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What Thomas Jefferson Knew That Paul Krugman Never Learned

  And I sincerely believe, with you, that banking establishments are more dangerous than standing armies; and that the principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale. Letter from Thomas Jefferson to John Taylor, May 28, 1816. H/T to Robert Gore of the Straight Line Logic blog Of course, Thomas Jefferson wasn’t an economist with a Nobel prize; so what did he know? He knew the risks ofdeficit financing, that’s what! Well, that’s what I’m thinking. What are your thoughts? . .

Thank You Janet Yellen: New Fed Regs Mean Negative Interest On Bank Deposits

    Remember when we used to earn interest on our bank accounts? Ben Bernanke put a stop to that by printing money like it was going out of style. And now Janet Yellen is one-upping him. Forget zero interest, welcome to negative interest. New Obama Administration reserve rules mean you’ll have to pay the bank to store your money. As the WSJ reports, far from paying for the privilege of holding other people’s cash (and why would they with nearly $3 trillion in positive carry excess reserves sloshing around) US banks – primarily of the TBTF variety – “are […]

Venezuela: Communist Dictator Blames Others for Failure of Communism

As I have noted many time, leftists, whether they  call themselves communists or not, share the blame game with their fellow travelers.  When the Soviet Union’s beautiful collective farms failed to produce; causing the Soviet Union to go from being a food exporter to starving millions, someone had to be blamed.  Rather than admit that their bastions of equality and social justice were a steaming pile of rancid failure, they created scapegoats.  “Conspirators” with the “imperialist capitalists,” usually some poor slobs that the political commissars didn’t like, were rounded up, or “disappeared.”  It didn’t really solve the problem, but at […]

NBER Reports That The Housing Bubble Was Government’s Fault, via the Community Reinvestment Act

Since the financial collapse brought on by the housing bubble and the casino playing Too Big To Fail banks in 2008, many of us in the blogosphere put the blame government policies, which pumped air into the sub-prime mortgage market. The government of Barak Obama, of course, put the blame entirely on the Wall Street bankers and the unfunded wars of Bush II. Now, nearly five years later, the National Bureau of Economic Research (NBER) finished their review of what happened and puts the blame squarely on the Community Reinvestment Act (CRA). You are unlikely to hear about the NBER report from […]

Fractional Reserve Banking and Other Things About Banks That Confuse Me

Fractional Reserve Banking Where do bank profits come from? If we restrict ourselves to thinking only about commercial banks and forget about investment banks (many banks are both things), I think they make money primarily by making loans and charging interest. Although banks start out life with capital from their investors, they really make money by making loans of the money deposited by you and many other people or businesses. In other words, banks only maintain a fraction of the money deposited with them on hand as reserves to cover daily operations. So, if a bank has deposits (assets) of […]

We Live In A Dysfunctional World

America is seizing up  before our eyes, and the action necessary to reverse the  sclerosis is  stymied at every turn by rapacious unions, government  micro-regulators,  dependency-spreading social engineers, and crony capitalists  who know  how to weave their way through the bureaucracy. _ Mark Steyn Maybe Mark Steyn was just having a bad day when he wrote those words. Can things really be that bad? Dr. Nouriel Roubini, a world-renowned economist and also known as “Dr. Doom” for correctly predicting the 2008  burst of the housing bubble and the world-wide recession, is now seeing My ‘Perfect Storm’ Scenario Is Unfolding Now. In May, Roubini predicted four elements – […]

#Occupy Uses Feces and Urine as Protest Tools?

Apparently, the answer to that question is yes.  No matter what one thinks or feels about the big banks, one thing is clear-that since the occupods don’t like them, no one can use them.  So what do they do?  They dump human waste into banks!   However, they forgot that banks have cameras.  Here is the footage, via The Blaze… The Blaze also has some coverage… Security cameras and witnesses were vital in helping police identify and arrest a suspect. NBC-NY reports: Police said Occupy Wall Street protesters were captured on surveillance video dragging a large receptacle of human urine […]

Occupy Portland Shenanigans: Children as Human Shields, Urinating on Banks, and the First Breadstick War


Apparently, Occupy Portland got jealous of all of the criminal behavior at NY and Oakland, and decided to kick it up a notch.  Here are three stories that show us, once again, what the Occupy movement is all about. Children as Human Shields: If they are willing to do this with their own children, what would do to your’s? Apparently, they want the child to be hurt so they can garner support.  Isn’t that charming? Organizers Have to Remind the Occupods to not Urinate on the Bank- the ‘pods do it Anyway: Now, the occupods insist that there are “infiltrators,” […]

Some Thoughts on the "Occupy Wall Street" Protests


I’ve been following the moonbat fest in New York, as well as in other locations, though I haven’t written about them until now.  It really started as a non-story, though the MSM and the union bosses seem to be building them up.  So, here are some of my thoughts about them. I get the impression that they’ve been coached to be very careful about what they say to the media. Let’s look at some general statements, and the CH 2.0 translation. “Greed”= Communism “A more equitable system”=Communism “Democracy”=Communism “Evil Corporations”=Communism Am I overgeneralizing?  Perhaps, but from what I have seen […]

Obama Pressuring Banks to Give High Risk Loans to Poor and Minorites


As we learn more about the financial meltdown of 2008, it becomes increasingly apparent that one of the main causes for this economic disaster was government policy that forced banks to extend loans to those people who were unable to pay those back. Government agents put pressure on banks and government banking institutions like Freddie/Franny to give loans to people who under normal circumstances would be unable to pay back these loans and who were especially unable to protect themselves from the exposure to risk that these loans entailed. Misguided government policies ambushed innocent people who believed the dream that […]