Robespierre

Thursday Outlook: Commodities, Global Markets

while increase their wealth via taxpayers subsides.

Should read: while the wealth of bankers increases via taxpayers subsides.


On Aug 06 07:57 AM Robespierre wrote:

> "There’s a concerted effort in officialdom and with their Wall Street
> brethren to lift markets they’ll use whatever new rules and tools
> are needed to get things going."
>
> My guess is that the government agreed to give the IBs all the cheap
> money they need to prop up the market to make people feel better
> so they start spending again. In exchange the IBs get to keep all
> their ill gotten gains.
>
> It will not work. The reason people were able to spend way beyond
> their means is that they were able to extract cash from their homes.
> That is no longer available in any meaningful way. Moreover with
> real unemployment running at double digits most people are to scared
> to spend away.
>
> What this government/IBs incestuous relationship will accomplish
> is a huge backslash to the current administration when main-street
> realizes that that their standard of living keeps dropping while
> increase their wealth via taxpayers subsides.

Thursday Outlook: Commodities, Global Markets

"There’s a concerted effort in officialdom and with their Wall Street brethren to lift markets they’ll use whatever new rules and tools are needed to get things going."

My guess is that the government agreed to give the IBs all the cheap money they need to prop up the market to make people feel better so they start spending again. In exchange the IBs get to keep all their ill gotten gains.

It will not work. The reason people were able to spend way beyond their means is that they were able to extract cash from their homes. That is no longer available in any meaningful way. Moreover with real unemployment running at double digits most people are to scared to spend away.

What this government/IBs incestuous relationship will accomplish is a huge backslash to the current administration when main-street realizes that that their standard of living keeps dropping while increase their wealth via taxpayers subsides.