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Rosenberg Interview: "If You Don't Believe In A Double Dip, It's Because The First Recession Never Ended"
Sick and tired of CNBC "interviews" in which the speaker is given 15 seconds inbetween commercials to explain why the economy is in the toilet, before another talking head from the dodecabox appears and starts spouting painfully ridiculous things? So are we. Which is why we refuse to link to David Rosenberg's earlier presence on CNBC, and instead we present Rosie's following 26 minute interview with the WSJ which is a must watch for all who want to listen to exiled Merrill Lyncher express a coherent realistic thought before some CNBC associate producer screams "cut to commercial for incontinence pills." And, true to form, Rosie starts off in style: "If you don't believe there's going to be a double dip, it's because the first recession never ended. If there is going to be a double dip, the odds are certainly higher than 50-50." For those who follow our daily posts and Rosie's periodic letters via Gluskin Sheff (which would be all of our readers), the insights won't be particularly new, but it is always great to hear a rational and sensible person discuss things as he sees them, not as his trading book demands he see them.
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Secular De-leveraging Bitchez!
Hi traderjoe...forgive me for using some of this space :)
"First you have to give up. First you have to know, not fear, know that one day you are going to die...Its only after we’ve lost everything that we’re free to do anything"
So what do we do if we're free to do anything? One thing thats a given is we eschew the comforts of bed.
sleep when you die (a playlist): http://www.youtube.com/view_play_list?p=AC5C492890CABEE7
FREEEEEBIRRRRD!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Rick Santelli goes off after slow boil. Nice Zerohedge mention to boot (video)
[Video] Rick Santelli Goes Off ... and Luxury NYC Condos Now Get FHA Backing
It's time for double dipping, bitchez
Why do so few have the balls to call it a Depression as it really is?
+1
We are experiencing what would be the text book definition of a depression, replete with sovereign debt crises and all.
My first guess would be that while the majority of media ownership was spread over more than 1,000 companies back in the '50s and early '60s, and at the beginning of this century the majority of media ownership was spread over 5 to 6 corporations, today the majority of NONMEDIA (as there has long been no sector which fits that definition, unless one counts the limited exposure of tucradio.org and Bonnie Faulkner's "Guns and Butter" and Between the Lines) ownership is spread amongst 3 corporations.
Only guessing....of course.
Thanks, Serge. I'm glad that you provided those three leads because I've been looking for alternative news sources.
it starts with us. i make "the 2008 global market crash" and "the depression" a part of my lexicon whenever discussing financial issues. the more people hear it the more they will realize its more accurate than the fantisies peddled on teevee.
That is exactly right. The trick is all in the language. It's important that we do this in our everyday speech. As a society, we've been so thoroughly mind-fucked that we have pretty much lost the ability to call a spade a spade.
I get responses from previous naysayers now such as, "Yes. We already know it's a Depression. Where have YOU been?"
But they are still short on the idea of how we got here. They just don't want to look bad. They readily admit it will get bad - yet fail to comprehend what that bad looks like. Once basic services start to fail it will be more of the same just hysterical, "Why me? Why me? I'm a good person!"
It's human nature to feel uncomfortable saying something that no one else present issaying... In the last 4 months or so, I've only run across two people (outside my circle of close friends, and in person) who have any clue, and they were clearly uncomfortable expressing their opinions on the subject.
Bring up the topic, and most people will repeat platitudes like "oh, well, they say it's geting better"... that one guy in the back who says nothing is the only one who gets it.
The "recovery" is taken for granted by the soccer moms, cubicle dwelling yuppies, and those not directly impacted. The locals haven't mastered not driving their Prius into a telephone pole while texting, so I can hardly expect them to cut through the BS and perform critical thinking.
Hyperinflation, book it.
No economy=no tax revenue=no debt service=debt/dollar selloff
If I am wrong then why is the Euro falling right now ?(INFLATION)
YOU
HAVE
NO
CLUE
you poor misinformed souls
What is bad for US stocks, is bad for US treasuries/dollar. They both rely on income from the real economy.
But it's GREAT for my gold and vegetable garden!
Hells yeah! 4000% return baby! Goled to 54000, bitchez!
Of course it is, if the US dollar was not backed by gold it would have NEVER became the reserve currency after WW2.
The DOLLAR is the most fundamentally flawed fiat currency in the world, it just happens to be the latest one to be backed by GOLD.
I know this is contrary to ZH preferences, but you guys just haven't thought the gold thing through.
Gold can't do anything for you at all in a world with no oil. Period. Full stop. This planet can support 900 million of its present 7 billion inhabitants without oil fueling tractors that plow 10,000 acre farms, and create insecticide, and get the food to the people on trucks and trains.
You are 86% likely to die, soon. With gold or without it.
hahaha, i love comments like this.
Gold is the most marketable good, not oil. The guy with oil will not trade away his oil for more oil but he will trade away his oil for gold because he knows that gold can buy him any fucking thing.
Gold will buy you any thing -
Until it can't. "Marketable" needs a market.
Don't get me wrong, I hold PM's as well. In fact, they're nearly the only thing I have other than cash.
What he is saying about oil, is really about food. We have no historical precedent for large scale breakdown in a society that runs on oil... but we do have precedents of large scale breakdown. Those very examples are precisely why people look to gold - because gold could buy you anything, when everything else could not.
Until it didn't.
That's when there is no food. A mountain of gold does you no good if you starve to death and can't spend it.
Let's look at a simple example: if you have 10 people, and one of them only has enough food for one person to survive, then you can't buy that food with gold.
Yes, it's an oversimplification, and a rare one, but the same thing works with vaccines, medicines, seats on the last helicopter out, etc. Gold is only of value to people who will live to spend it.
My vehicle won't run on gold. My generator won't run on gold. My rifle won't run on gold. If it gets bad enough, I cannot get more oil or gas or bullets, and it will take a much larger heap of gold than one man can reasonably own to convince anyone from somewhere else to make an expedition to bring them here.
Thats bullshit.
There will always be somebody with and excess of lead or food or gas and that persons most preferable form of payment will be gold.
The five boroughs of NYC have less than 72 hours of food available at any given moment. It takes over 10,000 tractor trailer loads a day to feed the city.
Over 50% of the food consumed in NYC travels OVER 500 miles.
There is NOT enough surplus agricultural products within 500 miles to both feed the local inhabitants of the agricultural districts AND feed the populations along the transit routes, AND feed the population of NYC.
In late 1999, Gov Pataki signed into law an emergency measure to classify all of the infrastructure civic engineering infrastructure plans on file in various levels of NY government offices as "state security" exemption from public purview and FOIA laws.. This was done specifically because of a Y2K-planning report that found that with less than 100 men, enough bridges, waterpipelines, electrical grids and gas pipelines could be blown up in a few hours to create starvation crisises on NYC and Long Island within 5 days.
Immediately afterwards, the MTA put all of their infrastructure files in NJ under "national security" top secret status, and NJ removed all detailed maps of pipelines etc from public records.
A similar situation in and around Washington DC and the suburban counties was also put into place.
The DHS WMD response planners in NJ state gov and the combined NY/NJ committees also have on file plans to deal with a terrorist infrastructure collapse... scary triage consideratoins and all.
FBI in Newark and Brooklyn keep warehouses of supplies under lock and key under DHS auspices, and Senate Democrats are trying to cut the NYPD NY State troopers and MTA LEO funding to maintain their own warehousing needs in case of such a contigency. This is why Schumer and Wiener have been going animalmother-style trying to save this Federal funding.
Surely you jest!
Gold is shiny, pretty, and you can hold it in your hand!
Glenn Beck told me it's the only asset that goes up in times of economic turmoil, not down.
Glenn Beck is a qualified economist and investment advisor, and I believe that when the United States becomes Zimbabwe next week that gold will make 4000% returns and hit 54000 an ounce.
Then where will YOU be? Begging me to come into my nuclear shelter as the world ends in fire and brimstone?
It'll be too late by then. I'll have a vegetable garden and canned hamz, and protect them all with LEAD bitchez!
You haven't thought the gold thing through!
If you hold gold and pray, it'll be worth 1200 an ounce again in 2039!
Don't be so hard on gold. Think of it as super lead:
-Bullets
-Sinkers
-Dental Fillings
-Conductor (heat and electrical)
-Radiation Shielding
-Schnapps Decoration
-Magical Money Meme
CHRISTy Brinkley!!
Did you get that off of the Georgia Guidestones?
I can only laugh out loud and pray that was some kind of ill-conceived joke.
Six billion manual laborers can get a shit load of hoeing and bug picking done if their survival depends on it.
There will be many deaths in the transition if it comes to pass.
"But it's GREAT for my gold and vegetable garden!
Hells yeah! 4000% return baby! Goled to 54000, bitchez!"
It's 106 today. Red Bell peppers are cooking on the vine here. Buy some krispy kreme donuts because you're going to need to store some fat as vegetable gardens are taking a beating.
did I miss something ??
Why was the Euro falling* (INFLATION) when Greece was unable to serviced its debts and the Euro zone was on the cusp of debt destruction ?
Why didn't the Euro rise* (DEFLATION) when the Euro zone was on the cusp of debt destruction.
*inflation-gold gets more expensive for Euro earners
*deflation-gold gets cheaper for Euro earners
Now that's what I call a hedge. How can you go wrong wanking off bars of gold?
Spitzer
1)do you think the Euro in its current form or the Dollar in its current form are more likely to survive over the next few years?
2)What is most of the Worlds debt denominated in?
3)What is currently happening now at corporate and consumer level?
Answer those 3 questions correctly and you shall have your answer.
The ECB marks its gold holdings to market monthly(Fed doesn't) The Euro zone has a bigger gold hoard then the US. 10,000 tons+
Dollars that are backed by the full faith and CREDIT !!!!!!!! of the US government
The US corperates and consumers are FUCKED so in other words the income stream that the US relies on to service the US debt is FUCKED. When the debt becomes a non performing asset it will be SOLD OFF. The dollar is backed by this debt, remeber "full faith and CREDIT of the US govt ?
Dollar is done !!!
Just wait until we become Zimbabwe next week.
My gold will be worth 54000 an ounce! We can have a zero hedge picnic.
What services the US debt ?
what happens to debt that cannot be serviced ?
what happens to currencies that are backed by the debt ?
What is the difference between a country with its own central bank, reserve currency, the largest military in the world, and the biggest economy in the world and Zimbabwe?
A-ha!
Biggest debtor nation in the world.
Is that a position of strength in your mind ?
Nominally but not as a % of GDP. I'll bet that you probably have more debt to GDP in your own household and that includes the unfunded liability argument. Are you bankrupt, insolvent or likely to just walk away from your liabilities or does your bank have enough faith in you to allow you to stay in the house, drive your car and keep your kids in school?
The GDP numbers are a joke, are you aware that the US includes interest on credit card debt in the GDP ?
What does it even matter ? the dollar is broke.
Why shouldn't it? Every dollar passing hands adds to GDP and taxed including babysitting, Comcast subscriptions etc.
The dollar is worth as much as it is. When I have dollars thrown back at me, I'll apologies for the little faith i have in your arguments.
There is no argument here. If you think that the dollar is a safe haven for the long run then that is your problem, not mine.
If you think credit card debt is the same as real productive capacity then you are not educated on the subject enough. There is a right and a wrong answer.
You assume credit card debt is intended to be defaulted on. Not the case. Money spent into the economy is productive whether it's cash or credit.
Interest on credit card debt is no real productive capacity.
The first one has much more to loose.
However, past rights does not excuse current wrongs.
Interesting conclusions. I sense youre not open to debate so shall bid you good luck in your fx theories.
I am open to lots of debate.
Is the US dollar backed by the full faith and CREDIT of the US government or not ?
So I hear. Who has full faith in the credibility of the US Govt., currently?
Russia and China are prentending and planning their next move so I dunno... Maybe CALPERS ?
...and it's military and it's the largest economy in the world and it's reserve currency status. But you contradict yourself without even knowing it. The fact that it's the most expanded currency should give you a hint.
None of that has to do with the reality that the dollar is backed by an imploding economy that will not be able to service its debts.
The rest of the world thinks so enough to fund the debts. BTW the rest of the world also believes the US is stil the largest single holder of gold reserves in history.
It doesn't matter if the world holds the debt now, will they hold it when the debt becomes a non performing asset ? I think not.
No actually, the Euro zone holds more gold.
It's already non performing and yields have been deteriorating for a decade.
I said single largest holder. Eurozone can't even agree on speed limits.
Just because the treasury bubble has not burst yet doesnt mean it never will.
The euro zone is a single monetary union.
Noticed how treasuries mirror gold and vise versa? Be careful what you wish for.
EU may be the precursor for the NAU. If it transpires, US takes Canada's gold. How do you like that?
makes perfect sense to me.
Watching it now.
Bingo! And the cure is more and more credit! /sarcasm off
I've fully lost faith in credit.
Then you must not hold dollars that are backed by the FIRE economy that is imploding.
Then buy tulip bulbs... I mean dot com stocks... I mean houses...
No wait, gold's the new bubble, right?
Yeah, ummm... goled bitchez!
Gold has gained vs. the S&P steadily over this whole depression. Those who bought at the low are up 4X when those in equities have lost money (due to inflation especially). Bonds have not done much either. And holding cash...who holds cash? Only to buy more PMs. So what then JB, you jealous much? Go get your paypah!
I already made more money trading over the last two years than buying and holding gold since 1999 would have gotten me...
And now, here I am not invested, spending money investing in other ways - on myself.
I already made more money trading over the last two years than buying and holding gold since 1999 would have gotten me...
Stay classy, JB.
Haha! The anchorman!
I already made more money trading over the last two years than buying and holding gold since 1999 would have gotten me.
Sure Greg and I bet you slept with more women over the last two years than Wilt during his lifetime.....
Say adios, Johnny Bravo!
just when the sheeple like Jonny bravo thought they had this bubble thing figured out, along comes Ben Bernanke with the fiat bubble.... haha
Damn, and all I have is this toilet paper. I should have bought Angel Soft. It makes less papercuts in my butthole than dollars.
Of course, if I used gold, it'd be smooth and cold and wouldn't even rust - unless it was Russian gold.
oh, you fell for that Russian bluff ?
They where just trying to talk down gold.
More evidence for the "Hindenburg Omen".
The indicator may suggest “a savage equity downturn is imminent,” said Albert Edwards, a London-based strategist at Societe Generale SA.
An apt adjective.
"Thou shalt not utter household survey!" -cnbc
CNBC = Mandy...
Avid follower of Rosenberg's breakfasts and lunches, good posting!
Thank God for Rosie, ever steadfast before an army of fools.
She's hot (much better than CNBC)! ;)
With 5 American-based multinational banks making 63% of the American GDP, and the sum total of the Fantasy Finance Sector and war spending making up over 80% of the GDP (it's difficult to ascertain whether it is over 90% or not due to purposely obscured data), it becomes rather obvious there IS NO ECONOMY! (Nor any media, and the USA, as anyone with two neurons to connect together understands, is simply a colossal criminal enterprise.)
Those who fully understand why the GNP (gross national product) became the GDP (gross domestic product) comprehend that it would benefit the econ elites with opaqueness and render any transparency null and void, not tracking all that profit laundering (from offshore profit shifting, transfer pricing, capital hiding, and debt hiding, etc.)
With the refusal of over 70% of American-based corporations refusing to pay federal taxes, with Peter G. Peterson long "concerned about the tax situation" while doing everything possible in his sordid life to avoid paying taxes, including rigging a deal with the corrupt crooks in congress to continue paying only the capital gains rate (legally should be paying the corporate rate of 35%) when the Blackstone Group went public, with government funds continually going unaccounting for or missing ($2.3 trillion reported by DoD comptroller on 9/10/01, that unaccounted for $8.7 billion from that recent mention in the Iraq Reconstruction SIG report), and the incredibly shrinking tax receipts going into the incredibly shrinking American tax base due to critical mass of offshoring jobs having been reached by Peter G. Peterson and his crowd of traitor scum, and with Obama's appointment of Erskine Bowles and fellow neocon/neolib Alan Simpson -- who both want to steal the $2.7 trillion Soc. Sec. fund from those who actually have paid their taxes (and BTW, Erskine Bowles is on the BoD of Morgan Stanley, with his wifey, Crandall, on the BoD of J.P. Morgan Chase -- that's two of the three members of the trinity of evil [GS the third]) -- it is obvious which way that wind is blowing,
and as of now it appears to be going above a number 5 on the Beaufort Scale.
And for the edification of any Certified Ameritards who may visit this site, American citizens are convicted on a daily basis of conspiracy, and a brief looky at that previously mentioned SIGIR report will show:
Terry Hall, contractor: conspiracy, bribery charges
Robert Jeffery: conspiracy and theft conviction
Nyree Pettaway, niece of Maj. John Cockerham: conspiracy to obstruct justice conviction
Michel Jamil: conspiracy conviction
Robert Young: conspiracy and theft of government property conviction
Elbert W. George III: theft of government property; conspiracy conviction
Roy Greene, Jr.: theft of government property; conspiracy conviction
Carolyn Blake, sister of Maj. John Cockerham: conspiracy and money laundering conviction
Frederick Kenvin: conspiracy conviction
Maj. Theresa Baker: conspiracy and bribery conviction
Col. Curtis Whiteford: conspiracy, bribery, and wire fraud conviction
Lt. Col. Michael Wheeler: conspiracy, briberty, wire fraud, etc., etc., etc. conviction
Lt. Col. Debra M. Harrison: conspiracy, bribery, money laundering, wire fraud, etc., etc., conviction
Maj. John Lee Cockerham: bribery, conspiracy, money laundering
(must stop, typist's cramp, can't continue forever....)
a very instructive rant! +++
The fact that they've tried to convince the general public that we've worked our way out of this is mis-direction at it's finest. "Let's pump massive amounts of liquidity into the market to help spur even the slightest bit of growth, and then declare that everything is good. That will in turn quell people's fears and get them spending again." Only this time we ain't buying it. Sell crazy some place else, we're all full here.
God, this interview alone should guarantee at least $500 billion in QE.
"Eleven percent unemployment in a year. " 24:40.
Isn't it already 14.7pc or something if the participation rate and em-pop ratios were what they were at the start of the decade? ZH had a post on this recently, the unemployment rate is horrendously fudged.
Add me to the list, got my notice this morning.
Rosenberg should just say it, "Depression" and the economy is contracting at a 4.7pc rate as of today. So the depression is on going and if the BEA had more balls, they'd be showing that the economy was contracting since the beginning of the year.
rosie is a breath of fresh air. i read him whenever possible. where i draw the line is in "free trade."
as did ricardo i believe in free trade between developed countries. free trade as it exists today hurts more americans than it helps. spare me the smoot hawley arguments. i've seen the charts and know both sides of the issue, as well as the argument about cost savings for consumers.
the free trade debate is geared toward big business to exploit slave labor. if president i would throw up tariffs, wire the chinese their two trillion and tell big business to bring the jobs home or get out, ass-holes.
and that's monday morning before 8 am.
whatdayagottalose. there's 20% u6, the public is not in the market per se so a crash would primarily hurt those bailed out (a few percent of the usa market participants) by the stimulus. plus it would be difficult to raise prices when u6 is 20%, etc etc etc
the so-called elite would have a cow. but greater than half the public country folk would jump on board. folks are tired of carrying the elite on their back.
Lt, 70+ % of Americans want a secure border and controlled access to USA..what do the pols do..the opposite
70+% of Americans want the pols to stop spending..what do they do they add more bailouts
70+% of Americans did not want the TARP what did they do they passed it.
What we are seeing is the shadow gov at work
the aims of policy today is what American citizens are directly against.
off shoring jobs still continues.. I am amazed at GM plans to build a new plant in MEXICO and import volt batteries from KOREA..
did Mexico and Korea bail GM out or what?
the telling feature of the interview is the pass he gives to Bernanke "He's doing everything he can so I think there is no sense in criticizing Bernanke"(!) Given the radical tenor of much of the commentary here on ZH and some of the many other brilliant sites around the web, Rosenberg's blathering is tepid, predictable and routine. There is nothing new here. This is a guy who definitely is part of the "club" even if in a contrarian sense.
When the interviewer is a fool it's hard to look good. "What grade would you give Bernake?" Stupid.
Rosenberg explains all a little later when he says employment is the key from which all good flows. Why isn't the country bloodthirsty for common sense in Washington?
+10
+1,776
Rosie... "We need a war on unemployment."
Segue to the Middle East, to Iran.
Unemployment meet your war.
This thing is generational. Consumers may heal, but they are not coming back with spittle on their chins like before. Housing is over for a long time. Saving will become both cool and necessary. The unwinding of boomer assets will take decades, and they will be bought by either the jobless younger generation (paying with foodstamps) or foreigners (equally unlikely.) By my math, the deficit is $30K per tax-paying household and the unfunded liabilities of about $2 million for each of those same households. The notion that we can grow out of this is, as I am sure Rogoff would concur, total mathematical nonsense. We may be a healthy economy in the foreseable future, but return to the past is not in the cards.
I thought it was Cialis on CNBC - if I see two motherfucking people outdoors in bathtubs where they don't belong, I am going to shit on my television and mail it to cialis
TV is evil.
troo dat shit
We are in or are entering a depression. Our number one concern should be the elimination of personal debt. Buy what you can afford to pay for NOW! Damn the credit lines...free yourself from the prison of DEBT!
That's a fools game as proven by big banks. Default, walk away and take everything you were spending on debt and buy assets that they can not take directly from you. PM's hidden, ownership interest in oil wells through layered LLC's and cash again hidden, possibly land in a foreign country.
OBAMANOMICS
http://williambanzai7.blogspot.com/2010/08/obamanomics-explained.html
Rosie, one of the few "sane" men left who will be shouted down by the idiot parade as seen on CNBS and Bloomie who keep reminding us that a recovery is in progress.
The Future is already here, it's just not evenly distributed.
Wow. A prediction from the man who is always wrong. Better turn up the volume for that one...
A very good interview. We need more of these.
"This is a credit contraction of historical proportions..."
Yes, yes it is.
GREAT interview. I thought Rosie took some straight forward questions from the interviewer and handled them well. Bottom line is he makes sense. Common sense, something that seems to be a rareity these days.
If the markets traded on common sense his advice might actually be worth something.
Alas, they don't.
i like your "analysis." paraphrasing: in a sane world rosie has good advice which is to say that based on fundamentals the market is over-valued, thus stay out lest you get creamed. nevertheless, stay long and ignore him since the market doesn't trade on common sense, lest you miss a market move higher by a crazy market.
first we had posters commenting that the bears are "always" wrong. (spy was $157, now $108. dow was 14,000, now 10.350)
now we have posters saying rosie is "always" wrong.
guess for them it's better to follow cramer's advice to buy, buy, buy ....
I guess that the straw that broke the camel's back for me was when he was saying to sell at Dow 7500, and that the Dow would hit 4000.
Is that wrong, or is that wrong?
Oh wait, he was bearish like five years ago, and that makes all of his erroneous calls since not important...
great to see you stand firm in your conviction that rosie is "always" wrong.
btw: did he give a date when the dow would touch 4,000?
He sounded quite bullish to me. Sees S&P earnings around $80? No F'in way they'll be that good. Dow at 9000 in a year? NO WAY, try 6000.
11% unemployment? Uhh, lets use REAL #'s eh? We're already nearly 25%.
ROSIE IS NO BEAR!
The fundamental issue is obviously jobs creation as Rosenberg mentions. Problem is that these days, productive jobs emerge from demand where demand does not currently exist. In other words, new technologies that demand a premium at the expense of prior art must be exploited. Eg. Online shopping in it's infancy a decade ago crushing expensive malls and shopping centers.
It's the only way the US can compete since Wall street driven and USG backed labour arbitrage has suffocated wages and imported deflation to maintain a fragile but still relatively high standard of living. Without technology driven emerging industries in the US, expect more wage deflation and a subsequent overflow into the rest of the economy.
In general, I agree with Rosie but it's only common sense. I also agree with his comments regarding the FED. People give too much credit to Ben Bernanke's influence over the economy. Both FED mandates (control inflation and jobs creation) have failed in spite of the FED's intervention. It's more than they can handle and they know it. Congress now needs to understand this.
At least he is correct, we never got out of the FIRST Recess, er', Depression.........
There's just differing degrees of Depression, we're in Stage 2 of 3.
What an obnoxious interviewer. She would never let Rosie finish answering a question. It was so painful I had to stop watching after 8 minutes.
One of the best interviews I've seen in awhile. Mr. Rosenberg is a gifted speaker and presents such clarity about the economic crisis that few can offer. He comes off as being sincere and straightforward.
One of many things he said rang true to me, "we need a war against unemployment." In the past, this country has declared war on drugs, crime, obesity, and everything else in between - but where the hell is the war on unemployment ? Perhaps we can't declare a war on unemployment because 1.) politicians have no ammunition (i.e. no knowledge of how business works) 2.) helping business will defer the grand plan for socialism, 3.) putting people to work feeds capitalism which many do not want and, 4.) it's easy to practice QE and continue the grand illusion.
Kudos to Zh for bringing us the best forum money can't buy.
The take away I got from Dave is the Government should get the fuck out of the way of business.
Small Business needs to know the rules...they can't keep changing. Corporate taxes are too high. Sorry but move the Tax load back on to people. Companies are running to other parts of the world to find lower rates.
If company taxes are high and personal taxes are low..small businesses will just keep pulling the money off the balance sheet and out as personal income.
Great interview.
I think what everyone is missing is the large elephante in the room. The one that keeps trumping that the 10 year will be extremely volatile as, for the first time since the aftermath of the War of 1812 (someone ask Sarah when that was), US Tsy credit concerns will eclipse everything.. 50 bp daily swings will be normal. Buy Tsy vol...
With PIMCO selling, the Chinese are probably in a room screaming at each other..