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  • Consumer Credit Sees Record Plunge: Need Another Indicator?  [View article]
    This is easily a far larger bursting bubble than the Depression, thanks to a completely fiat Fed dollar which has enabled incredible bad decisions of consumer debt and gargantuan, unaffordable government. And, the incredible leverage of Wall St. And even more incredibly, bailouts for them and the political hacks of Washington which do nearly nothing to put money in regular people's hands. They reinflate only the stock market and shred any hope of a safety net left for average Americans.
    Sep 10, 2009. 06:29 AM | 22 Likes Like |Link to Comment
  • A Tale of Two Inflations  [View article]
    Like cockroaches, the lists of policymaker mistakes, while clearly huge at first glance, multiply at further glances. Here we see that relying on misguided government consumer inflation statistics to gauge actual inflation is even stupider than it looks at first glance. Domestic rises were hidden by import deflation. Why? Can so many people at that payscale actually be so dumb?
    Sep 10, 2009. 05:05 AM | 3 Likes Like |Link to Comment
  • On Disclosure, Honesty, Ethics, and Outright Lies: Who can you trust these days?  [View instapost]
    Have to love those off-balance-sheet items. The US government has plenty also. Our leaders leave us ticking time bombs everywhere, but, hey, trust them. Look at their track records!
    Sep 10, 2009. 01:46 AM | 1 Like Like |Link to Comment
  • Has the Government's Effort Failed?  [View article]
    Bit by bit the lid must come off, but, as you say, "under much less benign circumstances" the longer we wait.
    Our leaders have a vested interest in postponement. They got the first 2 $trillion bailouts to Wall St., the next to political hacks ("stimulus"). They would like to make it past the next election. Insiders are selling stock like crazy. They all benefit immeasurably with their inordinate insider privileges and incomes by a continuation of the farce as long as possible.
    Some of this has to be criminal, especially as the lying continues. As this gets even more surreal and difficult, martial law added to their control of MSM and paid-off politicians might not be so surprising.
    Sep 9, 2009. 12:20 PM | 8 Likes Like |Link to Comment
  • Five Questions About Government's Role in the Mortgage Business  [View article]
    Home ownership was once touted as a crown jewel of the rewards of capitalism in the US. Now it is emblematic of self-absorbed, mediocre leadership, entitlement politics and generally, the corner we've painted ourselves into. It requires endless deficit financing at the public trough to replace the failed financial sector which also is at the public trough.
    Like Iraq and Afghanistan, there is no end game at all here. I see no chance other than for endless government meddling and growth imposed on an increasingly pauperized citizenry as we forget how to produce for what we earn more completely, with each step we're taking.
    Sep 9, 2009. 11:49 AM | 11 Likes Like |Link to Comment
  • Yahoo Insiders Should Be Shown the Door Out  [View article]
    Typical business-by-MBA. Remember how Apple nearly died under John Sculley, previously Pepsi CEO, using that approach? Those people manage within a short-term bell-curve that their peers would approve of and, like most of our leaders, politicians especially, couldn't find a good idea other than snatch-and-grab, if it dropped on their head.
    They've hollowed out the whole country now. The rats are taking the last of the cheese.
    Sep 9, 2009. 11:13 AM | 4 Likes Like |Link to Comment
  • The Coming Consequences of Banking Fraud  [View article]
    Fraud as far as the eye can see, but, as the stock market has been propped up since March, can low interest rates be maintained for awhile during a decline in the dollar and rising commodities to force people to risk, and thus, rising stock markets with volume for awhile? I imagine this would be the "jobless recovery" that would not be a recovery for Main St. at all, but carry through the next election, facilitating the election/reelection of frauds-as-usual and even worse problems for the future.
    Sep 9, 2009. 10:45 AM | 33 Likes Like |Link to Comment
  • China Becoming a 'Middle-Class' Nation  [View article]
    It's hard to know which among the reams of toiletpaper statistics to believe, but every criticism of China is increasingly, sadly true of the US except excessive debt.
    I grew up in a country where you expected better every year as a birthright. We have sold out to rent-seekers and have lost so much real productivity that it requires ludicrous assignments of economic value to digging holes and filling them up again. Only phony statistics ginned up by sold-out suits papers over our real decline. In China, you mostly have to measure the gains. Nice problem.
    Bottom line, as the article says, is that we "need to focus our attention on our own domestic economies."
    Sep 9, 2009. 10:19 AM | 6 Likes Like |Link to Comment
  • U.S. Judiciary Emerging as Investors' New Best Friend  [View article]
    Rays of sunshine have been dashed before. Barney Frank seems to be waffling about supporting Ron Paul's effort to open Fed books. And, the New York Fed was recently granted a stay by a judge who had previously ordered some books opened. When you add the fate of Elliott Spitzer, going against Wall St. looks like a shaky, lonely, possibly hazardous road and few stay the course.
    Sep 9, 2009. 10:01 AM | 3 Likes Like |Link to Comment
  • The Myth of a Jobless Recovery  [View article]
    An alcoholic or junkie has one more binge left in them, until they don't. In this crisis, the elites are gaining more than they may have hoped. The maxed-out masses have handed $trillions in Treasuries to the elites to cover the losses starting to snowball due to leverage, as their ability to make payments began to falter.
    Now, with stock markets and megabanks primed with some of that lucre, commodities set to rise, the bubble economy patched enough not to immediately, completely implode, the dollar about to plunge, what savings are left must go towards risk. Covered by the last of our balance sheet, they are probably planning on one more debt-fueled binge without jobs, without sanity, because they don't have absolute control just yet.
    Sep 8, 2009. 10:24 AM | 1 Like Like |Link to Comment
  • "Lower Taxes, Less Government, More Economic Freedom"  [View instapost]
    Don't forget skyrocketing interest rates when the dollar plunges.
    Sep 8, 2009. 09:22 AM | 3 Likes Like |Link to Comment
  • On Unemployment and Government Jobs  [View article]
    It is self-serving to government, of course, to have inadequate statistics of which BLS is a prime provider. But, as you point out, with bloated government employment rolls, phony imputed private-sector jobs can't hide the fact that taxes cost more than food and shelter now.
    And, the same fiat-issuing Fed that fueled our excess consumption fueled unaffordable government. That, or the last of our freedom, will have to go.
    Sep 8, 2009. 09:10 AM | 2 Likes Like |Link to Comment
  • America: A Bona Fide Plutonomy  [View article]
    Great point, that this great financial crisis is being used as an OPPORTUNITY to concentrate wealth unlike the 30's.
    While I agree completely with the article and User353732 about the abuse of the middle class by elite manipulation, one difference this time is that the middle class is increasingly composed of government workers (how else to get a traditional secure middle-class job with benefits?). And, many believe government programs have helped them. The benefits are upfront, the costs are diffused and delayed, as we are learning to our regret. With the bad information from education produced at high cost by government and concentrated, elite-owned MSM, the middle class is so far rendered too divided and confused to act rationally.
    Sep 8, 2009. 09:02 AM | 12 Likes Like |Link to Comment
  • Why U.S. Government Should Cut Federal Workers' Lavish Compensation  [View article]
    If government workers were paid in straight salary with NO benefits, with present benefits factored into their paychecks, voters would immediately see the travesty their taxes are paying for. To allow 20-and-out careers with guaranteed-benefit pensions and lavish healthcare gives them an adjusted payscale that's off the charts.
    Since we all know social security and medicare are heading for a cliff, I can't see the average, increasingly strapped and impoverished American paying king's ransoms to employ mostly nonproducers who are such a burden to the producers.
    Sep 8, 2009. 08:35 AM | 28 Likes Like |Link to Comment
  • How Long Will China Put Up with Our Money Printing?  [View article]
    You raise the point of asset inflation which Greenspan ignored through incompetence and/or deceit. Which is the core of US government policy now to prevent the deflation (asset price collapse) which will bring down the ponzi schemes Washington and hyper-leveraged Wall St are now completely dependent on.
    So, it is policy to double down the bad bets our system now depends on, which the voters so far acquiesce in. To re-inflate the bubble at extraordinary, unpayable cost. The winners, the elites, political and financial, are raking it in for their failures and the voters have been willng to sell out for the crumbs they receive at the bottom of the food chain. Decent people have to say, enough!
    Sep 8, 2009. 08:19 AM | 10 Likes Like |Link to Comment