Oh HELL NO: "Obama to 'Regulate' New Bubbles"

[He Who Pawns]

But what Obama rarely says about ending the “cycle of bubble and bust” is this: He’s prepared to intervene to make sure that kind of red-hot growth doesn’t occur.

And he’s willing to do it with added government regulation if needed to prevent any one sector of the economy from getting out of balance – the way the dot-com boom did in the 1990s and the real-estate market did earlier this decade.

According to Austan Goolsbee, a key Obama economic adviser, the president plans to focus on stopping bubbles along with preventing busts. And in an interview with POLITICO, Goolsbee said the administration will be on the lookout for new bubbles, like the tech stocks or housing prices.

If new threats are spotted, he said Obama would use “regulatory oversight to prevent guys who want to make a quick buck from doing real harm to the economy. ... That is what it means to get out of the bubble-and-bust cycle.”

http://www.politico.com/news/stories/0409/21393.html

Wow this guy is completely clueless on economics! Doesn't he realize that it's the Fed and gov policy that are creating the bubbles in the first place?

So, the government creates the bubble, then Obama is going to use punishing regulations to stop the bubble? This is utter insanity. Why not change Fed policy and not have the bubbles in the first place?

This is COMPLETE nonsense. http://www.ronpaulforums.com/gfx_RedWhiteBlue/icons/icon13.gif http://www.ronpaulforums.com/gfx_RedWhiteBlue/icons/icon13.gif http://www.ronpaulforums.com/gfx_RedWhiteBlue/icons/icon13.gif

[fedup100]

The idiots of this country have voted in a hamburger flipper to do open heart surgery. Good luck with that all you watermelons.

[Andrew-Austin]

They can't be serious.. this is pathetic.

How do you prevent a bust? Cover your ears and scream whenever someone tries to give you the news?

[RevolutionSD]

Wow this guy is completely clueless on economics! Doesn't he realize that it's the Fed and gov policy that are creating the bubbles in the first place?

So, the government creates the bubble, then Obama is going to use punishing regulations to stop the bubble? This is utter insanity. Why not change Fed policy and not have the bubbles in the first place?

This is COMPLETE nonsense. http://www.ronpaulforums.com/gfx_RedWhiteBlue/icons/icon13.gif http://www.ronpaulforums.com/gfx_RedWhiteBlue/icons/icon13.gif http://www.ronpaulforums.com/gfx_RedWhiteBlue/icons/icon13.gif

You couldn't make this stuff up!

Unreal. My guess is he will have a team of regulators to oversee the regulators. Guys, there's nothing government can't do.

What we are seeing is democracy carried out to its logical conclusion.

[Andrew-Austin]

I doubt their this stupid... some special interest group must be the benefactor in whatever regulation is required to "prevent a boom".

[mczerone]

Wow this guy is completely clueless on economics! Doesn't he realize that it's the Fed and gov policy that are creating the bubbles in the first place?

So, the government creates the bubble, then Obama is going to use punishing regulations to stop the bubble? This is utter insanity. Why not change Fed policy and not have the bubbles in the first place?

This is COMPLETE nonsense. http://www.ronpaulforums.com/gfx_RedWhiteBlue/icons/icon13.gif http://www.ronpaulforums.com/gfx_RedWhiteBlue/icons/icon13.gif http://www.ronpaulforums.com/gfx_RedWhiteBlue/icons/icon13.gif

What If there is legitmate growth in, say, the tech industry? Will Obamanable then take it upon himself to clamp down investment into the sector? God forbid anyone, anywhere, for any reason, look to PRODUCE anything, when it could make the government look bad ten years down the road.

And blaming the current bubble on only housing is like blaming the broken camel's back only on the last straw: The whole of the system is sick, and the fact that a housing boom could be artificially created at all was a symptom of this sickness. That sickness is government regulation.


An Allegory:
After leaching a patient for a while, the doctor notices that blood has rushed back into the spot where the leaches were. The patient is still sick. Well, since there was blood there before, and the patient is still sick, the doctor deduces that he needs to leach more blood to make the patient better.

And he doesn't let the patient tell him no - the patient has been strapped to a table and is surrounded by the doctor's aides, telling him not to worry and to accept the doctor's words as truth. The doctor claims this authority because the patient's great-great-great-great grandparents signed a release giving the doctor's predecessors the right to diagnose illnesses. This power to diagnose has been perverted and reinterpreted by the doctors over the years (with lip-service being paid to some patient's concerns, but ultimately in the doctor's self interest) into the power to detain, exact payment, control eating habits, and the power to administer whatever treatment the doctor feels necessary.

Now the patient screams: "I'm only sick because you make me come to your office every month and expose me to sick people! The diet you approved for me isn't nutritional and doesn't fortify me against minor ailments! You don't ever cure anyone! All of your treatments are barbaric, cruel, and demeaning! Leaches only make me weaker! Let me be free of this!"

To which the doctor responds: "Oh My, that last batch of leaches seems to have made you upset. Lie there so I can attach more leaches - It's for your own good. It seems that everyone that tries to go to work lately gets sick, I should forbid my patients from working anymore to prevent these sicknesses."

[Bern]

Madness. Has anyone posted a comment suggesting these folks read Thomas Woods' Meltdown?

[sevin]

What If there is legitmate growth in, say, the tech industry? Will Obamanable then take it upon himself to clamp down investment into the sector? God forbid anyone, anywhere, for any reason, look to PRODUCE anything.


There will be no economic growth in any sector unless government says so. This is it. It's over. Capitalism is out. Communism is in. The next great depression might never end. :(

[Andrew-Austin]

There will be no economic growth in any sector unless government says so. This is it. It's over. Capitalism is out. Communism is in. The next great depression might never end. :(

The government will either collapse in a relative hurry, or go out like Soviet Union did.

[sevin]

The government will either collapse in a relative hurry, or go out like Soviet Union did.

Or be absorbed by the new world government. :eek:

[He Who Pawns]

Has Obama ever even heard of the Austrian School? Has he ever once spoken to a real economist? This is a nightmare he is proposing here -- a surefire recipe for total disaster.

[Bern]

Has Obama ever even heard of the Austrian School? Has he ever once spoken to a real economist?

He doesn't need to. He talks to folks in the CFR. They are all smart people.













:mad:

[jcarcinogen]

This is understandable to the people that take "economics" in the Government Indoctrination Camps (public schools), just more fodder for people when their 'awakening' happens.