How Capitalism Went On A Brief Sabbatical Which Became A Permanent Vacation: Rosenberg Explains "The Artificial Recovery"

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Mon, 06/27/2011 - 21:38 | 1407331 jtz5
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A great interview with David Stockman...may be worthy of its' own article/forum.

Mon, 06/27/2011 - 21:45 | 1407343 mynhair
mynhair's picture

I junked you for being first, and having no "capitalism, bitchez".

Mon, 06/27/2011 - 22:21 | 1407500 molecool
molecool's picture

I junked you for being an infantile dick.

Tue, 06/28/2011 - 00:23 | 1407859 Hulk
Hulk's picture

Good video, but Kiyosaki just told the world he has guns, gold,cash and food at his house. Not smart at all...

Tue, 06/28/2011 - 02:19 | 1408038 FlyPaper
FlyPaper's picture

The Rich-Dad-Poor-Dad guys have been talking about this for a long time.   Why the stampede now?  

Tue, 06/28/2011 - 12:27 | 1409168 Atlas Shrieked
Atlas Shrieked's picture

I've been long gold since 1998, and silver since 2008, post-Lehman, so I've been lucky with PM's.  But wasn't Kirosaki advising people to flip real estate in the 2000's?

That's not enough of a contrarian indicator for me to sell my PM's, but I would not take his advice as gospel.  Like most marketeers to the masses, he profits more from selling his advice to suckers.

Tue, 06/28/2011 - 02:23 | 1408046 Hedge Jobs
Hedge Jobs's picture

thanks for link. Great interview. Cant work out why you would get junked for posting a link on failed cpaitalism in relation to a post on failed capitalsim.

Tue, 06/28/2011 - 05:24 | 1408141 UK debt marsh
UK debt marsh's picture

"The Wall Street Blackberry Panic of 2008".

I love it!

Tue, 06/28/2011 - 08:40 | 1408322 AbbeBrel
AbbeBrel's picture

A Blackberry Panic - yes this could happen again !   Great term by Stockman in the video.

It isn't until I read Cohan's "House of Cards" that I fully got how incestously the investment banking community opportunity operates, and how dependent they are on the overnight repo function.   Once that dried up, mostly from an acceleration in the deterioration of trust, the Bear was dead in a week.

If China stops covering the bad debt in the Euroland (and the US) then we could be in for another rapid deterioration of trust, leading to asset dumping, while the banksters watch their iPhones in horror.

Mon, 06/27/2011 - 21:36 | 1407333 mynhair
mynhair's picture

What's Capitalism?  Think I read about it once, in a galaxy far,far away...

Mon, 06/27/2011 - 21:43 | 1407353 Michael
Michael's picture

"What's Capitalism?  Think I read about it once, in a galaxy far,far away"

It's now called Fascist Feudalism. Get it strait.

Finally someone is recognizing what the so called recovery really is, as I have been referring to it for quite some time, Artificial.

Mon, 06/27/2011 - 21:44 | 1407361 Xibalba
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Corporatist Communism....every banker gets a bonus.  NO QUESTIONS ASKED!!

Mon, 06/27/2011 - 21:54 | 1407395 Caviar Emptor
Caviar Emptor's picture

...And everyone's terrified they might hear the dreaded words: "No bailout for you!!!"

Mon, 06/27/2011 - 23:45 | 1407792 Oh regional Indian
Oh regional Indian's picture

CE, notice a curious thing.

Bail Out = BO

Baaa Obaaaa = BO

I think this is beyond a passing case of serendipity or synchronicity, don't you think?

Oh, and no BO for you!


Mon, 06/27/2011 - 23:54 | 1407797 blindman
blindman's picture

who needs capital when you have a technology called
the printing press. just print the capital, it is so
much easier. or better yet just punch it into the
digital file then convince the idiot on the street
that he has to pay for it with his life, the system
works until it doesn't!

Mon, 06/27/2011 - 21:40 | 1407344 Rodent Freikorps
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For the duration of the crisis...

All the old shit is new again.

Mon, 06/27/2011 - 21:44 | 1407347 BayAreaAlan
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The problem with entering into evil is sometimes you forget to exit.

Mon, 06/27/2011 - 21:47 | 1407356 mynhair
mynhair's picture

You dated her, too?  Dam....

Mon, 06/27/2011 - 21:47 | 1407359 KennyG09
KennyG09's picture

Capitalism died in 1913.

Mon, 06/27/2011 - 22:24 | 1407516 ub40onlyonce
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True, and they said the men in black were the fools of American society:

[In a 1961 IRS press release, the IRS recognized the Amish stance that "Social Security payments, in their opinion, are insurance premiums and not taxes. They, therefore, will not pay the ‘premium’ nor accept any of the benefits."]

As a reminder of the ten (10) planks of the Communist Manifesto:

Tue, 06/28/2011 - 06:14 | 1408156 JuicedGamma
JuicedGamma's picture

The Amish, with horse and buggy, and no electricity have a website? Who would have ever thunk it?

Tue, 06/28/2011 - 06:37 | 1408161 falak pema
falak pema's picture

do they provide women and booze? for body heat generation!

Mon, 06/27/2011 - 23:47 | 1407805 Oh regional Indian
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Capitalism died long before that Kenny. Long long before that.


Tue, 06/28/2011 - 06:37 | 1408159 falak pema
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Maybe its correct to say American style Oligarchic MONETARY capitalism was born in 1913.

As for the birth of the concept of capitalism per se : 1848, the Communist manifesto. Marx is the first philosopher who recognises that the capitalist means of production have created new paradigm in society : the industrial age.

He proposes class war and proletarian dictatorship as solution. So one can't say capitalism died at its inception. It transmutes itself, like today; it is now totally in the hands of a feudal, international, transnational oligarchy.

Tue, 06/28/2011 - 07:49 | 1408218 Oh regional Indian
Oh regional Indian's picture

Falak, monetary capitalism has always been the primarily understood meaning of capitalism. I'm not an econ. PhD, but from what I understand capitalism is merely the most efficient allocation of resources (capital, which used to be primarily monetary, but is now Human Cattle, I mean capital too).

Nice, pure, unadulterated. 

Back then.

Like you said, and like all of our other institutions, it went from hallowed to hollowed.

And just to clarify, I loosely associate capitalism with the industrial revolution. Equal opportunity cancers.


Mon, 06/27/2011 - 21:49 | 1407362 RockyRacoon
RockyRacoon's picture

The taste of free money will be hard to eradicate from the maws of bankers.

Now that they've tasted blood, the free market picnic is over.

Wait til the politicians find out how inflation solves all their (immediate) problems!

Mon, 06/27/2011 - 21:46 | 1407364 Mercury
Mercury's picture

When we said capitalism went on a sabbatical three years ago, we didn't expect this to be a permanent vacation.

At this point Obama is pretty much the inverse of Calvin Coolidge: 

The business of America is government.

Mon, 06/27/2011 - 21:48 | 1407378 mynhair
mynhair's picture

Not if I can affect it.  (Screw you that want to change to infect.)

Mon, 06/27/2011 - 21:54 | 1407384 LawsofPhysics
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Can we export that for a profit?

Mon, 06/27/2011 - 21:58 | 1407403 Mercury
Mercury's picture

Could we have Goldman design and internationally market a CDO of select American government programs and politicians...and then short the crap out of it ??

Mon, 06/27/2011 - 22:04 | 1407421 Caviar Emptor
Caviar Emptor's picture

Would you settle for a Franklin Mint set of commemorative coins celebrating the bailout program alphabet soup of 2008-10? With national parks on the reverse? TARP, TALF, TSLF, TAF, PDCF, AMLF, FSP, PPIP, CPFF......

Mon, 06/27/2011 - 22:20 | 1407494 Mercury
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The kitsch value alone on those would be substantial, especially if they were cast in pure aluminum.

Mon, 06/27/2011 - 21:56 | 1407404 Caviar Emptor
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Good ole Cal. Who woulda guessed a Depression was just around the corner

Tue, 06/28/2011 - 00:10 | 1407847 tiger7905
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Charles Nenner Interview, still calling for 5000 DOW, getting back into gold.

Mon, 06/27/2011 - 21:55 | 1407401 Corn1945
Corn1945's picture

ZIRP is the worst of all the scams. You earn 1% (if you are lucky) on your money while Bernanke promises he will devalue your cash by at least 2%. It is destroying savers, senior citizens, and anyone who wants to save to start a business or own a home.

Mon, 06/27/2011 - 23:11 | 1407693 Widowmaker
Widowmaker's picture

You are absolutely correct.  That is the heart of "heads I win, tails you lose" systemic risk dripping with moral hazard blessed by the best incorporated Congress police state money can buy.  (you get the idea)

Thank Bush, "mission accomplished."

Mon, 06/27/2011 - 23:20 | 1407721 snowball777
snowball777's picture

Highly-dependent on your medium for saving, methinks.

Tue, 06/28/2011 - 10:53 | 1408444 cranky-old-geezer
cranky-old-geezer's picture

You earn 1% (if you are lucky) on your money while Bernanke promises he will devalue your cash by at least 2%.

Yes, this is Bernokio's plan for destroying the middle class ...and it's going along quite well too.

Actually that's not entirely accurate.  Bernokio doesn't care about the middle class one way or the other.

Bernokio is looting America, passing America's wealth to the federal government and Wall Street.  That's what he's really doing.  

Everybody's being looted, not just the middle class.  It's every class ...except Wall Street elite of course.

ZIRP, TARP, TALF, QE, POMO, etc.  These are methods Bernokio uses to loot America.

It boils down to printing currency and giving it to insider cronies, which debases the currency (the dollars in your paycheck, in your pocket, in your savings account, in your CDs, in your money market fund, in your pension fund, in your 401k, in your IRA, etc).

It's called monetary inflation.  Which will lead to monetary hyperinflation eventually.  It always does.

The ONLY way to prevent Bernokio looting YOUR wealth is get it out of US dollars and into something else, like PMs or some other physical asset  ...except real estate of course.

At $33.60 silver is an incredible bargain. It should be $150 right now. 

When (not if, when) the US dollar collapses and loses WRC status, silver will rocket to hundreds of dollars per ounce.  And many other physical assets will likewise rocket up against the dollar.

GOLD-USD will take off.

FOOD-USD will take off.

GAS-USD will take off.

AMMO-USD will take off.

JACKDANIELS-USD will take off.

These are markets Bernokio can't manipulate and suppress with naked shorting.

These are things Bernokio can't print on a printing press till they're worthless he can US dollars.

Mon, 06/27/2011 - 22:02 | 1407410 mynhair
mynhair's picture

The most fun of pounding the pavement for a candidate is having the voter list.

It has Dim and R registered, and their voting history, ie. elections they showed up for.

Total hoot to go to a Dim address and pitch conservative, though a lot now agree, but when you hit a rabid moron, you get to go to the neighbors and talk about the rabid moron next door.  Meet & greet at its finest.

Mon, 06/27/2011 - 22:37 | 1407588 chipshot
chipshot's picture

smile and wave....nice one

Mon, 06/27/2011 - 22:14 | 1407468 centerline
centerline's picture

Ooooh,  serial junking again.  Must be a disgruntled public sector employee from a previous thread who just realized that pension money is already vaporized.

Mon, 06/27/2011 - 22:42 | 1407493 Cognitive Dissonance
Cognitive Dissonance's picture

Even someone as dialed in and aware as Rosenberg carried some hope that the insanity would end and the bad guys would be ousted if not locked away behind bars. False hopes die hard and Rosenberg is spiraling in for a really rough landing.

This is one of the reasons the thieves get away with murder. Not only are average Joe's bargaining with denial, but people with influence and those in authority as well are all waiting for Superman to show up and save the day. It just keep going on, it just can't get worse than this. But of course it does and it can and we are always the last to admit it.

Denial isn't just a river in Egypt.

Mon, 06/27/2011 - 22:27 | 1407513 buzzsaw99
buzzsaw99's picture

...anyone with a sense of history knows that they will stay close to zero for years to come. ZIRP 4 EVAH BITCHEZ!

Mon, 06/27/2011 - 22:31 | 1407536 Juice Box
Juice Box's picture

Zirp is prolonging this recession.  At these rates and with the Fed Bond put protection in place, no one has any desire to risk lending their money.  Higher rates would actually flush money out of its cold storage.  When rates are finally allowed to rise to a normal and natural level, then and only then will we see progress. 

Tue, 06/28/2011 - 05:44 | 1408145 LudwigVon
LudwigVon's picture

...then and only then will we see: significantpriceinflation

Mon, 06/27/2011 - 22:56 | 1407555 Caviar Emptor
Caviar Emptor's picture

Interestingly, US Gov bailouts began under a Republican presidency. And the biggest of all the bailouts were also all under GOP presidents! 

1970 and 1971: Penn Central Railroad and Lockheed started it all under Tricky Dicky. He was the first to cross the line. And the very first Government bank bailout of 'em all: Franklin National Bank in 1974. 

During the Reagan administration, the huge Continental Illinois Bank bailout happened in 1984 ($9.5 billion), followed by the mega huge S&L bailouts of 1989-1994 (Bush Sr) ($293 billion). 

Then under Bush Jr came Bear Stearns ($30 billion), Fannie/Freddie ($400 billion), AIG ($180 billion) and TARP ($700 billion). We do know that Citi, BAC, and other large non-financials deemed TBTF received bailout loan guarantees and access to Fed programs. 

Dems? Jimmy Carter had the distinction of being the first to bail Chrysler ($4 billion), and Obama officiated the GM bailout ($130 billion) (although Bush Jr extended the first $25 billion in 2008) and final Citi ($220 billion) and BAC deals ($118 billion)

Guess this is what it means to be "Pro Business" 

Mon, 06/27/2011 - 22:38 | 1407569 Westcoastliberal
Westcoastliberal's picture

Love the Stockman interview.  It's an all-time classic and so weird to hear these words coming from anyone credible, even a reformed Reaganite.

We need a reset, a jubilee.  Hell, the CDS's will not wind up paying off, so since this market is 10x the GDP of the entire world, can't we just wipe out all debt?  If not, why not? Give me one reason, beetches!

Mon, 06/27/2011 - 23:49 | 1407810 essence
essence's picture

A  reset/debt jubliee likely means system meltdown. In other words, anarchy interspered with pockets of martial law, or vise versa. This period of disarray could potentially form a feedback loop resulting in ....tada TEOTAWKI.

How many of you are prepared to live without credit? How many business owners, Governments? How many retirees are prepared to have their pensions suddenly drop out from underneath them? A worldwide default would have everyone gunshy about being a lender for a decade or however long it takes for greed to overcome memory.  So, while a default/juliee seems attactive on the surface, just realize the entirely of the ramifications.

Note how all the countries (except small/isolated Iceland) have pulled back from the brink each time they get close, despite all the chickenhawks out there (somewhere else) crying out for them to default and be the guinee pigs in facing the full wrath of the banksters.

Don't get me wrong, not that I'm against a 'reset'. But I have no dependents and spend most of my spare time thesedays working on my escape plan. The bulk of the population has no plan B.

It could very well be that a pyrrhic victory is the only option left to dislodge the banking cabals grip on government and the economy. Just be mindful of what you call for and be prepared to walk the walk when the time comes.




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