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Michael Clark

Michael Clark
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  • Dominic Lawson: Cut Bankers' Bonuses and We'll All Suffer [View article]
    That's why we want to prune the big corporations. They are dangerous at their current size and influence. So cut them loose and let them use their genius to re-surface in a more beneficial configuration.

    On Sep 08 10:04 AM davidbdc wrote:

    > Forget cutting their bonusses. Just get rid of them. Tired of hearing
    > how talented these folks are.......perhaps some of them will actually
    > go and start companies that actuall make stuff and employ some of
    > their fellow countryment/women to make and deliver it.
    > What nonsense that people who lost trillions should have their bonusses
    > supported by taxpayers making 1/10 or less of what they make.
    > And when the scenario described above happens.....the BANK keeps
    > all the profits and gives them to the bankers as bonusses - no one
    > sees lower mortgages.
    Sep 9 12:23 PM | Likes Like |Link to Comment
  • America: A Bona Fide Plutonomy [View article]
    The political picture has just begun to change. The next few governments will be increasingly anti-Big Business and increasingly anti-monopolistic. There will be political pressure to get even with the ones who caused our grief. We're like in 1931...a lot of changes are going to happen over the next two decades.

    "Now that it has become clear that unlike the 1930s where this historic concentration of wealth was reversed for a good 4 decades post-crisis, this time around, a financial crisis is actually serving to concentrate wealth even further, it might be helpful to readers to see how the entrenched money thinks on how to benefit from it. Basically the same way you'd invest in feudal Europe in the 1400s - avoid the peasants, stick with the lords. I don't see this changing anytime soon; as I said in 2007, in time you will not want to have anything to do with the bottom 80% of the country; it won't be a fun place to be. [Dec 8, 2007: Do the Bottom 80% of Americans Stand a Chance?] I think in the nearly 2 years since written, the fissures I spoke about have already begun to widen considerably."
    Sep 9 12:19 PM | 1 Like Like |Link to Comment
  • America: A Bona Fide Plutonomy [View article]
    I agree.

    We don't hate the rich. We hate people who get rich by playing a fixed game on a fixed field, pretending the game is fair and true.

    On Sep 09 11:52 AM TraderMark wrote:

    > I agree with that comment whole heartedly. Much of the system has
    > become "heads we win, tails we win" - at least in our public corporations
    > and the feeding troughs they have become to a select few is a very
    > big issue which apparently is going to be ignored now that the market
    > is going in the "right direction"
    Sep 9 12:09 PM | 1 Like Like |Link to Comment
  • America: A Bona Fide Plutonomy [View article]
    Actually, that money was thrown TO the rich. Remember Mister Paulson on his knees, begging, with a gun in his pocket? I don't think he distributed that money to the poor in New York City.

    On Sep 08 12:46 PM Matt Blackman wrote:
    But it would seem that the
    > rich are better at catching the money being thrown out of Fed Reserve
    > and government helicopters....
    Sep 9 12:01 PM | 2 Likes Like |Link to Comment
  • The Coming Consequences of Banking Fraud [View article]
    Just because he has a Korean name doesn't mean he's pro-China. I see the world very much the same way Mr. Kim does and I'm neither anti-American nor pro-Chinese. Blair and Brown are NOT in bed with the bankers? Are you saying that Blair did not take a job with JP Morgan?

    I'd venture to conjecture that Mister Kim is a loyal Korean American who is disgusted with the corrupt oligarchy that is running the world and running it off a cliff. Like many of the rest of us. We know the rich take care of each other. We know that the powerful arein bed with each other.

    When corruption stinks it is foolish to pretend it does not.

    On Sep 09 11:40 AM Mrudula Shah wrote:

    > The author vents his frustrations as if he is a pro-China anti-Western
    > individual, going as far as chraging the likes of Tony Blair and
    > Gordon Brown as pupets of banking ologarchs - an exageration of the
    > opposite kind!!
    Sep 9 11:51 AM | 80 Likes Like |Link to Comment
  • The Coming Consequences of Banking Fraud [View article]
    Great article, J.S. The phoney stock market rally can fool some of the people all the time -- but not all of the people all of the time.

    The Fed is propping up the bond market, to keep interest rates low. The banks are propping up the stock market -- I'm certain that they had some agreement with the Fed to cease short-selling after receiving their bailout payoff. They are all working to try to get consumers to throw their money back into the market, to create another bubble. The role of the Fed is to manage money flow to avoid bubbles -- but Greenspan decided the role of the Fed was to create perpetual summer, perpetual fruiting of the economic plant.
    Sep 9 11:43 AM | 44 Likes Like |Link to Comment
  • Inflation or Deflation? How to Tell [View article]
    JB: Your conclusion -- "Finally, it's worth repeating, since it is so often mistaken, that a recovery is entirely something different than money mechanics. The economy cannot recover without the real production necessary to generate good collateral for loans. In this way, we MUST take a correction so that valued production and new lending can occur. Resisting the correction indefinitely results in a Japan-like situation, where they have even 20 years later, not fully recovered." -- is exactly right. We think we are tricking the devil -- Mister Bernanke is like Faust trying to trick Mephistopheles -- but we had a contract with the devil: if we were going to expand, to accept wealth, glory, conquest, empire -- we are also going to have to take the correction, the fall, the contraction, the pain, the lack of glory, the decline. The two parts go together. There is not tricking the devil by finding small print in the contract. Greenspan and Bernanke are the 'small small print men', looking for a loophole...if we just keep printing money we won't have to pay back the devil. Myabe we'll just default on the devil's loan. Sorry. If you choose Day, you also choose Night.
    Sep 9 11:24 AM | 1 Like Like |Link to Comment
  • Inflation or Deflation? How to Tell [View article]
    The Japanese have been trying to re-inflate their economic bubble for 20 years -- and couldn't do it. It's not so simple as what the Fed wants the Fed gets. The Fed is fighting for inflation. But it looks like the Fed is losing this fight.

    On Sep 09 06:50 AM chap08 wrote:

    > No, no, no. This is how to tell. Ask yourself:
    > 1. What do the Fed and Govt want?
    > Answer: they want inflation.
    > 2. Do they have the power to achieve it?
    > Answer: yes they do.
    > At the moment, we are seeing evidence of recovery and attention is
    > turning to withdrawing stimulus. Think about that: we have the most
    > severe deflationary circumstances we have seen in our lifetimes and
    > all we see is patchy, mild and temporary deflation. Nothing like
    > a deflationary equivalent of the 70s.
    > Currently, there's no need to wheel out the big guns. There may well
    > be another leg down. If so, we will see more Fed action. If we had
    > a real problem, we would see the full monetization of big spending
    > programs, pumping money directly in to consumers pockets. Whatever
    > the size of deflationary problem, the tools exist to fix it. Sure
    > there's pain in doing it, but people more powerful than you have
    > chosen inflationary pain over deflationary pain. Read Bernanke's
    > statements on what he would do. That tells you what will happen.
    Sep 9 11:00 AM | 1 Like Like |Link to Comment
  • Inflation or Deflation? How to Tell [View article]
    > Deflation is with us and is active vis a vis wages, groceries and
    > rents etc. Will this end in a deep wage/price, self feeding deflationary
    > spiral?


    On Sep 09 10:51 AM Donald Ingram wrote:

    > Deflation is with us and is active vis a vis wages, groceries and
    > rents etc. Will this end in a deep wage/price, self feeding deflationary
    > spiral? Time will tell. We wont' be out of woods when the bottom
    > of the deflationary period ends - then begins inflation. If the nation
    > is very unlucky it could end in hyperinflation. Not to worry , "Benny
    > and his economic jets" have a plan to withdraw excess liquidity before
    > this happens. Wow! This is what frightens me!
    Sep 9 10:58 AM | Likes Like |Link to Comment
  • Kass Raises Cash; Hussman Says Next 12-16 Weeks Key for Recovery [View article]
    Couldn't agree more.

    On Sep 09 10:48 AM conceptwizard wrote:

    > The only thing that keeps a veneer of equilibrium is the massive
    > creation of money and credit pumped out by central banks worldwide.
    > If we are not in depression than what is the significance of 20.8%
    > unemployment, a factory utilization level of 65% and continued massive
    > foreclosures? The Fed, Treasury, Wall Street and banking are in
    > a box and they cannot get out. They deliberately created this horrible
    > situation and there is no going back. It is impossible to reverse
    > the process. We are in an economic and financial depression. The
    > palliative supposedly is bigger budget deficits and credit expansion
    > into infinity. We are going to see a replay of the 1970s. Inflation
    > will catch up and overtake deflation one more time, but in the end
    > deflation will prevail.
    Sep 9 10:50 AM | 1 Like Like |Link to Comment
  • Why I Predict No Economic Recovery [View article]
    Mark Twain: "When in doubt, tell the truth"

    Our banks and our leaders in Washington should practice honesty for a change, not because it's a polyanna feel-good approach, but because lying and lying-to-yourself lead often to spiralling self-delusion.

    "...banks should consolidate their losses and realize them and purge their balance sheets of toxic material clearly acting as an inhibitor to expansion of credit; in the last year the monetary has doubled, while lending to the private sector has contracted."

    Face the truth. We can face the truth as a nation, and suffer through this truth -- but being lied to over and over again is creating a huge antagonism between US and YOU OVER THERE, YOU WITH THE MONEY.
    Sep 9 10:48 AM | 2 Likes Like |Link to Comment
  • Price Movements Foreshadow Rise of Hyperinflation [View article]
    We're ending 20 years of inflation (if you disagree, see the link below). Credit expansion IS inflation. We are now entering 20 years of deflation (approximately). I don't see inflation happening for 20 more years.
    Sep 9 10:41 AM | 2 Likes Like |Link to Comment
  • Why I Predict No Economic Recovery [View article]
    "Thus, due to the incompetence of his economic advisors, President Obama's term will either be marked by recession and stagnation or by a dollar crash. In either case, he will be a one-term president."

    My prediction is that Obama won't be a one-term president. Most people understand he didn't create this crisis. Most people also understand that it is an historical cycle he inherited, one that cannot be easily fixed.

    Also, who will the Republicans send to the plate? The Republicans will not be electable for many years now: the are going to carry the Herbert Hoover stigma for a generation.
    Sep 9 10:34 AM | 3 Likes Like |Link to Comment
  • Why I Predict No Economic Recovery [View article]
    I love your first paragraph. We underrate the psychological damage that is done to the human when the illusion of a wonderful, limitless future is replaced by a spectre of personal failure and potential poverty. Batten down the hatches. It's time to just survive. Wait out the storm.

    The human being has been through many storms -- it is built into our genetic understanding -- we know when a storm is coming. You don't think about re-decorating the guest-room when a hurricane is approaching.

    On Sep 09 09:36 AM User 353732 wrote:

    > A precondition to any real, sustainable, recovery that is based on
    > a genuine(not bubble based) increase in wealth creating capacity
    > is confidence about future personal and business conditions.<br/>...
    > must have confidence that there will be more jobs and that these
    > jobs will be durable and at least as well paying as the jobs that
    > evaporated. Households must also have confidence that their acess
    > to credit will be at least stable if not increase and that the credit
    > will be avilable on just terms.Finally households must have confidence
    > that asset markets will be fair and transparent and that asset price
    > recovery will allow them to repair tattered net worth. Only then
    > will household spending increase and cash hoarding decrease. In
    > Sept 2009, scores of millions of households simply do not have this
    > confidence. Instead they are afraid and their fears are manifold.
    > Fear does not breed personal confidence.
    > 2. Businesses, esp small and medium business(which generate the majority
    > of jobs) must have confidence that expansion credit will be available
    > in time, in the right amount and at the right price. They must have
    > confidence that risk capital and true talent will be rewarded for
    > creating and fostering useful innovations. They must have confidence
    > that regulatory burdens and compliance costs will not crush them
    > financially .Only then will businesses hire and invest in advance
    > of an increase in revenues and earnings. Most small and medium business
    > in Sept 2009 lack this confidence. Instead they are fearful of the
    > Govt and of Big Banks and of Big Companies that continue to squeeze
    > them on cash flow via unfair payment and procurement practices.Fear
    > does not breed business confidence.
    > No sustainable or significant recovery has ever been based on fear
    > and pessimism. Recoveries require confidence and optimism.
    Sep 9 10:30 AM | 6 Likes Like |Link to Comment
  • The crisis of 2008 won't be the last, Alan Greenspan tells BBC's The Love of Money, and there was little regulators could have done to avert it: "They are all different, but they have one fundamental source. That is the unquenchable capability of human beings when confronted with long periods of prosperity to presume that it will continue."  [View news story]
    "They are all different, but they have one fundamental source. That is the unquenchable capability of human beings when confronted with long periods of prosperity to presume that it will continue."

    Is Allen saying this presumption is the source of the crisis? The illusion that prosperity will continue? So they borrow money like crazy assuming they will be able to pay it back? So the consumer is to blame for this?

    I thought he was going to say something interesting like 'the capability of human beings in power to be overcome with greed, selfishness, and trickery'.

    It would have been nice if Allen would have recognized his own central role in this disaster, instead of blaming it on foolish human beings living in illusion.
    Sep 9 10:23 AM | Likes Like |Link to Comment