Keithdt

Real Cause of This Financial Crisis? Global Hunger for Savings Instruments

After attacking "idiotic explanations" he contributes another.

Economics and Its Discontents

Economics is the great voodoo pseudo-science of the current era.

The Age of Turbulence: Preparing for the Crash

New all time high in the stock market. Nada.

FDIC Insurance Fund - It Doesn't Actually Exist

The FDIC is one of the worst ideas in human history. It allows banks to prosper by acting recklessly because there is no concern by depositors for safety of capital. In fact it forces banks to act more recklessly because they conservative banks can't compete with less prudent banks. Therefore it inevitably stimulated the banking crisis that happened last fall (it just took awhile). There are almost no banks in the US with truly old-fashioned conservative financial policies (look for A rated banks at street.com rankings for example). Unsound money is a great decayer of civilization. This country will be on much sounder footing once the Federal Reserve & the FDIC are banished to the trashheap of history. Unfortunately, there will be a lot of upcoming hurt to get through until we get there.

Do Markets Really Need to Price In Government Failure?

The delusional belief in the government's insane methadone fixes will unfortunately be rudely punctured by the end of the year.

Baltic Dry Index Signals Commodity Inflation

Looks to me more like a dead cat bounce.

In the Midst of an Extreme Black Swan (Part II)

I thought this was an excellent article. However, I have 2 quibbles.
1) The author says that this was an "unpredicatable" black swan. However, there have been a number of people predicting these types of consequences for the last few years including Robert Prechter at elliottwave.com & Doug Noland at prudentbear.com (there were also number of others). Generally those who saw things as they have played out have been treated as wackos by the financial mainstream. That's why I find it troubling that those creating the bailout are those who caused it. Those who forsaw it generally look at the bailout as a bad idea which will create greater problems in the long term than the short term impact it would likely have. The bailout will harm the dollar greatly, increasing inflation & harming those most who did the least to cause the bailout.
2) I'm wondering who looks at Paulson as a saviour. I think he is one of the great traitors of American History. Along with Bush & Cheney he will go down in great infamy.