"lack of consumption .. accumulation of reserves .. " hurt global economy

[blazespinnaker]

This takes the cake:

http://www.bloomberg.com/apps/news?p....II&refer=home

In a sign the administration doesn't accept full responsibility for the world's woes, Treasury Secretary Henry Paulson said yesterday that while the U.S. is ``well aware and humbled by our own failings,'' it wasn't alone in making mistakes. The ``lack of consumption and accumulation of reserves in Asia and oil exporting countries and structural issues in Europe,'' also hurt the global economy, Paulson said.

Unbelievable. Basically, people saving too much money and not spending it on consumer goods undermined the global economy.

Yes folks, Hank just said people didn't shop enough. That was the problem.

I now conclude Hank Paulson is a ****ing loser.

[Jim Nickerson]

Re: "lack of consumption .. accumulation of reserves .. " hurt global economy

This takes the cake:

http://www.bloomberg.com/apps/news?p....II&refer=home



Unbelievable. Basically, people saving too much money and not spending it on consumer goods undermined the global economy.

Yes folks, Hank just said people didn't shop enough. That was the problem.

I now conclude Hank Paulson is a ****ing loser.

Not too quick to pick up on blatant realities, huh, Blaze?

Well no one should ever accuse you of rushing to judgement.

I guess the bloomberg report pushed you over the edge.

Remember "if you don't read the papers you are uninformed, if you read them, then you are misinformed." (after Mark Twain I think, or maybe Will Rogers)

[blazespinnaker]

Re: "lack of consumption .. accumulation of reserves .. " hurt global economy

Not too quick to pick up on blatant realities, huh, Blaze?
(more Jim not being very nice)

Well, considering Warren Buffet thinks Hank Paulson is a the brightest mind at the US treasury, I think he deserved the benefit of the doubt.

I probably shouldn't have said Hank is a loser. I probably should have said he is clearly evil.

I have a strongly held core belief that over-consumption is the root of all evil on this planet.

However, Hank Paulson just said that over-consumption is at the root of what's wrong with the global economy.

Clearly he is the root of what's wrong with the global economy.


BTW, I do agree with pretty much everything Paulson says in terms of facts. I've never heard him say anything I think is particularly stupid. He's certainly right about the structural problems in Europe. And he's probably most certainly right - more shopping and less saving would definitely fix the current economic problems.

I just think his moral center is totally ****ed.

So, that's my blatant reality. TYVM

[Jim Nickerson]

Re: "lack of consumption .. accumulation of reserves .. " hurt global economy

Well, considering Warren Buffet thinks Hank Paulson is a the brightest mind at the US treasury, I think he deserved the benefit of the doubt.

I probably shouldn't have said Hank is a loser. I probably should have said he is clearly evil.

I have a strongly held core belief that over-consumption is the root of all evil on this planet.

However, Hank Paulson just said that over-consumption is at the root of what's wrong with the global economy.

Clearly he is the root of what's wrong with the global economy.

I wasn't not being nice, I was just poking at you.

I agree with all that you have written, except perhaps is there some adjective that exceeds "evil?"

Truth is not what emanates when the vast majority of US politicians and cabinet members are seen to be moving their lips and some recorded message is filling one's ears.

[doom&gloom]

Re: "lack of consumption .. accumulation of reserves .. " hurt global economy

The US is not responsible for the housing markets in Spain, Ireland, the Baltics, or Eastern Europe. the US is not responsible (solely) for the huge run up in all commodity prices. The US is not reponsible for the bad investments of EU banks in latin America or other environs...

Paulson is correct. We may have been the first of the fireworls to go off, but the rest were primed and ready to go as well...

[tsetsefly]

Re: "lack of consumption .. accumulation of reserves .. " hurt global economy

The US is not responsible for the housing markets in Spain, Ireland, the Baltics, or Eastern Europe. the US is not responsible (solely) for the huge run up in all commodity prices. The US is not reponsible for the bad investments of EU banks in latin America or other environs...

Paulson is correct. We may have been the first of the fireworls to go off, but the rest were primed and ready to go as well...

Half right, Asians did the right thing in saving and not going on a spending binge, the fact that he thinks that is the way towards economic growth is even more scary.

But no one forced European banks to buy up bad American debt.

[unlucky]

Re: "lack of consumption .. accumulation of reserves .. " hurt global economy

Paulson is mostly right in this comment, I think, even if he's wrong/confused about a lot of other stuff.

The massive trade imbalance between the US and China was the responsibility of both countries, since both pursued policies that encouraged it and neither did anything to cool it down. Chinese currency should have strengthened, making it easier for Chinese to buy foreign goods and increasing Chinese household consumption. Govt. policies prevented that from happening. Wealth that should have flowed to households is instead sitting in unproductive govt reserves.

The trade imbalance was unsustainable and is now breaking down in the most disorderly way possible: constipation in the US credit system.