Archive - 2011 - Blog entry

Where does Larry Summers get off giving Americans advice on how to fix the continuing housing crisis?  And where does this political opportunist find the unmitigated gall to instruct us not to “finger point” and thereby identify culprits in Washington who helped enable the housing mess?

All you need to read.

I can honestly say that this is probably the hardest hitting (literally) expose on Bank of America Lynch[ing this] CountryWide you will ever come across. Here we illustrate exactly what BofA snuck into America

s savings accounts. It ain't just CDS and it ain't pretty!

Thoughts on the ReFI.

The economy has become and will continue to be more volatile and less robust for the foreseeable future as wealth is concentrated in the wealthiest segment of the country. This concentration is a direct result of the Fed's boom and bust monetary policy that steers capital into the financial markets instead into more productive uses. We are running on fumes as the top tier gambles. Instead of wealth being distributed widely throughout the economy as capitalism has done historically, we are now becoming an economy of winners and losers.

We are far enough away from the onset of the Great Recession that another down-wave in the depression (or a new recession if you go by NBER) is either here or due soon.  It may not be a severe downturn, as housing and autos would be falling from first- or second-floor windows in that case, but it would be occurring on the backdrop of a weakened structure, and thus the financial effects could be more severe than the economic effects (which could be severe or mild). Here is what you need to do.

The German parliament has a historic opportunity to say no to the bankers and stop the madness....

If QE3 does translate into a similar effect to QE2, then stagflation and hyperinflation could be expected in most of the developed countries, and developing economies, respectively.             

Last week’s moves were entirely based on the fact that stocks are now tracking the Euro almost tick for tick. And last week, the Euro hit “take off,” despite the clear indications that Europe is facing systemic failure (the entire banking system is leveraged at Lehman-like levels and European sovereigns are facing failed bond auctions on a weekly basis).

Dr. Trichet's ingenious EFSF Doomsday Device...[How could we make this shit up?]

As we approach major resistance levels, time to review some charts. What did the markets look like in 2008?

Not again...

All you need to read.