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Marc Faber Is Shocked By How Many Ferraris And Bentleys He Sees In Newport Beach During His Smoke Break

Tyler Durden's picture


Yesterday Marc Faber first made a guest appearance at the Ira Sohn conference, warning his audience to prepare for war, then promptly shifted to Bloomberg's offices where he discussed his outlook primarily on China, but also on the US, with Carol Massar, once again warning about war. As usual, he did not mince his words, warning of a "recession", and predicting that China is simply not growing fast enough in real terms. Nothing new. He did however branch out into the topic of class divergence in both emerging and developed economies: "in front of far too many luxury hotels there are far too many Ferraris, Maseratis, Bentleys... I see a boom everywhere, except for the working class, except for the lower, middle class. But among the well to do people the wealth that is floating around and the prices you pay for high end properties is incredible, and I think that will come to an end, and a lot of people will lose a lot of money... I was in La Jolla, Laguna Beach, Newport Beach, I was in front of a restaurant smoking and I've never seen so many Ferraris, Maseratis, Bentleys and fancy cars anywhere in the world, and this is in America. I am not saying this is wrong, but there is an opulence among a small group of people that is huge when there are lots of people that are struggling. This gives me a bad feeling because I've seen so many emerging economies when they were booming, that was the time to get out." As for the US economy, Faber agrees that the only thing that can help is a massive crisis (or "conflagration" as David Stockman calls it) that jars America out of its hypnotic state. And, sure enough, it will come.


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Thu, 05/26/2011 - 19:32 | 1314871 FOC 1183
FOC 1183's picture

Never underestimate smoke breaks as a source of anecdotal research.

Thu, 05/26/2011 - 20:23 | 1315007 ??
??'s picture

take a look at Tiffany's multi year chart

says it all


Thu, 05/26/2011 - 20:37 | 1315043 redpill
redpill's picture

Another reason replacing income tax with consumption tax is long overdue.

Thu, 05/26/2011 - 20:50 | 1315072 IdioTsincracY
IdioTsincracY's picture

Of course ... since a consumption tax would hit the poorest the most ...

great idea ... bullish for Ferrari and Bentley

go ahead .. take the darn pill.

Thu, 05/26/2011 - 21:33 | 1315177 Dr. Engali
Dr. Engali's picture

How pray tell would it hit the poorest the most? If everybody pays the same flat rate it means more people have a stake in the game. If I consume $20,000 worth of goods a year and you consume $200,000 a year my tax bill will be $2,000 and yours will be $20,000. But more importantly it's fair to all involved and when it comes to voting I'm less likely to vote somebody in who is going to spend above our means. To many people in this country have no skin in the game so they don't care what Washington does. It doesn't impact them directly .

Thu, 05/26/2011 - 21:40 | 1315209 sharkbait
sharkbait's picture

Because the poor spend everything they make to survive so a consumption based tax is on 100% of their income.  The wealthy don't have to spend everything they make to survive so the tax is less of a burden.

The working class guy making $40k pa spends it all.  Let's say the consumption tax is 10%.  His tax rate is 10%.  The rich person makes 1$1mm per year and spends $750k.  So the tax is $75k.  The effective tax rate is 7.5%.  Not fair at all.  Hits the poor the hardest.

I am not a fan of progressive tax rates but I  despise regressive tax rates even more.

Thu, 05/26/2011 - 21:59 | 1315248 Dr. Engali
Dr. Engali's picture

I think the thing that people forget when they make your argument is that corporations pass in their taxes to the consumer. So there is an imbeded tax that the poor is already paying. They just don't see it. With a consumption tax there is no pass through because there are no tax breaks or loopholes. We all pay the same. And just for the record I'm a single father of three and I make around $50,000 a year. I have plenty if money to put away and save. I send my kids to a private school. I live a comfortable life I just choose to live inside my means.

Fri, 05/27/2011 - 00:21 | 1315539 nathan1234
nathan1234's picture

It's evident you dont live in the US.

Fri, 05/27/2011 - 06:24 | 1315769 Dr. Engali
Dr. Engali's picture

I most certainly do.

Fri, 05/27/2011 - 10:15 | 1316408 Thisson
Thisson's picture

How the hell do you put 3 kids through private school and save money making only $50k per year?  Where I live, preschool is $17k/year.  


Fri, 05/27/2011 - 10:28 | 1316466 aerojet
aerojet's picture

Wow, preschool?  WTF?  Ours was less than $150 a month and it was a really good one!  Maybe you live in the wrong part of the country?


BTW, I already pay a consumption tax here, it's just about 10% and it's called "sales tax."  Fuckers are robbing us blind.

Fri, 05/27/2011 - 09:31 | 1316135 RKDS
RKDS's picture

Come now, there are cardboard boxes and church shelters in the US.

Honest to God, I don't know where in the US you can raise 3 kids on $50K.  And I say this from a relatively rural area.  Just about the cheapest house I could find takes half of a $40K (pre-tax) salary!  I spent close to 8 months trying to move out, hard to do when the bank will loan $120K and even townhouses are starting at the low low price of $160K.

Out here, auto insurance is mandatory if you own a vehicle and not owning a vehicle means you move to a city with buses and pay through the nose on rent and city taxes (as if the annual 5% hike on school taxes in the country isn't bad enough).  Speaking of cars, I can't imagine this guy is driving a new one with a $400 montly payment (borrow $25K for 5 years) he living on borrowed time until his 1994 Pontiac blows a piston or transaxle?

As someone who is slowly sinking on two jobs with no prospects to improve that situation, I could probably climb out of this hole on $50K, but I'd never dream of supporting a spouse or a kid on it!

Fri, 05/27/2011 - 10:19 | 1316437 Thisson
Thisson's picture

Here in NYC, the cheapest livable apartment (i.e. clean, not above an "adult video shop", etc.) I could find in midtown was $2000 per month.  It's a 3rd floor, rickety walk-up. 

I'm a working professional making well into the 6 figures, I live frugally, and it's still very difficult to save money.  In fact, I'm considering getting a 2nd job so I can get ahead financially (although my first is already 60+ hours per week).

Basically, there is so much easy credit (and bonus cash) sloshing around NYC that the prices on everything are through the roof. 

Fri, 05/27/2011 - 10:31 | 1316482 aerojet
aerojet's picture

Seems like a real bs place to live to me.  I make almost six figs in the midwest, we have a 2900 sq. ft. house, a decent back yard for the kids, a couple of cars, a garage, a safe full of guns (yeah, fuck you NYC!) and I can still walk to some stores and restaurants. 

Fri, 05/27/2011 - 11:20 | 1316749 MachoMan
MachoMan's picture

Arkansas?  Easily?  Just take a list of the cheapest states to live in the U.S....  and get to it.

Yes, you might have to: clip coupons; buy food in bulk and freeze; not get to take vacations outside the immediate area; keep cars for 150k miles; do errands in batches to save gas; cook at least one meal a day; live in a 3/2 w/ 1400 sq. ft.; and not have every possible cable channel you can get...  but, you'll get by just fine and probably be able to do a suprisingly large amount of discretionary spending.

No sleepwalkers allowed.

Fri, 05/27/2011 - 00:32 | 1315554 jerry_theking_lawler
jerry_theking_lawler's picture

Bingo, correct, absolutley. Businesses and corporations do not absorb the TAXES. I learned that quite a few years back as a young manager in a small business. The business will pay the tax due on it products but will pass it along to the consumer up to and until the margins on its products are compressed so much that the business is non-competitive and fails. Then the tax revenue goes to 0. 

Fri, 05/27/2011 - 07:30 | 1315806 mophead
mophead's picture

"I think the thing that people forget when they make your argument is that corporations pass in their taxes to the consumer. So there is an imbeded tax that the poor is already paying."

100% correct. Not only corporate taxes, but costly regulations, etc. Everything, everything is passed down.

Fri, 05/27/2011 - 10:28 | 1316467 SilverBaron
SilverBaron's picture

I disagree.

There is what is called a supply and demand curve.  There is an optimal price and if you go above it you do not increase revenue.  Don't you think that if they could raise prices they would already be doing it?  When you raise prices, you lose customers, and if you lose too many customers, you lose economies of scale.  The prices are already as high as they can be without losing money.

Thu, 05/26/2011 - 22:12 | 1315287 redpill
redpill's picture

The wealthy also spend everything they make, it's only a matter of when. In the end, a consumption tax will cost them much more in the long run than our endlessly-gamed income tax system.

Fri, 05/27/2011 - 00:15 | 1315536 TruthInSunshine
TruthInSunshine's picture

Faber needs to dig a little deeper, because many in Cali & New York really are keeping up appearances.

HOUSE OF THE DAY: The Most Expensive Estate In Orange County Is About To Be Sold At A Foreclosure Auction
Leah Goldman | May 26, 5:26 PM 

It was originally listed at $57 million.

A June 20, 2011 foreclosure auction has been set for the $37 million Villa de Lago in Newport Beach, Calif. The mansion is the priciest listing in Orange County.The estate has a lot to offer with panoramic views of the canyon greenbelt, mountains, and Pacific. It also has an arcade, private lake, 17-car garage, and a wine cave.


Luxury home salesman, John McMonigle's McMonigle Group, built the home as a spec, hoping to sell it for $57 million. Failing to sell, McMonigle dropped the price down in July 2010, to $37 million, but soon stopped paying the monthly loans.

Read »


Remember that scene from 'Cinderella Man,' where Braddock's agent (played by Paul Giamatti) and his wife are living in a posh apartment, but they have sold off all their furniture, jewelry, art, silver utensils, and Braddock's wife drops in to complain, not knowing Giamatti is really broke?


Thu, 05/26/2011 - 22:41 | 1315352 kujo
kujo's picture

Yes but 4 grand is still 4 grand, and 75 grand is still 75 grand.

Fri, 05/27/2011 - 02:16 | 1315666 Hobbleknee
Hobbleknee's picture

This whole debate is meaningless without defining what percent the consumption tax would be.

Fri, 05/27/2011 - 09:03 | 1316050 NidStyles
NidStyles's picture

You realize they have so little because they are paying the majority of their check away before they even see the money. A person that has control over how much taxation they incur through spending alone would have more inclination to save more, rather than buying that fifth HDTV for the bathroom.

Thu, 05/26/2011 - 21:42 | 1315216 IdioTsincracY
IdioTsincracY's picture

Consumption taxes are the most regressive of all taxes. They hit the poorest the hardest, because poor people and the vast majority of middle class "consume" most of their earnings, with little or no money to save or invest.

Easy ... isn't it?!

Thu, 05/26/2011 - 22:05 | 1315269 redpill
redpill's picture

You have lots of misconceptions. The Fairtax provides a prebate such that no one pays tax on the basic necessities of life. At the poverty line the effective tax rate would be zero and it gets more progressive from there. Additionally, only new goods and retail services would be subject to the tax, the less fortunate would be able to avoid taxation by purchasing second hand goods. Less waste that way too.

However even without the prebate I challenge your notion that it would be more regressive than the income tax. Currently the very wealthy are the ones that can afford to exploit the system. They only get taxed on carefully massaged income that represents a small fraction of their wealth. The vast majority of Americans can't afford fancy tax structures, and most don't even itemize their deductions. Conversely, a consumption tax levied by the retailer levels the playing field for the lower and middle class.

Additionally, without an incentive for the rich to hide capital from income taxes offshore, there would be a flood of capital back into the US, which would provide real stimulus. The very wealthy would finally pay their fair share as they would pay tax on all their expensive cars, restaurant bills, private jet rides, etc.

Meanwhile those on a tight budget can decide to not make a purchase and avoid taxation. It's an incentive to save, which we DESPERATELY need to do as an economy and society.

The FairTax would also be transparent, and not imbedded in the price of goods like payroll and corporate taxes are.

All in all, it is a vastly superior alternative to what we have now. I would urge anyone who thinks this is a "regressive tax scheme" to rethink their reasoning and study how Americans toil under the tax system today.

Thu, 05/26/2011 - 22:42 | 1315355 Rynak
Rynak's picture

There is one thing which a "consumption tax" would not address.... it is precisely the thing which you consider an advantage: That it does not tax accumulation of wealth.

To explain why i consider this a problem, let's zoom out a bit. Why is it that in the current global hierachy, an amazingly small minority can control the rest? Well, obviously, it is that they have a lot of power (and slaves who are conditioned to accept this state of things). Wealth is one indirect form of power, because it can be used to "buy" power. Now, let me rephrase those considerations: We have this big power-inbalance, because some have much more power accumulated (and now, via central banking they even have this power guaranteed - they CANNOT lose it anymore via legal means).

In another thread, i explained that for a free market to be sustainable, there must be upper and lower limits.... without lower limits, agents may be prevented from entering the market. Without upper limits, agents can accumulate so much power that they cannot be made to leave the market anymore.

A consumption tax on it's own does not fix this at all (though, i agree that the current system also obviously does not fix it, so in this regard, your proposal is not worse - just not better).

I do consider a consumption tax an interesting and useful tool - but i do not consider it "the one tool to fix it all".

Thu, 05/26/2011 - 23:18 | 1315445 redpill
redpill's picture

I disagree, because today the vast majority of society is in the shackles of debt. A system that rewards saving instead of penalizing it helps address some of that imbalance. Obviously there are many non-tax factors as well that can't be fixed just by making the tax code vastly more efficient and fair, but it's still a worthwhile endeavor.

Thu, 05/26/2011 - 23:30 | 1315464 Rynak
Rynak's picture

That it would be efficient NOW, does not automatically mean that it will be efficient permanently. To put it simple: If you have an inbalance in one direction, a bias into the opposite direction will steer the system towards balance.... until it swings into the other direction.

Fri, 05/27/2011 - 09:18 | 1316104 NidStyles
NidStyles's picture

What a spurious argument. The realities of life do not change just because the date does.

Fri, 05/27/2011 - 10:27 | 1316460 Thisson
Thisson's picture

It's not a spurious argument at all.  Obviously, too much debt can be problematic.  Too much saving can be problematic as well.  There needs to be a proper balance, and the mechanism for determining that balance should be price discovery of interest rates and time preferences.

Thu, 05/26/2011 - 23:33 | 1315466 nufio
nufio's picture

i think there should be an inheritance tax. that solves the accumulation of dynastic wealth problem. I think people should be allowed to accumulate as much wealth as they want in their lifetimes.. but if they pass it on to somone that gift should be taxed.

Fri, 05/27/2011 - 07:43 | 1315818 mophead
mophead's picture

I'm sure you'll change your mind if/when you become wealthy and have children.

Fri, 05/27/2011 - 09:17 | 1316112 NidStyles
NidStyles's picture

That's a ridiculous class warfare idea. What's wrong with people wanting to leave something behind for their children? What about general estate, the only thing that doea is whittle down what a family can hand down through the generations. That's like saying I shouldn't be able to build up wealth to help my children and their's as well, because it's "immoral" to look out for my family.

Fri, 05/27/2011 - 08:58 | 1316027 Dr. Engali
Dr. Engali's picture

I disagree for a free market... a true free market.. to be sustainablewe have to have no government distortions. Which means that the rich have to be allowed to fail too if they make a bad bet. No bail outs for anybody. As long as there are bail outs the wealthy can make all the bad bets they want and accumulate wealth risk free. But if they are allowed to fail they will be more prudent with risk. There is no way that GM ,Chrysler, Goldman slacks , Bank of America.....the list goes on, should be around. They should have been allowed to fail and there wealth would have been destroyed.

Fri, 05/27/2011 - 00:43 | 1315572 Things that go bump
Things that go bump's picture

Save?  Save?  My parents saved all their lives only to see everything they sacrificed for and denied themselves for get eaten up by inflation, so that my elderly mother, who did everything right and so expected to have some comfort in her old age, now has to watch her pennies and deny herself her little pleasures.  The same thing happened to her parents, as well.  I converted my savings into tangibles and any saving I do will certainly not be done in fiat, because now I know that game.   

Fri, 05/27/2011 - 03:10 | 1315689 longorshort
longorshort's picture

Assets have bubbles too, and now is a time of asset bubbles.  This will end badly.

Fri, 05/27/2011 - 07:25 | 1315795 Crisismode
Crisismode's picture

Depends on what assets you are talking about.

Firearms, ammo, garden seeds, hand tools, water, food, arable land, energy-effieient housing . . . . these are all things that are true assets in difficult times and investing your capital in them is never a losing proposition.

Fri, 05/27/2011 - 10:13 | 1316395 gmrpeabody
gmrpeabody's picture

I am sure that the rich and uber rich would love a flat rate consumption tax. Shark is quite right, the working stiffs will be paying on all their income, while the wealthy pay on a small portion of theirs. Yet the wealthy will have mounds left over to earn even more tax free money, and the separation between them and the rest will widen dramaticallyy until the Feudal system is complete once again. The rich and really rich will truly have a cast system for their future clones that will give them greater and greater advantages as time goes on. If you are in their circles, then surely you think this kind of tax is fair.

Fri, 05/27/2011 - 10:29 | 1316473 Thisson
Thisson's picture

How is that different than what we have now?

Thu, 05/26/2011 - 21:28 | 1315173 Shredd the FED
Shredd the FED's picture

You just explained to me how the "Demand Destruction" (plans of the Bilderberg Group) will occur. Americans will start buying and consuming less, and less, so the demand for goods will be smaller and smaller... And of course the manufacturing, shipping, commodity consumption will be decreasing… And of course less jobs, less income, less tax revenue, more money printing, and eventually what…???

Thu, 05/26/2011 - 22:28 | 1315333 redpill
redpill's picture

We need less consumption in the short run, our savings rate is negative or zero, depending on what measure you want to use. In the long run, however, consumption would increase because it would be driven by savings that had been accruing interest (as opposed to debt that costs interest, which is what spending is fueled by today).

Fri, 05/27/2011 - 09:20 | 1316131 NidStyles
NidStyles's picture

Demand will not go down. The thing's that are needed in life will still be in great demand. Thing's like TV's are not conductive to creating prosperity.

Thu, 05/26/2011 - 22:17 | 1315305 MrBoompi
MrBoompi's picture

Fair Tax is 10 times more of a give away to the wealthy than any of the tax cuts we'vre seen over the past decade.

Thu, 05/26/2011 - 22:27 | 1315324 redpill
redpill's picture

How so? They'll wind up paying taxes on a dramatically higher percentage of their wealth than they now. You should think outside the box of declared income, because it does not equal wealth, for the wealthy.

Fri, 05/27/2011 - 04:39 | 1315724 BlackholeDivestment
BlackholeDivestment's picture

People that fear freedom are lost and delusional, they have no clue what equality and balance mean, they can't even imagine it because, they have never known anything but the current claim of dominion now upon this generation and they are still willing at this point to defend the failure. They don't come to the Fight Club but to seek and disrupt. They will kill you when you attempt to stop them from suicide. Commerce Tax only, don't even try to explain it to them, if they protest at this point, they are lost, that is a fact. Time is up for morons, they are dead and they want you to perish with them. Just ask the idiots ''is the Truth is a choice'' and ''what is the meaning of life''. Give them warning of their time limit, 3 seconds for each answer. If they don't answer ''no'' and ''love'' in 3 seconds, you know for sure they are out of time at this point, as far a among those that would offer protest against the commerce tax which sustains labor. By the time they might become deprogrammed by the Fight Club, their suicide will be completed.

Nice effort though.

Fri, 05/27/2011 - 11:03 | 1316651 Hamsterfist
Hamsterfist's picture

Besides just saying that, I want to see the projections and charts.  Compare what a family making $50,000 a year typically pays in taxes to what they would pay under a 10% consumption tax.  Next, show me what someone making $1 Mil pays in taxes now to what they would be projected to pay under a consumption tax.  Lastly do the same for someone making $10 Mil a year.  Instead of just basing all your assumptions on opinion, put your fucking fingers to work and show us the proof.  

I will admit that I have a misinformed opinion on this, but my guess is the rich will be paying significantly less then they currently do.  That is not to say the working class will pay much more, I don't see that either.  Overall it just seems like a nice little scam to further enrich the top 1%.  Like you though, I am basing all this on opinion and have yet to prove anything.  Show me, convince me, stop just spouting bullshit.  

Fri, 05/27/2011 - 13:40 | 1317445 redpill
redpill's picture

There are several books on the subject, they go through much of this in far greater detail than we can here.  Most of them are written in a clear way too, not thick econo-speak.  If you search for FairTax on Amazon you'll see a number of them.  Some for, some against.  IMHO the ones written by Boortz and Linder are the clearest and most straight forward, so I would start with those.  They include estimates for the numbers you are asking for.

Really the point we are discussing here is what is often referred to as the "tax gap" - in other words, how much income is made but not taxed, when it probably should have been if the tax system were fair.  The avoidance can either be legal or illegal, but the central point is that for the vast majority of Americans the tax gap is zero (or negative, actually, since if anything many Americans could have more write-offs than they do).  Where the tax gap gets huge is for the very wealthy, because they have all sorts of ways from sheltering their income from taxation (not showing it, having it deferred, offshoring through corporate entities, etc).  I don't blame them for doing that, it makes good sense to protect your earnings from taxation.  But the reality is that we wind up with a very skewed system wherein the ultra-wealthy get many tools and advantages when it comes to the tax code, the poor don't pay a whole lot in taxes anyway but certainly don't gain any advantage from it as it is currently written, and everyone in the middle gets pinched because they don't have the resources to exploit the system, but they still make enough to bear the full brunt of taxation.

If there were no income tax, there would no longer be a need for the wealthy to keep their money bottled up in tax shelters.  There would be no reason to keep it in the Bahamas or in Switzerland.  That single aspect alone would be a huge benefit for our economy, no longer would there be so much economic limitation on capital, no longer would capital gains taxes evaporate profit on risky ventures.  Instead of government pouring printed-liquidity into the economy in hopes activity becomes self-sustaining, we would have individual actors making calculated investments without concern for the tax consequences.  The billions of dollars wasted every year on tax compliance issues would be free to be put to productive use instead.  In reaping the benefits from a more efficient and productive economy, paying a retail consumption tax is going to be the least of peoples' concerns.  But it's also much harder to avoid than the income tax, and cannot be as easily exploited by the ultra-wealthy.  Since all wealth is designed to ultimately be spent, essentially a lifetime's worth of income from the wealthy will be subject to tax, regardless of how it was made and regardless of how they may have sheltered it in the past.

For reference the main economist championing the FairTax is Laurence Kotlikoff, whose musings have been featured on ZH on several occasions.  Point being, there is rigorous and credible study behind the plan, and it's worth serious consideration.

Mon, 05/30/2011 - 19:28 | 1323418 BlackholeDivestment
BlackholeDivestment's picture

There are friends that spend $50K to go fly to get a hot dog, and other friends that are homeless. I take it your friends work for the government or listen to NPR? Get off the Treadwheel of Punching Yourself, meet some people Hamsterfist, and figure it out for yourself. If you stay on the wheel too long you end up too punch drunk to figure it out on your own? Isn't the cage beyond rusted for you by now?

Fri, 05/27/2011 - 04:35 | 1315722 Banjo
Banjo's picture

You need a capital tax and flat 10% consumption tax.

Anything up to a 1million capital is free. After that it's graded

There is a certain % of capital tax that is levied. So if you inherited 400mil like Paris Hilton you get to give back 0.5, 1.0, 1.5% each year. You continue to build value or end up at 1million in tax free capital.

It would be different and the system would adjust, there is no law of the universe that says things have to be this why where the top 1% of the global population owns > 50% of the worlds wealth.

It's vested interest. However I beleive things will have to get much worse before they get better.


Fri, 05/27/2011 - 06:03 | 1315757 I Am Ben
I Am Ben's picture

how bout taxing the fed instead?

Fri, 05/27/2011 - 11:10 | 1316671 Youri Carma
Youri Carma's picture

Yeah, ahahaah lOlz

Thu, 05/26/2011 - 20:40 | 1315057 samsara
samsara's picture

That's right. If you want to know what is happening in a company,  hangout in the smoking area.  It's the only area where all levels of the company go and talk to each other. 

  A common bond so to speak.  A fellow smoker.  You can learn a lot of what's happening.

Thu, 05/26/2011 - 22:44 | 1315369 kujo
kujo's picture

I do miss smoking, but I miss the smoke breaks more.

Thu, 05/26/2011 - 19:31 | 1314877 Spalding_Smailes
Spalding_Smailes's picture

I thought this doomer™ would be flipping burgers with Gonzo Lira by now ... 

Thu, 05/26/2011 - 19:33 | 1314883 baby_BLYTHE
baby_BLYTHE's picture

He said BUY treasures late 2010. Who is the bitch now?

Thu, 05/26/2011 - 19:43 | 1314894 JW n FL
JW n FL's picture

take it easy Baby.. we are trying to find a nice boy for you, if you are smarter than him.. that will scare him away, you have to be smarter and not let them know that they are stupid.. LOL!


Gettum' Girl!

Thu, 05/26/2011 - 19:58 | 1314925 knowless
knowless's picture

deception is destructive, as it feeds a feedback loop of misdirection and uncertainty.

intelligence should only be understood in relation to application, not as a general principle.

Thu, 05/26/2011 - 22:43 | 1315366 TheFourthStooge-ing
TheFourthStooge-ing's picture

Completely agree regarding deception, as it poisons trust. A relationship that lacks a solid foundation of trust is on shakier footing than a poorly designed nuclear plant built on a coastline near a subduction zone fault with a history of major earthquakes and tsunamis.

What JW n FL says about the reaction of men to smart women may be true in a lot of cases, but I would attribute this to the fact that, by definition, half of men are of below average intelligence. While I have genuine appreciation for a nice rack, I think intelligence is a bigger factor in what makes a woman hot.


Fri, 05/27/2011 - 02:03 | 1315653 Hook Line and S...
Hook Line and Sphincter's picture

'half of men are of below average intelligence'

uhhh, do you think you might state the obvious more clearly... that would be 49.99999% of them, right?

or are you talking about the lower half of men (from the belt down)?

Thu, 05/26/2011 - 21:35 | 1315195 Antarctico
Antarctico's picture

I still say it's even odds that our young miss is actually a fat, balding, 50-year old dude with a fab collection of sweat-stained wife beaters living in his mom's basement. ;D

Fri, 05/27/2011 - 02:06 | 1315660 Hook Line and S...
Hook Line and Sphincter's picture

I've been saying that since 'she' showed up. At first I thought .gov, but now I've changed my tune to thinking its a guy wearing women's underwear in front of a keyboard (like me, but mine are black lace and I've got a cape on!)

Fri, 05/27/2011 - 07:31 | 1315808 Hephasteus
Hephasteus's picture

Cool story bro.


Fri, 05/27/2011 - 09:48 | 1316268 Antarctico
Antarctico's picture

Capes are good, I was just saying recently how I thought they were about due for a come back.

Thu, 05/26/2011 - 21:17 | 1315149 legal eagle
legal eagle's picture

Daddy complex

Thu, 05/26/2011 - 19:31 | 1314878 baby_BLYTHE
baby_BLYTHE's picture

Marc is the best of the best! Thanks for the heads up, Tyler.

Thu, 05/26/2011 - 19:57 | 1314923 rocker
rocker's picture

He is more honest than most would here on any financial outlet.  He told us to buy gold years ago.

He said Bernanke would make all asset classes go up. He has been on the money so far.

Thu, 05/26/2011 - 20:06 | 1314955 baby_BLYTHE
baby_BLYTHE's picture

He said early summer 2009 gold would never go below $1,000/oz again. Shortly after I bought most of my gold
around 1,060/oz. He is one of the few that is not bought off and will tell you the straight truth every time. Mucho respect. I hate liars like Bernanke.

Thu, 05/26/2011 - 20:20 | 1314997 disabledvet
disabledvet's picture

actually i've grown to appreciate "liars like Bernanke"--that is "relatively speaking" of course.  you sounded disappointed in men earlier--and now look!

Thu, 05/26/2011 - 20:38 | 1315044 Rynak
Rynak's picture

To me, she just generally sounded disappointed in the "ruling class" as well as the sheeple.

Had this problem years back too. Cared too much about people who do not care about me. Identified too much with a species that behaves, thinks and feels completely different to me. After enough disappointments (actually, more than "enough"), it someway made "click*. Burned down my emotional connection to the human species, and began to be selective about whom i care about. Perhaps the best change to myself i ever made.

Thu, 05/26/2011 - 20:55 | 1315091 tarsubil
tarsubil's picture

A sociopath is born everyday.

Thu, 05/26/2011 - 20:56 | 1315099 Rynak
Rynak's picture

Go troll someone else zealot.

Thu, 05/26/2011 - 21:10 | 1315137 tarsubil
tarsubil's picture

There are trolls (Robotrader), lunatics (lizard conspiracy people), morons, and people with differing opinions (Flakmeister). I think you are a moron. Me? I'm a dick.

Thu, 05/26/2011 - 21:25 | 1315165 Reese Bobby
Reese Bobby's picture

I can vouch for him.

Fri, 05/27/2011 - 10:56 | 1316598 viahj
viahj's picture

"as long as we have a voucher"

Thu, 05/26/2011 - 21:12 | 1315132 breezer1
breezer1's picture

" without conscience", by robert hare. and his later addition ' snakes in suits'. a real education.

Fri, 05/27/2011 - 06:30 | 1315772 ibjamming
ibjamming's picture

The weak have a lot of words for the more powerful.  Sociopath...that's what they call people who have "woken up" and don't believe the "social bullshit" men and women are equal, the races are equal, stuff like that.

All the REAL men...are in prison.  That's where they put you when you don't line up with the girls...

Fri, 05/27/2011 - 10:05 | 1316359 Jerome Lester H...
Jerome Lester Horwitz's picture

Yeah, all of those convicted rapists and murderers are real men, alright! What you consider to be the measure of a man is rather skewed!

Thu, 05/26/2011 - 19:39 | 1314887 Biosci
Biosci's picture

California is the spiritual home of car country.  If you go looking for excess, La Jolla is a good place to start.  I've seen three Teslas in the last six months -- all different colors, so unlikely to be the same car -- and an uptick in the frequency of Maserati sightings.  But they're always black, so hard to say.

Full disclosure:  2004 Honda.

Thu, 05/26/2011 - 20:25 | 1315002 redpill
redpill's picture

Teslas are only 100k. Cruise PCH up in Newport at 7am on a Saturday for a real show.

Thu, 05/26/2011 - 20:54 | 1315079 malek
malek's picture

Marc Faber should also give us a comparison to Zurich's Bankenviertel on a sunny warm Friday afternoon.

Fri, 05/27/2011 - 02:09 | 1315662 Confused
Confused's picture

Funny you should say that, I was thinking the same thing. However, from my experience there, Zurich doesn't have as big a disparity of wealth. Are there insanely wealthy people? Of course. I've never seen so many expensive cars in all my life as I have in Zurich. But most people there are "middle" class by Swiss standards. The same can hardly be said for California, or anywhere else in the US for that matter. 

Thu, 05/26/2011 - 21:29 | 1315166 Ropingdown
Ropingdown's picture

From the east coast.  I sat in a restaurant in Laguna Beach two years ago watching so many Ferraris stuck in very slow traffic. It made me laugh.  Happened again last year. (cousins in the area).  Does Faber realize how cheap a Ferrari is compared to a well-built mansion on either coast? Christ, I could by a Ferrari without noticing much, and I'm poor.  Could I buy a 47 mil mansion.  Noooo.  Marc shoud by a Ferrari.  He'd realize it says nothing about the US economy.

Thu, 05/26/2011 - 23:32 | 1315469 nufio
nufio's picture

ha ha.. u poor sucker

Fri, 05/27/2011 - 15:21 | 1317879 mkkby
mkkby's picture

Very true.  What Faber and most on ZH don't realize is CA is the land of show and tell.  Poor and average people will borrow what ever they need to appear wealthy and successful.  When a kid gets his first decent job, he goes right out and leases a fancy car.  Find out how many of these luxury car owners owe money on it.  Then you'll understand.

Thu, 05/26/2011 - 23:41 | 1315480 stirners_ghost
stirners_ghost's picture

I've never seen so many Porsche Cayennes in the same place at the same time, than the La Jolla Elementary drop-off line.

Fri, 05/27/2011 - 10:32 | 1316492 aerojet
aerojet's picture

Try DC--When those damn things first came out they were everywhere!

Thu, 05/26/2011 - 19:38 | 1314889 km4
km4's picture


Base salaries for Newport Beach lifeguards range from $58,000 for the lowest-paid officer to $108,492 for the top-paid battalion chief, according to a 2010 city report on lifeguard pay.

With overtime only added in, more than half of the 13 cleared $100,000 and the rest made between $59,500 and $98,500. Adding in pension contributions, medical benefits, life insurance and other pay, two battalion chiefs earned more than $200,000 in 2010, while the lowest-paid officer made more than $98,000.

The ensuing debate over the merits of having lifeguards as well-paid as some CEOs has divided this wealthy coastal city, spawned a pro-lifeguard Facebook page and created headlines as far away as England ("Time for a Career Change? California's Baywatch lifeguards paid up to $210,000 per year!").

Newport Beach's lifeguards can retire at 50 with 90 percent of their salary with 30 years of service, according to state data.

Another reason why Cali is a basket case ;)

Thu, 05/26/2011 - 19:45 | 1314906 cxl9
cxl9's picture

Don't forget the extra "allowance" they receive for sunblock and sunglasses, on top of their pay and benefits.



Thu, 05/26/2011 - 20:07 | 1314960 JW n FL
JW n FL's picture

whn affordable housing is in the $250k - $300k range for any local its hard to make the sheep understand what broke really is.

Fri, 05/27/2011 - 11:26 | 1316777 sherryw
sherryw's picture

Surf Lifesavers in Australia are mostly volunteers, and they're very highly trained. 

Thu, 05/26/2011 - 19:42 | 1314897 Ferg .
Ferg .'s picture

Anyone else notice Faber's ponytail ? He is the man . 

Thu, 05/26/2011 - 20:29 | 1315022 I Got Worms
I Got Worms's picture

He ought to take out the rubber band and wear a skullet.

Thu, 05/26/2011 - 21:01 | 1315103 FOC 1183
FOC 1183's picture


Thu, 05/26/2011 - 19:44 | 1314902 kengland
kengland's picture

Christ...where have you been Marc? It's been that way for at least 20 years in that area. Have you been to Fashion Island? That hasn't changed in years

Thu, 05/26/2011 - 22:32 | 1315341 TempFlashback
TempFlashback's picture

Speaking of Fashion Island, Pimco is set to move into a brand-new 20 story HQ there:

Thu, 05/26/2011 - 23:13 | 1315443 I am a Man I am...
I am a Man I am Forty's picture

1% on several billion starts to add up, pimpco money has to go somewhere

Thu, 05/26/2011 - 19:47 | 1314904 lolmao500
lolmao500's picture

In other news, Switzerland is going nuts :

Sex education for 4 years old

Senate votes to extend Patriot Act's roving wiretaps, records search

Senate panel OKs controversial antipiracy bill

Thu, 05/26/2011 - 20:13 | 1314970 JW n FL
JW n FL's picture

I need an esquire to File Suit in Federal Court Against the U.S. Government.. more over the President of the United States of America. Pro Bono in the name of Fight Club!


The Law Suit is for breach of the Constitution for bringing home the U.S. Army and now Training the U.S. Army to operate Against "We the People".


Who wants to get some T.V. face time for themselves and for Tyler here.. we want warm bodies to educate we have to up our visible profile.


I am looking for feedback and ideas to make as big a splash as possible! so if you have something that will help, speak up! even if you think its small! speak up! every little thing matters and helps! SO PLEASE!!! Speak Up!


Obama? dont know.. maybe those who would like proof he is able to make decisions as president can add some language!


this suit could cover a LOT of ground and be of real use to people..


the problem is NO ONE wants to step up and get into a fight.. so! I am! volunteering Fight! Club!! and thusly myself! to take in on the chin!


I am looking for people to help with ideas..

I am looking for people to help spread the word.. because NBC will not run the Federal Law Suit on the National Nightly News!

I am looking for an esquire who wants the face time..

I am looking for people to donate to cover filing fees! or whatever the esquire may need to file!

I am looking for a bean counter to run the donations..

I am not king of this lil operation.. it’s just an idea that I am putting forth to "We the People" of "Fight Club" so that it can be all it can be!


once again this Federal Law Suit could cover a LOT of Ground of the input is offered! so if you want it to be Great! open your mouth and help out!

Thu, 05/26/2011 - 20:55 | 1315092 AGuy
AGuy's picture

Sounds like a great way to get a free airline ticket and long term stay at gitmo and the US gov'ts expense!

Thu, 05/26/2011 - 23:20 | 1315450 JW n FL
JW n FL's picture

if I am going to cuba it would be for fishing not for staying in a jail cell! you would have to see cuban snook to understand!

Thu, 05/26/2011 - 20:56 | 1315096 legal eagle
legal eagle's picture

Talk to the ACLU. You will find that in most cases the goverment has constitutional immunity. The streets, not the courts, is where this will be resolved.

Mon, 05/30/2011 - 18:46 | 1323336 calltoaccount
calltoaccount's picture

non-violent dancing protesters at Jefferson Memorial violently arrested:

Fri, 05/27/2011 - 02:22 | 1315672 Hook Line and S...
Hook Line and Sphincter's picture

I was considering getting together a group of ZH'rs to swarm target talk show radio hosts. We could rush Rush, or incessantly bombard that myopic Hannity. Mentions of ZH, We all could be a 'Tyler Durden' (to increase cross searches on goog, etc). We wouldn't limit it to one subject. Open some eyes, create avenues for those who are ready to move beyond neocon propaganda.

Fri, 05/27/2011 - 06:32 | 1315773 Hephasteus
Hephasteus's picture

Hey that's a great idea!!! And we could sing christmas carols too.

Fri, 05/27/2011 - 15:38 | 1317944 mkkby
mkkby's picture

All we need to do is opt out.  Convince people to pull their business from large banks;  Stop shopping for consumerist crap.  Only buy what you need.  This will bring the system down without firing a shot, or wasting time with corrupt judges and politicians, who will never give in.  If a small percent of us do that it starve the beast.

The banks have huge leverage.  Pull your business and they fail.  Quickly.  Just like Lehman, Bear and Wamu.  Stop consuming and tax revenues and corp profits crash.

Read Sun Tsu.  (It's free at my local library and it's gotta be online in a million places.)  You never, NEVER, attack a superior force head on.  You get em in a soft spot until they weaken and die.  Opting out is the weak spot they have no defense against.


Fri, 05/27/2011 - 15:47 | 1317961 mkkby
mkkby's picture

Get a car loan for a ferrari (from a NY-based bank, not the dealer) and promptly drive it to another state.  Don't even make the first payment. 

Max out your credit card for gold bullion.  Same idea.

Everyone do that.

Thu, 05/26/2011 - 21:00 | 1315108 tarsubil
tarsubil's picture

The antipiracy crap really burns my bacon. It isn't piracy. It is sharing information. They are prosecuting possession of information for the purpose of protecting an obsolete entertainment industry centered on distribution. It is so stupid, it makes me want to use a super sass on every worthless music industry exec.

Fri, 05/27/2011 - 10:40 | 1316545 aerojet
aerojet's picture

Don't worry about it.  This move will only engender a new domain name system design that is completely decentralized and cannot be shut down.  They will counter with filters like China has, and that doesn't work, either.  Once the information is out there, you can't shut it down.  We'll soon have our own ad hoc networks via wireless, it's already out of their control.

Thu, 05/26/2011 - 19:50 | 1314909 honestann
honestann's picture

All those super expensive cars belong to:

#1:  Predators in predatory financial corporations.

#2:  Showoffs who put 5% down and shall default.

Thu, 05/26/2011 - 21:04 | 1315121 tarsubil
tarsubil's picture

I think it is all #1. I think the nice middle class cars like BMWs, Mercedes et al mostly have 5 percent put down or leased.

Thu, 05/26/2011 - 21:42 | 1315214 Tapeworm
Tapeworm's picture

Nah, those are Linda Green's cars.

Sat, 05/28/2011 - 19:36 | 1319970 honestann
honestann's picture

Exactly!  Good one.

Thu, 05/26/2011 - 19:48 | 1314910 buzzsaw99
buzzsaw99's picture

"in front of far too many luxury hotels there are far too many Ferraris, Maseratis, Bentleys...

Yeah, that's gonna change. :roll:

I think that will come to an end, and a lot of people will lose a lot of money...

With Helicopter Ben at the controls? Sneer + Smirk = Snerk. Impocerous!

Thu, 05/26/2011 - 19:52 | 1314913 Reptil
Reptil's picture

oh yeah, same here. (europe) some places where the happy few flock together, impervious, it seems, to the world around it. like inside the tent of a moving circus.

Thu, 05/26/2011 - 19:55 | 1314920 Caviar Emptor
Caviar Emptor's picture

Hate to say it, This is the glorious outcome of 3 decades of Reaganomics. It's not a side-effect: it was intended. The rich got richer. Much richer. But the wealth effect did not trickle down as was hoped. 

Reganomics was just an earlier version of "Hope and Change". It was as misguided as it was deliberate in what it created: a distinctly 2-tiered society. 

The lesson was learned (too late) that when wealth is accumulated by rich individuals, it does not get "put back into the economy" or even significantly "invested". It gets hoarded. It gets put into jewelry, high-end art and wine cellars, boats, foreign cars, foreign clothes, foreign fashion and villas in the South of France. It gets parked in tax haven countries. And it gets put into gold and precious metals. The greater the degree of capital accumulation, the less the degree of risk accorded that capital. Not even blue chip stocks. 

As for the rest of people, an economic model based on eagerly tendering credit cards by aspirational wanna-bes is not a remedy for a sustainable prosperity. 

Thu, 05/26/2011 - 20:38 | 1314940 Shell Game
Shell Game's picture

It goes back much further than the 80's and Reagonomics.  It even goes back further than 1971 when Nixon left the gold standard.  So many bricks in this wall of shame..


Thu, 05/26/2011 - 21:16 | 1315148 tarsubil
tarsubil's picture

I don't really agree. There is always waste with the rich, but everyone wastes money. The issue is do the rich produce something that makes up for the money they waste or are they raping the system to steal money legally? Too many today are parasites that got their riches from financial/government/contractor fraud not from technological or business innovation.

Fri, 05/27/2011 - 01:50 | 1315374 Renfield
Renfield's picture

Why do you hate to say that? OF COURSE Reaganomics was 'hopenchange'. I called the propaganda bullshit at the time and I was only in my mid-teens - it was that obvious.

The rich are not and have never been known for spreading their wealth around to the masses. NEVER since feudal days. Any politician who said they would suddenly change and do this was quite obviously lying.

My husband and I are not rich - we are poor - but not destitute either, which makes us 'rich' by comparison to nearly everyone we know (assets - liabilities = zero or less).

When we spend our income, it's on hard money, assets that will appreciate over (a great deal of) time, and/or stuff we can consume that will probably be more expensive later. Our whole thought is how to accumulate as much as we can, while spending (putting into the economy) as little as possible. Our goal is to 'trickle down' as little as possible, for as much value as possible, which goes nowhere but into our small but slowly growing estate.

We differ from our friends in this - they rarely think about long-term value, and often spend their income on toys (often the 'built-in obsolence' kind), flash (like cars), trips, etc. Very little if anything that lasts. Which IMO is a big reason why most of them are destitute, even when their income exceeds ours by a large number.

Many (most?) of those Ferraris are simply a visual example of 'shirtsleeves to shirtsleeves in 3 generations', IF they are fully paid for at all. Appearances are deceiving. Our friends drive flash cars, moan about gas prices, throw debt into overpriced uni degrees, and when you subtract their mortgages and other debt from their assets, not only will never be able to retire but are basically destitute right now.

All a Ferrari says is 'I spent a lot of money'. It doesn't show any *value* judgement, and the difference between rich and poor IMO is being able to judge value. The long-term rich generally do have some concept of value and that is why they will spend as little as possible, in return for something that will appreciate and will never leave their estate.

THAT is not a recipe for 'trickle-down' (i.e., spreading all that wealth around so it overflows into the hands and pockets of the poor).

The myth of St. Nicholas was a wealthy man who secretly left gifts on the doorsteps of the poor by night. But hopefully today, we've evolved enough to bust the 'trickle-down' lie, which I've always thought of as Santa Claus for grownups.

Fri, 05/27/2011 - 10:46 | 1316565 Watauga
Watauga's picture

President Reagan's leadership in a very difficult time led Washington to make changes that created enormous benefits for the vast majority of Americans.  Look at the U.S. in 1980, then again in 2000.  Tell me that that what "Reagan hath wrought" was not good for most Americans (at least materially).  The problem is that Clinton's era, particularly after Republicans mismanaged their opportunity following the midterm elections, resulted in more government, period, which resulted in the stupidity of things like Barney Frank's insistence that those on welfare deserved three-digit home loans and, by gosh, they would have them.  GWB wasn't strong enough to fight big government interests, and his foolish pie-in-the-sky, no-kid-left-behind mindset only promoted those interests.  The Democrats after 2006, and particularly after the election of 2008, have done more harm to the United States and the cause of liberty and free enterprise, than any group of people in American History.  What they have done, in fact, along with their Wall Street cronies and Republican friends, will bring down the Constitution and create economic, social, and political upheaval before all is said and done.  The only question remaining is whether it was deliberate or just stupidly negligent.

Fri, 05/27/2011 - 11:41 | 1316882 tarsubil
tarsubil's picture

"GWB wasn't strong enough to fight big government interests..."

Give me a break. He wasn't interested in fighting. He was elected as part of identity politics. His father was George "NWO" Bush for crying out loud. Playing cowboy doesn't negate that fact. The idea that he was against big government is just delusional.

Thu, 05/26/2011 - 19:56 | 1314931 Azwethinkweiz
Azwethinkweiz's picture

It's not just La Jolla. A quick drive around Calabasas and you'll see the latest model Bentley, Porche or Ferarri---in every make and model. Same thing at the border of Ventura County, brand new $250,000+ cars heading toward Lake Sherwood.

In these parts of California, times have never been better.

Thu, 05/26/2011 - 20:26 | 1315008 Careless Whisper
Careless Whisper's picture

oh puhleeze, my friend lives in greenwich ct, his maid drives a 2011 mercedes e350

Thu, 05/26/2011 - 20:35 | 1315037 bob_dabolina
bob_dabolina's picture

And that's healthy with a U3 unemployment rate of 12%?

With cities like LA that have about 1 million on food stamps...

A state that has so much debt it is bordering on insolvency?



Fri, 05/27/2011 - 00:17 | 1315537 Hephasteus
Hephasteus's picture

It's ok. Marc Zuckerberg will teach them how to kill goats.

Thu, 05/26/2011 - 21:37 | 1315192 QQQBall
QQQBall's picture

"Times have never been better". That's utter bullshit.



Thu, 05/26/2011 - 19:58 | 1314933 DougM
DougM's picture

I saw a Ferrari Mondial outside my local liquor store last weekend.

Thu, 05/26/2011 - 20:16 | 1314946 disabledvet
disabledvet's picture

i'm not averse to a "Ferrari indicator" for saying Cali is "so bad it's good."  I still prefer my "rowdy Hollywood set" indicator myself.

Thu, 05/26/2011 - 20:13 | 1314974 sabra1
sabra1's picture

it's what all maids drive these days, after their cash settlements that is!

Thu, 05/26/2011 - 20:14 | 1314979 max2205
max2205's picture

Outback is getting the wrong crowd I notice. Better stick to the Four Seasons for a while.

Thu, 05/26/2011 - 20:18 | 1314982 Milestones
Milestones's picture

In the early 50's I was pretty cool in my customized 49 Mercury going to Balboa and dig Kenton at the Rendeovous Ballroom. (In my mind anyway) Time really marches on.   Milestones 

Thu, 05/26/2011 - 20:43 | 1315065 samsara
samsara's picture

You mean a '49 Merc.  Sectioned,  Lowered A-arms, Dual Pots, Columbia Butts.  Canadian Alum. Heads.....

Thu, 05/26/2011 - 20:28 | 1315017 agondonter
agondonter's picture

Man, I was just thinking the same thing the other day. I live in Santa Monica and it seems like everybody in the city has a black Bimmer with dealer plates still on.

I haven't seen ZH address this, but the film industry is another huge pus-oozing bubble, just aching for the pin-prick of catastrophic deflation to put it out of its misery...

Thu, 05/26/2011 - 20:37 | 1315049 chump666
chump666's picture

I think the film industry is pretty dried up re: funds.  Faber is seeing spill over from a top end credit boom from the rich housing bubble.  Tim/Ben/Obama pitiful attempt at re-inflating the US housing market

Fri, 05/27/2011 - 10:46 | 1316553 aerojet
aerojet's picture

It's definitely dried up regarding ideas, that is for certain.

Thu, 05/26/2011 - 20:28 | 1315019 KaiserSoze
KaiserSoze's picture

So what would qualify as a financial emergency that will force the U.S. to deal with it's deficit's?

Thu, 05/26/2011 - 22:05 | 1315268 slewie the pi-rat
slewie the pi-rat's picture

i think the next postage increase---everything collapses...

Fri, 05/27/2011 - 01:41 | 1315632 Yen Cross
Yen Cross's picture


Thu, 05/26/2011 - 20:29 | 1315025 chump666
chump666's picture

A legend. 

High end credit bubble/property bubble that will burst say end 2011.  Obama's legacy.

Thu, 05/26/2011 - 20:51 | 1315075 samsara
samsara's picture

They will be parked in garages soon,  not to be seen driven for a long time.

I remember being in Argentina 6 mos after devaluation back around 2000ish.   The guy from our company only picked us up one day with his SUV.   He said that the car jackings were so bad,  He only drove his junk car out.

The cops told the victims it was their own fault for driving a flashy car.

Conspicuous Consumption will soon be a HUGE RED Bullseye. 


Thu, 05/26/2011 - 21:25 | 1315159 tarsubil
tarsubil's picture

I decided against buying a new car for this very reason. That article about lessons learned from Argentina was what made me make the decision.

Thu, 05/26/2011 - 21:48 | 1315223 Milestones
Milestones's picture

I was in BsAs a year or two after you. The last time in 07 I thought even flying coach will be costly nuff to bring out all the punks to the airport to "greet" visitors.

Hell, cabs are so cheap who needs a car.    Milestones

Thu, 05/26/2011 - 23:11 | 1315437 Cultural Capital
Cultural Capital's picture


Thu, 05/26/2011 - 21:17 | 1315081 Yen Cross
Yen Cross's picture

 Are,nt  you a bit post (facto)? Comma dive intended. (PUN)

Thu, 05/26/2011 - 21:20 | 1315154 Michelle
Michelle's picture

Let the rich enjoy the fruits of their labor - and you can be sure that their ill and aging parents are living like paupers in run-down mobile home parks and the final solution is to let them become a ward of the state because their parents are a direct beneficiary of their taxes. LOL! Sad but true, watching it happen in my family.

Thu, 05/26/2011 - 21:39 | 1315207 Yen Cross
Yen Cross's picture


Thu, 05/26/2011 - 21:40 | 1315210 tarsubil
tarsubil's picture

Mark Steyn did a good job of explaining in his book America Alone (or maybe it was an article, not sure) how it seems socialism tends to make people more selfish as they think that taxes are charity and relieve you of all social responsibility. They paid for social security, why should they have to take care of mom and pop? This is why the systems fail when austerity or reform is needed to make it solvent. The people just don't care as long as they get their benefits.

Fri, 05/27/2011 - 11:14 | 1316710 sherryw
sherryw's picture

Exactly. Did you know that most service clubs of the western world are 'dying'? They are losing nett numbers and are ageing because the younger generation are not carrying on the tradition - eg, Rotary International which everyone is familiar with, and many others. 

Thu, 05/26/2011 - 21:29 | 1315175 M.B. Drapier
M.B. Drapier's picture

Speaking of which ... the Chinese Communists park their Mercs and Audis in massed ranks directly in front of the grand entrance to the Great Hall of the People. Talk about /nouveau riche/! Here's some photographic evidence, though I've seen better examples.

Thu, 05/26/2011 - 21:52 | 1315245 chump666
chump666's picture

That's why China will meltdown beautifully within the next 3-6mths. 

Thu, 05/26/2011 - 21:41 | 1315212 Yen Cross
Yen Cross's picture

 From Yen Cross. A trade always has a right side. Best wishes.

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