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Hugh Hendry: "I Would Recommend You Panic"
BBC Newsnight held another great financial round table discussion (why do these occur only in Canada and across the Atlantic? Is it so difficult to have 20 minutes of commercial free debate here in the US where people can actually tell the truth?) which brought together Hugh Hendry, Gillian Tett and Jeffrey Sachs. As usual, Hendry takes it odd with a bang: "I would recommend you panic. The European banking system is in a crisis." He continues: "Let's purge this system of its rottenness. Let's take on a recession. It's going to be tough, people are gonna lose their jobs. They are going to lose their jobs anyway. We can spread this over 20 years, or we can get rid of it over 3 years." Of course, the Columbia professor, is completely against purging the system: how else can US higher "educators" continue to indoctrinate generation after generation with the flawed principles of a bankrupt ideology, and continue getting getting paid handsomely if there is an global reset? Even funnier, Jeffrey Sachs loses it when Hendry calls him out on his BS at 5 minutes into the clip. The ensuing smackdown is worth the price of admission alone.
h/t Kevin
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holy shit - I don't know who you are, but I would like to nominate you for president, sir
+1
... and I'll contribute to the campaign.
Economics should be called 'the dumb science', not the 'dismal science', judging by Jeffrey Sachs...
And Columbia is off of the list of potential grad schools along with all the rest ... Not like an MBA will be of use to me now anyway. But what the hell, gimme more debt, please. I promise to pay it off in a timely fashion. Pinky swear.
Columbia is a waste of money. You're better off with a degree from Columbia University of Birmingham, Alabama.
Paying the NY rent seekers is bad for everyone accept for the deed holders.
Didn't you hear - Obama is running the student loan program now. No worries about repaying that money...
unless you want to be an serf like myself, STAY THE FUCK AWAY FROM STUDENT DEBT. NON DIS-CHARGEABLE SLAVERY@!@!
unless you get a full ride, fuck it. the money isn't worth it.
This is a most revealing juxtaposition between a court eunuch (sachs) and a tribune of the people (hendry). What a revolting, supercilious, pseudointellectual little twat sachs is. Methinks thou doth protest too much jeffrey; a little too sensitive to challenge it would appear when your fiction is confronted by fact. Jeffrey on kneepads continues to serve his masters well. At this rate he will join his oleaginous bedfellow krugman with a Nobel.
Pass the sick bag Alice............
Keep Calm and Carry On? No.
I would recommend you panic.
http://1.bp.blogspot.com/_WWWn0RpGIow/S_6zFb1v09I/AAAAAAAAAhY/_fLsICtv47Q/s1600/panic.jpg
nice touch.
Looks like the world is going to end after all.
I'm going to take full advantage of this situation, and am possibly looking for potential investors. I redundantly state possibly potential because I entirely understand that I come across as a raving lunatic.
I want to rule China. I see the coming shitstorm as an opportunity for me to impose my own order within the chaos.
In order to do this, I need three primary resources: manpower, firepower, and transportation (which involves oil).
The first is accomplished easily, given the second two. To that end, I need firearm and motorcycle factories in India.
I wish to see every Chinaman armed with an AK and an offroad motorcycle, both of which are cheap, reliable (or at least, easily repaired), and highly effective. There are many Chinamen to arm; the larger ones will ideally carry rocket launchers.
Emphasis will be on mobility, deception, stealth, strategic / judicious use of firepower, and outplaying, obv.
I have been searching for other young, strong, intelligent men such as myself, but alas, the smart ones are all working in finance, and they feel secure.
Rob from the rich commies while their armies are off dicking around with western imperial powers, give to the poor peasants . . . and live the life every 22 year old man lusts for, that's my goal. We'll inspire young, impressionable boys (I was so young and so impressionable not long ago) with our asskicking, badassery, and scoring ass, and thus recruit.
Many of the best plays require an Ace; if I annihilate enough shit, the most powerful military industrial complex in the history of mankind will support my antics, because I will be spreading democracy by defying the CCP / PLA, and I am fairly fluent in Christian philosophy.
Invest now, and guarantee yourself good business relations with the future (de facto) emperor of the Chinese empire.
(shameless spam, second and last one I promise)
Am I allowed to do this here? lol
Well, I'm unemployed, got a large mortgage I'd like to blow off, and I like guns, bikes and Chinese women. Count me in FatAss....
Word. We'll start in northeastern India, near Tibet, which is already brimming with antagonism against the CCP . . .
I honestly can't wait, every 22 year olds yearns to joyride around, shoot at shit, and get into fine young lasses, deep within his heart of hearts.
Just need that motorcycle / firearm factory, that is my most immediate concern.
Big ones, form a line, little ones come in waves...
Props for using "badassery"
Question: How stealthy is a large chinaman with a rocket launcher on a motorcycle?
My participation rests on your reply.
A large Chinaman with a rocket launcher and a motorcycle is indeed extremely unstealthy in a literal sense; however, from a large, bureaucratic government's point of view, hordes of well organized, mobile Chinamen on offroad bikes with heavy firepower would be extremely stealthy due to the fact that they are able to advance, attack, and retreat, despite various terrain conditions (mid / west China is highly underdeveloped), with relative ease and efficiency, often under the cover of night.
Shrewd deployment of firepower shall be instrumental to "stealth."
I don't know for sure, but sometimes I feel that Genghis Khan's blood runs through my veins.
Boss doesn't need the company store debts paid as long as the debtor serves him loyally.
Let me start by saying three things, one I haven't watched the clip yet, two I don't like or trust Jeffery Sachs, and three I Fu*king love Zero Hedge but posts like this and the ensuing comments from the peanut gallery drive me crazy. Derisively refering to Jeffery Sachs as "the Professor" from fancy pants Columbia University is technically accurate, but misleading bordering on dishonest. Jeffery Sachs may have never traded futures contracts on the floor of the Merc but the man knows a thingbor two about austerity packages, bailouts and economic make-overs. Jeffery Sachs was the wunderkind face of the Washington consensus in the ninties. He was economic hitman #1 for the IMF/Worldbank oligarchs and he was the architect of the radical "shock therapy" privatization plans forced on Boliva, Poland and Russia by the international banking cabal. After seeing the damage his policies wraught on the populations of the target countries he had a change of heart policy wise and fell out of vougue as the go-to economist of choice among the ruling elite. Jeffery Sachs knows a thing or two about the economic tough love Hugh Hendry is advocating, he's been there and done it all before, several times. Disagree with him if you will fawning group thinking Durden acolytes but familarize yourselves with the history books and the man's bio first. For all you with the barbs for Tett, she may be just a lowly journalist but she spotted the CDS driven real estate bubble and called the implosion In 2005 while most hedgies were piling headlong into the trade, so once again I think respect is due even if you disagree with her policy perscriptions. If I was Hugh Hendry and had my own private island and several billion to fall back on with several billion more worth of bets on the entire economy exploding I might have a let it burn attitude as well. For the non-investor class public, I'm not so sure things are going to work out as well for them as Mr. Hendry since they rely on their jobs to eat. Apologies fir the typos, this much text is hard to edit on a iPhone.
Jerry denim old son. agree with your description of the revolting sachs... perhaps with the notable exception of jeffrey having recently undergone a moral volte face. However you are a bit arse over tit (if you will permit me) when you cleverly misconstrue hendry's prescription for the avoidance of "moral hazard" by allowing banks to fail as advocating "economic tough love." As you must surely know, the "economic tough love" will result from the sovereigns assuming the debt burden and placing sachsian "austerity measures" on their populations.
Hope I'm not a member of the "fawning group thinking durden acolytes" but I do recognize the fecal stench of dishonesty when I catch a whiff of it!
I don't think I cleverly misconstrued anything. I believe I heard Mr. Hendry correctly when he say let all the banks fail, indebted sovereigns like Greece should default and "bring on a recession". He coldly notes, "yeah we may lose a few jobs". I don't think billionaire Hendry is too worried about what that really means for the average working smuck and it sure sounds like he's advocating tough love to me. My other point was Hugh Hendry went out of his way to piss down Sach's leg as a do-nothing "academic", a "professor". A view that was even more exaggerated by Zero Hedge and parroted by almost all the commentators here, but that is not entirely accurate. Professor Sachs as it turns out has vastly more experience restructuring sovereign debt and making over entire national economies than Mr. gigantic dick Hedge Fund 'bet on me' hotshot Hendry, who for all we know is probably just talking his book (PANIC!!! SELL!!!) Sachs having seen the kind of personal hardship and pain that can result from sovereign defaults (also shouldering the guilt from the damage caused by his neo-liberal "shock therapy' regimes imposed on various economies around the world) is a bit more circumspect regarding the possibility of sovereign defaults and "purges". That doesn't seem entirely crazy to me and if that makes me too communist for zero hedge, so be it. Like I said before, I don't particularly like or trust Jeffery Sachs, I just think Hugh Hendry or anybody posting on ZH should take on Sach's ideas with some facts and analysis instead of a dick waving show of "me hedge fund master, you wimpy egg-head professor", which as it turns out is not really the case anyway.
Maybe this little op-ed from the Huffington Post is in more in line with Zero Hedge's demographic. http://www.huffingtonpost.com/jeffrey-sachs/capitalism-and-moral-sent_b_...
thanks jerry for confirming my worries about you. a most revealing post. QED.
Bullshit. Sachs knows how to pay his debts. If he has to borrow a little from Smith to pay the US and European banks he will if the time calls for it. When he needs Marx he'll borrow from him too.
Sachs can't afford to tell the truth. He couldn't in the 90s. He can't today. He is owned.
I'm always a little perplexed by folks that claim that some honest, bearish fund manager is only saying bad things because they have bets that things are going down. As if they have that kind of power, as if, like Goldman, they openly push a product while secretly invest against it, as if every other piece of data and every other honest mouthpiece, this site included, is not screaming the same.
How, exactly, does Sachs know anything about what you call the "tough love" that Hugh Hendry is advocating?
Sachs was the go to guy for a couple instances of government and international organizations massively intervening in economies and causing great harm as they did so. Hendry is, essentially, advocating that there not be intervention or at least very little of it.
So, except for Sachs's experience being the diametric opposite of what Hendry appears to advocate, he's been there and done that. It's practically old hat to him.
Let me get this straight, your qualification for respect is that he got paid by the government??? Would those be the same governments and agencies which have borrowed so recklessly and printed without apprehension so that we now stand at the precipice of monetary implosion and austerity for all? Jesus H Christ is that you Sachs?
1) To follow-up on Shylockcracy's comment,
Jeffrey Sachs is a former M.Friedman pupil and
cut his teeth in South American, as N.Klein
kinfly reminded us in the 'Shock doctrine
2) There is another serious problem cooking behind
the scenes: the Peterson Institute just came out with
a report according to which the total exposure of
American banks to European 'risks' is in the 2 trillion
range..
"2) There is another serious problem cooking behind
the scenes: the Peterson Institute just came out with
a report according to which the total exposure of
American banks to European 'risks' is in the 2 trillion
range.."
link please?
We need a flag as fu%&ing sweet option. Some of these comments are fu%&ing sweet!
I agree, the amount of coke and booze inside this forum should have killed
metric-tons of brain cells, but seems to have the opposite effect. Buckley drink
your heart out !
Jeffery Sachs, did you see the credit crisis coming in 2007? No you didn't. You thought there was "no housing bubble".
And now? Now you're chastising Hendry by saying that this issue "wasn't even on the radar screen two months ago". Stop everything. Did he really just say that?
Hendry was absolutely right to accuse Sachs of "skiing two months ago". Sachs is an academic who cannot be more out of touch. He was out of touch three years ago, and he is still grossly out of touch today.
He should be laughed at, not consulted on public television.
Sachs didn't see it coming, but you know the Fed pulling M3 numbers from the public square in 2006 ain't exactly an "all is well" battle cry.
Sachs and Co. EXIST to impose austerity ... that's why they love when the situation spirals out of control, and do nothing to stop it. It is crises that gives them the power that they crave.
The Amish have warnings about too much education. Calvin Coolidge says it well "...the world is full of educated derelicts."
Too much time in the classroom, and too little time in the world, leads to delusions of grandeur.
Here we go the famous.... "Tett Offensive"....
Gillian Tett rules....She is so good at what she is doing. I've been a regular follower of her in FT for the last 10 years.
She is not good looking...but god is she good.
Hugh Henry is an Irish moron that created the mess they are in. Let him run in the wall. He deserves it.
Hugh Hendry is Scottish not Irish. Your thesis falls at the first hurdle. Who is the moron?
Sachs' smugness reminds me of Bernanke's dismissal of Irving Fisher's Debt-deflation Theory of Great Depressions:
"Fisher’ s idea was less influential in academic circles, though, because of the counterargument that debt-deflation represented no more than a redistribution from one group (debtors) to another (creditors)"
that can be roughly translated as "Fisher's Round-world theory is stupid cos this spirit-level tells me otherwise and all the other old guys agree"
The lunatics are running the frickin asylum
You hear that idiot? Its not that Greece can PAY ITS DEBTS, BUT SERVICE ITS DEBTS, WAHT!!! Does he not understand the issue is too much debt? If you cannot pay off some of the debt this problem is going to be here FOREVER.
This really crystallizes the issue and you have to decide which side you are on.
In this corner, the system is workable so we bailout, run up huge debts to pay off debts, raise taxes, risk sovereign default, try to service the debt, hope we start growing again (inflate assets) re-inflate the bubble and everyone continues on as a "normal market participant."
In the other corner, the system is flawed, capital requirements and the regulatory environment is too permissive (if not outright fraudulent) the debts are too high and servicing the debt is impossible and too much of a drain on GDP so we reset the system.
The first way we deny the problem and the pain drags on for decades or more. In the second way we get it over with quickly but have to admit our mistake.
the technocrats vs. the traders
guess who's the pawns?
Forgive me if someone has already noted this but doesn't Jeff Sachs harbor all of those smug stereotypical traits found in most power-lawyers and from those in the halls of academe?
It's just easier to like a regular-guy working class type like Hendry. I'd also pick him in a fist-fight between the two too.
Remember this one with Hendry?
http://www.youtube.com/watch?v=E4MAifsp-8E&feature=player_embedded
"Hello, can I tell you about the real world?"
He's so quotable.
HH is right - let it crash down and let an unencumbered, leaner system prevail from the ashes.
Wow. That's one pissed off person. Definately worthwhile. I have a feeling this will somehow sneak up us on us and surpass all the other disasters we are dealing with in the most incompetant way possible
Hugh Hendry said what to Sachs?
Out of the way Peck!
http://www.youtube.com/watch?v=inj9xB49zuo&feature=related
Run Away!!!
http://www.youtube.com/watch?v=2l0xYc8zXvw
"I recommend you panic" is up there with
MsCreant's : "I'm beginning to hate everyone"!
crzyhun:
I've seen a few poeple talk about setting corporate taxes to zero. Of course
most people would incorporate themselves within the first five minuts.
We all know you can't be correct and sane simultaneously. The administration
will probably choose the later, it's easier for the people to choke on.
I see you've sent my petitions back
And my Constitution and it's all wrecked
I can't see the point in another day
Congress won't listen to a word we say
You can call it lack of confidence
But to carry on voting doesn't make no sense
I can't, I can't, I can't stand paying
....
I guess this is our last goodbye
And you don't care, so I wont cry
But you'll be sorry when I'm dead
And all this debt will be on your head
I guess you'd call it suicide
But I'm too full to swallow your lies
I can't, I can't, I can't stand paying
To understand the true depths of the professors lunacy one needs to know the relevant history of the bond market.
Check up this lecture by Niall Ferguson frrom Harvard University;
Fiscal Crises and Imperial Collapses: Historical Perspective on Current Predicaments
http://www.piie.com/events/event_detail.cfm?EventID=152&Media
The presentation starts after about 8 min
I'll 2nd that recommendation. Great little presentation. The Q&A is a must see as well.
yes yes!! everyone to watch that vid!!
How do I cash out my 401K (its only a few thousand), without
paying $#@#$ 'early out' fines ?
I'd kind of like to have my hard earned money, before some A-hole
in DC takes it for their pet-socialism project. I'm on the end of the
plank here...
Cash out and write down how much they took. Then under that write. I'm going to get this back one way or another.
Thanks Hep. At least I'll have some dignity left, and enough to by some hardware.
" He continues: "Let's purge this system of its rottenness. Let's take on a recession. It's going to be tough, people are gonna lose their jobs. They are going to lose their jobs anyway. We can spread this over 20 years, or we can get rid of it over 3 years."
All sounds logical.. except the reality that the derivitives market is bigger than the CB's . The CB,s and their lackey socialist utopians caused a casino system to arise and this new gig has forced a full 180 degree turn in the global charade, back to the future .... back to Gold.
'Lets purge the system'... is silly, because in the new brave world will be ruled by war lords, it is they who will do the purging. Without the global ponzi usury system to cover over the weakest members of humanity , only the strongest purge.
Whats really sad here is the poor socialist and commies thought after 50 years of wanting to conquer the greedy empirialist west they would rule but now they find it's all fuckin bankrupt... shit!!
WATCH YOUR RHETORIC! WATCH YOUR RHETORIC!
I want to reach into the computer screen and bitch-slap this effing a-hole.
Haha. You don't have an Organic Liquid Bitch Slap screen.
I happened to catch a clip (its hard, I think they run 70% commercials, 28% bull and 2% relevant info) on CNBC where someone was using the analogy of when Gerald Ford told New York City to "Drop Dead" after the city asked for a bailout in 1975 as an example of Republican austerity. First, Ford never used those exact words but was unfairly villified for doing so (cost him the election, some say). Second, he did deny NYC's call for help initially and third, he recanted that decision several weeks later after political pressure mounted. On CNBC, of course, no one corrected the commentator when he made the Drop Dead statement. They could not have, as they are Morans (sic).
Bigger point being...When Ford caved he officially set off the "Let's Just Sweep the Debt Under the Rug Era" and the "Its Too Big to Fail Era" at the same time. Everyone was either too dumb to care or else they were profiting from it. For politicians this is better than the "Enjoy Your Only Term In Office" strategy. Does democracy only work up to a point ? As debt is piled up, entitlement/demographic time bombs get closer to the point where the Giant Credit card is denied. We are at that point people.
Answer ? Open the borders and let's get to 400 million people in 5 years. Sorry, Bush was already playing that idiocy...
P.S. NYC is in decent shape thx to Bloomberg (no one can buy him) but New York State is in BFS...
Hendry can recommend panic, I recommend Reflection, FOFOA's latest piece.
I am more interested in solutions than panic.
In this post, it appears to me that FOFOA proposes a workable solution to our problems, rather than more analysis of the causes.
After all this time, yet to be debunked. Surely, if that can be done, it can be done by someone here?
I'd rather panic thanks.Solutions are boring. IF we fixed the mess then we'd have nothing to bitch about. What's with that!!!
Besides I profit from mayhem and disaster.
The other way is to boring. 2% inflation per year for 50 years is about as aexciting wathing Cramer hair disappear. I'd much rather have LIbor rates at 10%, The VIX at 300 and Kudlow panting that there is a bull arket somewhere.
I chuckled
If you read it, which you clearly did not, you would find it anything but boring.
Hope your trading works out for you.
Our solutions are of no practical consequence (except solutions to our own personal finances). Sure, many of us could improve the system IF we had power to do so. But no matter how much WE reflect, and no matter how brilliant are the ideas our reflections generate, Obama and Bernanke and congress and the international gangster-banksters will NOT take any actions that benefit ANYONE --- except their own megalomaniacal agendas. Period, end of story. Thus, only a totally catastrophic collapse has any chance to repair the system, with all the current generation of powers-that-be hanging from trees in town squares to remind everyone what happens to PREDATORS... albeit so many decades and decades too late.
thanks for the heads up.
" 1) It will be a phase transition, or a paradigm shift that will knock your socks off. As someone recently wrote, you can heat water to 99 degrees Celsius and it will not boil. But go one degree higher and matter itself changes form. This is a phase transition."
...the end & the beginning...
more juicy stuff:
"Those [nations] with high dollar reserves and low gold reserves areexactly the point of a gold revaluation. By the US divesting itself of one-half of its gold reserves (let’s have an audit first, however) of 261M ounces of yellow at a value of $500K/ounce, it can swap $500K for each ounce of one-half of its reserves. In the end, China and others will not have any (or at least fewer) dollar reserves and much higher gold reserves and the US will (if it has not already divested without our knowledge or consent) still have half of its reserves."
a sensible solution that would save much bloodshed indeed
one last question directed to the capt'n:
perhaps best to learn to be gentlemen peasant kings?
Just not slaves, eh?
exactamundo amigo
I wish we could at least get Mr. Hendry in the US Senate or hire him as a Presidential consultant. Simply put, he is right. This puss in boots professor from Columbia is pathetic.
I think you are all mistaken, the world is wonderful rosy place of nurturing,kindness, help thy neighbour kind sof attitudes.This will lead us to righteousness and profits. Kudlow has more than one viewer, Cramer actually makes his viewers money, and CNBC finally admits they really have an agenda.
O shit I just woke up. Christ was a dream or a nightmare?
The comments in this section make this video sound bigger and more important than it actually turned out to be. I was rather "ho hum" after listening to it.
When we move to a sensible, workable system of finance, which is not economy, and economists and bankers are paid commensurate with their productive contribution to the economy, Jeff Sachs is welcome to personally choose for himself, and his family, a life of penal-debt-servitude with severe austerity measures in perpetuity.
He's paraphrasing Andrew Mellon here, of course: pretty provocative.
Jeffrey Sachs is an idiot! And it's good to know that know-nothing idiots can teach at Columbia.
Sachs is disconnected from reality and a Farcist debt pusher to boot. I'd love to see him advocate his Kool-Aid to the rage-filled aggregate in the next European debt riot.
they won all the battles, but we had all the good songs
"Irregardless" is not a word.
Let's purge this system of its rottenness. WTF??? Impossible. The system is inherently corrupt. Let it burn.
Shame Hendry didn't call Sachs on how Greece was going to pay back debt of 150% of GDP after three years of IMF "help".
Did the Columbia dude take a drink out of an empty glass?
To do list:
Cross Columbia off possible colleges for my children.
Thank you Hugh for talking my book.
Seriously?
http://www.huffingtonpost.com/lynn-parramore/the-deficit-nine-myths-we_b...
brilliant.
thanks for posting.
university of missouri? who could have imagined ... well it would've been more of a surprise if those statements came from harvard profs.
Even though I believe the Huffington Post is a propaganda outlet, I can't even believe they posted that piece of garbage. Alice and Wonderland is more reality based.
Check here for dismantling.
http://mises.org/daily/4349
Holy fuck that was scary! I couldn't get past the first two... the only answer
seemed to boil down to 'we can print our way out of it!'
"...why do these occur only in Canada and across the Atlantic?"
Ans. Simple, because in Canada you can host something like this:
http://www.rabble.ca/news/2010/05/marxism-2010-whats-conference
And the only retaliation from TPTB and their mainstream 'news', is that they politely ignore it.
One notable exception to this almost complete disregard is that I don't think anyone will ever be able to bring up their webpage; it appears that it is more likely to be 'unavailable' than ZH in a 1,000 pt. DOW attack. See for yourself:
http://www.marxismconference.ca/home.htm
"509 Bandwidth Limit Exceeded"
Hunh, I've never seen that one before. And I'm not even a Marxist.
Regards
Kent Brockman: Professor, would you say it's time for our viewers to panic?
Professor: Mmm, yes I would, Kent.
Kent Brockman: "Professor, without knowing precisely what the danger is, would you say it's time for our viewers to crack each other's heads open and feast on the goo inside?"
Professor: "Yes I would, Kent."
those tools in the discussion are all ... tools.
i wanna tell them: "i'm gonna austerity measure your mamma."
How 'bout this:
"I'm gonna have your mum straddle me with her double bottoms and with her second leg down, i'm gonna pump her till she soaks up all the liquidity i can provide, i'm enough of a bull to break through all resistance and push her to the climax, then i just dump her and walk away without paying her fine, and even rip out her heart of gold"
Hmm?
Denninger is an odd duck, but he makes a good observation in this link:
http://market-ticker.denninger.net/archives/2355-Whistling-Past-The-Grav...
In ancient rome the "bankers" who went insolvent (money lenders) and couldn't therefore pay out because of bad loans. they were sold into slavery along with their family and all wealth was lost. until we do this again we will all keep getting screwed.
http://www.huffingtonpost.com/2010/05/27/exclusive-us-probes-goldm_n_592...
Umm, Jeffrey Sachs said there is a "reasonable chance" that Greece will be able to service it's debt in three years. Not exactly a ringing endorsement of the current policy. It would have been nice to hear the extent of the austerity matters he was proposing.
Also, Sachs endorsed the no bank dividend policy until banks are in much better shape and was not opposing a tax on banks to help offset the cost of the mess the banks helped cause. Two policies that have yet to be adopted in this county or Europe.
If Hendry is right we are screwed but what is worse is that the weenie politicians are not even adopting the measures Sachs endorsed.
The problem with a "let the market sort itself out" approach is that the people who worked at the banks whom allowed the current conditions to occur are mostly gone with enough millions in bonuses to ride out the next 20 years. Absent serious reform, new banks or equivalent institutions will appear post Hendry's purge and the cycle will repeat. There is room for prudent regulation to prevent bankers from risky behavior that rewards a select few with massive short term bonus's and no individual downside risk. Nothing is wrong with individual risk so long as the consequences of the risk are limited to those who stand to reap the rewards. Would we be in this crises if cash bonuses above a reasonable level were taxed at 80% and long term stock options as bonuses were only taxed at 20%? Many people are greedy and selfish - so what - acknowledge the reality, harness the behavior so that the system benefits, as well as the greedy bastards, and does not implode.
Just posted a EURO monthly chart ...
http://stockmarket618.wordpress.com
http://www.zerohedge.com/forum/latest-market-outlook-1
God, Jeffrey Sachs is so full of himself. You have to watch it to believe this level of ignorance, really what a pompous piece of human waste. We don't need such kind of education in our Univercities, god forbid. You don't wonder that the world economy is so screwed and hanging on to numerous bailouts. Jeffrey Sachs is the quintessence of the dominant economic thought today. Seriously, when the sovereign default cycle comes full circle and we'll have a currency crisis then, he will be still as clueless as he truly is today.
Sachs is completely blind. Hendry is a realist, but a tad too optimistic IMHO.
The alternative isn't between spreading this over 20 years or getting rid of it over 3 years : the alternative is between postponing the purge while making the problem bigger for X years with N rounds of QE and then purging the system or purging the system now. I doubt purging the system of all its rottenness will only take 3 years of recession.
It's obvious why politicians and those who advise them (Sachs, Stiglitz, Krugman, etc) rather kick the can down the road : they don't want to be in charge when we have to bite the bullet.
Purging the system is going to take long, will be very harsh and there will be chaos and wars. But there is not an ounce of doubt in my mind that we'll get there. Eventually.
The only question is are we ready to confront the problem now ?
OT:
Apparently there is legislation to restrict the freedom of bloggers, ignore the partisan hackery, take a look:
http://biggovernment.com/tprice/2010/05/27/bloggers-beware-theyre-coming...
PS: Love the video, thanks
"purge" ... "rottenness"?
hendry reads zh?
http://www.zerohedge.com/article/hoover-warned-new-deal-may-lead-fascism-asserting-war-europe-was-result-similar-planned-econ#comment-357354
The Mellon quote has been famous for a long time.
Fuck you Jeffrey Sachs you academic worthless fuck.
Here's what kills me about this--you have enablers of the banking crisis that got us here in the first place (especially Hendry) savaging a guy who almost single-handedly drove Russia to bankruptcy (Sachs), and yet they get to be on this forum talking shit to one another like they actually know what's going on? In this particular instance, I actually agree with Hendry's take on things, but my general sentiment regarding all of them remains the same: STFU. As one close friend put it, "we should just take the fuckers who fail spectacularly and execute them Chinese-style." I'm supposed to uphold the law and all that, but seriously--the long knives are already out.
I'm suprised Hendry or the skirt didn't remind Sachs that austerity may not work. If the debt death spiral is complete, austerity equals lower GDP, then lower tax receipts, then even lower GDP.
Get the pain over with. Haircut for everyone and retirement when you drop - just like the US and the rest of the world - it's coming for all of us.
Updated DOW charts :
http://stockmarket618.wordpress.com
http://www.zerohedge.com/forum/latest-market-outlook-1
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