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Is Reaganomics The Culprit For The Approaching Meltdown Phase 2?

Tyler Durden's picture


Paul Farrell is out with another rather dismal outlook on the financial system (better known in the vernacular as the feloneous Ponzi scheme), and how while the immediate causes of the crash, and its disastrous aftermath, which benefits only the upper class at the expense of everyone else, are certainly a function of the current and previous administration, one has to look further back to see the flawed foundations on which everything is built. As far back as Reagan, in fact, and his eponymous Reaganomic doctrine according to Farrell. "Was their Reaganomics ideology so rigid, so blinding, they couldn’t (and
still cannot) admit they were wrong? Forcing them to lie to America?
Cover up the lies? The evidence is clear.

Today, a harsh lesson from history, facts and a warning. Listen closely
America. It’s already happening again. The collective Reaganomics Brain
has gone from crash to cover-up to comeback kid to
capitalism-for-the-super-rich in three short years. Now with absolute
power over America." Sure enough, Farrell sees the events of 2008/9 as only the first step in the unwind of Reaganomics. Step two is coming, and it will be the final end of not only the Great Moderation experiment started in the early 80s, but, luckily, of that organization at the heart of it all: the Federal Reserve.

From Marketwatch:

The worst is yet to come. The forces behind the 2008 crash are stronger today. Like the villain in a horror-flick sequel, the dark side is now hungrier. Phase 2 is already in full swing as the Reaganomics Brain aggressively races to complete unfinished business — the 2008 meltdown — which will implode Wall Street banks and the Fed, ending the reign of the dollar as the world’s reserve currency

Recently we reported some bearish predictions for 2011 by two respected market leaders: Ned Davis warns of a “midyear peak” before a new cyclical bear. Jeremy Grantham warns investors to get out before Christmas. Market Crash 2011: It will hit by Christmas.

Bad news for investors angry at the past, worried about the future. Remember, the Dow’s barely above its best 2000 level of 11,722. Adjusted for inflation, the market has flatlined the past decade.

Here are the incremental catalysts that have lead us to where we are now:

America’s boomers don’t have to be rocket scientists to see the workings of the Reaganomics Brain here, how it’s destroying capitalism, democracy and their retirements. Here’s hard evidence of lies and cover-ups in past and future catastrophes:

March 2004. Fed Chairman Greenspan ‘cover-up’ of coming crash

In a Bloomberg Market’s magazine column last year, “Greenspan Cover-up,” Roger Lowenstein, author of “The End of Wall Street,” wrote that in a newly released transcript of a March 2004 meeting Greenspan “argues against disclosing too much to the public lest the Fed ‘lose control of a process that only we fully understand’.” Yes, a cover-up.

Lowenstein was classy, but went ballistic: “This statement ranks as a sign of monumental arrogance. It was Greenspan himself who didn’t understand, much less ‘fully understand,’ that the Fed’s lax mortgage regulation and easy monetary policies were setting America up for a disastrous fall.”

Then the indictment: “Had the Fed publicized such concerns, it might have led to a crackdown and forestalled millions of bad mortgages that would be written over the following 2 1/2 years. Instead, the Fed released minutes with sanitized phrases that had been stripped of alarming language.” Lying by omission, then a cover-up.

Now ask yourself: Was Greenspan so blinded from being inside the myopic echo chamber of the collective Reaganomics Brain for so many years that he, like all other insiders, is forced to lie, then cover up the lies?

Aug 2006. New Treasury secretary in ‘cover-up’ of crash dead ahead

As a postscript to the meltdown, Bloomberg later reported that back in August 2006, a month after Henry Paulson left Goldman Sachs as CEO with a net worth of over $500 million to become the new Treasury secretary, he spoke to the White House staff at Camp David: “Paulson held up over-the-counter derivatives as an example of financial innovation that could, under certain circumstances, blow up in Wall Street’s face and affect the whole economy.”

Reminds us of Warren Buffett’s famous reference to derivatives a “financial weapons of mass destruction.”

Cover-up? Conflict of interest? You bet. America’s Treasury secretary had the facts, but never warned the public. Worse: Instead, happy talk and lies from Paulson, covering up the risks. More than anyone in America, as Goldman’s CEO, Paulson knew about all about the deadly risks in the $500 trillion global derivatives casino, from years building Goldman’s derivatives business.

Worse: Later, when we learned about Goldman’s cover-up in failing to disclose to its own investors its double-dealing with AIG and hedge fund shorting, Paulson’s conflict of interest became clearer. He should have disclosed the risks, yes, had a duty to warn America, but instead refused to share, chose instead to lie and cover up for years.

July 2007. Paulson and Bernanke ‘cover up’ crash after it began

Cover-up? Lie? America’s Treasury Secretary? Yes, a cover-up at the top. One year after becoming Wall Street’s Trojan Horse on the inside of Washington, as the meltdown spread rapidly across Wall Street, this guy with the keys to trillions of the American taxpayer’s retirement money, could have come clean. But instead he was locked into the collective Reaganomics Brain ideology, forced to perpetuate the cover-up.

Yes, Paulson could have told the truth to the American public, to investors and taxpayers, but instead Paulson told Fortune magazine: “This is far and away the strongest global economy I’ve seen in my business lifetime.”

What a whopper. Part of the bigger overall cover-up of the collective Reaganomics Brain ideologues, for during these pre-meltdown years, Paulson, Greenspan and new Fed Chairman Ben Bernanke were regaling America with happy-talk about the subprime mortgage crisis being “contained,” just “regional froth.”

October 2008. Meltdown, then Paulson cons a clueless Congress

America’s Treasury Secretary, Hank Paulson was Wall Street’s man on the inside in the fall of 2008 just before the presidential election.

He failed America when the derivative markets collapsed, by conning Congress into protecting his Wall Street buddies with cash, credits and sweetheart deals, even though they were insolvent, virtually bankrupt and had no negotiating power.

Cover-up? Yes, the Reaganomics Brain ideologues were inside, running America for Wall Street’s benefit rather than the American taxpayer. Paulson’s old buddies were all well-protected — to be paid out of retirement monies from America’s boomers.

March 2011. Greenspan leading new Reaganomics resurgence

The Reaganomics Brain that’s ruled America for the past generation is making a swift comeback as the dominant political ideology favored by Wall Street. Last week Bloomberg news put this dangerous resurgence in the spotlight, in effect confirming that the worst of the 2008 meltdown was never completed, historical lessons never learned, and that another crash — like the aftershock of a deadly earthquake — is coming soon to complete the unfinished business.

Here’s why: Bloomberg just reported on a Greenspan’s article in International Finance magazine. He’s not only defending his legacy with renewed allegiance to the ultra-conservative Reaganomics Brain dogma that sustained him for 18 years; Greenspan now blames Obama’s Keynesian policies for the slow recovery. Listen:

Greenspan’s “conclusions fit with his long-held free-market ideology.” He warns “a surge in U.S. government ‘activism,’ including fiscal stimulus, housing subsidies and new regulations, is holding back the economic recovery.” But like Paulson and the rest of this Reaganomics Brain resurgence, there’s no acceptance of his personal past in the meltdown, only blame.

Greenspan sees the problem with the recovery of the American economy as the Democrats failure to embrace free market, deregulation and massive tax cuts, not Greenspan’s failed monetary policies, not Bush’s costly preemptive wars, not Cheney’s belief that “deficits don’t matter.”

What comes next is nothing short of the second revolution per Farrell:

Back in an early 2008 quarterly letter to investors, Jeremy Grantham, whose GMO firm manages $100 billion worldwide, said the warning signs of a coming crash were everywhere. But few listened.

As Grantham put it, “the three or four dozen-odd characters screaming about it are always going to be ignored.” Past and future. Why? It’s a brain defect, trapped in our DNA, overriding our rational abilities.

Worse, the new Reaganomics ideologues like Bernanke, the GOP, Tea Party, even Obama, are now marching in lockstep, embracing Reaganomics, squashing all descent, and repeating the same economic blunders as Greenspan and Paulson.

For more information read my report of 22 warnings from major market figures starting in 2000 till the 2008 meltdown. My summary includes warnings by one SEC chairman, two Fed Governors, five leading economists, four billionaires, five money managers overseeing trillions, two leading financial historians, and many more not on the list. 20 reasons a new mega-bubble will pop in 2011.

All their warnings were ignored, lied about and covered up by Greenspan, Paulson and all the other Reaganomics Brain ideologues running Washington and Wall Street the past generation. But soon a powerful revolution will stop the lies and the cover-ups.

Is Farrell being unduly alarmist? Perhaps. Then again, few predicted the tsunami of "liberation" that is sweeping MENA, and soon Asia. The precedent has been set, and it is slowly but surely moving toward the west. With the relentless theft from the middle class by the oligarchy accelerating, and appreciated by everyone, sooner or later there will be nothing left in the great American welfare state to keep the zombified Joe Sixpeasant satiated. At that point all bets will be off.


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Tue, 03/08/2011 - 17:52 | 1030909 Logans_Run
Logans_Run's picture

Farrell has been ranting about Reaganomics since MW gave him his bully-pulpit. It goes back further than Reagan. It goes all the way back to the establishment of the Fed and the delinking of the dollar to gold during the Nixon regime. Reagan was just another fool along the way, frankly not much different than any of the fools after him nor those before him.

Tue, 03/08/2011 - 18:49 | 1031104 Eternal Student
Eternal Student's picture

Sorry, I have to disagree. Farrell has hit upon a key point, and I have to say that I'm impressed with him once more. But he doesn't quite nail the central concept. And that is, we're in the Financialization phase of the current economic cycle. I.e. once we moved from making money out of producing things, we moved on to making money out of money. This is the central theme of the 1980's, and it's in this phase that we've seen the ridiculous rise of all the various financialization schemes and products. As well as the move of production offshore. And the various Ponzi credit schemes required to keep this game going.

There was an excellent book written about this a couple years ago. Alas, I've forgotten the title at the moment, but I've found it useful and most descriptive to see things from this angle, if you want to understand what's going on in terms of the big picture. You can see that what we're going through is basically the same old long term economic cycle that we've always gone through. The last Financialization phase ended in the Great Depression, and this one will not end differently.

Now, this isn't to dismiss your points about the Federal Reserve and the Gold Standard. Rather, I'd view the impacts of these on top of the Financial nonsense that has arisen since the 1980's.


Tue, 03/08/2011 - 19:05 | 1031169 NotApplicable
NotApplicable's picture

The financial nonsense of the 80's was due to Greenspan (and his backers), not some puppet named Reagan.

Anyone who claims that puppets do things of their own free will is merely adding distortion in order to make the facade appear realistic.

The only thing that presidents "do," is to appear to have gravitas in the eyes of the sheeple. (At least if they are good at it.)

Tue, 03/08/2011 - 19:18 | 1031235 Boonie
Boonie's picture

strongly agree.  unfortunately, farrells focus on the "reaganomics" descriptive takes away from the point of his article and those fond of reagan will be sidetracked even though farrell describes obama as acting via the "reaganomics brain."

i also agree that the financialization (this time inflationary) is the product of 1971, while the 1920s financialization was more the result of then fed easy money policies (busted by deflationary effect of sounder money gold standard).

Tue, 03/08/2011 - 19:19 | 1031237 chet
chet's picture

"I.e. once we moved from making money out of producing things, we moved on to making money out of money."

That's about the crux of it.  You have those in banking who can actually just create the giant pool of money/debt, plus other rent seekers who know how to hang around between the spigot and the rest of us.  They get rich just grabbing easy scraps as the invented money/debt flows out to the people. 

Then they figure out that the larger and larger this pool of debt gets, the more scraps they can grab from their position by the spigot.  So as far as they care, the pool of debt ought to be as big as an ocean.  Heck, two oceans!  And the spigot should be replaced with a fire hose.  And hey, they aren't greedy.  All they ask is a mere 1% of everything that flows by.

Tue, 03/08/2011 - 20:16 | 1031441 Flakmeister
Flakmeister's picture

Whether he was personally repsonsible for the finacialization and gutting of the US, he certainly was not smart enough to realize it and stop it. Clinton is also guilty re: Glass-Steagall...

The cocksucker that I want to see swing is Phil Gram...his fingerprints are over all the legislation.

Tue, 03/08/2011 - 20:29 | 1031499 Ham Wallet
Ham Wallet's picture

Right??  I'm always amazed at how little flack Clinton gets for his contributions to 'The Great Recession'. 

Tue, 03/08/2011 - 20:40 | 1031542 Flakmeister
Flakmeister's picture

I think Clinton just got a little Flak, if you know what I mean... Clinton also signed the 1996 Telecommunications Act, another fave of mine..

Tue, 03/08/2011 - 21:03 | 1031641 Bartanist
Bartanist's picture

And the Commodity Futures Modernization Act of 2000 that elevated derivatives from  illegal bucket shop bets to full retard legalized fraud.

Tue, 03/08/2011 - 20:48 | 1031585 New_Meat
New_Meat's picture


"Right??  I'm always amazed at how little flack Clinton gets for..."

u can leave it there, lad.

- Ned

Tue, 03/08/2011 - 21:47 | 1031588 New_Meat
New_Meat's picture


Wed, 03/09/2011 - 00:55 | 1032160 JW n FL
JW n FL's picture

All the Whores of the Beltway have been owned by Bankers who then used them and abused them for thier whole 4 - 8 year shelf life...


Clinton / Obama / Bush 1 / Bush 2.. all the same.. the last one to buck the status quo was shot forwards, backwards and sideways... all from behind in Texas. Now I realize the 6.5 Creedmor is a nasty round, but it aint magic.

Tue, 03/08/2011 - 20:39 | 1031535 chet
chet's picture

Trying to pin something this systemic on one president or another is a waste of time.  There has been complicity across the board.  In all three branches of goverment.

We use to produce things and sell them abroad, thus bringing new wealth into the country. Now we all do "services" for each other, passing the same buck back and forth.  One big circle jerk with little genuine wealth creation.  So we started borrowing it instead.

Tue, 03/08/2011 - 20:43 | 1031551 Flakmeister
Flakmeister's picture

Correct to a point, Reagan defined the era in where we lost our financial bearings. In my book he gets the blame...

Should have added, Gram and that fucker Rubin, let's make it a bipartisanship lynching....I don't play left-right favorites

Tue, 03/08/2011 - 20:55 | 1031611 karzai_luver
karzai_luver's picture

The last several books by Kevin Phillips showed the map to the last 10 years or so clear as day.


He was so much on target that it makes your eyes hurt to read his stuff.

No surprises. People that paid attention to him along with just a little investing sense have made a killing and no his books didn't give investing advice but laid out the future.


All the way back to The Politics of Rich and Poor.

He nailed the whole sordid mess upfront.


Tue, 03/08/2011 - 20:55 | 1031616 Flakmeister
Flakmeister's picture

Phillips knows his shit.... the first 1/3 of American Theocracy should be required reading.

Wed, 03/09/2011 - 00:38 | 1032135 Thomas
Thomas's picture

Kevin Phillips' "American Theocracy"

Wed, 03/09/2011 - 02:39 | 1032273 Eternal Student
Eternal Student's picture

Wow. I really had to say that I'm impressed by the thoughtfulness and the discussion in the replies. It's incredibly refreshing to see, instead of the ad hominems, "* b*tches" and other comments which really don't advance a discussion, nor offer insight to it.

I enjoy getting intelligent feedback on my own thoughts and views, and am not disappointed here.

Congrats and thanks to all.

Tue, 03/08/2011 - 19:23 | 1031248 I am more equal...
I am more equal than others's picture

First, who is responsible for the spending bills.  Not the president.  Remember that drunk - Tip O'Neal - another Massoftwoshits product (Barney Frank is the cocksucking version of the same and fat old eddie renting out the whore house for the night - sounds like fun until you get the phone call from the doctor saying you need to come back to the office as soon as you get back from driving Mary Jo home) - he started and led the spending spree (Laffer curve is right) that every congress has followed since (oh yeah, there was a piece of shit president from Texas - no not W - LBJ - why are the presidents from texas known by letters instead of names - that's right - all taxassholes have nicknames that could have been used in Deliverance - that started the not-so great society - what a misnamed boondoogle that fucks the budget up forever - risk shifted retirement from individual and families and put it on the goberment).  Pre-dating Regan was Volker.  He saved the day - a Carter appointee (worst president ever) - that raised interest rates as needed (soon to be done again by the market).  Regan had the right ideas but the wrong supporting cast - tip was charlie sheen and regan was john crier.  Tip won by spending everthing regan's policies created. 

Tue, 03/08/2011 - 20:30 | 1031491 docj
docj's picture

First, who is responsible for the spending bills.

Yeah, funny how nobody seems to remember who is actually responsible for spending money under our (nominally) republican system of government.

Tue, 03/08/2011 - 22:18 | 1031573 THE DORK OF CORK
THE DORK OF CORK's picture

Congress only produces the base of the money pyramid - the pyramid is unstable as it is inverted with the banks fractionally multiplying their toxins on top.

By the way lets take a look at Dr Friedman's monster - the Global free floating FX market - it dwarfs even the bond market.

It has the brain of a retarded criminal in the body of a giant ogre.

The most absurd creation in the history of man.

Maybe such blind fate in this monster will help to destroy its ability to organise rational human serfs and accelerate is downfall.


Tue, 03/08/2011 - 23:50 | 1032050 reddog
reddog's picture

How dare anyone attack the REAGAN GOD !!!

Even though papa BUSH called Reaganomics "Voodoo economics",

anyone who would attack Reaganomics is clearly a commie, pinko, faggot.


These three legs have placed us on the plane we now inhabit.


Tue, 03/08/2011 - 17:53 | 1030910 Sarah Conner
Sarah Conner's picture

I'm not sure what Reagan or his -omics had to do with the most recent blow-up, and unfortunately this article fails to shed the light...

Tue, 03/08/2011 - 19:29 | 1031256 New_Meat
New_Meat's picture

author forgot to say-"all Bush's fault."

Tue, 03/08/2011 - 20:14 | 1031424 NOTW777
NOTW777's picture

have you noticed that whenever these gurus rail about everything that is wrong or broken with the system, obamas name almost never shows up.  most of this country is still under the trance of some bizarre race guilt thing that is inexplicable.  that is what enables anyone in the current admin to respond to any question or criticism with knee jerk charges of racism.  many will be blaming bush and reagan to the gates of hell

Tue, 03/08/2011 - 20:46 | 1031564 lynnybee
lynnybee's picture

+1   ........   Obama just gives speeches; is the invisible man.

Tue, 03/08/2011 - 20:51 | 1031596 New_Meat
New_Meat's picture

lynnybee- au contraire, madame:

Our Dear President just reads from the "Teleprompter of the United States".

TOTUS is the invisible teleprompter.

- Ned

Tue, 03/08/2011 - 20:57 | 1031622 karzai_luver
karzai_luver's picture

that's because obama is nothing more than the bastard caretaker.

there is nothing he could or can do to help anything even if that was his desire.


once you leap off the cliff it's no hope to scream for wings.


Wed, 03/09/2011 - 04:09 | 1032318 Miss anthrope
Miss anthrope's picture

aaaaaaaaaAAAAAAHHHHHH.   <crowd claps with the approval of a fabulous golf swing>

Wed, 03/09/2011 - 01:01 | 1032174 JW n FL
JW n FL's picture
by Sarah Conner
on Tue, 03/08/2011 - 16:53


I'm not sure what Reagan or his -omics had to do with the most recent blow-up, and unfortunately this article fails to shed the light...


Reagan was the one who took debt structuring to a whole new level.. the art of engineering long term debt disguised as a Bond.. for national interests, roadways and such.. think strucutred debt increased by 3,000% in 8 years and from there, kept going.. and before Reagan, no structured debt to that scope and scale in history.

You have the hue of an ex or soon to be ex-republican.. the only thing you need to know is.. follow the money... an spoiler alert! no matter who you love, they are an owned whore who belongs to the Lobby..

Wed, 03/09/2011 - 05:16 | 1032350 Arkadaba
Arkadaba's picture

And read recent history. The Thatcher/Reagan era still needs to be dissected.

Thu, 03/10/2011 - 11:25 | 1036529 Flakmeister
Flakmeister's picture

 The success of Thatcherism in one easy chart....

Select oil and United Kingdom

At least it gave the bankers something to loot in the name of prosperity....

Thu, 03/10/2011 - 11:17 | 1036499 ft65
ft65's picture

But at the time, most people went along with it. If the Ponzi doesn't collapse in you life time, you got away with it.

Those people who complain most about "the beast" are those who have been feeding from it's hands. Things are only returning to the old status quo, so who really lost out?

Tue, 03/08/2011 - 17:52 | 1030911 kengland
kengland's picture

No. It's central banking and the fractional reserve system

Tue, 03/08/2011 - 18:10 | 1030981 Liberty
Liberty's picture

+1 Thank you.  Couldn't have said it better myself.

Tue, 03/08/2011 - 19:07 | 1031163 Michael
Michael's picture

Partly Yes. Regan planted the seeds for the out of control deficit spending. That's why I prayed the big bubbles, aided by the federal reserve, would blow up on a republican president and they did. The NASDAQ and the housing bubbles blew up on George Bush. Thank you God.


I'm registered Republican.

Tue, 03/08/2011 - 20:48 | 1031583 lynnybee
lynnybee's picture

P.S.  I'm registered Republican.     

No you're not !  I don't believe that for one moment !   You're tooo damn smart to be a REPUBLICAN !   You're an Independent ........ admit it !   

Tue, 03/08/2011 - 20:54 | 1031605 New_Meat
New_Meat's picture

mikey can't admit it: that would require him to be honest in public.  Never happenz. - Ned

Wed, 03/09/2011 - 07:27 | 1032385 Michael
Michael's picture

I'm a closet Libertarian infiltrating the Republican party to destroy it from within to reshape it in my image and likeness.

Been doing it for 30 years. It's starting to work.

Tue, 03/08/2011 - 17:54 | 1030912 economessed
economessed's picture

It's just too convenient to blame the dead guy.  What do you say we find some living people to blame and hold them accountable?  (Crazy thought, I know.)

Tue, 03/08/2011 - 17:56 | 1030920 Hondo
Hondo's picture

I think most of his s*** is just mumbo jumbo but I would like the FED as we know it to be toast!!!  They have been nothing but a wealth transfer agent since the beginning.

Tue, 03/08/2011 - 18:06 | 1030933 Logans_Run
Logans_Run's picture

Yup, functioning exactly as designed for almost 100 years! He let's celebrate that Centennial by dismantling it once and for all!

Tue, 03/08/2011 - 20:10 | 1031409 samsara
samsara's picture

Yes, and to have a hearty laugh and slapping each other on the back they had the 100 yr. reunion on Nov. 1 2010 at Jekyll Island.

or just google  'jekyll island fed meeting'

Tue, 03/08/2011 - 17:57 | 1030922 10kby2k
10kby2k's picture

Cover up of inflation:

Housing                     weight  40%   -10% 

Wages                       weight  20%     -5%

Commods                   weight  20%   +40%

Other domestic           weight  20%     -5%

Total = 2% inflation 

Buying power/net worth =   -13%

Tue, 03/08/2011 - 18:06 | 1030967 Logans_Run
Logans_Run's picture

Actually since my new job pays 50% of what my prior job paid, I am down net 63%. Yeah I'm much better off since Obama took over the WH!

Wed, 03/09/2011 - 01:04 | 1032180 JW n FL
JW n FL's picture

Obama is.. lil Bush part deux in technicolor... all of Bush's programs.. have been extended beyond Bush's wildest dreams.. but understand.. there is no difference between any of the beltway gang, they are all owned.. and the NSA / FBI / CIA who should be keeping "We the People" safe from this large scale shit.. are in on the take.. sweet private sector jobs await all those in the know.

Thu, 03/10/2011 - 11:53 | 1036619 ft65
ft65's picture

Quoting JW n FL / J.E.W.

the NSA / FBI / CIA who should be keeping "We the People" safe from this large scale shit.. are in on the take..


The alphabet agencies have never been the friend of the people. The same goes for all government agency's and armed services. They are all self serving entities that do the government's bidding for a regular pay check. Increasing the bureaucracy increases the pay check. Everyone wants in on the top quartile.

It is / was the press and news media outlets who were the watch-dog, but they were hijacked years ago, by their now owners the military \ industrial \ congressional complex.

None of this is new! It's just now the wheels are falling off, poor people are awakening from the self induced hypnosis of "I'm alright Jack"  


Thu, 03/10/2011 - 11:52 | 1036624 Flakmeister
Flakmeister's picture

"I'm alright Jack"  soon to be dirty words only used in exclusive company

Tue, 03/08/2011 - 17:57 | 1030926 Segestan
Segestan's picture

Altruistic Socialism mixed with a huge demand for profit, is the idealistic hammer that has brought the world to the brink, not a single player, party line or religious fundamentalism. In short globalism sucks.

Tue, 03/08/2011 - 17:59 | 1030928 Roy Bush
Roy Bush's picture

What a stupid article.  As Alex Jones constantly says (who is sometimes annoying, I know), "Don't fall into the left/right paradigm."  It's Fed-o-nomics and spend-o-nomics that has bankrupted this country.  If it's not the left spending on wars and half-baked social programs, it's the right who make up excuses to invade foreign countries and feed the companies of death.  The only constant, aid to Israel and the constant clicking of the printing presses creating more and more money.  


Tue, 03/08/2011 - 18:02 | 1030947 Id fight Gandhi
Id fight Gandhi's picture

When was the last fed chair not to be a chosen?

Tue, 03/08/2011 - 20:11 | 1031378 oygevalt
oygevalt's picture


Tue, 03/08/2011 - 19:17 | 1031228 NotApplicable
NotApplicable's picture

Nothing like the good ole divide and conquer trick to win friends and influence enemies.

Sad thing is that it makes ZH look like Free Republic meets the Huffington Post.

Clowns to the left of me, jokers to the right.

Tue, 03/08/2011 - 17:58 | 1030935 John Law Lives
John Law Lives's picture

"Government payouts—including Social Security, Medicare and unemployment insurance—make up more than a third of total wages and salaries of the U.S. population..."

Tue, 03/08/2011 - 17:58 | 1030937 mynhair
mynhair's picture

Just vote Dem, and all will be fine.

Tue, 03/08/2011 - 18:08 | 1030964 AN0NYM0US
AN0NYM0US's picture

actually just put all the crap into a bad bank, wrap it up and tie it with a bow and presto your stock (B of A) zooms almost 5% carrying along the other banks


“We are creating a classic good bank, bad bank structure,” Laughlin told investors.


“It’s a way to get investors focus on the good,” said Paul Miller, a former examiner with the Federal Reserve Bank of Philadelphia and analyst at FBR Capital Markets in Arlington, Virginia. “It’s a way to talk about good things and ignore the bad.”


If B of A can pull this off how about your average consumer who holds an underwater mortgage... no wait maybe that's where BofA got the idea

Tue, 03/08/2011 - 18:05 | 1030965 John Law Lives
John Law Lives's picture

A balance of power is the better solution.

Clinton (Dem) + Republican Congress = Balanced Budget

G. W. Bush (Republican) + Republican Congress = Iraq War / Afghanistan War & large budget deficits

Obama (Democrat) + Democrat Congress = Obamacare & massive budget deficits

A balance of power is the better solution.  Yes, it matters.

Tue, 03/08/2011 - 18:52 | 1031120 Buckaroo Banzai
Buckaroo Banzai's picture

The "balance of power" is an illusion. The game is designed so that as the pendulum swings from Left to Right, tyranny is ratcheted up. Tyranny of the left = socialism/communism, tyranny of the right = "security" and war.

The ratchet only goes in one direction --> more tyranny. Haven't you noticed that when the "Left" is in power, they never undo all the bad things that the "Right" put in place... and vice-versa? Never backward, always forward, until total enslavement.

When the pendulum passes through the center point of the arc, the ratchet is still, creating the illusion of "better times" for a brief period.

Don't fool yourself.

Tue, 03/08/2011 - 19:11 | 1031206 John Law Lives
John Law Lives's picture

A balance of power is better.

I hope you are not the 2nd coming of Guy Fawkes.

Tue, 03/08/2011 - 19:40 | 1031307 samsara
samsara's picture

Your dichotomy is still one of "Do I like the Gambinos or the Genovese"   better.

Both are different sides of the same coin that will brake your legs if you don't pay'em every week.

It's a false dichotomy.  

Tue, 03/08/2011 - 19:51 | 1031346 John Law Lives
John Law Lives's picture

Don't quibble with John Law.

A balance of power is better.

Tue, 03/08/2011 - 20:39 | 1031530 samsara
samsara's picture

ya,  Day dat got it and day dat ain't

Tue, 03/08/2011 - 19:55 | 1031358 NidStyles
NidStyles's picture

it doesn't matter, because they are all the same. They all work for the same people, and it's not the people.

Wed, 03/09/2011 - 01:07 | 1032183 JW n FL
JW n FL's picture

you are in the Club.. welcome! we are glad to have another not stupid fucking idiot around.

+++++++++++++++++++++++++++++ they are all the same, owned by the same and do exactly the same shit..

Tue, 03/08/2011 - 20:29 | 1031501 Spaceman Spiff
Spaceman Spiff's picture

The clinton 'balanced budget' was accounting trickery.    We haven't had a true balanced budget in this country recognizing all liabilities for a few generations now. 


As for this article, it was ridiculously generalized.   Made it seem like a lame hit piece.   Instead of just invoking reagan's policy, he should have went into detail about specific parts of reagan's philosophy.

Tue, 03/08/2011 - 20:46 | 1031572 mnevins2
mnevins2's picture

Exactly my thoughts. I'm guessing that Farrel had a deadline and, with no research, just started typing.  The result is a lot of "heat," but little "light" - which, fortunately, many posters have provided.

Tue, 03/08/2011 - 21:01 | 1031633 karzai_luver
karzai_luver's picture

You didn't know RR did you?

He was a pragmatic pol nothing more nothing less.


He did give good tv though.

Wed, 03/09/2011 - 10:15 | 1032683 snowball777
snowball777's picture

Clinton (Dem) + Republican/DINO Congress == Lucky break on cap gains tax revenue and final deregulatory nail in capitalism's coffin.

G. W. Bush (Republican) + Republican Congress == Giant deficits from stupid war spending, more Fed stupidity to cover for Dot-Bomb, and blind cops.

Obama (Democrat) + Hapless Congress == More Fed insufflation to cover for implosion of securitization Arcadia, deficit spending to provide band-aids for femoral artery wound.

A balance of power is the better solution. Sadly, it's never been tried.

Tue, 03/08/2011 - 17:59 | 1030938 Long-John-Silver
Long-John-Silver's picture

When in doubt, blame the dead guy.

Tue, 03/08/2011 - 18:02 | 1030946 mochoajr
mochoajr's picture

No you can't blame Reaganomics. We're at this situation in time because we as voters have allowed it. We have voted in politicians who have given us everything we've wanted, never turning down a request for funds, earmarks or pork. The majority of us have been financially irresposnible and same with politicians from both sides of the aisle. Everyone one of us is or has been part of a constituency be it professional, civic, ethnic, etc. Whenever we needed something, our spokesgroup went to our representative, our senator or agency and asked for it.

Well, lo & behold, soon 30+ years of this add up. The total public debt on 12/31/88, Reagan's last full year was $2,431,715,000,000. On 12/31/11, it was $14,025,215,000,000. In that time period we have had George W.H. Bush, William J. Clinton, George W. Bush and Barack H. Obama. Three full terms by the Republicans, two and a half by the Democrats. It seems ludicris to blame Reagan, we only have to look in the mirror.

Tue, 03/08/2011 - 18:48 | 1031097 falak pema
falak pema's picture

You guys are missing the point. The mind set of USA changed with Reaganomics. Deregulation, in 1984, started giving more and more power to shareholders. The quarterly report became king. Short term financial horizon in corporates. 15% ATROE the norm. The finacial market, the junk bonds, "greed is good" the norm. The corporate culture changed and Greenspan, when he came in in 1987, supplemented it with cheap money, plenty of it. That's Reaganomics, that mind set, that culture. It killed corporate USA's vision from business cycle to bubble cycle, made it shot termed, made 'casino royal' the Mantra. From then on it went like bad to worse. WAll Street fed on the steroids of cheap money and more and more asset risky asset inflation.Even the notational companies joined the party. You don't build a Ponzi scheme of this size without first eroding DUE DILIGENCE in the whole financial sector over 20 year: 1984-2004, before things exploded in final count down to sub prime mayhem  and bank default 2008. Now the crippling denial to oblivion.

Tyler's guest post is bang on the button : THE MIND SET changed...

Tue, 03/08/2011 - 18:49 | 1031107 Flakmeister
Flakmeister's picture

Well stated...

Tue, 03/08/2011 - 19:02 | 1031140 Buckaroo Banzai
Buckaroo Banzai's picture

Sorry, but you've missed a very important point. Deregulation does not serve shareholders, it serves MANAGEMENT.

You need to understand that the game is Corporate Mangement vs. Corporate Shareholders... and Management is winning. Management has been looting shareholders for decades. It really got bad in the dotcom era... stock options have gutted shareholder value.

In certain old-line industries, Management and Labor have teamed up to loot the Shareholders. GM is the perfect example of corrupt management teaming up with corrupt unions to drive a company into the ground and not just loot the shareholders, but bondholders and taxpayers as well... GM was the trifecta of looting, the perfect "bust-out" and it was Obama's proudest moment in his quest to destroy the american economy.

Calling this "Reaganomics" is an insult to Reagan and really is ignorant... the process may have picked up some steam his watch, but it really accelerated under Clinton and Bush 2. And it started back in the 19th century when the laws governing corporations were gradually changed over a period of 100 years from being VERY corporation-unfriendly to VERY corporation-friendly.

Tue, 03/08/2011 - 19:32 | 1031270 New_Meat
New_Meat's picture

yee-haw, u go Buckaroo.  And the "corporate management" is a very small slice of that management.  With captive "auditors" who say things like "well, we should be able to get over with that position."  Bastards.

- Ned

Tue, 03/08/2011 - 18:01 | 1030948 gwar5
gwar5's picture

Reagan to blame for a phase 2 meltdown?  --- No. 

More like the FDR + The Great Society (great leap backwards) and the lurch towards socialist promises that couldn't be kept, guided by the social engineering 'geniuses' whose slide rules didn't take into account that the baby boomers would eventually stop paying and start collecting.

Besides, Reagan never got to finish what he started because of the democrat congress. His second act was always going to be massive cuts in the government budget but he could never get the agenda past the congress.


Tue, 03/08/2011 - 20:19 | 1031435 FeralSerf
FeralSerf's picture

Reagan didn't do shit after Hinckley shot him.   De Boyz took over then  (as if they weren't already substantially in charge).  Reagan then went back to what he did best, i.e. third rate actor/soap (and Star Wars) peddler.  Reagan had the advantage of being able to "communicate" with the mindless fucking idiots that watch the tube 6 hours a day.  The Great Communicator.  Win one for the Gipper.

Wed, 03/09/2011 - 10:28 | 1032744 snowball777
snowball777's picture

Please, the Pugs controlled the Senate from '82 to '87 and approved higher budgets than the ever-increasing proposals from Reagan the entire time. The only reason Reagan didn't get to "finish what he started" was term limits of the presidency. Not once during that time did he send a proposal to congress which wasn't higher than the last. Not once. His first in '82 was $507B and his last was $621B despite gutting tax revenues while performing Laffer's 'voodoo' chants. His deficits and doubling of the national debt don't lie. From $987B to $2.85T (notice the 'T' there). From 33.3% debt to GDP to 51.8% of GDP by '88.

Time to let go of your fantasy-colored remembrance of the past and embrace your responsibility in helping our country along to the disaster we've found ourselves in today.

Are Pugs gonna go back on their "he spent it all to win the cold war" routine and rob him of his legacy?


Tue, 03/08/2011 - 18:02 | 1030949 bullandbearwise
bullandbearwise's picture

The Federal Reserve was a rather benign institution from 1913 until 1980. Volcker was its last hero. What really took America down was that charlatan, Arthur Laffer. Sure, it's sounds charming to cut taxes, but the voters quickly figured out they could borrow instead.

Tue, 03/08/2011 - 18:25 | 1031016 gwar5
gwar5's picture

The Fed is benign like a melanoma on the top of Bernanke's head. Volcker killed inflation by crushing gold and continuing our lives as economic serfs instead of reestablishing a gold standard with a new gold price north of $800.

The architect of Reagonomics was really Milton Friedman. Laffer, like Thomas Sowell, were followers of the late great Milton Friedman.

Here's Friedman's classic "Pencil": YouTube - Power of the Market - The Pencil

Friedman turned socialist Chile around when they had 1000% inflation -- they now have a soveriegn wealth fund to invest. He also advised communist China about the same time on how to run a market economy back in the early 80's, with amazing results. America has incrementally moved to a social welfare-state with disasterous results. 

Tue, 03/08/2011 - 18:40 | 1031069 bullandbearwise
bullandbearwise's picture

Milton pounds Donahue that we're all greedy little bastards at heart and "Wall Street" turns greed into an icon. Meanwhile, the antonym of greed, generosity and compassion, are no longer part of the lighthouse on the hill. Do you honestly believe this is what the Founding Fathers intended? I can tell you one thing, for sure, if we abandon our generosity and compassion for greed, no one will want to come here anymore and we're no better than Russia.

Tue, 03/08/2011 - 19:36 | 1031288 New_Meat
New_Meat's picture

Generosity?  Here's something from the government:

and there are other stats that look at generosity of individuals vs. state taxation.  (yes, that would be a negative correlation).

- Ned

Tue, 03/08/2011 - 21:07 | 1031659 THE DORK OF CORK
THE DORK OF CORK's picture

Sovereign wealth funds are a joke and cannot exist under a gold standard system.

The wealth of a country is its people and infrastructure not paper which can be converted into bankers bonuses in a instant - witness the fate of the Irish pension fund.

Volcker began the hyperinflation of the US dollar and masked its loss of value with high interest rates - this destroyed the US economy.

A similar process is now underway in Europe - where a strong debt currency with huge newly created  liabilities not present on the central banks books is being used as a weapon of subjugation.

I am foaming at the mouth here - the man was a Demon.

Wed, 03/09/2011 - 01:12 | 1032187 JW n FL
JW n FL's picture

I hate to say this.. but save your energy, it looks like you really are going to need it in the near future with the way this train headed (and at this speed).


God Bless You and Yours Dork!

Tue, 03/08/2011 - 18:02 | 1030950 swmnguy
swmnguy's picture

This really shouldn't be news to any ZH'ers.  Farrell's taking a little risk by identifying Reaganomics by the name of the blessed saint.  A black-belt paleo-con like Paul Craig Roberts would take umbrage at this Ponzi scam being referred to as "ultra-conservative," no doubt.

Farrell's overall message that the game is rigged and the taint isn't out of the blood yet therefore the real collapse is yet to come?  Not much to argue with there.

Tue, 03/08/2011 - 18:01 | 1030952 buzzsaw99
buzzsaw99's picture

Raygun was a piker when compared with the bunch we have now.

Wed, 03/09/2011 - 10:30 | 1032748 snowball777
snowball777's picture

That's "innovation" for you.

Tue, 03/08/2011 - 18:01 | 1030954 redpill
redpill's picture


Reagan was only 2.

Tue, 03/08/2011 - 18:05 | 1030962 Flakmeister
Flakmeister's picture

Ahh... St. Ronnie

My vote for the soon to be needed $1000 bill,  after all, we would not need it if it were not for him.

They is no coincidence that the wheels starting coming off when he assumed office, the mantra of debt being wealth was created. And it was all down hill...

The goddam parasites and gamers took advantage of Ronnie and his misguided understanding of regulation combined with the naive economic philosophy of his Supply Siders. These geniuses could not grasp that productive capital and economic rents cannot be taxed on an equal footing. They are not equivalent. This has led to self-reinforcing shitshow we are now in... 

The turn on of Prudhoe Bay and the North Sea gave us a second chance, in the 70's we figured out that burning oil for electricity was asinine. We got a cushion. Ronnie though the free market would give us cheap oil forever, after all its the fucking American way....

The best way to compare Reagan and Carter is that in a Hold em' game, Carter drew an off-suit 3-4 and played it less than stellerly, where Ronnie was dealt a pair of Aces and still managed to fuck it up....

Tue, 03/08/2011 - 18:17 | 1030973 Flakmeister
Flakmeister's picture

  Forgot to mention, his stellar fucking deregulation of media... Josef, fucking Goebbels, would be fucking proud of what the media became...

Tue, 03/08/2011 - 18:33 | 1031035 Flakmeister
Flakmeister's picture

BTW, anybody who junked me without commenting...

C'mon, I'll rip your fucking face off in a debate about the impact of Reagan and his legacy...

Tue, 03/08/2011 - 18:39 | 1031061 Anonymouse
Anonymouse's picture

I'd comment, but I need my face. I can't have it ripped off.  That'd hurt.


You're just too scary for me, Mr. Man.

Tue, 03/08/2011 - 18:59 | 1031149 Sarah Conner
Sarah Conner's picture

No you won't... why don't you just take your meds instead!

Tue, 03/08/2011 - 19:07 | 1031170 Buckaroo Banzai
Buckaroo Banzai's picture


Tue, 03/08/2011 - 19:31 | 1031266 Boonie
Boonie's picture

i junkd your assinine comment.  deregulated the media?  wtf.  where/how did you come up with that gem?

Tue, 03/08/2011 - 20:06 | 1031399 Flakmeister
Flakmeister's picture

I will say that the 1996 Telecommunications act under Clinton was the final nail in the coffin of responsible media in the country... Clinton ain't no hero of mine either....

Tue, 03/08/2011 - 19:33 | 1031279 samsara
samsara's picture

You're dead on Flak as usual.

It's obvious to anyone who's done the reading.   

Hey, Who was head of CIA a while before Reagan got in?   What effect did that guy have on it.  

Hmm. Then google 'prescott bush smedley butler'

It's nice to see how if one generation couldn't make it happen, their grandkids might pull it off.  Or not.

The only thing new in the world is the history you don’t know. Harry Truman
Tue, 03/08/2011 - 19:54 | 1031360 Flakmeister
Flakmeister's picture

Much appreciated...

Tue, 03/08/2011 - 21:07 | 1031661 Hulk
Hulk's picture

Spot on Flakmeister, stunning that people do not know this...

Wed, 03/09/2011 - 10:18 | 1032651 Zero Govt
Zero Govt's picture

anti-establishment media mogul Conrad Black was taken out with accountancy rules, not the Comms Act. His jailing by the crooked politico-media establishment for balance sheet operations that would make Wall Street piss their pants at the triviality of it all gave the parasites carte blanche more than anything to then step on the gas pedal to non-stop wall-to-wall propaganda.

The media campaign pre/during/post Presidential elections for Obumma is the biggest blanket and ongoing lie in political history. This Chicago Commie can't get through a Press breifing without an auto-cue he's such a lame weak puppet of his parasite handlers ...the Marxist muppet needs nappies

Tue, 03/08/2011 - 18:39 | 1031064 gwar5
gwar5's picture

HuH? Wheels came off under Carter, that's how Reagan got elected.

High double digit unemployment, double digit inflation, double digit murder rates, shortages, huge national debt, 70% taxes, the 55 mph speed limit was invented to ration gas to America, and Carter recommended Americans turn down their thermostats and wear sweaters to keep warm.

A nice house could still be bought for $25,000 a few years before Carter was president. By the end of Carter's term the houses were over 100,000. 

That was what life was like under Carter.


Tue, 03/08/2011 - 19:23 | 1031250 NotApplicable
NotApplicable's picture

And the wheels came off under Nixon, because the wheels came off under Johnson...



Wed, 03/09/2011 - 01:11 | 1032188 RockyRacoon
Tue, 03/08/2011 - 19:54 | 1031355 Flakmeister
Flakmeister's picture

The thing Carter was guilty of was appointing Burns who was in over is head as Fed Chair. No defense of that.  In some fairness, he inherited the bills from Vietnam. He fixed the problem with the Fed by appointing Volcker, who by all accounts was the best Fed Chairman. Look at oil production along with the Iranian revolution, hardly things Carter could control and as I said above Ronnie inherited the turn on Alaska and the North Sea.

As far as housing goes


Looks like you are full of shit, $37,000 to $55,000

Tue, 03/08/2011 - 20:33 | 1031515 Flakmeister
Flakmeister's picture

And while it's not economics, the Executive under Reagan violated the constitution with Iran-Contra and broke the law..... Plausible Deniability, my ass..

Wed, 03/09/2011 - 01:17 | 1032196 JW n FL
JW n FL's picture

Reagan cut the Wounded Vets pay checks, my Uncle was shot in the head in Nam.. he came to live with us becuase Reagan said he was milking the system... fucking ak-47 to the fucking head and my uncle a Recondo Ranger was milking the system, FUCK REAGAN!!!

Wed, 03/09/2011 - 00:31 | 1032124 reddog
reddog's picture

Never underestimate the vast ignorance of the "U.S.A., U.S.A..." citizens.

Tue, 03/08/2011 - 18:09 | 1030975 buzzsaw99
buzzsaw99's picture

Still waiting for my trickle down bitchez!

Tue, 03/08/2011 - 18:08 | 1030977 Acidtest Dummy
Acidtest Dummy's picture

I have a simpler explanation: Baby Boom mid-life crisis.

Probably calls for violins.

Tue, 03/08/2011 - 18:11 | 1030984 DavidC
DavidC's picture

What, surely not Alan 'Prove me wrong' Greenspan?

'Squashing all descent' - I think he meant 'Squashing all dissent', but then again, given the way the stock market's gone up over the last two years, he could be right!


Tue, 03/08/2011 - 18:17 | 1030993 jag
jag's picture

Whenever someone rants on about "Reaganomics" or "Obamanomics" or whatever, 

I can't put much faith in their reasoning. Particularly, as many have noted, the

prolfigate spending and feckless regulation of the financial industry have been a

bipartisan affair (and I say that as a fully, partisan, person).

Maybe Farrell is right but nothing is stated here by which one can reasonably blame

the entire, current, fiasco on Reagan's doorstep.

If anything, Reagan showed more guts than any 20th century president by letting Volker do the tightening he did that arrested inflation in the early 80's. No interference from Reagan, rhetorical or otherwise through what was an unprecedented, and much needed, Fed tightening move.




Tue, 03/08/2011 - 18:16 | 1030995 notadouche
notadouche's picture

I guess no one remembers the heaping pile Reagan inherited from Carter?  How convenient.  Carter inherited from Ford who got it from Nixon who got it from LBJ who got the heaping pile from Kennedy... Get the picture.  Exactly at what point in time in the last 100 years has any president gotten a great econcomy.  Please don't say Bush jr from Clinton as that would too be intellectually dishonest.  Anyone remember the collapse of dot com in 1999?  So who is really to blame?  Hoover?

Tue, 03/08/2011 - 18:51 | 1031112 THE DORK OF CORK
THE DORK OF CORK's picture

What shit from Kennedy - LBJ could have pulled out of Vietnam at any time.

You cannot hold much against Kennedy -  Just because Kennedy was reluctant to pull out of Monroe does not make him a war criminal. 

Tue, 03/08/2011 - 19:02 | 1031159 notadouche
notadouche's picture

The point is that no generation is happy about society, the economy, healthcare, education, immigration, bankers, unions etc...  It appears to be just the way of the world.  Oddly enough it appears the same old complaints get passed down from one generation to the next.  Yes even during Camelot's time, if you pick up any paper the day before he was shot, there were the same complaints then as there are now.  There has always been the have and the have nots and there always will be.  Fair or not it doesn't matter.  Unlike the revisionitst history Kennedy was no great president.  He certainly didn't get into the civil rights  frey for what ever reason, most of the gains happened under LBJ.  Kennedy was just as big of a douche as the rest only he got better poon than the others.  Can you imagine him with Lewinsky?  Fact is America has been on a downward spiral since Washington left office.  Each year more and more rights being ceded to the government and more and more wealth stolen from the people by the government.  It's a zero sum game the people vs the govt and the government is determined to win.

Tue, 03/08/2011 - 19:12 | 1031198 THE DORK OF CORK
THE DORK OF CORK's picture

Would you be comfortable with Nixon , Ford , Reagan , Bush II in a Cuban missile type crisis ?

You are lucky to be alive in a recognizable human form.

Tue, 03/08/2011 - 19:28 | 1031260 NotApplicable
NotApplicable's picture

Wait, you actually believe that all of that drama was "real?"


All world leaders are puppets, wholly owned by the world's banksters. The 'crisis' was a PR stunt to sell the cold war.

Tue, 03/08/2011 - 19:30 | 1031263 notadouche
notadouche's picture

You ever consider that Kennedy was actually to blame for the Cuban Missle crisis?  I'm sure the guys left stranded at the Bay of Pigs would actually beg to differ.

Tue, 03/08/2011 - 19:41 | 1031313 notadouche
notadouche's picture

Funny, Nixon ended Vietnam which Kennedy started and escalated with the "advisors" and Reagan ended the cold war that JFK escalated to it's most dangerous heights yet Kennedy is somehow the golden boy in your eyes.

Tue, 03/08/2011 - 19:54 | 1031359 THE DORK OF CORK
THE DORK OF CORK's picture

I give up , believe what you want to believe baby.

Tue, 03/08/2011 - 20:13 | 1031418 notadouche
notadouche's picture

Claim victory and exit the field.  A strategy that works every time.  At least this little disagreement result in dishonoring ourselves by hurling insults at each other.

Tue, 03/08/2011 - 20:18 | 1031447 THE DORK OF CORK
THE DORK OF CORK's picture

I do concede that Kennedy was in deep in Vietnam and perhaps I am just looking for something to believe in - we all have our weak spots.

There's a good chance that Kennedy would have done a LBJ and escalated - we will never know.

Tue, 03/08/2011 - 20:33 | 1031510 notadouche
notadouche's picture

Well put.  Nothing wrong in looking for something to believe in.  I envy as I wish I could.

Tue, 03/08/2011 - 21:08 | 1031665 karzai_luver
karzai_luver's picture

Kennedy wanted out the history is clear as we have it.

Advisors were in before Kennedy.

The MIL was running stuff much more back then.

Some of the stuff going on was news to Kennedy when he came in.

Lots of CIA stuff and weird fallout from Korea.


Very muddy time very muddy.


Tue, 03/08/2011 - 20:28 | 1031490 notadouche
notadouche's picture

the above should say "DIDN'T result in dishonoring..."

Tue, 03/08/2011 - 19:09 | 1031185 Buckaroo Banzai
Buckaroo Banzai's picture

Actually Ike and JFK were a welcome break between FDR and LBJ. There is a reason why JFK got shot. And Ike had the common courtesy to warn us about the Military-Industrial complex (he originally called it the Military-Congressional-Industrial complex, but took out the Congressional part because he thought that including them would be so controversial it would draw attention away from the message he was trying to communicate).

Tue, 03/08/2011 - 18:38 | 1030999 Zero Govt
Zero Govt's picture

Mr Farrell needs to replace "Reaganomics" with Governmoronics for this topic has nothing to do with any single politician but with a bankrupt corrupt failed parasitical system called "democratic government". Otherwise he's just rearranging the deckchairs on the Titanic

it fails and is baked-in-corrupt because it is a monopoly system. Monopolies, public or private, always produce crap and always allow their operatives to go off the rails (the precise behaviour of Washington and the EU as we speak). That is the problem that society has to address because the problem is for society to solve as Govt never will (Turkeys don't vote for Christmas do they?).

End the monopoly (parasite) on society. Replace with a competitive free market model and a free society. Freedom works. All authority and centralised structures produce absolute bollocks... let's give a free society a chance, it couldn't possibly be any fuking worse now could it?


Wed, 03/09/2011 - 10:04 | 1032638 vanderrook
vanderrook's picture

Spot. On.


You're moniker says it all: Zero Gov't.

Wed, 03/09/2011 - 10:15 | 1032678 Zero Govt
Zero Govt's picture

Cheers Vanderrook ....a Warm Welcome to the 'real' revolution of zero Govt and not the phoney of replacing a Big Govt with a small govt... we remove a big tape-worm from our body to replace it with a small tape worm? ...the Tea Party movements call for "smaller Govt" is the wrong answer

Tue, 03/08/2011 - 18:20 | 1031004 ReallySparky
ReallySparky's picture


This just really pisses me off.  These legislative clowns are going to delay the reduction of fees because cry baby JP Morgue may lose 12 billion dollars of revenue.  When will this stop?  When will our government be caputured back by it's citizens? 

Tue, 03/08/2011 - 18:29 | 1031015 Zero Govt
Zero Govt's picture

there was a customer demo very recently that shut a Bank of America branch over forclosurefrauds.... that's the way to do it, gather the pitchforks

...alternatively in the patent absence of the Law, the regulators and the US Govt you can just leave it to Father Time and the customers and investors to sue the arse out of these big Wall Street fraudsters... the Govt stinks we know that but you can trust in the private sector to take these big MF's down one by one ...not long to wait, pitchfork ready?  

Tue, 03/08/2011 - 18:28 | 1031017 Big Ben
Big Ben's picture

Notice that Farrell accuses Obama of being a "Reaganomics ideologue". 'Nuff said.

Tue, 03/08/2011 - 18:32 | 1031034 penisouraus erecti
penisouraus erecti's picture

Yeah, I always confuse those two........

Tue, 03/08/2011 - 18:28 | 1031023 johnnymustardseed
johnnymustardseed's picture

Reagan's tax cuts and coming up with the idea of robbing social security to pay for them is why I started buying silver at $5 an ounce. I knew it was going to catch up to us someday. I also really thought when he started sending stinger missiles to mess with the Russians in Afghanistan it would be something that might bite us in the ass. I don't think he was as great a president as many want to think

Tue, 03/08/2011 - 18:38 | 1031057 redpill
redpill's picture

It's much easier to be great when you're compared to schmucks.

Like Obama, he was a great orator.  Unlike Obama, he actually believed what he said.  The combo of the two made people love him.

Tue, 03/08/2011 - 18:41 | 1031068 Flakmeister
Flakmeister's picture

Yeah, he was loved by the same people that love Dancing with the Stars and the ones that figured out it was going to be "Sauve qui Peut"...but he did more to put this country on the road to perdition than anyone in history...

Tue, 03/08/2011 - 18:31 | 1031031 penisouraus erecti
penisouraus erecti's picture

Yep, but gotta blame someone, and not on the left if at all possible. They cause no problems, only create utopia.

Tue, 03/08/2011 - 18:45 | 1031079 THE DORK OF CORK
THE DORK OF CORK's picture

It actually takes this long or even longer for wealth building infrastructure to decay - there was no programme of replacement and no capital spent on new technology so now we are going to pay for the over consumption of the past at the expense of real wealth capital to drive future wealth.

For decades we have listened to the mantra that Nuclear takes too long blah blah blah  - well now welcome to the future baby - shit ain't it.

The Challenger disaster was also illustrative of a lack of imagination and elan in America of the time - instead of recognizing that the Shuttle was a bastard of a design and a Turkey at best they kept on ploughing into the abyss.

Monetarists suck - they just shuffle the credits until the money / energy runs out.

Tue, 03/08/2011 - 18:45 | 1031082 Jim B
Jim B's picture

Bizarre! and maybe a bit of a delusional stretch...

Tue, 03/08/2011 - 18:46 | 1031091 bullandbearwise
bullandbearwise's picture

Where is the balance between greed and compassion? Is Christ still relevant to the discussion? Can someone else provide the correct paradigm? If no one can, we're doomed to tear at opposite sides of greed and compassion for eternity.

Tue, 03/08/2011 - 18:47 | 1031101 Groty
Groty's picture

While there were huge innovations in the financial services industry under Reagan, such as the advent of money market funds and other deregulatory advances, I don't see how Reagan can be blamed.

I'd say the collapse of Bretton Woods, which took the dollar off the gold standard and instituted floating exchange rates, has resulted in a huge shift of wealth from Americans to firms that "cheat" and don't allow a free float.  That's what has caused the huge global imbalances.  Blaming Reagan only makes sense if you're a flaming liberal like Ferrell who simply wants to damage Regan's legacy.

Wed, 03/09/2011 - 00:46 | 1032146 reddog
reddog's picture

Let us recall the destruction of the savings and loan industry by the Reagan banksters.

Tue, 03/08/2011 - 18:58 | 1031132 Keith Piccirillo
Keith Piccirillo's picture

Milton Friedman's were the popular books in college back then, my how times have changed.

Tue, 03/08/2011 - 19:08 | 1031182 cunningtrader
cunningtrader's picture

Why, is the puppet getting the blame? It is those who operate the puppet's strings that Farell should be pointing the gun at. And americans won't take on those that have the money, because

that's who they are taught to "worship, and adore", right from birth. Doesn't matter how they got it, as long as they haven't been caught...yet.


Tue, 03/08/2011 - 19:19 | 1031230 Ivar Kreuger
Ivar Kreuger's picture

No mention of Milton Friedman in the article or the comments.

The SRM and efficient market hypothesis are central actors in our current crisis and certainly not the creation of a Hollywood fuck face.

Friedman was the architect of Reganonmics, lets blame the "brains" not the mouthpiece.


Tue, 03/08/2011 - 19:37 | 1031293 sellstop
sellstop's picture

Thank you Ivar,

Freidman WAS the brains. And the Chicago economics department with the assistance of the CIA spread his "free market crap" around the world.


Tue, 03/08/2011 - 19:40 | 1031302 sellstop
sellstop's picture

And I see that CNBC is having a special program on Mr. Freidman. Full court press I guess. Wisconsin, Tea Party, and Milton. All of the ingredients for a booming economy!!!!

Isn't laissez faire economics what got us here.


Tue, 03/08/2011 - 20:13 | 1031426 gwar5
Tue, 03/08/2011 - 19:56 | 1031367 gwar5
gwar5's picture

I thought Friedman was great. The model has been fucked over by the usual Utopian socialists.

Some some Friedman classics:

YouTube - Milton Friedman - Abolish the FED!

YouTube - Power of the Market - The Pencil

YouTube - Milton Friedman on his Ideal Society

YouTube - Socialism vs Capitalism: Milton Friedman. 

Tue, 03/08/2011 - 20:29 | 1031488 THE DORK OF CORK
THE DORK OF CORK's picture

This is my favourite Icelandic soap from the 80s.

Notice the best supporting actor is none other then the current president of Iceland.

Its a small country I guess.


Tue, 03/08/2011 - 19:23 | 1031246 THE DORK OF CORK
THE DORK OF CORK's picture

Imagine a world where Anthony Eden survived to lead a 1980s cabinet.

It would be at least good for a laugh.



Tue, 03/08/2011 - 19:32 | 1031269 THE DORK OF CORK
THE DORK OF CORK's picture

I am sure dealing with Brezhnev complicated matters for the first Reagan administration....................


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