U.S. Economy: Apparently, Everything Is Just Fine

Who would have thought one random Thursday could generate so much news and information? I had a late start Thursday night so I cannot spend the time really needed on all the latest developments. I will focus on some less reported areas and of course add a heavy dose of sarcasm.

While mine is an economics blog primarily, it cannot exist in a vacuum. Thursday brought some sad news.

Sadly, Farrah Fawcett died Thursday after a long battle with cancer. I have seen such fights up close and I can only wish that she is in a better place now.

Late news that Michael Jackson died Thursday at the age of 50. The cause of death is listed as cardiac arrest. Whatever you might think of Jackson, his work did touch so many.

Probably Not a Good Idea
Loyal reader Gawain's Ghost tipped me off to this article by Gary North which looks at the writing record of one of my all time favorites, Mike (Mish) Shedlock as it relates to the deflation/inflation debate.

At first I was confused as to why Mr. North decided that Mish's writings were a particular area of focus. I imagine it is because Mish has such a large and loyal following and Mr. North simply wanted to engage Mish in an open debate. After reading and re-reading the article unfortunately I think it may be more than that.

This is an example of what I am so glad does not happen in my comments section or with those that I exchange email correspondence with: confrontation with the aim to make the other's view either irrelevant or suspect.

Mr. North goes as far back as 2005 to target particular articles, or even just passages where Mish seems to have had a gap in logic or a conflicting idea. I can say with total confidence that in the two plus years of my blog I have been ALL OVER THE PLACE, so this is no surprise. I would also add that I have been reading Mish since his site started and his views certainly have evolved as the data has, but his core themes have not. I think Mr. North makes a huge jump in the wrong direction with what he surmises is Mish's end game ideas as well.

Look, Mish does not need little old me to defend him. His writings speak for themself. I would even advise him not to answer this article because it is a game of "gotcha" we could all do without. To all the bloggers and any writers anywhere, let's keep it clean and impersonal unless Paul Krugman or Bill Gross are involved, then of course full steam ahead.

Winner of the "Most Terrifying" Headline of the Day Award
On June 25th 2009 the winner of the "Most Terrifying" headline award is clearly from Naked Capitalism:
Is Bernanke Toast? If He Is, Summers is a Shoo-In
This is like "The Exorcist" kind of scary. I may need a night cap just to sleep tonight. Maybe two.

Change I Could Believe In; No Seriously
Even though I am a inflation oriented future thinker, I actually hate inflation for all its slow killer ills. Of course, if you hate inflation, your superman is Paul Volcker. Not quite "the sausage king of Chicago" (very obscure movie reference, try to guess) but more the ultimate champion of inflation destruction.

In these troubled times with so many moving parts, leave it to an over 80 year old former Fed head to figure out how to fix everything in a few simple steps:

What is it that Volcker wants?
-Impose capital requirements on trading parties, people familiar with his thinking say.
-Make bigger banks smaller
-Reduce the role of an overstretched Fed
-Force Derivatives to be traded on exchanges
-Transparent investor prices of Derivatives;
-More-aggressive capital reserve requirement
-Bigger role for exchanges.

Yes folks, it really is that easy. So what's the problem?

Note to president Obama: Fire the dummies you have, put Volcker in charge, and I may even go door to door for you next election.

Every Little Thing is Gonna be Alright

Sometimes when I scan the headline page at Yahoo Finance I see things that hit me as either funny or so sad I want to cry. Thursday was one of those days.

Here is a screen capture from the Yahoo Finance main page at 9:44 am on June 25th 2009:

The leading headline and summary show just how far we have come.

The headline reads: "Economy Dips at Slightly Lower 5.5 Percent Pace", which is asinine in and of itself. The assumption here is that you have no idea that the last reading of 5.7% is not really any different from the new 5.5% number.

Of course, this is pretty standard now, and it was not the headline that hit me. It was the first sentence of the summary: "The economy tumbled at a 5.5 percent pace in the first quarter, but appears to be doing better now." And really, there you have it. We have reached a point where baby talk is now standard fare in the financial media.

One of the millions with no job and benefits running out? No worries, everything is getting better now.

Credit card rate just got jacked up to pay banking employee bonuses after you got hit with paying for their losses? Forget about it, it's getting better now.

I could go on all night. This kind of wording from a media outlet is disgusting and it makes me sad for where we are right now.

Please note the very last headline "Fed 'Light years' from a rate hike" - you would have already known by reading my blog.

Economic Disconnect Exclusive: Extended Bernanke Testimony Before Congress Thursday

Fed head Ben Bernanke was in front of a congressional panel Thursday to answer questions related to the Bank of America (BAC) purchase of Merril Lynch. The point was to discern whether the Fed and/or Treasury threatened Ken Lewis of BAC into staying the course on the deal no matter how bad Merril losses became.

Here is the unreleased final session from congress Thursday, an exclusive satire from Economic Disconnect:

Dan Issa: Mr. Bernanke, am I to believe that you basically "do not recall" any dialogue, written or spoken, related to the BAC/MRL merger?

Ben Bernanke: I'm sorry, I forgot the question already. What?

Dan Issa: You mean to tell me that one of the most earth moving episodes in the financial meltdown is lost from your memory?

Ben Bernanke: Sir, I think you are referring to that film "Total Recall" where the California governor lives two lives with different memories. Or something. I cannot remember.

Ron Paul: Mr. Bernanke, do you recall where your car is parked today?

Ben Bernanke: Why do you ask?

Ron Paul: I was just hoping that you would not get lost in this fine city of DC today after this meeting.

Ben Bernanke: Luckily, I have a GPS so if I forget where the car is, it leads me right to it. Sometimes the car is in Argentina. Weird, huh?

Ron Paul: Mr. Bernake, do you recall where your hairbrush is today?

Ben Bernanke: Trick question! You know I do not use a hair brush, I just pat what is left down in almost pure "Goldman Sachs" style, except I kept my sideburns. Hahaha, nice question, I'm out-of hair, bye bye.

END OF TRANSCRIPT

Comments

[ecliptix543:]

Not quite "the sausage king of Chicago" (very obscure movie reference, try to guess)

I believe that would be from Ferris Bueller's Day Off.. Excellent observations especially on the media's increasingly infantile coverage of otherwise quite important events.

Jun 26 11:33 AM

[Economic Di...:]

ecliptix543,
great catch on the film ,you are correct!

I think that "getting better" now line really rubbed me the wrong way!

Jun 26 11:37 AM

[Donald Ingram:]

I LOVE IT! "Financial baby talk!" One little, two little, three little tax bucks!

Jun 26 12:18 PM

[Socialism c...:]

"Late news that Michael Jackson died Thursday at the age of 50. The cause of death is listed as cardiac arrest. Whatever you might think of Jackson, his work did touch so many."

His work did touch so many? Wow. That makes it good? Did it touch them in the right way? That is the question. I tend to think it was the beginning (or amplification) of pop-culture forces that ruined and continue to ruin our society, by debasing what we consider entertainment -- and the dignity of the human person, in the process. Much of the change in what is considered "socially acceptable" morally is now driven by the images and fantasies promulgated by Hollywood -- and they are not the values that made this country great.

Just remember -- Hitler touched the lives of many, too -- in a terrible way! Jackson, obviously was not a Hitler. But we know that the forces embued in entertainment can be malicious in more subtle ways that accumulate in peoples' character and psyches over time. We should not necessarily consider Jackson and his music worthy of our praise simply because it was popular. The question should be whether it was good for us. Look at the industry and what it has become. The fruits it has born give the answer.

I mourn the loss of Michael Jackson, the person -- whom I lament as having deviated from who he could and should have been; I mourn the loss of his talent, which I believe could have been used better. But I will not praise his work nor his impact on society. Let this be a call to all those with such talent -- use it to uplift people and steer them in a good moral direction, not towards debasement
nor conflict; be an example to the youth who look up to you so much -- show them real moral courage, not the false p.c. concept of "tolerance" which amounts to "anything goes". We really, really don't need that. We need some moral absolutes and some people to give examples of such to young people. Anti-Lohans, IOW.

Jun 26 02:59 PM

[Moon Kil Woong:]

If we are to financial baby talk I think the Fed and Treasury need a time out. All I hear from Bernake and Geithner is goo goo ga ga babble and no firm action besides them playing with the printing press. All that agree please raise your hand.

Jun 26 09:44 PM

[RatWatcher:]

Jackson gets 99% of available ink and airtime. Farrah gets 1%. Lopsided to be sure, as Farrah touched so many lives too.....but more importantly:

'House passes climate change bill' gets no ink or airtime.

Watch for other bills / regs to ramrod thru as attention is diverted.

"Never let a good crisis go to waste"

Jun 27 01:29 AM

[whidbey:]

I feel better now. Thank you very much, I was being gullible and now I am not any more.

Jun 27 11:03 PM