"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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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?

Almost Solvent's picture

i did not have sexual relations with that woman

Marginal Call's picture

The invasion will pay for itself with the oil.

surf0766's picture

We can increase growth by increasing taxes.

Temporalist's picture

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

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.

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:


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

Rahm's picture

ANYTHING out of Geithner's piehole.

Manthong's picture

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

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

tocointhephrase's picture

We also know there are known unknowns

Killtruck's picture

These jobs are shovel-ready.

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

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.

mickeyman's picture

G. Jamie Dimon gets another bonus

BKbroiler's picture

We do not condone nation building.

kridkrid's picture

They hate us for our freedom.

Thomas's picture

The government made money on AIG and GM.

disabledvet's picture

Now stop calling me Surely.

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

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. ;-)

CURWAR2012's picture

we do not wear condoms when pumping the economy

sumo's picture

"No risk of that. No risk."

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!!!


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

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.

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!!

Stackers's picture

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

FrankDrakman's picture

To save the village, we had to destroy it.

mcguire's picture

lets do the whole village..

tocointhephrase's picture

Isnt it somit that is sewn into clothes?


1100-TACTICAL-12's picture

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

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,...

Tom Servo's picture

EGAN JONES!  or do they not count?


Good things always come in threes?

johnnynaps's picture

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

ZeroAvatar's picture

This sucker could go down.

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.

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.

fockewulf190's picture

No stems no seeds that you don't need,

Acapulco Gold is..ssssssssssupp..

...bad ass weeeeeeed.

Wait, thats the truth. Dammit!

Eireann go Brach's picture

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