• BullionStar
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"Textbook Economics" Quote Of The Day

Tyler Durden's picture


For our quote of the day, we go to none other than the Fed's favorite mouthpiece, the WSJ's Jon Hilsenrath:

Fed officials have been frustrated in the past year that low interest rate policies haven't reached enough Americans to spur stronger growth, the way economics textbooks say low rates should... Multiply the fruit of cheap credit across millions of households—with healthy portions of interest savings spent on goods and services—and the U.S. should be recovering more quickly, according to textbook economics.

No... not the textbooks... Does this mean... Economics 101 is... nothing but one epic lie, based on Ponzi assumptions which work in a world of constant and gradual leveraging, and completely fall apart in a deleveraging world such as the one we have now?

And will the Fed, in its attempt to prove its blind faith in voodoo correct, destroy the real world by stuffing the CTRL-P channel full of increasingly more meaningless electronic dollar equivalents, merely to confirm once and for all that the Keynesian utopia may be an illusion, but nobody will be left to enjoy the aftermath of the biggest lie of the past century unraveling?

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Mon, 06/18/2012 - 21:39 | 2538066 lizzy36
lizzy36's picture

Yes....and that same Ph.D economist said that "sub-prime was contained".

So when are they going to admit they actually know SFA?

Mon, 06/18/2012 - 21:46 | 2538083 Almost Solvent
Almost Solvent's picture

i did not have sexual relations with that woman

Mon, 06/18/2012 - 21:50 | 2538104 Marginal Call
Marginal Call's picture

The invasion will pay for itself with the oil.

Mon, 06/18/2012 - 21:53 | 2538117 surf0766
surf0766's picture

We can increase growth by increasing taxes.

Mon, 06/18/2012 - 21:57 | 2538125 Temporalist
Temporalist's picture

We need to go into more debt to solve the problem of too much debt.

Mon, 06/18/2012 - 22:35 | 2538251 economics9698
economics9698's picture

Y = C+I+G+NX.  We should increase government spending during a recession to "pick up the slack" and put people back to work building houses, scratch that, whatever.

Mon, 06/18/2012 - 22:42 | 2538264 Spirit Of Truth
Spirit Of Truth's picture

Modern reigning economic theory isn't just wrong, it's the inverse of historical reality, i.e., neoclassical and new classical economics are part of the dominant extraordinary popular delusions dominant at the current. epic Grand Supercycle top:


Mon, 06/18/2012 - 22:57 | 2538320 DaveyJones
DaveyJones's picture

No, I'm quite confident we will find weapons of mass destruction - CP

The United States government does not authorise or condone torture of detainees. Torture, and conspiracy to commit torture, are crimes under US law, wherever they may occur in the world. - CR

"I'm glad you asked. It has nothing to do with oil, literally nothing to do with oil." - DR

I think they're in the last throes, if you will, of the insurgency - DC

and AG in a bizzare slip:

I am saddened that it is politically inconvenient to acknowledge what everyone knows: the Iraq war is largely about oil

Mon, 06/18/2012 - 23:07 | 2538348 Rahm
Rahm's picture

ANYTHING out of Geithner's piehole.

Tue, 06/19/2012 - 00:19 | 2538533 Manthong
Manthong's picture

So what does the textbook say about the velocity of money when the stock is of infinite mass?

Tue, 06/19/2012 - 00:22 | 2538542 mcguire
mcguire's picture

We must speak the truth about terror. Let us never tolerate outrageous conspiracy theories concerning the attacks of September 11th - malicious lies that attempt to shift blame away from the terrorists themselves, away from the guilty. -GWB

Tue, 06/19/2012 - 05:31 | 2538758 tocointhephrase
tocointhephrase's picture

We also know there are known unknowns

Mon, 06/18/2012 - 22:42 | 2538266 Killtruck
Killtruck's picture

These jobs are shovel-ready.

Mon, 06/18/2012 - 22:53 | 2538307 macholatte
macholatte's picture



Junk Silver

Tue, 06/19/2012 - 05:32 | 2538760 tocointhephrase
tocointhephrase's picture

999 fine!

Mon, 06/18/2012 - 23:23 | 2538407 A Nanny Moose
A Nanny Moose's picture

so is Horseshit

Mon, 06/18/2012 - 22:43 | 2538268 jeff montanye
jeff montanye's picture

I don't know where the stock market is going, but I will say this, that if it continues higher, this will do more to stimulate the economy than anything we've been talking about today or anything anybody else was talking about.
Alan Greenspan

Mon, 06/18/2012 - 22:54 | 2538311 AlaricBalth
AlaricBalth's picture

Macroeconomics 101 Exam Question

Suppose that the stock market crashes. Which of the following is most likely to occur.
A. The aggregate demand curve shifts to the right
B. The aggregate demand curve shifts to the left
C. A movement up the aggregate demand curve
D. A movement down the aggregate demand curve
E. None of the above. Stock market crashes have been rendered obsolete by the Federal Reserve.

Mon, 06/18/2012 - 23:10 | 2538359 icanhasbailout
icanhasbailout's picture

F. Taxpayers get hosed again

Tue, 06/19/2012 - 09:48 | 2539178 mickeyman
mickeyman's picture

G. Jamie Dimon gets another bonus

Mon, 06/18/2012 - 21:58 | 2538128 BKbroiler
BKbroiler's picture

We do not condone nation building.

Mon, 06/18/2012 - 22:03 | 2538142 kridkrid
kridkrid's picture

They hate us for our freedom.

Mon, 06/18/2012 - 22:11 | 2538170 Thomas
Thomas's picture

The government made money on AIG and GM.

Mon, 06/18/2012 - 22:23 | 2538211 disabledvet
disabledvet's picture

Now stop calling me Surely.

Mon, 06/18/2012 - 22:48 | 2538291 jeff montanye
jeff montanye's picture

(July, 2005) "We’ve never had a decline in house prices on a nationwide basis. So, what I think what is more likely is that house prices will slow, maybe stabilize, might slow consumption spending a bit. I don’t think it’s gonna drive the economy too far from its full employment path, though."  b.s. bernanke

Mon, 06/18/2012 - 22:33 | 2538243 Turin Turambar
Turin Turambar's picture

They hate us for our awesomeness.  We are the most awesomely awesome country of awesomeness in the recorded history of awesome.  It's really that simple. ;-)

Mon, 06/18/2012 - 22:04 | 2538150 CURWAR2012
CURWAR2012's picture

we do not wear condoms when pumping the economy

Mon, 06/18/2012 - 22:06 | 2538153 dark pools of soros
dark pools of soros's picture

Is gold money?



Mon, 06/18/2012 - 22:07 | 2538157 CURWAR2012
CURWAR2012's picture


Mon, 06/18/2012 - 22:11 | 2538173 sumo
sumo's picture

"No risk of that. No risk."

Mon, 06/18/2012 - 22:24 | 2538215 sablya
sablya's picture

When are these high-flying FVCKS gonna get what is coming to them?  What black swan is going to take a CR&P all over their clever schemes to line their own pockets at the expense of the poor and the middle class.  Why can't we even have a normal market correction without expecting some jack a$$ central banker to come to the podium and promise that the central banks are there to support the markets in case things turn bad.  If ever there was evil embodied in people, it is these people, who have the absolute arrogance to think they can engineer the economy, tailor the market returns, keep the market wolves at bay forever, all the while making themselves rich, rich, rich.  I HATE THEM!!!


Mon, 06/18/2012 - 23:56 | 2538491 Shibumi2
Shibumi2's picture

The middle class lived off the backs of the poor for decades. Now they are in the same bind and howling like banshees.


Paybacks a BITCH

Tue, 06/19/2012 - 00:11 | 2538513 CrockettAlmanac.com
CrockettAlmanac.com's picture

Right. The only productive people are unemployed and on assistance. The middle class slogs into the city every damn day just for kicks.

Tue, 06/19/2012 - 03:39 | 2538702 i-dog
i-dog's picture

+1 [apparently the only one you'll get!], but with a correction: The western middle class lived off the backs of the workers/slaves of poor nations for decades ... importing gee-gaws and trinkets to [attempt to] feed their self-esteem while offering empty promises of payment in return.

An exact repetition of offering the American Indians a few disease-infected blankets in return for their resource rich homelands ... or of the British (and American) middle-class shipping poisonous drugs at gunpoint into China in payment for tea and teacups, in order to prolong their illusion of "living like kings".

Fucking genocidal hypocrites!! Wake up ... put down the guns ... and get rid of government!!

Mon, 06/18/2012 - 22:25 | 2538220 Stackers
Stackers's picture

" I abandoned free market principals to save the free market system "

Mon, 06/18/2012 - 23:56 | 2538492 FrankDrakman
FrankDrakman's picture

To save the village, we had to destroy it.

Tue, 06/19/2012 - 00:29 | 2538552 mcguire
mcguire's picture

lets do the whole village..

Tue, 06/19/2012 - 05:34 | 2538761 tocointhephrase
tocointhephrase's picture

Isnt it somit that is sewn into clothes?


Mon, 06/18/2012 - 22:24 | 2538218 1100-TACTICAL-12
1100-TACTICAL-12's picture

Reset everyone's FICO to 700-800 , and let the debt machine roll.

Mon, 06/18/2012 - 22:57 | 2538321 earleflorida
earleflorida's picture

ain't it funny how the debt/credit rating machine rolls?

S&P   Moody's  &  Fitch

Experion   Equifax  &  TransUnion

why three?  curious mind's want to know,...

Tue, 06/19/2012 - 01:03 | 2538596 Tom Servo
Tom Servo's picture

EGAN JONES!  or do they not count?


Good things always come in threes?

Tue, 06/19/2012 - 05:35 | 2538762 tocointhephrase
tocointhephrase's picture

4 in China means death!

Tue, 06/19/2012 - 08:27 | 2538904 johnnynaps
johnnynaps's picture

Haha, that might actually help 40 million Americans better there chances of finding a job!

Tue, 06/19/2012 - 00:36 | 2538559 cdude
cdude's picture

Mission Accomplished 

Tue, 06/19/2012 - 08:06 | 2538875 ZeroAvatar
ZeroAvatar's picture

This sucker could go down.

Mon, 06/18/2012 - 21:57 | 2538126 AldousHuxley
AldousHuxley's picture

Textbook economics wants bankrupt banks gone, greedy execs gone, bubble home prices popped, politicians at the hands of angry mobs, etc.


Status Quo is trying like hell to hide the reality and *that* is not working so well.

Mon, 06/18/2012 - 22:32 | 2538241 holdbuysell
holdbuysell's picture

No, it's not working so well.

Either the room's getting smaller or the elephant's getting bigger, but either way, the elephant's about to sit on all of us.

Tue, 06/19/2012 - 08:50 | 2538959 fockewulf190
fockewulf190's picture

No stems no seeds that you don't need,

Acapulco Gold is..ssssssssssupp..

...bad ass weeeeeeed.

Wait, thats the truth. Dammit!

Mon, 06/18/2012 - 21:46 | 2538088 Eireann go Brach
Eireann go Brach's picture

Even my mum told me at 5 years old, to spend my pocket money wisely! Fuck you Bernanke!

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