Top Gun

Fed, Treasury Propose the Dissolution of Capitalism

I agree that we are putting ourselves at risk for a Chavez like situation where a leftist dictator gains control. Then our constitution is at risk, innovation is at risk, our very well being becomes a concern.

Fortunately, as long as current technologies are used, our quality of life can remain high. It would be a shame to move backwards from the agricultural, transportation, energy, housing and medical gains we have made in the last 50 years.

Five Predictions for This Market

Bought GE yesterday. I suspect it is worth more now in pieces, which means they will emerge. Immelt took much of the blame, that in and of itself told me I had to own some. I'll just let it sit for a while.

Nice post.

Trust - Not Confidence - Is the Issue for Geithner

I agree with all above. We need a Treasury Sec who has public service as his sole purpose. Someone like Volker. Too bad only high profile people get consideration.

Predictions for the Coming 'Flation'

Fed added $250B to shore up capital. It is 3 year loan. Banks will need to raise the same to pay it back. Not inflationary, but only prevent asset deflation, not general price deflation.

Direct stimulus campaigns are inflationary.

Should have let the banks and asset prices crash, then the regular guy could afford them. Too bad.

Madoff's Fraud Is Nothing Compared to the U.S. Treasury's

Unfortunately, I had the same exact thoughts yesterday.

A Long and Painful Consumer Slowdown - Barron's Interview

Guess you didn't get the memo - the real estate mega growth was caused by credit inflation and was not real growth. She was right, the powers that be manipulated us into growth. This time she realizes the Fed is doing the same thing now. What she is saying is what should happen, but as she says will be socialized away as best as our money printers can.

There is no such thing as investment any more. It's all just gambling. Some day we will invent and make new things, but that looks like a generation away.


On Dec 14 04:13 PM taojaxx wrote:

> I guess that person's track record is a good hint at the value of
> her current opinion: she's presented as bearish real estate in 2002,
> that is right ahead of one of the most bullish periods (2002/2006)
> in the history of the asset class.
> I too can predict 5 of the next 2 crisis.
> Just wonder how much she charges for the "macroeconomic research
> and commentary (she provides) to the institutional investment community".
>
> I don't mean to disparage anybody here and her guesses are probably
> as good as anybody's. What I appreciate in comments is the capacity
> to abstract from the immediacy to focus on the big picture.
> You can't do that by projecting the last five months into the coming
> five years. Mr. Market is smarter than that.
> Just my $0.02.

Economic Indicators Signal a Major Collapse Ahead

Add to that, reduced tax revenues in municipalities will force tax increases, further reducing disposable income and consumer spending.

We are bankrupt, and need to behave accordingly by resetting all asset values and curbing leverage. Otherwise, inflation is the only way out.

Don’t Blame Wall Street - At Least Not Completely

As you said, destroy American life as we know it, and as you stated so clearly - THAT NEEDS TO BE DONE