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Friday, May 14, 2010

You Be The Judge

Can you pick the real headline(s) out of the list of headlines below?

1) BN  16:00  GEITHNER SAYS EUROPE'S RESPONSE TO CRISIS IS "VERY STRONG"

2) BN 16:00  GEITHNER SAYS EU DEBT CRISIS UNLIKELY TO HURT US ECONOMY

3) BN 16:00 GEITHNER SAYS "HELICOPTER BEN IS STANDING BY WITH A WHOLE FLEET OF HUEYS READY TO BOMBARD THE HEARTLAND WITH A STORM OF $100 BILLS SIX INCHES THICK"

4) BN 16:00 GEITHNER SAYS "EUROPE HAS THE CAPACITY TO MANAGE THROUGH THIS"

5) BN 16:00 GEITHNER SAYS WILL MOVE QUICKLY ON FANNIE, FREDDIE CHANGES
6) BN  16:00 GEITHNER SAYS NEW FINANCIAL RULES HELP "FIX WHAT'S BROKEN"

7) BN  16:00 GEITHNER SAYS U.S. ECONOMY "GETTING STRONGER," CONFIDENCE UP"

8) BN  16:00 GEITHNER PRAISES "VERY STRONG" FINANCIAL OVERHAUL LEGISLATION


My friend Ted inspired this post by sending me headline number 2, which outraged him.  Ted is a U.S. bull, but he thinks it's totally irresponsible for Geithner to throw out phrases like "unlikely" without quantifying them, and that this can only come back to bite Geithner in the ass like Hank Paulson's "subprime is largely contained" from quote October of 2008.

In case it wasn't obvious, all of the headlines are real, except for number 3, which is nevertheless probably as accurate as any of the other headlines.

-KD


5 comments:

getyourselfconnected said...

I love #3, but yes #2 is a bit over the top; we do not even know how bad (or better than expected?) nor how long (years, a few weeks?) the Eurozone issues will fester so it is not responisble for Timmy to say it will have no impact on the US. What do you expect from this clown though?

From the prior post;
Almost everyone I know has kids (I do not) and they all bla bla about doing what is best for the "sake of the kids" but kickign the can down the road seems like a weak way to go for that to happen. Yes we would have economic pain if the government would back off the spending and stop the banking/housing support but most are having plenty of pain now anyways. Thinking you can go through life sans pain or sacrifice is plain stupid yet that is the policy path we have chosen. I think we can set aside the "human suffering" and "widespread pain" arguments for action; what's at stake is what has always been at stake, the very belief in a never ending growth model and expansion of debt to serve that purpose. T

Anonymous said...

europe is a very rich continent which owes itself a whole bunch of money. if they could decide how to divvy up what's there, they could be done today and move on. so of course they have the 'capacity' to solve this. the barriers are 100% political, 0% economic.

Kid Dynamite said...

ahhh anon.. another MMT'er i'm guessing. there's nothing wrong with that - as I said, i'm not having that debate again. Sure - Europe could paper over all their problems - but politics matters in the real world, outside the econ lab, and the models, and it matters a lot... moral hazard is real.

we're going to see the same thing here with Cali and New York.. how much will people in other states like it when they guys who can't balance a budget get billions in Federal money... not much... how much will the germans like it when the Greeks get bailed out of their laziness? not much...

as you know, Greece lacks their own printing press, which is their major problem.

getyourselfconnected said...

KD,
goodnight

But What do I Know? said...

Actually, the only way out of this mess without serious retrenchment is for BB to load up the Huey--but the thought of other people getting free money is too much for the rest of the populace to bear. . .

M-M-T, as easy as 1-2-3

/decides to enjoy beautiful day and stop with the sarcasm