Jon T.

The "Worst Is Over" Crowd Is In for a Shock

What many who leave comments here and elsewhere completely fail to take into consideration is that the disruption/destruction of the structured finance systems of western economies that we are currently facing is without precedent. There is no historical event that this current situation can be compared with, plain and simple. It is of a magnitude many times greater than anything that has come previously. If you can't see that, I wonder, are you really looking at what is transpiring or simply projecting what you believe will happen based on ideology. Stop, step back, and take a look around you and honestly assess the gravity of the situation. It's quite easy to see if you're the least bit willing.

What's Left to Spend in the 'Credibility Bank'?

America used to be so powerful that the double talk and the meaningless rhetoric of American ecomists, bankers, and govt. officials could move the global markets, regardless of the underlying reality. The fact is, this techinque is no longer working and those bully pulpit tenants look less like the steering committee of the global economy and more like a deer in the headlights. It's as if they just can not understand why their tried and true technique of obfuscation is no longer working. It's not only the content of what they are saying that is losing it's credibility. It's also the the delivery vehicle. Reality has been crowded out for too long and it is demanding a seat at the table.

Diane Swonk on the Global Showdown

Nothing new to add aside from a minimalization of the extent of the dislocations in the global economy. Nothing new at all.

Ben Bernanke: What Kind of Bird Is This?

Japan's lost decade 2.0, American Style. The fed is stuck in limbo for quite some time to come, until the rotting decay brought about by a total breakdown in lending standards has run its course. That will probably take another five years, minimum. There will be lots of jawboning along the way while all the while the decay will continue to spread. And then one day it will be complete. Let's all hope its by 2015. That would be great! Let's be realistic here folks. Nothing can be done but to allow time to pass, a lot of time to clear a major and historical mishap in structured finance. And maybe we'll learn that a kid making minimum wage at a fast food establishment can not afford a $600,000 home. That is the real and profound lesson to be learned here. You'd think someone would have thought of that at the time. Huh? Strange, isn't it? Aren't these guys supposed to be the smartest ones in the room? Oh yeah, they are. They got away with the loot. :)