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Market Currents

Tuesday, October 20, 2009
5:51 PM TweetThis
  • Don't be fooled by the sudden recovery, Paul Farrell says - American capitalism has lost its soul and the consequences will be dire: "Use your gut. You know something's very wrong: A year ago 'too-greedy-to-fail' banks were insolvent ... Now, magically they're back to business as usual, arrogant, pocketing outrageous bonuses while Main Street sacrifices, and unemployment and foreclosures continue rising ... "
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This news story has 14 comments:

  •  
    It'd be tough to argue, however, that the banks are making money off of "Main Street". Loan losses are still way up and the banks are making most of their money from fixed income and M&A.
    2009 Oct 20 05:57 PM Reply
  •  
    The odd thing about the last 14 months is only in retrospect do you see how totally corrupt the system is, and how completely wrong (or dishonest) all the key players are. The bond guys (Pimco) come on TV and say not to buy stocks (too risky), even at the bottom. The stock guys come on and say we'll have rampant inflation (we don't). The government comes on and says everything's OK (it isn't). OPEC says we'll run out of oil (not a chance, not with 50 mpg cars). Even the gold bugs say the dollar will be worthless in 5 years (it won't, our economy will still be significantly larger than any other economy and our military will still be considerably more powerful). The sad story is we're Japan. 10 years from now we'll be looking at the S&P at 1000. The big gains and big losses are behind us. Sadly, there will be no riots.
    2009 Oct 20 06:03 PM Reply
  •  
    When I came to America... my parents told me some streets were lined w/ gold... oh where have those steets gone?
    2009 Oct 20 06:06 PM Reply
  •  
    This is the saddest part. No one is paying attention. No one is getting outraged. Worst of all, no one is getting organized. We can't buck the system fighting one at a time, we need to organize to fight the system, but I am not sure that anyone knows how any more. I know that I don't have any answers.

    On Oct 20 06:03 PM DW Reid wrote:

    Sadly, there will be no riots.
    2009 Oct 20 06:07 PM Reply
  •  
    yes we know something is wrong and its the corruption of power.

    Our elected representatives have sold out the average American.

    But we can still turn this around. Some sound fiscal policy, belt tightening and sacrifice, partnered with a tax policy aimed at hitting the thiefs on Wall Street, regulators cracking down on insider trading - naked short selling - etc, a national energy policy aimed at eliminating oil imports in 10 years, and a national industrial policy to support American manufacturers can bring the USA back!!

    Here is one conservative hoping that Obama wises up (and he's smart enough to figure it out), takes charge and starts doing what needs done.
    2009 Oct 20 06:07 PM Reply
  •  
    I would say don't be fooled by the numbers suggesting that there is a recovery. Most of those numbers are goosed by government programs which steal prosperity from the future. I wouldn't go as to say inevitible. Every thing hinges around productivity and innovation. If I share Faber's conclusion it is that Washington seems to be doing everything it can to (a) preserve the past (b) find someone else to blame.
    2009 Oct 20 06:09 PM Reply
  •  
    Nothing much if anything has changed from the rulers and the upper class' perspective. It is business as usual.
    2009 Oct 20 06:15 PM Reply
  •  
    Same old media liars contest. Here is a link to a more entertaining one on National Public Radio. www.npr.org/templates/...
    2009 Oct 20 06:20 PM Reply
  •  
    The very fact that these banks are still in private hands is due to Main Street bailing them out. They used our tax dollars knowing that Main Street is on the hook for losses, and went long the markets. Now instead of having stocks worth zero and being restructured or nationalized for their excessive gambling with low capital ratios, they get paid out bonuses at taxpayer expense. This is redistribution of wealth from the middle class to the banksters. Plan and simple. The taxpayer who backstopped these banks should get paid the bonuses.

    On Oct 20 05:57 PM Drew Arnold wrote:

    > It'd be tough to argue, however, that the banks are making money
    > off of "Main Street". Loan losses are still way up and the banks
    > are making most of their money from fixed income and M&A.
    2009 Oct 20 06:21 PM Reply
  •  
    Things are in a sad state thats for sure, its doesnt look good going into 2010 no matter what we hear becvause its not the whole story. Wall Street is upset that main street isnt buying what they are selling " the recession has ended, prosperity is just over the horizon, buy stock now" well main street has been loud and clearly saying " no thanks not this time" and are sitting it out, DC is pushing us in directions we dont want to go, not to help us but to help themselves, Wall Street is trying to get main street to loosen its purse strings, not to help main street but to help wall street, and then you have main street with no clue what to do or who to trust, so they do nothing and that is what is different this time and the ramifications will be far reaching. Ive said it before and will again until somebody tells me that Im wrong " There has never been a time in our recent history when the USA moved forward and prospered without the cooperation of DC, WS & main street", currently all are moving in completely different directions, the polar opposite of what is needed right now!
    2009 Oct 20 06:52 PM Reply
  •  
    They used Tarp money, and .25% fed discount window money, and deposits (that pay no interest BTW)
    levered it up 10:1 then bid up the equity markets. (remember the re-classifications to " Bank holding companies") then proceeded to dump their secondaries to raise money to pay back the Tarp$.
    Meanwhile middle class 401k's and other investments were liquidated @ the lows so people could live on the $ after losing their jobs. Not to mention the usury interes rate and exhorbitant fees the started charging customers. Bottom line: the whole thing was an enginneered scheme that was simply a transfer of wealth from the middle class to the Ultra-Rich
    2009 Oct 20 07:01 PM Reply
  •  
    "Use your GUT"

    Exactly.
    2009 Oct 20 11:04 PM Reply
  •  
    The Dark Ages have just started. There will be riots. There will be failed banks. We are in the eye of the storm. Things will change. 2010 is the year during which the Night overthrows the Daylight.


    On Oct 20 06:03 PM DW Reid wrote:

    > The odd thing about the last 14 months is only in retrospect do you
    > see how totally corrupt the system is, and how completely wrong (or
    > dishonest) all the key players are. The bond guys (Pimco) come on
    > TV and say not to buy stocks (too risky), even at the bottom. The
    > stock guys come on and say we'll have rampant inflation (we don't).
    > The government comes on and says everything's OK (it isn't). OPEC
    > says we'll run out of oil (not a chance, not with 50 mpg cars).
    > Even the gold bugs say the dollar will be worthless in 5 years (it
    > won't, our economy will still be significantly larger than any other
    > economy and our military will still be considerably more powerful).
    > The sad story is we're Japan. 10 years from now we'll be looking
    > at the S&P at 1000. The big gains and big losses are behind
    > us. Sadly, there will be no riots.
    2009 Oct 21 02:14 AM Reply
  •  
    Very good observations. Americans want to get sober, want to pay off their debts, want to save money to do this. But our leader(s) are telling us that saving money is wrong; in fact, Bernie is attempting to punish us for saving money. Americans want to do what's right. But Wasington and Wall Street want to keep the orgy going.


    On Oct 20 06:52 PM enigmaman wrote:

    > Things are in a sad state thats for sure, its doesnt look good going
    > into 2010 no matter what we hear becvause its not the whole story.
    > Wall Street is upset that main street isnt buying what they are selling
    > " the recession has ended, prosperity is just over the horizon, buy
    > stock now" well main street has been loud and clearly saying " no
    > thanks not this time" and are sitting it out, DC is pushing us in
    > directions we dont want to go, not to help us but to help themselves,
    > Wall Street is trying to get main street to loosen its purse strings,
    > not to help main street but to help wall street, and then you have
    > main street with no clue what to do or who to trust, so they do nothing
    > and that is what is different this time and the ramifications will
    > be far reaching. Ive said it before and will again until somebody
    > tells me that Im wrong " There has never been a time in our recent
    > history when the USA moved forward and prospered without the cooperation
    > of DC, WS & main street", currently all are moving in completely
    > different directions, the polar opposite of what is needed right
    > now!
    2009 Oct 21 02:16 AM Reply
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