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Deutsche Bank Downgrades The Economy After It Finally Realizes That The Japan Earthquake Will Not Boost Growth

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Wed, 05/18/2011 - 18:18 | 1289109 Gordon Freeman
Gordon Freeman's picture

As Red Geithner might say: "No one could have seen this coming!"

What's the smilie for puking?

Wed, 05/18/2011 - 18:21 | 1289119 Ahmeexnal
Ahmeexnal's picture

But Trav7777 said the Fukushima incident is completely contained and nothing to worry about!

Wed, 05/18/2011 - 18:43 | 1289209 duncecap rack
duncecap rack's picture

Thomas Lee from JPM also sees rainbows and unicorns. I was just reading on Bloomberg he is calling for  a big recovery in housing just around the corner. Apparently building materials suppliers are a great buy. Oh yes we have seen the market bottom for the year as well!

Wed, 05/18/2011 - 19:08 | 1289290 Rainman
Rainman's picture

The best time to talk up the housing book is when the kids are getting out of school. There's lots of inventory to dump...lots of sheep need to be sheered. If not, it means another cold winter in the housing warehouse .

Last year's NAR theme: "there's never been a better time to buy a home". 

Wed, 05/18/2011 - 19:08 | 1289289 jus_lite_reading
jus_lite_reading's picture

BUT TYLER!!!! The Associated Press says "Japan is recovering"!!!! reprinted about a billion times in every newspaper around the world but the main source is Associated Propaganda... opps I mean Associated Press!!!



Wed, 05/18/2011 - 18:17 | 1289113 TSA gropee
TSA gropee's picture

Huh, and these guys actually get paid for such pearls of wisdom and insight.

Wed, 05/18/2011 - 18:21 | 1289115 silberblick
silberblick's picture

First Dominique-Strauss Kahn, now billionaire and silver bull Hugo Salinas Price is fearful that something will happen to him next:


Wed, 05/18/2011 - 18:19 | 1289118 cossack55
cossack55's picture

I see further economic downgrade after the demise of the human race due to three "China Syndromes" occurring at the same time. I'll wait for a Wall Street Stategist to tell me to die before I expire. Gotta hedge that bet.



Wed, 05/18/2011 - 18:19 | 1289121 Rainman
Rainman's picture

Took them a long time to see the light on Japan.....enough time to adjust positions.

Wed, 05/18/2011 - 18:25 | 1289131 camaro68ss
camaro68ss's picture

The light of Japan? you mean the ever so growing green glow?

Wed, 05/18/2011 - 18:22 | 1289132 topcallingtroll
topcallingtroll's picture

Exactly. They are talking their book, the most recently updated one.

Wed, 05/18/2011 - 18:23 | 1289125 MiningJunkie
MiningJunkie's picture

Remember the huge "Japan Reconstruction Trade" trumpeted by CNBC's Bob Pisani and the ensuing rally? These CNBC clowns really piss me off...

Wed, 05/18/2011 - 19:47 | 1289460 TempFlashback
TempFlashback's picture

Obviously, Pisani skipped Bastiat's parable of the broken window.

Wed, 05/18/2011 - 18:21 | 1289127 topcallingtroll
topcallingtroll's picture

With a smaller trade surplus can they buy treasurys in the quantities anticipated?

Might this be part of the reason Governmant Sachs aka the squid went bearish?

Wed, 05/18/2011 - 18:22 | 1289130 MiningJunkie
MiningJunkie's picture

And another thing....The Fed (barnank) are guaging the "economy" by watching the S&P - wealth effect, my ass.

Wed, 05/18/2011 - 18:36 | 1289149 Aquiloaster
Aquiloaster's picture

But I thought the apoacalyse was bullish for GDP!?! Everything will have to be re-built. Unemployment will be 0% after everyone is dead. Inflation will be transitory too, I suppose, as all of the worlds money comes home to the few things that weren't destroyed. 

Wed, 05/18/2011 - 18:39 | 1289175 Caviar Emptor
Caviar Emptor's picture

Bullish for undertakers.  The mortuary sector will pull the economy out of recession

Wed, 05/18/2011 - 18:35 | 1289158 Caviar Emptor
Caviar Emptor's picture

You mean that some things can be negative? Wow, man. 

A big component of a true Ponzi scheme aka the economy, is never ever admitting that you can have a bad day. The tell (as with Madoff and Ponzi himself) was always an unrealistic winning streak that became as predictable as the sun coming up in the morning. In a Ponzi economy based on growth of paper (money, credit, securities) rather than organic growth it becomes harder and harder to admit you could have a bad day for fear that the shaky edifice will come completely unhinged. 

Wed, 05/18/2011 - 18:55 | 1289234 Coke and Hookers
Coke and Hookers's picture

The current economy is like my ex's outlook on life: Disregard reality at all cost and never ever waiver in your delusion. It's a recipe for great success and happy ending.

Wed, 05/18/2011 - 18:51 | 1289233 Loose-Tools
Loose-Tools's picture

Wasn't it also Joe LaFagna at Doosha Bank, starting a year + ago who kept calling for a 400k + Non-farms Payroll print "any month now"? The delusions of PermaBulls!

Wed, 05/18/2011 - 18:56 | 1289257 yipcarl
yipcarl's picture

The article title is priceless.  Why are people so fucking stupid?  I 100% believe Osama Bin Laden was killed and thrown to sea!  Any person believing that without question is nothing more than an asshole.  Same goes for believing 911 the day that buildings fall apart, planes disappeared, but passports were found in the rubble are found. 


My GOD. 

Wed, 05/18/2011 - 19:07 | 1289282 AldoHux_IV
AldoHux_IV's picture

Is there any way we can label climate change/weather as a terrorist and wage a war on it? Fucking bastard is a threat to national and global security.

Wed, 05/18/2011 - 19:08 | 1289304 razorthin
razorthin's picture

DoyBank still living in the easy fiat money yesteryear to ever think devastation leads to growth.  Not anymore, not before SAVING that is.

Wed, 05/18/2011 - 19:11 | 1289305 Rick Blaine
Rick Blaine's picture

I vividly remember throwing up in my mouth when I heard the first jackass claim that this catastrophe could in any way be a good thing for Japan.

Sure, a lot of stuff has to be rebuilt, etc...

...which creates jobs, maybe helps manufacturing, etc...

...which is great if you can actually pay for it...and/or aren't in too much debt already...


Wed, 05/18/2011 - 20:04 | 1289522 slewie the pi-rat
slewie the pi-rat's picture

it is healthier to focus on the green shoots.  for sheep.

and, i think the world has a bit more overreacting to japan to go;  after all, the zeroHeads were among the most alarmist on the planet;  why stop now? 

" But, but, wasn't it Deutsche Bank's very own Joe LaVorgna who first said that the disaster would actually be beneficial for world GDP, and subsequently that the world is "overreacting."

i think overreacting = bailing out douchebanksters.  so there!

Wed, 05/18/2011 - 20:18 | 1289573 Jovil
Jovil's picture

Quarterly earnings in June and July will have bad news for the stock markets due to the supply chain disruption from Japan to the rest of the world. This is not only for automobiles, but for other industries as well. Economic collapse? Prepare yourself.



Wed, 05/18/2011 - 21:41 | 1289916 Sathington Willougby
Sathington Willougby's picture

The Broken Window Fallacy fails to reboot the economy.  But it makes a great sales pitch to the IMF head, Cash for Spunkers!

Wed, 05/18/2011 - 22:23 | 1290046 Everyman
Everyman's picture

Only these fucking economic savants would think that a major disaster is a net economic plus which creates a growth event.  That illustrates what is wrong with MMT, they are idiots in a cardboard box thinking they rule the world.

Insane is another description.

Wed, 05/18/2011 - 22:45 | 1290115 Madhouse
Madhouse's picture

Disaster or War = good for the economy

Borrow more and hide the issue - the social sec Ponzi scheme, military insanity - 3x 2002 levels

Disaster or War = good for the economy

Borrow more and hide the issue - the destruction of the middle class, the rape of health care by Washington, a few thousand greedy Doctors and HC execs

Disaster and War = good for the economy

ad nauseum...

Don't get it Joe, do you ?



Wed, 05/18/2011 - 22:48 | 1290124 Overpowered By Funk
Overpowered By Funk's picture

Joe BaLogna pulling down high 6g's for what? What is his value proposition? 

Thu, 05/19/2011 - 02:55 | 1290504 silberblick
silberblick's picture

YouTube's Harisebon7777777 should be commended for his work on measuring the radiation levels in Tokyo. The device he uses costs about $1000, which I am sure he has paid out of his own pocket to provide us with the truth of what is really going on in Japan. It is eerie to watch his videos. Typically, his hand is shown holding a geiger counter in some public place with people walking all around him as if there was nothing of importance going on; while all along, the geiger counter in his hand reveals what is really happening. Harisebon is documenting the slow irradiation of the Japanese archipelago. A visual unfolding of a tragedy. While watching these videos. it is hard not to wonder how many of the folks one sees walking down the street will come down with cancer in 10, 20 or 30 years. Go to Harisebon's YouTube channel and give him a shout-out. He deserves it. http://fukushimadisaster.blogspot.com/2011/05/radiation-harajiku-omotesa...

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