patrick.net

Jimbo, I disagree. Zephyr is more on target, although saying the Fed did the right thing but too much of it more or less says they screwed up, at least partly.

I'm more old school. We need recessions once in a while. You need an impetus to clean out the system and clear out the dead weight once in a while.

Back in the day when we used to have an industrial base, it made sense that we might "need" a recession to clear out over capacity. But what does that mean in the context of a service economy? Too many software developers? Isn't that what happened in 2001-2002? Too many new homes chasing too few credit-worthy borrowers? That is what we are seeing now. Better financial engineering and better inventory control mean recessions are going to be shorter and less severe.

For those in tech during 2001, that was not a mild recession at all. I ended up out of work for six months, then got a job, only to be laid off in a big down sizing at the second place seven months later. I finally found another job three months later. And I was one of the survivors.

Most people I know who joined the party late, moved back to their home towns and left the field entirely. The only thing that kept me employed at all was my network, which I had built up since college.

Too many software developers?

In a word, yes. The good ones will remain employed, the bad ones will go back to serving coffee at Starbucks.

Perfect current example - so much of Web 2.0 is useless crap. A good recession will clear that out.

It will not require a recession for it to happen though, that is what I am saying. Why should there be an economy-wide recession, just to correct an imbalance in one sector?

Maybe the housecleaning happens faster that way, but I am not really convinced that this is better for the economy when it does. Eventually VCs will grow tired of throwing money after all the "me too" social networking sites, but remember, before Google, everyone thought that search was a tired and done sector.

If the NAR and NAHB want to fund a bailout, then I have no objections. I didn't know these organizations were in the business of giving money for bail outs, though.

Maybe you were mistakenly referring to the National Association of Retards and the National Association of Hemorrhaging Buyers?

Until I hear one address what is to be done about the CEO's of these comapnies/banks.... that were part of the lending that lead to this meltdown ...that taxpayers are now being saddled with....I have little respect for any. I hear a lot of posturing, but not ONE has mentioned these CEO's walking away with MILLIONS...MILLIONS...while we tax payers already struggling are left to pay for their mess...and they walk away with parachute packages worth MILLIONs....Only one..has refused to accept his windfall and sent the money and perks back to be used to cover the debt that his company is responsible for. UNTIL these politicians hold those responsible accountable...Do not think anythnig they say will matter to the American public..I don't care what grand plans they have...beyond it's money out of my pocket, and your pocket to cover the mess made by those who are walking away millionaires. Let's hear a candidate address that issue and what's to be done to hold them accountable..Like maybe NO bail out for any that accept the golden parachutes and leave them on their own to sink or swim. If you want the American public to pay for your mess then first take care of as much of the debt as you can yourself. Every Joe Schome that goes to Bankrupty court has to cover as much of the debt as he can and we're not talking multi millionaires here or Billionaires but average working class struggling Americans...They don't get to walk away scott free....

Will we ever hear a politician actually stand up and say..NO we wont bail you out...we wont offer a plan..we wont do anything until you help yourself out of this mess and cover as much as you can...SEE I have a huge problem with this...And no one ever mentions it...I wish someone with financial background would look into it and come up with the figures of how much overall these CEO's and Coporate officers are going to walk away with as the taxpayers are forced to bail out their mess...and will the bail out money be used for their golden parachute packges..Is that part of the deal? Where does that Money come from?

I've had enough political posturing and plans (that amount to basically nothing...beyond more money from taxpayers..) I want real answers to real concerns....and no more sound bytes or the same speeches over and over that say nothing...

Thanks to you Patrick as you seem to be the first person anywhere to even question Obama or his plans....He gets a free pass from the media..so I applaud your courage.