Archive - Oct 23, 2010 - Blog entry

Some scary developments in Iceland including a 41% inflation in the past three years, 63% of mortgage is underwater, and 40% of homeowners are insolvent make me wonder how far behind is the United States?

Mission accomplished ... wait, WHAT???

Let A = America, B = Banking System, and C = the Crony System. Then, given a heavily subsidized and corrupt financial system in the U.S., we can infer that A + B = C. Since we know that C must fail due to its poor design and widespread moral hazard, and that B is too big to fail, where does that leave A?

Paul Krugman doesn't know anything about Austrian economic theory but he feels competent to criticize it. He has refused to debate the topic in the past. Now a top notch Austrian theory economist is challenging him to a debate. The lure: $100,000. Will he do it?

If you are worried about the potential systemic risks caused by the developing mortgage fraudclosure story, you better view this important announcement immediately.

The painful cost cutting, layoffs, and downsizing that has swept the corporate area for the past 30 years is now being jammed down the throat of the public sector. The financial crisis afflicting states and municipalities is going to make the school teacher join the sorry ranks of the service station attendant, the elevator operator, and the telephone operators. A profession that has been rendered useless by technology. High schools are about to move online. Anyone for a student teacher ratio of 250:1? (BBBB).

This is coming our way.

When people ask what to expect in the large bank, GSE and real estate sectors in 2011, we say that the day of reckoning put off by not restructuring Countrywide, Bear, Merrill, Wachovia et al two years ago is now coming due. The operational and financial reality of insolvency can only be put off for so long. Or to refer to the immortal words of Joaquin “el chapo” Guzman, spoken after the mistaken 1993 killing of Cardinal Posadas at the Guadalajara airport: “Esto se va a poner de la chingada”

"Well, whatever it is that's following me, it doesn't feel... it doesn't feel human. It feels like it's... it feels like an algorithmic robot trading monster. I mean like, it wants to sub penny, quote stuff and spoof all my trades."