Skip to content
 
If you can read this, either the style sheet didn't load or you have an older browser that doesn't support style sheets. Try clearing your browser cache and refreshing the page.

(CNBC)   "I'd borrow as much as I could if I didn't have to pay interest." This is an economist, folks. He knows what he's talking about   (cnbc.com) divider line
    More: Facepalm, Ronald Reagan, Economist Art Laffer, supporter of President Donald Trump, kind of negative interest rates, central banks, Supply-side economics, tax rates, former economic advisor  
•       •       •

864 clicks; posted to Business » on 22 Aug 2019 at 12:04 PM (31 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



31 Comments     (+0 »)
 
View Voting Results: Smartest and Funniest
 
2019-08-22 10:45:51 AM  
did he doodle on a napkin to illustrate his idea?
 
2019-08-22 11:14:23 AM  
He has no idea how any of this works, from the sound of it.
 
2019-08-22 11:15:13 AM  
Ah.  That Laffer.  And he's a Trump supporter.  Now I can say for a fact that he has no idea what he's talking about.
 
2019-08-22 11:16:55 AM  
"Right now, there's no real problem for having these deficits," he argued. "When you have interest rates at 1.6% on the 10-year [Treasury], the expense on the interest of the national debt as a share of GDP is extremely low."

He's right there's no problem with the deficit, but he's wrong about the reason.  Deficits are fine when a Republican is in the White House.  Deficits are a dire emergency when a Democrat takes control.
 
2019-08-22 11:19:19 AM  
I'd borrow as much money as I could at 0% too. Throw it into my interest-bearing account and give back the principal when required. Whether that's what's going on I'll leave for others to argue.
 
2019-08-22 11:30:26 AM  

Marcus Aurelius: "Right now, there's no real problem for having these deficits," he argued. "When you have interest rates at 1.6% on the 10-year [Treasury], the expense on the interest of the national debt as a share of GDP is extremely low."

He's right there's no problem with the deficit, but he's wrong about the reason.  Deficits are fine when a Republican is in the White House.  Deficits are a dire emergency when a Democrat takes control.


Correct. He is also wrong because republicans always run the deficit up and they had run it up on the wrong things. Infrastructure and a social safety net results in far healthier economic growth.
 
2019-08-22 11:32:38 AM  
It's almost like the Fed just told people to go f*ck themselves this morning.

And they absolutely should have.
 
2019-08-22 12:12:36 PM  
When interest rates are this low, we should be selling 100-year bonds.

There's an important psychological effect to debt with a maturity that far out.  People who buy it are saying "I believe that the issuer will still be a viable, going concern in 100 years"  (Or, I believe that enough other people will believe that when I want to sell the bond some time in the future).
 
2019-08-22 12:14:13 PM  
Why would you not borrow under those circumstances? 0% interest? You could buy something as stable as bonds with them and then pay back the principle and keep the profit...
 
2019-08-22 12:22:15 PM  

vygramul: I'd borrow as much money as I could at 0% too. Throw it into my interest-bearing account and give back the principal when required. Whether that's what's going on I'll leave for others to argue.


It was done before the 2008 crisis.
It's called carry trade.
 
2019-08-22 12:24:35 PM  
Economist Art Laffer warns about the moral hazard of having the kind of negative interest rates seen across Europe and in Japan.
"If I could borrow without paying any interest, or ever paying the money back, I would borrow as much as I could, too," says the "Trumponomics" co-author.
President Trump keeps up his attacks on the Fed, pointing again to Germany's ability to sell bonds with no interest.


Jesus, Art Laffer is stupid.  Germany isn't borrowing as much as they can.  That's why investors are willing to pay them to hold their money.  They know the Germans are good for it.

This is opposed to the US, which can't get negative rates because no investor with actual money thinks that the US won't borrow as much as it can.
 
2019-08-22 12:25:30 PM  
Laffer is a Stephen Colbert type parody character (comedy central version) that too many idiots take seriously. Everything he says only betrays a knowledge of economics in how wrong it is.

Also, I remember early 2001 when you could still get an interest-free cash advance on a new credit card, and at least one "economist" recommended buying stocks with that cash advance and selling before the interest-free period ended. Because stocks never go down, right?

🙄
 
2019-08-22 12:28:02 PM  

vygramul: I'd borrow as much money as I could at 0% too. Throw it into my interest-bearing account and give back the principal when required. Whether that's what's going on I'll leave for others to argue.


If you could get a 0% loan in this country, it's going to be impossible to find a positive interest-bearing account in the same country.  You'd only be able to find a negative interest-bearing account.
 
2019-08-22 12:36:11 PM  
 
2019-08-22 12:37:28 PM  

Marcus Aurelius: "Right now, there's no real problem for having these deficits," he argued. "When you have interest rates at 1.6% on the 10-year [Treasury], the expense on the interest of the national debt as a share of GDP is extremely low."

He's right there's no problem with the deficit, but he's wrong about the reason.  Deficits are fine when a Republican is in the White House.  Deficits are a dire emergency when a Democrat takes control.


Deficits are fine within reason.  We are not living in reasonable times with reasonable deficits.
 
2019-08-22 12:39:50 PM  
I'm still waiting on my job creator's tax cut to trickle down to me.
 
2019-08-22 12:55:03 PM  

LL316: We are not living in reasonable times with reasonable deficits.


It's lucky for us then that most of the world's business is transacted in dollars then, isn't it?  It's a good thing that will never change, or we could be in real trouble here.
 
2019-08-22 01:09:52 PM  

mcmnky: Laffer is a Stephen Colbert type parody character (comedy central version) that too many idiots take seriously. Everything he says only betrays a knowledge of economics in how wrong it is.

Also, I remember early 2001 when you could still get an interest-free cash advance on a new credit card, and at least one "economist" recommended buying stocks with that cash advance and selling before the interest-free period ended. Because stocks never go down, right?

🙄


Was it the Chair of Trump's Council of Economic Advisers Kevin Hassett?

images-na.ssl-images-amazon.comView Full Size


Also an adviser to Bush, McCain, and Romney. I don't understand why everybody not in on the con doesn't just laugh the guy out of the room anytime he makes an economic pronouncement.
 
2019-08-22 01:17:21 PM  

dsmith42: mcmnky: Laffer is a Stephen Colbert type parody character (comedy central version) that too many idiots take seriously. Everything he says only betrays a knowledge of economics in how wrong it is.

Also, I remember early 2001 when you could still get an interest-free cash advance on a new credit card, and at least one "economist" recommended buying stocks with that cash advance and selling before the interest-free period ended. Because stocks never go down, right?

🙄

Was it the Chair of Trump's Council of Economic Advisers Kevin Hassett?

[images-na.ssl-images-amazon.com image 334x499]

Also an adviser to Bush, McCain, and Romney. I don't understand why everybody not in on the con doesn't just laugh the guy out of the room anytime he makes an economic pronouncement.


Wha? Is that a book? I mean, if you believe the premise of the title, just buy a broad index fund. The fact that the guy felt the need the write a book on how to profit from a rising market tells me the author is either an idiot or a con man.

Or in this case, both.
 
2019-08-22 01:21:28 PM  
I would raw dog any woman who would let me if I couldn't get an STI, get her pregnant or be negatively judged by my friends and family.
 
2019-08-22 01:29:12 PM  

Marcus Aurelius: LL316: We are not living in reasonable times with reasonable deficits.

It's lucky for us then that most of the world's business is transacted in dollars then, isn't it?  It's a good thing that will never change, or we could be in real trouble here.


I'm not sure you know how interest rates work...
 
2019-08-22 01:29:17 PM  

mcmnky: dsmith42: mcmnky: Laffer is a Stephen Colbert type parody character (comedy central version) that too many idiots take seriously. Everything he says only betrays a knowledge of economics in how wrong it is.

Also, I remember early 2001 when you could still get an interest-free cash advance on a new credit card, and at least one "economist" recommended buying stocks with that cash advance and selling before the interest-free period ended. Because stocks never go down, right?

🙄

Was it the Chair of Trump's Council of Economic Advisers Kevin Hassett?

[images-na.ssl-images-amazon.com image 334x499]

Also an adviser to Bush, McCain, and Romney. I don't understand why everybody not in on the con doesn't just laugh the guy out of the room anytime he makes an economic pronouncement.

Wha? Is that a book? I mean, if you believe the premise of the title, just buy a broad index fund. The fact that the guy felt the need the write a book on how to profit from a rising market tells me the author is either an idiot or a con man.

Or in this case, both.


It isn't just the title. He published right as the dot-com bubble was imploding in 1999. He called for that DOW number within 10 years.
 
2019-08-22 01:35:41 PM  
Derpy reasoning in TFA aside.

Refusing a 0% loan, even if returns on other paper investments is 0%, is ridiculous.  You borrow the max and invest in yourself, at minimum, if not a whole shiat-ton of other projects that need doing.  If you're a municipality, it's way cheaper than trying to sell zero-yield bonds - improve/invest in infrastructure.

/'no work to be done this [time_period]' has never existed and never will exist
//even at the cusp of the universe's heat death, it won't exist
///after that point the statement is moops
 
2019-08-22 01:37:56 PM  
yep that's right, moops
 
2019-08-22 01:46:22 PM  
You know, despite holding multiple degrees in business, public administration, and economics, and having worked in both the public and private sectors, I have yet to come across anyone with anything positive to say about Art Laffer who isn't wearing a MAGA hat today.

Trying to bring up the Laffer curve in any economics class is likely to get you a bop on the nost with a newspaper.

Why anyone cares what he has to say is a mystery.
 
2019-08-22 02:00:56 PM  

Rapmaster2000: vygramul: I'd borrow as much money as I could at 0% too. Throw it into my interest-bearing account and give back the principal when required. Whether that's what's going on I'll leave for others to argue.

If you could get a 0% loan in this country, it's going to be impossible to find a positive interest-bearing account in the same country.  You'd only be able to find a negative interest-bearing account.


One might also argue that you must have deflation.
 
2019-08-22 03:03:41 PM  

gameshowhost: Derpy reasoning in TFA aside.

Refusing a 0% loan, even if returns on other paper investments is 0%, is ridiculous.  You borrow the max and invest in yourself, at minimum, if not a whole shiat-ton of other projects that need doing.  If you're a municipality, it's way cheaper than trying to sell zero-yield bonds - improve/invest in infrastructure.

/'no work to be done this [time_period]' has never existed and never will exist
//even at the cusp of the universe's heat death, it won't exist
///after that point the statement is moops


If nothing else, inflation means you repay in cheaper dollars. A 30-year 0% note paying 2020 1n 1990 money, or 1990 in 1960 dollars, yes please.
 
2019-08-22 05:51:57 PM  

FrancoFile: When interest rates are this low, we should be selling 100-year bonds.


They are looking at it.
 
2019-08-22 06:21:29 PM  

gameshowhost: yep that's right, moops


1.bp.blogspot.comView Full Size
 
2019-08-22 06:26:14 PM  
Let average people borrow at the same rates the banks do. Cut out the middlemen while publicly admitting that this whole fiat money thing is a charade.
 
2019-08-22 11:43:43 PM  

feanorn: Let average people borrow at the same rates the banks do. Cut out the middlemen while publicly admitting that this whole fiat money thing is a charade.


How's your bitcoin portfolio?
 
Displayed 31 of 31 comments

View Voting Results: Smartest and Funniest

This thread is closed to new comments.

Continue Farking





On Twitter




In Other Media
  1. Links are submitted by members of the Fark community.

  2. When community members submit a link, they also write a custom headline for the story.

  3. Other Farkers comment on the links. This is the number of comments. Click here to read them.

  4. Click here to submit a link.