tag:blogger.com,1999:blog-5724181159639068489.post4391767220790641753..comments2023-11-05T05:09:14.089-05:00Comments on Goldman Sachs: Information, Comments, Opinions and Facts: Goldman Sachs Places Moratorium On Campaign ContributionsRobertMhttp://www.blogger.com/profile/03960912417983904202noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-5724181159639068489.post-57628491024377174582010-07-06T20:57:59.385-04:002010-07-06T20:57:59.385-04:00Who cares if Goldman gives less to politicians...t...Who cares if Goldman gives less to politicians...that's a good thing...maybe we'll get policy that serves "the people" versus the "embedded" interests.<br /><br /><br />July 6, 2010 <br />Implications of a Likely Economic Downturn<br /><br />Policy Implications <br /><br />To-date, our policy makers have placed bondholders ahead of ordinary citizens, largely out of fear of disastrous consequences predicted by precisely those who stood to benefit most from government largesse. We have directed massive and ultimately real (not simply "paper") resources of the public to ensure that holde rs of bank debt, financial debt, and GSE debt get back 100 cents on the dollar plus interest. <br /><br />With regard to "stimulus" plans, my difficulty with last year's policies is not so much an aversion to government spending as it is a rebuke of the notion that government spending is by its nature stimulative or beneficial to the economy. The issue is how this real value is used. Is it used to advance socially useful outcomes which private individuals, through some failure of coordination, could not achieve? Or is it used to defend bondholders, industries, and institutions with which the policymakers are most closely aligned? <br /><br />The only difference between Keynes and Tim Geithner is evidently that Geithner prefers to place the bottles a bit closer to Wall Street. <br /><br /><br />http://www.hussmanfunds.com/wmc/wmc100706.htmAnonymousnoreply@blogger.com