious if he felt there would be inflation after the money started making its way into the economy. Curious if he felt there would be inflation after the money started making its way into the economy.

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