pungent

Former Fed Governor Mishkin Slams 'Paul Bill': Are We in Wonderland?

I plan to use the Mishkin response if I'm audited by the IRS. "Gee, I'd LIKE to open my books to you but that would just be too dangerous. Feel free to go ahead and just trust me on this. Have a nice day!"

Financial Time Bombs: Still Ticking

Yo, Kirby -- some of us have had a very profitable 2009 while still heeding warnings like Richard's. It is certain that very little, if anything, REAL has improved since the bottom dropped out of the market last year. So we continue to profit from this irrational market while not trusting it nor the sightings of Green Fung ... er ... Shoots from elected officials with their own vested interests. I have my Stop Loss orders constantly in place for the day when the excrement impacts the impeller. Thanks for keeping me alert, Richard -- your numbers are indisputable!

Market Destruction: Mass Media Finally Catching On?

Excellent analysis, but I don't really think that the mass media "gets it". If articles like this one were widely posted, it would remove the "We never saw it coming" excuse for the imminent collapse. We saw this last fall. Although many of us saw that crash coming at least a year in advance, what we heard from the politicians was "Wow, didn't see that one coming!".

Predicting Financial Crises: Are Macroeconomic Models Useful?

I think a better analogy is a munitions factory. Based on the amount of high explosives being employed to manufacture weapons of mass (financial) destruction, the owner should employ ever greater safeguards; safety procedures, blast-proof walls, etc. In our case, the owners of the largest factories redirected the funds for thicker walls to build even larger weapons. When the inevitable happened, the walls blew out hitting neighboring factories; munitions and otherwise. Yes, this was highly predictable -- just ask Buffett (see Financial Times, 04Mar2003). Brilliantly, the politicians (mostly with backgrounds and cronies in the same industry) chose to support and reward this deliberate negligence.

Employment Report: The Never-Changing Story

Davewmart - We heartily support the right of Scandinavians to be Socialists. You WANT to be Socialists, so more power to you. But at least 50% of Americans don't want to be Socialists. We want the government to get out of our lives and leave us alone. We don't need to government to do things for us, we just need it to stop doing things to us. We take responsibility for ourselves and those who belong to us and, having done that, we usually take care of others as well. Voluntarily, because that's who we are. Many of us have resisted the Siren call to buy things we don't need with money we don't have to impress people we don't like. Perhaps the US could split into 2 countries: the Grownups and Other.

Savings Rates Surge: Who Is Going to Consume?

Excellent article. I, too, believe that the new normal is not a short term phenomenon.

Obama's Dance of the Seven Veils

"old boat guy" -- apart from the name calling, did you have anything to contribute? I didn't say things were good, just better than the other guys. And moving toward the European socialist model certainly won't help us to be more vibrant. BTW, I agree with your original comment since at the top levels Banker=Politician & Politician=Banker.

Obama's Dance of the Seven Veils

Apart from the reference to Vonnegut, this article is useless. With regard to "the world is very decidedly not in love with the US model of market capitalism", allow me to ask: Then why do they keep showing up as regular customers to our little coffee shop? Because the US economic model is the most powerful, vibrant brand available. Where Europe is decaf, the US is a double-shot of espresso. This article (and Mr. Obama) conveniently neglects the real reason behind the current fiasco: government intervention in banking -- both in inducing bad loans and then in rescuing the financially non-viable. The current "rescue" efforts have exchanged a period of extreme pain for citizens/investors (who would have rightfully blamed the government) with a much longer period (15-25 years) of general misery and malaise for a much larger population -- many of whom are as-yet unborn. Beware the voice that whispers "I'll make today good if you will sacrifice tomorrow".

Five Ways This Bubble May End

From connorport:
"I have spoken with several people over the last few weeks that typically do not play the market. My consensus is from what i'm hearing is that they want in now."

Folks, you will never find a more concise definition of a Bubble than this. As we said 2 years ago, "when the ladies in the church choir are talking about flipping houses, it's time to get out fast!"

Today's Market: Irrationality at Its Best

David, I have a MarketWatch article on my office wall from several months ago asking "Was that the bottom?" I'll be putting your article up right next to it. We are not done with this thing yet and the market is flushing all of the toxic stupidity out of its system. That's gonna take a while. We haven't even begun to assess the cost of the foolishness in corporate real estate. You do realize the rot in that market is probably LARGER than the current real estate bubble -- right?! This is why GE and others will be bleeding from the eye sockets before this is all over.

Now close your eyes, click your heels 3 times and say
"Prosperity is just around the (maybe FY2013) corner.

Will 2009 Bring Ring Three of the Financial Circus?

Outstanding article, Steve. My office is papered over with articles from MarketWatch, etc. proclaiming that the real estate decline is over (finished by summer of '08, did you know?) and that our current financial meltdown bottomed in Oct. My choices are either that they all are idiots or liars. Take your pick, but you certainly wouldn't want to bet your financial life on them. Sometimes I think I'm the only one with any sense ... and then I read your article. THANKS!