Big finance pleads for Keynesian bailouts

There is Bill Gross, Socialist bond manager:

In a column in The Washington Post on Friday, Bill Gross, who runs the giant bond-trading firm Pimco, lashed out at Republicans and “co-opted Democrats” for setting aside widely accepted economic theory.

“An anti-Keynesian, budget-balancing immediacy imparts a constrictive noose around whatever demand remains alive and kicking,” he wrote. “Washington hassles over debt ceilings instead of job creation in the mistaken belief that a balanced budget will produce a balanced economy. It will not.” NYT

No bneed to mention Citicorp and their unending demands for welfare checks.

A Democratic Congressional adviser, granted anonymity to discuss party deliberations, said: “We’re at a loss to figure out a way to articulate the argument in a way that doesn’t get us pegged as tax-and-spenders.”

No, you are pegged as borrow and bailouters of the rich.

Moody's , naturally, wants more borrowing to protect their bondholders, because they want to bail them out.

“At the very least,” said Mark Zandi, chief economist of Moody’s Analytics, Congress should renew for another year two measures that expire after 2011 — payroll tax relief for employees and extended unemployment compensation — as Mr. Obama has proposed. If either expired, Mr. Zandi said, that could shave roughly a half-percentage point from economic growth next year.

Sometime outright stupidity is required:

Mr. Prakken said tighter spending would “slow economic growth unless it was offset with lower interest rates through the Fed.” But with interest rates already near zero, the best the Fed could do this week was signal that rates would remain ultralow well into 2013.

If Mr. Prakken had any education he would realize that low treasury yields and low government operations profits go hand in hand. We don't borrow because keynes doesn;t work, it just makes OPEC drive up the oil prices.