We've lost a lot of mfg, which the author says is not necessary. Now we are losing high end "service" ... called research & development which the same companies which moved mfg over the past 10-15 years, are now moving overseas.
Soon we will be left with ? A country of athletes, actors, attorneys, and politicians (sounds like Rome).
This reminds me of the argument that home building is not that important to the U.S. economy because it only consists of 2.5% of the national GDP. It leaves out all the supporting infrastructure from finance, to retail, to feeding, clothing, servicing workers of said homes.
When you lose the core business you lost much of the need for the supporting ecosystem for that business.
I read today that Brazil is sourcing high speed bullet train Between Rio and San Paolo.
Countries up for bidding are: China (communist), France (socialist), Germany (socialist), Japan (deflationist), and South Korea (one of the most technologically advanced countries in the world, flies under the radar).
I thought after reading the article... a darn shame that no U.S company has the capability to bid on such a high value attractive opportunity, but I guess I am a dinosaur. Apparently this is the type of work that is below U.S. engineers and blue collar; I am sure we do not need that type of work. Instead let us make more federal government workers and push out another few million healthcare workers since both rely on borrowing money we don't have.
So says our industrial "policy". Just one example of many.
Don't believe all the hype - we needed those bailouts! Becky Quick says we've already forgotten about the fall 2008 fear and why the government had to step in, and "the armchair-quarterback lawmakers and candidates who are now second-guessing these moves are dangerous." [View news story]
Why were the bank bond holders protected and the auto (bailed out) firms bond holders crushed? It was a complete sham.
You could of backstopped the deposits and said to hell with the banks... and their bond holders who did not assess risk properly. These "shells" that are the firms need not exist, only their function. If the bond holders were crushed it would of sucked but guess what... the future we'd have a far more stable system as bond holders would actually care and manage their investments rather than bowing to a system of CEOs and their crony boards. Did anyone read the stories on WHO was on the board at Lehman? It's a joke.
That;'s how the system is supposed to work - the monied interest (shareholders of equity and bonds) are supposed to be final owners, and the board is supposed to serve them. If the bond holders got the "lesson" they would be far more careful in the future and we would not have out of control systems, nor the need for 2300 page FINREG that no one knows what is inside (and trust me, whatever the lobbyists inserted won't be discovered for at least 3-5 years in full)
So you tell America every penny, not $100K, not $250K is backstopped by federal government until we clean up this mess. In the meantime the banks "the market" has deemed as losers go under, and the government will take over said banks TEMPORARILY. We don't like doing this, in fact we hate it. But it's a short term necessity - I want to punt these banks back to the private sector as soon as possible, but in smaller sizes so as not to be TOO BIG TO FAIL. They will act like boring utilities in their new form, facilitating capital like the "old days". They won't be de facto hedge funds backstopped by you the taxpayer. Pay packages will drop in the banks and our best and brightest won't all go into jobs trying to scam the middle class out of money with "financial innovation" or as one of our oligarch's says "God's work". We're done with that. When Rush L cries NATIONALIZATION, you say ... STFU Rush. Instead of bowing to left right politics which have destroyed this country.
You tell America in a national address - our system broke down. We have massive lack of checks and balances due to our crony "capitalist" system aka corporate socialism. We - the politicos - are bought and paid for and after decades of this building up, this is what happens. We're sorry.
Now we have to start over in the financial area... our oligarchs are unhappy but this is "capitalism" at work, believe it or not. Those who fail are destroyed...those who managed well get rewarded. Not vice versa like those policians backstopped backstopped by our oligarchs shrill. When push comes to shove our monied interests don't want the bad parts of capitalism, only the good. Heads they win, tails they still win. Then capitalism is "great".
Our oligarchs and monied interests will claim they need to be huge to compete globally. To which I say, you had your chance - you screwed up, and you die. That's how it works in small business in America... there is no lifeline or government bailout. Why should *you* get all the breaks (I know rhetorical question). Further who the hell are you competing with? A handful of banks in the UK which also needed a government handout? That tells me the Anglo Saxon model did not work? The french banks ? Who exactly? SocGen? 2-3 german banks? What phantom competition are we failing at? Or cannot compete with, at banks 1/3rd the size? The Canadians? So take your dogma and shut up.
So we are taking over the oligarchs TEMPORARILY and then we will break them into smaller pieces and sell them off to new sets of investors. These investors won't be those who handed us the most money for our political campaigns... I know, I know - earth shattering.
Instead of 4 banks running the U.S. desposits (while another 7996 exist, owning a fraction of the desposits) we'll go back to something called "competition". Another part of capitalism we have seemed to miss. In 3-4 years we are going to have a new system with many more medium sized banks rather than 4 megas (I am talking despoit banks, not Morgan and Goldman which is another problem) ... and your money will be backstopped the entire time so no need to go pull it out tomorrow. Let me repeat, YOUR MONEY will be backstopped, NOT the BANKS BONDHOLDERS and C-LEVEL EXECS. Big difference.
So we'll be back to "capitalism" in a few years... until then we have to take bitter medicine and reconfigure as a nation. It's not permanent nationalization so don't get your panties in a bunch. It's the least worst option we have; not one we with for.
At the end of this national address you will see a scroll on your screen with each member of Congress , as well as the White House and how much contributions we've received over the past 10 years from the financial oligarchs. Just for kicks. And that includes Fannie and Freddie. Feel free to call your local congressperson to discuss these facts after we go back to your normally scheduled program of Dancing with the Stars.
Oh yeh - we're sorry. God Bless America.
p.s Hank Paulson has resigned immediately to "spend more time with his family". His family at Goldman Sachs.
The 'Great' Roubini: Wrong Again and Again [View article]
I'm with you Ricard.
Once Roubini went into making stock market calls, some of his credibility washed away. But his economic calls still are largely good and the only thing proven the past few years is central bankers and government will go to any length to distort the economic cycle. Roubini underestimated what lengths they would go - I don't think there is much shame to that.
Also just because problems have been kicked down the road in a flood of liquidity do not mean they have disappeared.
As someone else said, Roubini is still winning. Much like Sarah Palin - the more people talk about him / her - the more speaking fees he gets, and the more chicks at parties he gets! ;) [google Roubini's images if you don't know what I'm talking about]
Anyhow I am amazed that guys who show up on CNBC week after week, year after year, touting nonsense rose colored stuff never get articles devoted to them, while Roubini who was one (not the only) of the small cadre who gave a nice playbook for the 'black swan' before it was fashionable (in 2007 the market was at all time highs as the "all knowing stock market" was obviously clueless as its discounting mechanism obviously stunk).- often gets attacked. How about a series of articles on the perma bulls, who in the past 12 months look like "genius" but have been "wrong" for about a decade straight.
The Bernanke Plan: Sacrifice Savers to Recapitalize Banks and Benefit Debtors [View article]
anecdotal talking to people, especially in their 50s and 60s is many won't return to the market ever. Even if they did not feel fleeced by 2 stock crashes in 1 decade (not to mention losses by a housing bubble) - they cannot afford to take the risk anymore. Even making 0% is better than the risk of another 40% loss. Many have had to adjust retirement plans significantly.
Meanwhile CNBC is aghast each day that the "retail investor" has not returned despite the "good times". I think like the 70s, they lost a generation of investors by and large. Until the next group of easy marks shows up for the institutional class to fleece...
That said, who needs investors anymore? The market can go up, simply on Fed handing money to banks to go buy bonds and speculate in the market, and lever up 7:1. US equity funds have seen outflows almost this entire rally yet the market magically is walked up.
Depends where you live. Generally in a regional housing recession you are talking 7 years. So if you use 2007 as the burst in housing perhaps we're talking 2014. The problem is we have artificial foreclosure supression, artificial incentives ($8000 handouts first 1st time, and $6500 for repeat), and artificial interest rates. Not to mention FHA giving out 3.5% mortgages to almost the entire country - and more or less repeating much of the mistakes of the previous 5 years. Many people now allowed to go into homes once more with $0 down payment once they apply their $8000 handout to the down payment.
What the market would look like at 6% 30 year mortgages and no handouts from government to buy houses would imply another 10-15% downdraft just from here in prices. But we live in some parallel housing market that lives outside the "functioning market" - some form of governmental/Fed suspended reality.
That said, if you live in washington D.C. you probably ask "what recession? what housing downturn?" If you live in Detroit you are thinking housing should bounce back circa 2028. So it is too broad a question - never before in modern times did we have a national bust so I expect we have to begin looking at the country region by region (or state by state) again. A place like Texas will have a different fate than say Ohio.
it is ironic that people who we love in the near term (Greenspan) because they brought us short term gain, we loathe after the fact - because they brought us long term pain
While people who brought us short term pain (Volcker), we celebrate many years later because they brought us long term gain
Which path are Bernanke and Co taking us down? It is very easy to see.
But I blame Americans as a whole - we refuse to accept that there should be any pain, we want our cake, we want to eat it too, and then take a pill that makes the weight go away. And we want to buy it at Walmart at 60% off. It is generational theft really - we are layering debt upon debt onto another generation so we do not have to face reality today. It's not institutional and pervasive from every sector of the society - notice the joy and glee on car lots the past month, and joy and glee for first time home owners who have to put nothing down with states allowing $8000 tax "credits" to become down payments and closing costs.
The ruling class is happy to give the gifts, but the peasants are happy to accept. Only a small sliver of people among the peasants appear outraged and they are easily the minority or else this would end. Like any good reckless drunk driver this will end with a crash, but until then let us party.
On Sep 04 10:02 AM Graham and Dodd Investor wrote:
> Volcker, like President Carter himself, was the Fed Chairman we were > glad to "have had" (in retrospect). But almost no one liked him at > the time. > > Nor would they like him today, if he were miraculously reinstated. >
The U.S. has become a "Dickensian economy," former Fed vice chairman Alan Blinder writes - "the greatest place on earth to be rich but an awful place to be poor." Since 1978, nonfarm business productivity is up 86% while real compensation per hour is up just 37%. It isn't fair, and it isn't good for America, he says. [View news story]
Don't forget, we are taking away your 401k match because the company cannot afford it. Plus we need to retain our CEO, who if we don't pay him $12M will move to another country...
Just don't ask what country. Or what firm in that country would pay American CEO salaries. He'd be laughed at in Japan where many CEOs make $300Kish, and Europe pays a fraction of American CEO pay. Just be very afraid of losing that one in a million talent. Talent that apparently has increased in value by a few 100% since the 1970s whereas the average american male peon worker bee has increased in zilch in the same amount of time.
how come in no other part of the organization can we get our peers to set our salary? Only in the C-Suite. Just imagine how quickly every company would go belly up if we all got our friends to set our pay.
Anyhow, we can't talk like this... it is 'class warfare'. SHHHHhhhhh!
Jeff Gundlach paints a frightening picture of massive U.S. problems: chart after scary chart of mounting debt, a declining dollar, and a wrecked economy. If you want any sleep tonight, better not read this. [View news story]
but Dave there was 70% approval for the "TAX + SPEND" stimulus - if the people want their treats, we have to give it to them. American exceptionalism baby!
Both parties "came together" and "sacrificed" on this bill.
One got their tax cuts, and the other got their spending. What sacrifice! They both gave up... uhhh... something.
The Bernanke Plan: Sacrifice Savers to Recapitalize Banks and Benefit Debtors [View article]
it's called generational arbitrage. Take the benefits, and pass the costs to the next generation down the line. Obviously 20/30 somethings are not a powerful voting block so it will only continue as the Boomers turn into the most cherished voting bloc - the seniors. This type of action is possibly the total antithesis to the "Greatest Generation" that came before the Boomers.
Bernanke has effectively herded Americans out of any "safe" instruments which now pay near zilch. With negative real returns in savings accounts or CDs investors are stretching for any sort of yield.
Instead Americans are running into what they perceive to be safe - bonds. Unfortunately, as with the tech bubble, real estate bubble (both with their nexus at the feet of the Fed as well) Americans are going to learn the hard way when bonds eventually fall as yields rise that they are not as safe as they appear on the surface.
Just another disaster in some middle innings, can't wait to read the reports of aghast retirees sometime in 2011, 2012 about how they were blind sided. Ben - you are almost as good as the Maestro. Keep up the good work of destroying Americans savers so that the oligarchs that you are servant to can win again.
Roubini: The Recovery as a House of Cards [View article]
I don't find his comments to be gloom or doom, as much as reality. But I suppose that opinion is based on where I sit. As is your view of him, based on where you sit.
Aside from a few handful like Schiff, Roubini, Marc Faber, Jim Rogers - I see a lot of 24/7 CNBC programming about "buy the dip" "we're fine" "nothing to see here". So I am not sure why you think he is consensus.
What Railroads, Copper Are Saying About the U.S. Economy [View article]
Oh I am not hinting... I have about 50 posts on the labor report specifically. Birth/death model alone overstated jobs by nearly a million.
Go check out shadowstats.com - you can see how employment (or CPI or other things) used to be figured out, and how they have turned these reports smiley side up to under report the depths of the damages in the US economy
inflation under reported (hence less they need to pay to social security recepients) and unemployemnt under reported. We are probably at 14%ish unemployment per my reverse engineering if we measured unemployment as we did in the late 70s, early 80s. A lot of chicanery going on
What Railroads, Copper Are Saying About the U.S. Economy [View article]
I agree on the LSE inventories - it is boggling.
If its financial "innovation" doing this or what... I don't know. But our price mechanisms all seem out of whack. When you have investment banks leasing oil tankers just to buy up wads of oil and sit them in the ocean using free money from the Fed, you get these strange situations.
Are We Setting Up for a Repeat of Summer 2009? [View article]
FASB 157 change is SOOOO overlooked. I believe Feb 2009? March 2009? Almost at the exact bottom, coinciding with Obama's clarion call to buy stocks (because the government is - wink wink, err I mean market forces conspired for a rally of a lifetime) Does anyone have a clue what is really on these balance sheets? All we know is Timmy told us everything is ok per his stress test. If we all pretend its ok, I guess its ok. Japan style.
Just imagine if every American could do that. Look I lent Chuck $15,000. He paid back $900 and then went cold turkey on me. Lost his job, got a divorce, fled the country. But you know, there is still a chance he could pay it back and since the politically pressured accounting board said I should use my own discretion rather than the fair market value of this loan (which is $200) if I tried to sell it, I am going to take a 10%ish mark down and we'll call it even steven on the balance sheet at $12,800. Any questions? Now who wants to buy my stock? I have a sterling balance sheet and a central bank which will give me endless money at 0 to 0.25% so I can lend to you at 5-10-29% (in my credit card division) muhahahah!!
Not to mention we still have off balance sheet entities throughout the oligarch banks - amazing! The thing that Enron did, not only was allowed to happen in the banking system but still goes on. What "transparency" is there in having SIVs all over the place?
Forget 'Manufacturing' [View article]
We've lost a lot of mfg, which the author says is not necessary.
Now we are losing high end "service" ... called research & development which the same companies which moved mfg over the past 10-15 years, are now moving overseas.
Soon we will be left with ? A country of athletes, actors, attorneys, and politicians (sounds like Rome).
This reminds me of the argument that home building is not that important to the U.S. economy because it only consists of 2.5% of the national GDP. It leaves out all the supporting infrastructure from finance, to retail, to feeding, clothing, servicing workers of said homes.
When you lose the core business you lost much of the need for the supporting ecosystem for that business.
I read today that Brazil is sourcing high speed bullet train Between Rio and San Paolo.
Countries up for bidding are: China (communist), France (socialist), Germany (socialist), Japan (deflationist), and South Korea (one of the most technologically advanced countries in the world, flies under the radar).
I thought after reading the article... a darn shame that no U.S company has the capability to bid on such a high value attractive opportunity, but I guess I am a dinosaur. Apparently this is the type of work that is below U.S. engineers and blue collar; I am sure we do not need that type of work. Instead let us make more federal government workers and push out another few million healthcare workers since both rely on borrowing money we don't have.
So says our industrial "policy". Just one example of many.
Don't believe all the hype - we needed those bailouts! Becky Quick says we've already forgotten about the fall 2008 fear and why the government had to step in, and "the armchair-quarterback lawmakers and candidates who are now second-guessing these moves are dangerous." [View news story]
You could of backstopped the deposits and said to hell with the banks... and their bond holders who did not assess risk properly. These "shells" that are the firms need not exist, only their function. If the bond holders were crushed it would of sucked but guess what... the future we'd have a far more stable system as bond holders would actually care and manage their investments rather than bowing to a system of CEOs and their crony boards. Did anyone read the stories on WHO was on the board at Lehman? It's a joke.
That;'s how the system is supposed to work - the monied interest (shareholders of equity and bonds) are supposed to be final owners, and the board is supposed to serve them. If the bond holders got the "lesson" they would be far more careful in the future and we would not have out of control systems, nor the need for 2300 page FINREG that no one knows what is inside (and trust me, whatever the lobbyists inserted won't be discovered for at least 3-5 years in full)
So you tell America every penny, not $100K, not $250K is backstopped by federal government until we clean up this mess. In the meantime the banks "the market" has deemed as losers go under, and the government will take over said banks TEMPORARILY. We don't like doing this, in fact we hate it. But it's a short term necessity - I want to punt these banks back to the private sector as soon as possible, but in smaller sizes so as not to be TOO BIG TO FAIL. They will act like boring utilities in their new form, facilitating capital like the "old days". They won't be de facto hedge funds backstopped by you the taxpayer. Pay packages will drop in the banks and our best and brightest won't all go into jobs trying to scam the middle class out of money with "financial innovation" or as one of our oligarch's says "God's work". We're done with that. When Rush L cries NATIONALIZATION, you say ... STFU Rush. Instead of bowing to left right politics which have destroyed this country.
You tell America in a national address - our system broke down. We have massive lack of checks and balances due to our crony "capitalist" system aka corporate socialism. We - the politicos - are bought and paid for and after decades of this building up, this is what happens. We're sorry.
Now we have to start over in the financial area... our oligarchs are unhappy but this is "capitalism" at work, believe it or not. Those who fail are destroyed...those who managed well get rewarded. Not vice versa like those policians backstopped backstopped by our oligarchs shrill. When push comes to shove our monied interests don't want the bad parts of capitalism, only the good. Heads they win, tails they still win. Then capitalism is "great".
Our oligarchs and monied interests will claim they need to be huge to compete globally. To which I say, you had your chance - you screwed up, and you die. That's how it works in small business in America... there is no lifeline or government bailout. Why should *you* get all the breaks (I know rhetorical question). Further who the hell are you competing with? A handful of banks in the UK which also needed a government handout? That tells me the Anglo Saxon model did not work? The french banks ? Who exactly? SocGen? 2-3 german banks? What phantom competition are we failing at? Or cannot compete with, at banks 1/3rd the size? The Canadians? So take your dogma and shut up.
So we are taking over the oligarchs TEMPORARILY and then we will break them into smaller pieces and sell them off to new sets of investors. These investors won't be those who handed us the most money for our political campaigns... I know, I know - earth shattering.
Instead of 4 banks running the U.S. desposits (while another 7996 exist, owning a fraction of the desposits) we'll go back to something called "competition". Another part of capitalism we have seemed to miss. In 3-4 years we are going to have a new system with many more medium sized banks rather than 4 megas (I am talking despoit banks, not Morgan and Goldman which is another problem) ... and your money will be backstopped the entire time so no need to go pull it out tomorrow. Let me repeat, YOUR MONEY will be backstopped, NOT the BANKS BONDHOLDERS and C-LEVEL EXECS. Big difference.
So we'll be back to "capitalism" in a few years... until then we have to take bitter medicine and reconfigure as a nation. It's not permanent nationalization so don't get your panties in a bunch. It's the least worst option we have; not one we with for.
At the end of this national address you will see a scroll on your screen with each member of Congress , as well as the White House and how much contributions we've received over the past 10 years from the financial oligarchs. Just for kicks. And that includes Fannie and Freddie. Feel free to call your local congressperson to discuss these facts after we go back to your normally scheduled program of Dancing with the Stars.
Oh yeh - we're sorry. God Bless America.
p.s Hank Paulson has resigned immediately to "spend more time with his family". His family at Goldman Sachs.
The 'Great' Roubini: Wrong Again and Again [View article]
Once Roubini went into making stock market calls, some of his credibility washed away. But his economic calls still are largely good and the only thing proven the past few years is central bankers and government will go to any length to distort the economic cycle. Roubini underestimated what lengths they would go - I don't think there is much shame to that.
Also just because problems have been kicked down the road in a flood of liquidity do not mean they have disappeared.
As someone else said, Roubini is still winning. Much like Sarah Palin - the more people talk about him / her - the more speaking fees he gets, and the more chicks at parties he gets! ;) [google Roubini's images if you don't know what I'm talking about]
Anyhow I am amazed that guys who show up on CNBC week after week, year after year, touting nonsense rose colored stuff never get articles devoted to them, while Roubini who was one (not the only) of the small cadre who gave a nice playbook for the 'black swan' before it was fashionable (in 2007 the market was at all time highs as the "all knowing stock market" was obviously clueless as its discounting mechanism obviously stunk).- often gets attacked. How about a series of articles on the perma bulls, who in the past 12 months look like "genius" but have been "wrong" for about a decade straight.
The Bernanke Plan: Sacrifice Savers to Recapitalize Banks and Benefit Debtors [View article]
Meanwhile CNBC is aghast each day that the "retail investor" has not returned despite the "good times". I think like the 70s, they lost a generation of investors by and large. Until the next group of easy marks shows up for the institutional class to fleece...
That said, who needs investors anymore? The market can go up, simply on Fed handing money to banks to go buy bonds and speculate in the market, and lever up 7:1. US equity funds have seen outflows almost this entire rally yet the market magically is walked up.
When Will Housing Come Back? [View article]
What the market would look like at 6% 30 year mortgages and no handouts from government to buy houses would imply another 10-15% downdraft just from here in prices. But we live in some parallel housing market that lives outside the "functioning market" - some form of governmental/Fed suspended reality.
That said, if you live in washington D.C. you probably ask "what recession? what housing downturn?" If you live in Detroit you are thinking housing should bounce back circa 2028. So it is too broad a question - never before in modern times did we have a national bust so I expect we have to begin looking at the country region by region (or state by state) again. A place like Texas will have a different fate than say Ohio.
Marc Faber: Buy a Machine Gun [View article]
because they brought us long term pain
While people who brought us short term pain (Volcker), we celebrate many years later because they brought us long term gain
Which path are Bernanke and Co taking us down? It is very easy to see.
But I blame Americans as a whole - we refuse to accept that there should be any pain, we want our cake, we want to eat it too, and then take a pill that makes the weight go away. And we want to buy it at Walmart at 60% off. It is generational theft really - we are layering debt upon debt onto another generation so we do not have to face reality today. It's not institutional and pervasive from every sector of the society - notice the joy and glee on car lots the past month, and joy and glee for first time home owners who have to put nothing down with states allowing $8000 tax "credits" to become down payments and closing costs.
The ruling class is happy to give the gifts, but the peasants are happy to accept. Only a small sliver of people among the peasants appear outraged and they are easily the minority or else this would end. Like any good reckless drunk driver this will end with a crash, but until then let us party.
On Sep 04 10:02 AM Graham and Dodd Investor wrote:
> Volcker, like President Carter himself, was the Fed Chairman we were
> glad to "have had" (in retrospect). But almost no one liked him at
> the time.
>
> Nor would they like him today, if he were miraculously reinstated.
>
The U.S. has become a "Dickensian economy," former Fed vice chairman Alan Blinder writes - "the greatest place on earth to be rich but an awful place to be poor." Since 1978, nonfarm business productivity is up 86% while real compensation per hour is up just 37%. It isn't fair, and it isn't good for America, he says. [View news story]
Just don't ask what country. Or what firm in that country would pay American CEO salaries. He'd be laughed at in Japan where many CEOs make $300Kish, and Europe pays a fraction of American CEO pay. Just be very afraid of losing that one in a million talent. Talent that apparently has increased in value by a few 100% since the 1970s whereas the average american male peon worker bee has increased in zilch in the same amount of time.
how come in no other part of the organization can we get our peers to set our salary? Only in the C-Suite. Just imagine how quickly every company would go belly up if we all got our friends to set our pay.
Anyhow, we can't talk like this... it is 'class warfare'. SHHHHhhhhh!
Jeff Gundlach paints a frightening picture of massive U.S. problems: chart after scary chart of mounting debt, a declining dollar, and a wrecked economy. If you want any sleep tonight, better not read this. [View news story]
Both parties "came together" and "sacrificed" on this bill.
One got their tax cuts, and the other got their spending. What sacrifice! They both gave up... uhhh... something.
The Bernanke Plan: Sacrifice Savers to Recapitalize Banks and Benefit Debtors [View article]
The Retiree's Conundrum [View article]
Instead Americans are running into what they perceive to be safe - bonds. Unfortunately, as with the tech bubble, real estate bubble (both with their nexus at the feet of the Fed as well) Americans are going to learn the hard way when bonds eventually fall as yields rise that they are not as safe as they appear on the surface.
Just another disaster in some middle innings, can't wait to read the reports of aghast retirees sometime in 2011, 2012 about how they were blind sided. Ben - you are almost as good as the Maestro. Keep up the good work of destroying Americans savers so that the oligarchs that you are servant to can win again.
Roubini: The Recovery as a House of Cards [View article]
Aside from a few handful like Schiff, Roubini, Marc Faber, Jim Rogers - I see a lot of 24/7 CNBC programming about "buy the dip" "we're fine" "nothing to see here". So I am not sure why you think he is consensus.
What Railroads, Copper Are Saying About the U.S. Economy [View article]
Go check out shadowstats.com - you can see how employment (or CPI or other things) used to be figured out, and how they have turned these reports smiley side up to under report the depths of the damages in the US economy
inflation under reported (hence less they need to pay to social security recepients) and unemployemnt under reported. We are probably at 14%ish unemployment per my reverse engineering if we measured unemployment as we did in the late 70s, early 80s. A lot of chicanery going on
What Railroads, Copper Are Saying About the U.S. Economy [View article]
If its financial "innovation" doing this or what... I don't know. But our price mechanisms all seem out of whack. When you have investment banks leasing oil tankers just to buy up wads of oil and sit them in the ocean using free money from the Fed, you get these strange situations.
1 in 6 Americans Live in Poverty [View article]
If your answer is Germany, Japan, Canada, Australia, Britain, Denmark, Holland, France, Italy, or the like I'd love to see evidence.
If you want to throw in a country with huge amounts of poverty ala India I'd ask you to compare our GDP to them, and ask you to raise your goals.
Are We Setting Up for a Repeat of Summer 2009? [View article]
Just imagine if every American could do that. Look I lent Chuck $15,000. He paid back $900 and then went cold turkey on me. Lost his job, got a divorce, fled the country. But you know, there is still a chance he could pay it back and since the politically pressured accounting board said I should use my own discretion rather than the fair market value of this loan (which is $200) if I tried to sell it, I am going to take a 10%ish mark down and we'll call it even steven on the balance sheet at $12,800. Any questions? Now who wants to buy my stock? I have a sterling balance sheet and a central bank which will give me endless money at 0 to 0.25% so I can lend to you at 5-10-29% (in my credit card division) muhahahah!!
Not to mention we still have off balance sheet entities throughout the oligarch banks - amazing! The thing that Enron did, not only was allowed to happen in the banking system but still goes on. What "transparency" is there in having SIVs all over the place?