Guest Post: From Bad To Worse: The Economy Today, And Tomorrow

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Tue, 12/07/2010 - 14:19 | 786293 westboundnup
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$90+ gas = economic capitulation.

Tue, 12/07/2010 - 14:23 | 786307 Mr Lennon Hendrix
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I have $105.  Potato, potatoe.

Tue, 12/07/2010 - 14:40 | 786365 Max Hunter
Max Hunter's picture

What a downer.. Save me Harry Wanger..

Tue, 12/07/2010 - 15:21 | 786474 Cognitive Dissonance
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Speaking of Harry, where has that critter been the past few days? He should be back from Chicago after selling his wares all last week. Maybe he hit the retail jackpot with his porn remake of "Harry Does Dallas" and decided to spare us for a month or so.

One can dream, can't one?

Tue, 12/07/2010 - 15:43 | 786542 Dick Darlington
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"Harry does Dallas"

Hahahaa, priceless!

Tue, 12/07/2010 - 15:47 | 786559 Max Hunter
Max Hunter's picture

He's here.. I saw him on another thread talking about how manufacturing is up.. LMAO  no really.. he said that..

Tue, 12/07/2010 - 16:34 | 786765 Iam_Silverman
Iam_Silverman's picture

"I saw him on another thread talking about how manufacturing is up"

Remember, his company specializes in "Hopium".

Demand has never been higher - in fact, they have been importing it in huge quantities (bulk shipments) which may also explain any jump in the BDI.  I think it is then repackaged at the warehouse where he is based out of - so yes, manufacturing may indeed be up in his realm.  For the rest of us?  Not so much.

Tue, 12/07/2010 - 15:57 | 786584 Crisismode
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He's on another nearby thread here, catching his usual quota of junks for mouthing inane and daft prattle.


Tue, 12/07/2010 - 16:05 | 786611 RunningMan
RunningMan's picture

I don't want to be Harry's champion, but he's just a sales guy. To do that job, one must be a perennial optimist, and honestly we need those people in the world too. That said, I don't think the majority here see the optimistic side of things given how dire the situation is right now.  I am in sales in a way too, but a scientist by training and a pretty big pessimist at the current time. (And, sales are way way down anyway - maybe Harry had better luck).

Tue, 12/07/2010 - 14:47 | 786390 ringo3khan
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Well put.......or it equals a "tipping point".

Tue, 12/07/2010 - 14:22 | 786305 Ripped Chunk
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Good article. Thanks.

Tue, 12/07/2010 - 14:25 | 786316 billhilly
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OT, slightly, but what a statement made by Jim Rickards in his latest King World News interview " BB is more dangerous to the USA than is Osama Bin Laden ".  Well said IMHO.


Tue, 12/07/2010 - 14:49 | 786397 Mark Medinnus
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Me, too.

Tue, 12/07/2010 - 15:32 | 786427 DavidPierre
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Osama Bin Laden is Kaput... Deceased... Dead...  Gone to the great beyond many years ago.  The myth of OBL lives on and on only in the sick minds of the CIA/MSM.

{*damn... I just posted a Thoughtcrime }

'The BS Bernanke' lives on in glory and fame.

{*there...I made up for it.}



Tue, 12/07/2010 - 14:29 | 786335 wreynol4
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sooner or later God's gonna cut benny down...



Tue, 12/07/2010 - 14:34 | 786350 the not so migh...
the not so mighty maximiza's picture

I agree with the articles points. We are all waiting for the trigger.

Tue, 12/07/2010 - 14:35 | 786352 Bam_Man
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The author refers to Federal Reserve discount window credit as "capital" and short-term US Treasuries as "bonds".

Zero credibility.


Tue, 12/07/2010 - 14:41 | 786373 Victorio
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"Which problem is going to receive your full attention at that moment; the grenade, or the cancer? The dilemma is that both eventually end the same way."

It all ends the same way for all of us, that is why there is no reason to fear... Embolden Yourself. Live Riotously. 

Tue, 12/07/2010 - 14:51 | 786400 MountainMan
MountainMan's picture

Band Dae Ho bitchez.

Tue, 12/07/2010 - 14:52 | 786401 RobotTrader
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Basically, all the bad news is being shucked off.

Consumer retail stocks like Vitamin Shoppe are launching to new, 52-week highs, despite all the massive unemployment, imploding housing, and an outright collapse in the Baltic Dry Index.

Tue, 12/07/2010 - 14:53 | 786406 RobotTrader
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It is becoming increasingly obvious that all the poker chips piled into the bond casinos are leaving in a panic, and 100% of all proceeds are piling into common stocks.


Tue, 12/07/2010 - 19:38 | 787399 cosmictrainwreck
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yeah - that's what Harry The Wanger said, too. How'd the day END, Robo? See ya Wednesday.......

Wed, 12/08/2010 - 09:43 | 788404 Bicycle Repairman
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You look at the day to day picture.  You can't see the forest for the trees.  Is anyone besides the lucky making money trading in this casino?

Wed, 12/08/2010 - 13:21 | 789164 sharonsj
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We're stuffing our faces with vitamins because we can't afford health care!

Tue, 12/07/2010 - 14:58 | 786415 sabra1
sabra1's picture

it's cheaper to buy vitamins than to buy food! pass the flintstones please!

Tue, 12/07/2010 - 16:01 | 786597 Crisismode
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Yep. People are eating cheaper (less nutritious) food, and are having to make up the lack of nutrients by purchasing vitamins.


Tue, 12/07/2010 - 15:01 | 786430 francismarion
francismarion's picture

Bruno says he knows the blows are coming but he doesn't know what they are. So no matter what happens he can point at the elite as the source.

And he says to look for something in the next few months. How can he miss?

His approach takes in all events and times. Once again, proof that 'I told you so' is the best way forward for a journalist.

Things are in flux. But comparing the price of gold to the BDI?

Other than that a recapitulation of world headlines and a running dialog that seems to confirm, 'everything is everything'.

Hyperventilation or hyperinflation? You decide.

Tue, 12/07/2010 - 15:01 | 786432 max2205
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Huh? Why feel bad. They are up 70% on spx alone

Tue, 12/07/2010 - 15:06 | 786443 youngman
youngman's picture

Live that a word......anyway....I am going to do it....

Tue, 12/07/2010 - 15:22 | 786482 Victorio
Victorio's picture

hmmm.  its back to the books for you youngman...

Tue, 12/07/2010 - 16:37 | 786784 Iam_Silverman
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Twas a pun, I suspect!

Tue, 12/07/2010 - 15:24 | 786448 TruthInSunshine
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I have said all along that EVERY THING that The Bernank does and has done is/was and for a long time to come will be with the specific goal of flooding banks with as much cash (choose your duration, amount and 'form' with great liberality) as possible, in order to save them from the metastatic cancer they suffer from - asset portfolio thermonuclear destruction.

As these banks incur further losses, with loans souring quickly and underlying valuations of pledge assets rotting, The Bernank knows that only central bank policy - picking winners and losers in terms of who/what gets dope from the Fed - can hope to save the TBTF global banks.

The problem with The Bernank's plans is that velocity & time are not on his side, nor can The Bernank create jobs - and that's the bottom line folks; in a world chock full of cheap, cheap labor, and with widely improved infrastructures and efficient mass shipping of cargo, Americans either have to compete head on, with consequences they won't possibly like (very low wages, benefits and all the rest they're accustomed to), or the U.S. will literally have to 'take out the competition,' which certainly isn't something the elite wish for, as the current situation not only suits their financial and political interests, but has been planned by them (see 'Ross Perot: NAFTA will create a giant sucking sound,' circa 1988; and that was just the start, as we moved on to China's MFN trade status, and so forth).

As the velocity and magnitude of losses increases, creating a vicious and unstoppable negative feedback loop, the consequences of what he is doing will be felt in the 'real economy' with greater pain, making his policies viewed with even more skepticism and vitriol by everyone and anyone deemed not TBTF, and not having the access code to the Fed's discount window or other facilities.

Bernanke is determined to lose, and in the worst possible way. He'll lose the economic AND the political battle, as politicans will feel way too much heat to shelter him or the Fed when the levee breaks.

All of this is a verbose way of saying Bernanke should have allowed for a much larger controlled burn of what should have been NOT too big to fail financial institutions, rather than have a forest fire take then down ultimately anyways, along with trillions in looted taxpayer money.

After all, unlike 1929-1933, The Bernank is supported by other tools not available back then, such as FDIC insurance on bank & MM deposits, which in practice would mitigate heavily against panic bank runs.

I think it's a fair question to ask just whose interests The Bernank truly does have in mind.

There are times, however fleeting, that I want to have empathy on The Bernank, and give him some benefit of doubt, but then, I see his rat-like face, quivering lips telling whopper-sized lies and I know....deep down in my heart and bones...

...that The Bernank is a real piece of shit.

Ben Shalom Bernanke, these lyrics were tailor cut just for you, champ:


If it keeps on raining levee's going to break
If it keeps on raining levee's going to break
When the levee breaks have no place to stay

Mean old levee taught me to weep and moan
Mean old levee taught me to weep and moan
Got what it takes to make a Mountain Man leave his home

Oh, well; oh, well; oh, well.

Don't it make you feel bad?
When you're trying to find your way home you don't know which way to go?
When you're going down south and there's no work to do
And you're going on to Chicago

Crying won't help you, praying won't do you no good
Crying won't help you, praying won't do you no good
When the levee breaks, mama, you got to go

All last night sat on the levee and moaned
All last night sat on the levee and moaned
Thinking about my baby and my happy home

Going - going to Chicago
Going to Chicago
Sorry, but I can't take you

Going down - going down, now
Going down - going down, now
Going down
Going down
Going down

Tue, 12/07/2010 - 19:33 | 787381 Absinthe Minded
Absinthe Minded's picture

Who the hell would junk a Zep song? They are losers! One of the greatest blues songs ever done and so apropos. We are truly fucked. The crying has not begun yet, but it's coming. There has been signs, This story is just beginning, the end is near. I'm not some apocalyptical, 2012 nitwit. When you add 5 billion to your debt every day there is no fucking way out. Period.

Tue, 12/07/2010 - 15:12 | 786452 Gringo Viejo
Gringo Viejo's picture

Unlike the author, I have no empathy for the investment sheeple. Last week a radio talk show host in the Bay Area did an hour segment on a possible market sell off due to year end tax loss exiters. The ludicrous plaints I remember best were "stocks for the long haul; after all, they always go up" and the caller that accused the talk show host of "trying to crash the market." Investment Darwinism insists that chumps like these be culled from the herd.

Tue, 12/07/2010 - 15:14 | 786457 DosZap
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Ok, we see the NEWS OF THE FUTURE, where /what do you diversify into (other than Sliver/Gold), to maintain parity?,with Hyperinflation?.

Tue, 12/07/2010 - 16:12 | 786640 Shameful
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Seems like food usually does pretty well. It's something everybody wants, and will do most anything to get. Best part, you can eat it! :)

Tue, 12/07/2010 - 18:40 | 787251 Walter_Sobchak
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Tue, 12/07/2010 - 15:17 | 786466 Return2Sanity
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Printing money: Easy
Printing wealth: Impossible
Knowing the difference: Priceless
What's in your wallet?

Tue, 12/07/2010 - 19:39 | 787402 Absinthe Minded
Absinthe Minded's picture

So simple yet perfect. To think a take on a frickin' Mastercard commercial could sum up the current affaairs of the world.

Tue, 12/07/2010 - 19:42 | 787403 Absinthe Minded
Absinthe Minded's picture


Tue, 12/07/2010 - 15:34 | 786518 jmc8888
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LaRouche has used a similar terminology in one aspect of this article.

"What the British have to fear from the Duke's remarks, lies not in the content of the words themselves, but in the peculiar ripeness of the hyper-inflationary potential of an oncoming general, global economic breakdown-crisis centered on the British system's presently crumbling imperial monetarist Inter-Alpha Group launched as a replacement for the fixed-exchange-rate system in 1971. Worry about matches captures the mind's attention best when the neighborhood has been set afire."

Yes, the Brits/Banksters will definitely try to distract us.  That's what they've always done.  It's THEIR system that we are ALL a part of, that is coming down.  So let's jettison THEIR system, let THEM go down, and the rest of us, as part of a redux Hamiltonian (American) Credit System survive.

Not hard.  Glass-Steagall is the tool.  Bye-Bye fraudulent paper of all sorts; derivatives, bogus mortgages, etc.


Tue, 12/07/2010 - 15:37 | 786528 Rhodin
Rhodin's picture

"If your house is set on fire, do you blame the house for burning? Do you blame the fire? Or do you blame the people that started the fire?"

Well for a second you might blame yourself for not building a concrete and steel house with brick siding and a metal roof.  But then, you might reflect that recently the laws of physics were changed so that fireproof buildings spontaneously demolish in the presense of fire!

Of course, as you point out, when you get close to the arsonists, things get more dangerous.  They turn the majik up a notch.  Like the hijacked plane that majically transformed itself into a missle to reach those investigators at the Pentagon.  Any investigator paying attention now knows what assignments to refuse.

Given this, and your excellent post, how do you propose to 'lock on to the arsonists'??






Tue, 12/07/2010 - 15:55 | 786578 tired1
tired1's picture

" Like the hijacked plane that majically transformed itself into a missle to reach those investigators at the Pentagon. "


What do you mean? Sources, please?

Tue, 12/07/2010 - 16:16 | 786669 KTV Escort
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you can start with, then watch Pentagon 911 Eyewitnesses ( ), then watch 9-11 mysteries ( ), then tell your friends to watch them... oh, and your Christian friends, have them watch this one too (part II deals with 9-11) ~

Tue, 12/07/2010 - 16:58 | 786898 Rhodin
Rhodin's picture

Was working from memory and not trying to prove anything here.  This is not new and, i thought, common knowledge.  Followed 9/11 for awhile, but have no restricted info, ie. everything was online at the time, and i did not save the links.  I am not an investigator, and would not take this on if i were.  I've become convinced that many people refused to believe their eyes that day because the truth was too painfull.

That being said, again from memory,

There were several videos of the damage to the Pentagon available on line, that superimposed a scaled image of the jetliner such that it was obvious (ie damage imprint much smaller) that jetliner did not strike Pentagon.  It is easy to check the scaling. Some of these might still be up.

Initial footage does not show impact where engines or gear would strike and those pieces are not lying about outside in the footage.

Footage from surveillance cameras that should have shown the plane was confiscated by authorities and not released, with one exception. That video, shows explosion only, no plane, and color of explosion is not consistent with fuel/air explosion.  One can see this by comparing it with the impact explosions of the planes on the towers, these are fuel/air explosions.

I am sure the author of the post knows what i am talking about, as do many here.



Tue, 12/07/2010 - 20:08 | 787462 boiow
boiow's picture

yep,  common knowledge obviously a missile.

 when people disagree with me i just say  " what part of your extensive research on the subject do you disagree with? ".   shuts them up.

Tue, 12/07/2010 - 15:39 | 786533 wiskeyrunner
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Guess it's about time for the end of day pump into the close, followed by the overnight float higher, followed by the gap up on the open in SPY tomorrow morning. It's so easy to make money in this market.

Tue, 12/07/2010 - 16:06 | 786619 Crisismode
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That end of day pump isn't looking so good right now.

Tue, 12/07/2010 - 15:43 | 786543 wiskeyrunner
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Remember index futures contract roll over this week. December contract expires next Friday, so expect more overnight ramp ups and slow sell downs as funds unwind there longs.

Tue, 12/07/2010 - 15:44 | 786544 shushup
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If the market rallied because of the tax extension news then the market must not have heard the news that the 99ers are not getting the 13 month extension.

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