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"How We Ended The Great Recession" (At A Cost Of $20 Trillion And Counting)

Tyler Durden's picture




 

Just in case you needed that one final proof that Moody's is finished, here is a report by Moody's head of economic propaganda (at least that is our loose interpretation of the official title "Chief Economist" who also happens to be a permanent fixture on that other permaganda TV channel) Mark Zandi, in collaboration with Princeton's (yes, that Princeton) very own Alan Blinder, have come up with something akin to a research paper (we say akin because it surely lies in some abominable gray area inbetween coherent thought and logical discourse and a Las Vegas Ether-binge straight out of Dr. Gonzo) in which the intellectual titans confirm that not only the Great Recession is over, but here are the precise steps (a, b, c) in which it was defeated and forced to return slouching and grovelling to the vile communist, fascist, what have you, from whence it's sprung, unwept, unhonored and unsung, after president Obama came to the rescue (not to mention, literally, the $20 trillion of new debt in process of being incurred in the next 10 years). And just in case the administration needs an Assistant Head Of Money Printing, once Moody's is liquidated, Mark Zandi would be more than happy to proffer his Keynesian credentials to the administration, even as it itself goes down in flames courtesy of a general public of which 70%+ have said no more stimulus. Feel free to read this or to use it as a TP substitute. We are not sure what any self-respecting administration can do with Messrs. Zandi and Blinder but are open to suggestions.

 

 

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Wed, 07/28/2010 - 15:02 | 492577 reader2010
reader2010's picture

Did the Japanese central bankers say the same thing in 1992?

Wed, 07/28/2010 - 17:12 | 492897 chunkylover42
chunkylover42's picture

if you haven't read it yet, Dave Rosenberg's piece this morning points out that the Nikkei is back at levels first reached in 1983 - twentyseven years ago.

I can't wait for the next generation here!

Wed, 07/28/2010 - 15:05 | 492586 Misean
Misean's picture

"Feel free to read this or to use it as a TP substitute."

And waste ink printing it?  If these fools have any sway at all, ink's going to the moon, Alice!

Wed, 07/28/2010 - 15:06 | 492588 Cursive
Cursive's picture

Zandi and Blinder?  These two are awful alone and together they sound like a bad Vegas act.  I admit I won't read this.  Mark Zandi is like the Musack version of Steve Liesman.

Thu, 07/29/2010 - 11:56 | 494212 ZeroPower
ZeroPower's picture

Zandi was one of the only rating's guys to say a warning about subprime, all the way back in 2006.

Not trying to defend him here, but suffice to say not all his market messages are pure junk like this one.

Wed, 07/28/2010 - 15:06 | 492589 SDRII
SDRII's picture

blah blah blah, gives way to print, print, print. Blinder how appropriate.

Wed, 07/28/2010 - 15:07 | 492591 Cammy Le Flage
Cammy Le Flage's picture

OH its all over now.   Glad to hear it.   This is now just plain funny.  Like a drunk saying they ain't drunk.   Please use for fire kindling.  Or to pick up dog poop.

Wed, 07/28/2010 - 15:07 | 492593 israhole
israhole's picture

Alan Blinder's noggin resembles a wedge. Perhaps he would make  a better doorstop? Or, Chief Turtle.

Wed, 07/28/2010 - 15:08 | 492595 Mitchman
Mitchman's picture

Blinder.  The perfect name.

Wed, 07/28/2010 - 16:36 | 492820 Cursive
Cursive's picture

Wouldn't Blinker be more appropriate?

Wed, 07/28/2010 - 15:08 | 492598 Robslob
Robslob's picture

Blue horseshoe says go long ink and paper suppliers!

Wed, 07/28/2010 - 15:11 | 492602 Quinvarius
Quinvarius's picture

I love the writing here.  I still laugh whenever I think of the past headline which included "DoNk goes full retard".

Wed, 07/28/2010 - 15:12 | 492605 sankaty
sankaty's picture

And they all lived happily ever after. The end.

Wed, 07/28/2010 - 15:12 | 492606 Jake Green
Jake Green's picture

Bob Pisani will read this tonight; as he rubs one out

Wed, 07/28/2010 - 15:12 | 492608 masterinchancery
masterinchancery's picture

Hard to say who's the bigger establishment-patronized prostitute, but I will vote for Blinder.

Wed, 07/28/2010 - 15:13 | 492609 Grifter
Grifter's picture

Ah, devil ether. It makes you behave like the village drunkard in some early Irish novel...

 

Wed, 07/28/2010 - 15:14 | 492612 Gimp
Gimp's picture

Must have needed a paper for tenure or a new round of government grant money.

100% Newspeak. Caution: reading this paper can be hazardous to your health.

Wed, 07/28/2010 - 15:17 | 492616 LoneStarHog
LoneStarHog's picture

Mark Zandi and his ilk should be part of the Green Movement.  He should be used for a SPEEDBUMP, which would then require far less asphalt making the Green Movement happy.

I can think of no other utilitarian use for the SOB!

 

Wed, 07/28/2010 - 15:19 | 492622 DonnieD
DonnieD's picture

I fully expect a follow up paper released on November 1st entitled "The Coming Economic Boom due to Obama's Policies"

Wed, 07/28/2010 - 15:21 | 492626 -Michelle-
-Michelle-'s picture

to the vile communist, fascist, what have you, from whence it's sprung, unwept, unhonored and unsung

"No, I love poetry. I just thought that was Willard Scott, I was confused."

Wed, 07/28/2010 - 15:22 | 492632 hedgeless_horseman
hedgeless_horseman's picture

by JULIE PACE EDISON, NJ — President Barack Obama is making his case for more small-business aid from a sub shop in central New Jersey. Obama ordered at the counter at Tastee Sub Shop, a blue-and-white, one-story restaurant in Edison. He went for the "Super Sub" but begged off on getting the...

If the Great Recession is over, why do small businesses need aid?

Wed, 07/28/2010 - 15:26 | 492642 DonnieD
DonnieD's picture

Apparently this paper hasn't been uploaded to his teleprompter yet.

Wed, 07/28/2010 - 15:26 | 492641 ewmayer
ewmayer's picture

Surely there is a plot for a dismal-science (even though it`s really all dismal and no science)-themed farcical movie here ... and the names of the protagonists supply the perfect title:

"Blind and Blinder".

Wed, 07/28/2010 - 16:54 | 492828 DevelopMental
DevelopMental's picture

Double Feature, I think.

To be accompanied with a re-release of Cool Hand Luke:

What we have here is a failure to communicate. Some men you just can't reach.

No one will sit in the bunks (teleprompter) with dirty pants on. Any man with dirty pants on sittin' on the bunks spends a night in the box. Any man don't bring back his empty pop bottle spends a night in the box. Any man loud-talkin' spends a night in the box. You got questions, you come to me...

You're gonna get used to wearin' them chains after a while, Luke, but you'll never stop listenin' to them clinkin'. 'Cause they're gonna remind you of what I've been sayin' - for your own good.

The New Normal.

Wed, 07/28/2010 - 15:26 | 492645 Misean
Misean's picture

I a carefully read a few paragraphs, being careful to alternate which eyeball read which sentence.  At one point one eyeball read 1 full sentence and the dependent clause of the following sentence and had to be flushed with eye wash, but other than surving, mostly unblindered I can't help but think of the following:

Miss Elk:
Oh what is my theory that it is.
Well Chris you may well ask me what is my theory.

Presenter:
I am asking.

Miss Elk:
Good for you. My word yes.
Well Chris, what is it that it is - this theory of mine. Well, this is what it is - my theory that I have, that is to say, which is mine, is mine

Presenter:
(beginning to show signs of exasperation)
Yes, I know it's yours, what is it?

Miss Elk:
Where? Oh, what is my theory? This is it.
(clears throat at some length)
My theory that belongs to me is as follows.
(clears throat at great length)
This is how it goes.
The next thing I"m going to say is my theory. Ready?

Presenter:
Yes!

Miss Elk:
My theory by A. Elk. Brackets Miss, brackets.
This theory goes as follows and begins now.
All brontosauruses are thin at one end, much thicker in the middle and then thin again at the far end. That is my theory, it is mine, and belongs to me and I own it, and what it is too.

Presenter:
That's it, is it?

 

Cheers,

Wed, 07/28/2010 - 15:27 | 492646 carbonmutant
carbonmutant's picture

Written during the "Eye of the Hurricane"

Is there a soft paper version of this?

Wed, 07/28/2010 - 15:40 | 492686 sbenard
sbenard's picture

"Soft paper"

I need some more TP too!

Wed, 07/28/2010 - 16:01 | 492748 G-R-U-N-T
G-R-U-N-T's picture

Yeah, its on a roll in your bathroom!

Wed, 07/28/2010 - 15:26 | 492647 DavidRicardo
DavidRicardo's picture

Zandi in particular is a creepy little sociopath.  Both are corrupt and mentally unbalanced.

 

Put them both on your list, comrades.

 

Don't forget to put the unctuous and creepy Leo on that list too!

Wed, 07/28/2010 - 15:28 | 492655 DavidRicardo
DavidRicardo's picture

Oh by the way.  This is totally off topic, but avoid thermal-printed paper.  The EWG released today a study saying that, unless it is recycled, anything thermal printed is loaded with BPA. 

 

Nice, eh?

Wed, 07/28/2010 - 15:34 | 492671 LeBalance
LeBalance's picture

Your receipt, sir?

Wed, 07/28/2010 - 15:36 | 492674 sbenard
sbenard's picture

"We are not sure what any self-respecting administration can do with Messrs. Zandi and Blinder but are open to suggestions."

I have an idea: TARGET PRACTICE!

Wed, 07/28/2010 - 15:38 | 492678 LeBalance
LeBalance's picture

This is so "cue the collapse" music I don't know what to say.

and in the future bars will serve the "Blinderzandi"::> 400ml of methanol.

You have to sign your life away because after imbibing that you'll be "Blinder than Andy" or if you're really drunk "Blinderzandi."

Wed, 07/28/2010 - 15:43 | 492695 equity_momo
equity_momo's picture

I suggest they would both make great candidates for a prototype food company called Soylent Green. Im sure Keynesians taste just like chicken.

Wed, 07/28/2010 - 17:38 | 492954 Clancy
Clancy's picture

Keynesians taste like runny eggs.

 

Wed, 07/28/2010 - 15:47 | 492707 stoverny
stoverny's picture

Gonna be a contrarian here and say that, if they are arguing that the massive stimulus prevented a massive and complete immediate collapse, then they are for the most part correct.

Of course we can argue that all they have done is kicked the can into the future... but isn't that the whole point, really?  A slow, controlled collapse is clearly preferable to an immediate, all-out, every town looks like South-Central LA after Rodney-King-verdict hell on earth.

People keep bringing up Japan as a negative comparison - but I think Japan is clearly the model they are shooting for.  Not great but preferable to financial and social armageddon.

Wed, 07/28/2010 - 15:59 | 492739 Jack
Jack's picture

I guess the next point in the comparison though, is what happens to Japan next?  Are they controlling their collapse, or are they making it that much worse when it finally happens.  It's a tough question to answer, I'm not sure what's better or worse in the current environment.  Some countries have been able to recover relatively quickly from a sovereign default.  Some countries wind up with a total currency collapse and societal chaos or revolution.

Wed, 07/28/2010 - 16:09 | 492770 Lux Fiat
Lux Fiat's picture

We are starting from such a vastly different point than Japan.  I fear that if we try to pull a Japan, we are going to blow ourselves up financially in fairly short order (years vs. decades).  Japan's going there as well, but as they started off with a much, much higher savings rates, it's taking them a lot longer to get there.  

As others have noted in other posts, shades of "Mission Accomplished".  Except like Bush, they are going to find out (if they don't know already) that what they are claiming and what has happened don't have much in common.

Wed, 07/28/2010 - 17:41 | 492962 Clancy
Clancy's picture

When that 20 trillion starts to move the collapse will not be slow or controlled.

 

 

Wed, 07/28/2010 - 15:49 | 492711 johnnynaps
johnnynaps's picture

Just another reason why we are where we are, economically speaking.....these idiots probably make on average 10x more than the average poster on this board. Blinder, I'll bet you your job to my job that this recession is not over. If I am correct.....I get your job and you can have my joke of a job!

Wed, 07/28/2010 - 15:51 | 492713 stpioc
stpioc's picture

Yes, as if ridicule is a substitute for analysis...
http://shareholdersunite.com/2010/07/04/keynesianism-zerohedge/

Wed, 07/28/2010 - 16:19 | 492784 LePetomane
LePetomane's picture

Austerity experiments
Last, but certainly not least, one should have a look at the countries that did actually embark on austerity, like Ireland, Estonia, Latvia. These are small open economies, so their examples are best case scenarios as their austerity was at least partly offset by increasing economic conditions elsewhere. In fact, Leo Kolivakis just wrote this on ZeroHedge:

  • Krugman is right about Ireland, Latvia and Estonia. They all implemented savage cuts, unemployment went up, as did the cost of insuring their debt, and government revenues dwindled. It has been nothing short of a monumental disaster.

 

Kolivakis is not an impartial observer.   He agrees to anything that satisfies his Pension Clientele's investment targets.  Be it pumping the stock market to high heavens with QE and/or keeping headcount in order to maintain positive contributions.

Wed, 07/28/2010 - 17:43 | 492968 Clancy
Clancy's picture

When secretary of the interior Not Sure stopped watering the crops with Brawndo unemployment went up.

 

What a friggin' idiot.

Wed, 07/28/2010 - 16:36 | 492814 zaknick
zaknick's picture

blah! 

 

Some long-winded yet vague defense of little Larry Summers' prowess as an "economist".

 

I did pass on 250 grams of gold today though!

 

Where's that guy broke in Oregon with a couple of inedible kilos of silver?  LMAO, poor SOB.

Wed, 07/28/2010 - 16:51 | 492846 OldTrooper
OldTrooper's picture

Yes, as if the same old, tired link is a substitute for observation and thought...

Wed, 07/28/2010 - 16:04 | 492756 Traianus Augustus
Traianus Augustus's picture

Victory has been declared.  All is well again in Amerika.  Timmy says its time for the rich to pay their fair share...SEC says go FU(K yourself to all transparency requests/issues...Arizona is open for (smuggling) business again.  This will not end well.

Wed, 07/28/2010 - 16:20 | 492785 Double down
Double down's picture

Over 20 pages including spreadsheets of what I just do not buy; the work....

Wed, 07/28/2010 - 16:21 | 492788 ATTILA THE WIMP
ATTILA THE WIMP's picture

Alan Blinder is a member of the Council on Foreign Relations

PS: 911 Inside Job

Wed, 07/28/2010 - 17:46 | 492975 Clancy
Clancy's picture

*sigh*

 

Remember when our shadowy overlords made an effort to be discreet?

Wed, 07/28/2010 - 22:07 | 493406 sgt_doom
sgt_doom's picture

Crap, dood, that ain't nothing.  Blinder has long been a member of the Bretton Woods Committee which, along with the Peterson Institute and the Group of Thirty are the three top power influencers around.

Wed, 07/28/2010 - 16:59 | 492865 RockyRacoon
RockyRacoon's picture

I heard them on CNBC this morning before the opening bell.  (Yes, I do watch it -- as do a lot of you.)  They got ripped by a few of the regulars including Santelli.   It was a joy to watch.  I'm still not settled on the argument but I wish they'd throw a couple more trillion at the so-called "problem" so we can get on with a right and proper meltdown.  All this dilly-dallying is boring.

Wed, 07/28/2010 - 18:14 | 493039 bearman
bearman's picture

If you want to see a real detailed explosion of Keynes and fractional reserve banking, try this:-

 

http://www.cobdencentre.org/2010/07/improper-fractions/

 

top class!

Wed, 07/28/2010 - 18:34 | 493077 RockyRacoon
RockyRacoon's picture

This is freakin' fabulous, and I'm only 1/3 the way thru it.

Thanks for the great article!

Wed, 07/28/2010 - 22:05 | 493402 sgt_doom
sgt_doom's picture

I just want to go on the record as saying that Blinder is the biggest f**ktard to come down the pike.

Blinder is to economics as an exploding toilet is to spewing feces......

Thu, 07/29/2010 - 03:20 | 493664 Privatus
Privatus's picture

Raoul Duke: There was madness in any direction, at any hour. You could strike sparks anywhere. There was a fantastic universal sense that whatever we were doing was right, that we were winning.

Wed, 04/27/2011 - 08:40 | 1210854 gbresnahan
gbresnahan's picture

Yet the Greater Depression continues, unabated..

Do NOT follow this link or you will be banned from the site!