Supermajority!

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Jan 20, 2010 1:02 pm

Dems lose their supermajority and the market is down 2%.

I think all this talk about Dems destroying the economy is crap!
The market knows better than the individual.
 
Jan 20, 2010 2:22 pm

You really think the market is down because of a special election?  Or any election?

Jan 20, 2010 2:44 pm

Sure, there is an emotional component. More like, reality sets in.


If your Dems shut down the stimulus and enact and payroll tax freeze, watch the market go crazy.
 
Otherwise, the prospect of less damage being done is not a fundamental driver.
Jan 20, 2010 3:02 pm

The funny thing is that the Dems still have enough votes in both the House and Senate to pass whatever legislation they choose.  And that's even without the Senate enacting their simple majority tactic. 


What will be interesting to watch is how many of the Dems who aren't the not-so-undercover Progressives will swing back to the center.  The writing is on the wall for whomever chooses to read it.  My hope is that we are as close right now to becoming a socialist society as we'll ever be.  We'll see how the next 10 months play out. 
 
But watch out for the tactics the Progressives, including our President, are going to take to get their agenda passed before it's too late.   It's going to get ugly.   
Jan 20, 2010 3:29 pm
Spaceman Spiff:

The funny thing is that the Dems still have enough votes in both the House and Senate to pass whatever legislation they choose. And that's even without the Senate enacting their simple majority tactic.

What will be interesting to watch is how many of the Dems who aren't the not-so-undercover Progressives will swing back to the center. The writing is on the wall for whomever chooses to read it. My hope is that we are as close right now to becoming a socialist society as we'll ever be. We'll see how the next 10 months play out.



But watch out for the tactics the Progressives, including our President, are going to take to get their agenda passed before it's too late. It's going to get ugly.



Other than healthcare, what makes this the most "socialist society" we've ever experienced?

Jan 20, 2010 3:33 pm
Lawrence:
Spaceman Spiff:

The funny thing is that the Dems still have enough votes in both the House and Senate to pass whatever legislation they choose.  And that's even without the Senate enacting their simple majority tactic. 

What will be interesting to watch is how many of the Dems who aren't the not-so-undercover Progressives will swing back to the center.  The writing is on the wall for whomever chooses to read it.  My hope is that we are as close right now to becoming a socialist society as we'll ever be.  We'll see how the next 10 months play out. 

 

But watch out for the tactics the Progressives, including our President, are going to take to get their agenda passed before it's too late.   It's going to get ugly.   



Other than healthcare, what makes this the most "socialist society" we've ever experienced?



Uh, bank bailouts?

Jan 20, 2010 3:54 pm
Moraen:
Lawrence:
Spaceman Spiff:

The funny thing is that the Dems still have enough votes in both the House and Senate to pass whatever legislation they choose. And that's even without the Senate enacting their simple majority tactic.

What will be interesting to watch is how many of the Dems who aren't the not-so-undercover Progressives will swing back to the center. The writing is on the wall for whomever chooses to read it. My hope is that we are as close right now to becoming a socialist society as we'll ever be. We'll see how the next 10 months play out.



But watch out for the tactics the Progressives, including our President, are going to take to get their agenda passed before it's too late. It's going to get ugly.



Other than healthcare, what makes this the most "socialist society" we've ever experienced?

Uh, bank bailouts?

Is that socialist or nationalist?



This leads to a question I have been pondering. Should government change limits on the size of banks? Currently, a bank can't hold more than 10% of US deposits - Should that be reduced to, say, 2.5%?



Also, what about other failing industries? Automobile, etc.

Jan 20, 2010 11:12 pm

I guess what I'm referring to are retail deposits; which I'm rather sure can't be greater than 10% of US deposits (Citibank used to have 10%). Although, now that I think some more, I realize retail banking isn't the problem anyway.



What I'm wondering is what is the right size for companies (investment banks, automobile manufacturers, etc.) so that it is ok if a few fail ever 10-20 years. Also, could that be legislated efficiently?



I think this is what everyone is thinking.

Jan 21, 2010 9:10 am
iceco1d:

It's called the money multiplier. Money Multiplier = 1 / Reserve Requirement. The Reserve Requirement is set by the Fed, and determines how much of total deposits banks must retain (and how much they are allowed to lend out).Simplicity sake, lets pretend the flat reserve requirement is 10%. So the money multiplier is 1 / .10, or 10. This means that for every $1 you deposit, $10 is pumped back into circulation via the banking system.So in your example, lowering the reserve requirement to 2.5% would create much larger banks, not smaller. Money multiplier = 1 / .025 = 40. So for every $1 deposited, $40 would be pumped into circulation, and would drastically increase the money supply.It's the reserve requirement, open market operations (selling/buying treasuries), and setting the discount rate, that the fed primarily uses to control the money supply.



Thanks,

Looks like I will be hitting investopedia this weekend.

Jan 21, 2010 4:06 pm
Billy Mays:

Dems lose their supermajority and the market is down 2%.

I think all this talk about Dems destroying the economy is crap!
The market knows better than the individual.
Down another 2% today!!!

Health care costs are 15% of our GDP.
The Massachusetts election was bigger than any other indicator this week.
It is a wrench in the gears of health care reform.
This is why markets are declining.
 
The Republican agenda is good for the rich people who run companies - bad for companies - bad for America.
Jan 21, 2010 4:18 pm

If you're going off of popular media, this isn't exactly the Republican agenda

http://www.cnbc.com/id/34980713

I believe it says "Obama rattles markets".