• Tim Knight from...
    04/28/2016 - 00:27
    I was expecting a few boring candidate statements of the U.S. Senate - AKA the World's Most Exclusive Club - but, boy, was I wrong. Just take a look at some of these gems.
  • Tim Knight from...
    04/28/2016 - 00:27
    I was expecting a few boring candidate statements of the U.S. Senate - AKA the World's Most Exclusive Club - but, boy, was I wrong. Just take a look at some of these gems.

Sorry, The Upper Class Will Not Pull The US Economy Out Of The Depression

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Thu, 12/10/2009 - 17:15 | 159432 anarkst
anarkst's picture

One does not spend oneself into wealth.

Thu, 12/10/2009 - 18:04 | 159504 VegasBD
VegasBD's picture

One does when one studies obamanomics

Thu, 12/10/2009 - 18:18 | 159518 carbonmutant
carbonmutant's picture

...or tax oneself into prosperity

Thu, 12/10/2009 - 20:15 | 159629 Let them all fail
Let them all fail's picture

Unless you work on Wall Street of course, but most wealthy families are very conscious about the economy and trying to be (relatively) frugal

Thu, 12/10/2009 - 17:16 | 159433 AN0NYM0US
AN0NYM0US's picture

And we thought CNBS was bad

the truth --  initial jobless claims ended five weeks of improvement, rising 17,000 in the Dec. 5 week to 474,000 for the highest level since mid-November.

and from Bloomberg

Initial Jobless Claims Average in U.S. Falls to One-Year Low

Dec. 10 (Bloomberg) --  Fewer Americans on average filed claims for jobless benefits during the past four weeks, signaling companies are gaining confidence as the economy recovers.

The four-week average declined to a one-year low of 473,750

and from Bloomberg last week

U.S. Jobless Claims Unexpectedly Fall to One-Year Low

Dec. 3 (Bloomberg) -- The number of Americans filing first- time claims for unemployment benefits unexpectedly fell last week to the lowest level in more than a year, a sign companies are holding on to workers as the economic recovery unfolds.

Initial jobless claims declined by 5,000 to 457,000 in the week ended Nov. 28,

Thu, 12/10/2009 - 17:37 | 159462 ghostfaceinvestah
ghostfaceinvestah's picture

Bloomberg gets worse by the day, I swear they are worse than CNBS at this point, their TV is worse than they terminal.

Thu, 12/10/2009 - 20:29 | 159640 Rainman
Rainman's picture

I agree. Bloom was my last stop in the vision world . Nobody is going to the deep end of the pool. Money is tight, so they just copy and paste. I buzz their site briefly now, too.

ZH is the only game left to get everywhere you want to go.

Fri, 12/11/2009 - 00:35 | 159806 Vulgus Porkulus
Vulgus Porkulus's picture

I went from watching CNBC to CNBC (mute) to Bloomberg to Bloomberg (mute) to...Phineas and Ferb.

Fri, 12/11/2009 - 07:48 | 159925 alexdg
alexdg's picture

LOL Same here! Once in a while you glance at the tv screen to see what they're talking about (or who they are interviewing) and if it is worth putting the sound back on.

Thu, 12/10/2009 - 18:30 | 159532 WaterWings
WaterWings's picture

If you have two minutes for some entertainment:


Thu, 12/10/2009 - 17:16 | 159434 Problem Is
Problem Is's picture

What about Goldman bank-sters buying guns, ammo, body amour and fire arms for ladies shooting lessons?

That should be a big boost to consumer consumption, right?

Thu, 12/10/2009 - 17:17 | 159436 Lionhead
Lionhead's picture

When time is up, it's up.............

Thu, 12/10/2009 - 17:18 | 159438 ghostfaceinvestah
ghostfaceinvestah's picture

Makes sense when you figure a large portion of the upper income segment derived those incomes from the FIRE economy.  Despite the nice markups on their bond portfolios from 1/1 through 9/30, spreads can compress only so far, so without a new game to replace the credit bubble, many of those incomes are not sustainable and once lost will not be replaced in kind.

I knew guys making over a mil a year selling option arms.  A lot tougher to make a mil a year selling FHA loans to FTHB.

Thu, 12/10/2009 - 17:19 | 159440 Prophet of Wise
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"Property is the fruit of labor...property is desirable...is a positive good in the world. That some should be rich shows that others may become rich, and hence is just encouragement to industry and enterprise. Let not him who is houseless pull down the house of another; but let him labor diligently and build one for himself, thus by example assuring that his own shall be safe from violence when built." The Collected Works of Abraham Lincoln edited by Roy P. Basler, Volume VII, "Reply to New York Workingmen's Democratic Republican Association" (March 21, 1864),

"We all declare for liberty; but in using the same word we do not all mean the same thing. With some the word liberty may mean for each man to do as he pleases with himself, and the product of his labor; while with others, the same word may mean for some men to do as they please with other men, and the product of other men's labor. Here are two, not only different, but incompatible things, called by the same name - liberty. And it follows that each of the things is, by the respective parties, called by two different and incompatible names - liberty and tyranny." The Collected Works of Abraham Lincoln edited by Roy P. Basler, Volume VII, "Address at Sanitary Fair, Baltimore, Maryland" (April 18, 1864), p. 301-302.

Thu, 12/10/2009 - 23:51 | 159787 Anonymous
Anonymous's picture

The income tax was only implemented after most tariffs were rescinded.

Thu, 12/10/2009 - 17:20 | 159442 carbonmutant
carbonmutant's picture

When the "Housewives of Orange County" are advising each other to "Glam it down" 'cause "Bling" is no longer popular; even Joe6pak knows something's changed.

Thu, 12/10/2009 - 17:42 | 159470 ghostfaceinvestah
ghostfaceinvestah's picture

I unfortunately have to watch that show occassionally because the wife likes it. A lot of Orange County wealth was directly from the FIRE economy, look at the chicks on the show, weren't a few of them Realtors (supposedly), one sells insurance, one of the husbands was a residential contractor, one dude sold title insurance, etc.  that whole economy was predicated on flipping houses to each other.  once that went, there wasn't much to replace it.  at least LA itself has Hollywood, Orange County had Irvine, ground zero for the subprime crisis.

a lot of these people lived off the wealth they accumulated during the bubble (not savings, per se, but they are still driving the 2006-vintage Mercedes, etc), but the longer the housing depression goes on, the more pain these people will feel, and the more they will pull back spending.  and at the high end, the housing depression is just getting going.

Thu, 12/10/2009 - 17:21 | 159443 trav777
trav777's picture

you mean they are just socking the money away and buying gold with it??????  Instead of trickling it down?  NO WAY

Thu, 12/10/2009 - 17:22 | 159445 JohnKing
JohnKing's picture


Thu, 12/10/2009 - 17:24 | 159447 SimpleSimon
SimpleSimon's picture

And when all the new taxes kick in, disposable income will down even further increasing the frugality of the consumer.

Thu, 12/10/2009 - 20:26 | 159636 Anonymous
Anonymous's picture

Yes. Also, that group includes a lot of people who are business owners. Regulatory and political risk have been piled onto market risk and many businesses are afraid they will be pushed out of business altogether in the near future. When business owners' going concern issues intensify, they stop spending so much.

Thu, 12/10/2009 - 17:29 | 159452 lsbumblebee
lsbumblebee's picture

We should probably print more money. That's how I figure it. Yep. Definitely print more.

Thu, 12/10/2009 - 17:44 | 159472 ghostfaceinvestah
ghostfaceinvestah's picture

no question that is the potion that will cure all ills.

Fri, 12/11/2009 - 06:13 | 159903 delacroix
delacroix's picture

in the good old days, you could buy passable counterfeit frn's for 50 cents on the dollar, in mexico, now the real dollars, are only worth 50 cents.

Thu, 12/10/2009 - 17:34 | 159457 Shameful
Shameful's picture

Like Cheech and Chong said "Things are tough all over"

Thu, 12/10/2009 - 17:58 | 159493 Steak
Steak's picture

Why must we stay where we don't belong
Why must we stay where we don't belong

Because there's never gonna be enough space
So eat the meek, savor the taste
It's always gonna be a delicacy
So Lick your chops and eat the meek

Why must we stay where we don't belong
Why must we stay where we don't belong, don't belong

The factory mass producing fear, bottled,
Capped, distributed near and far
Sold for a reasonable price
And the people, they love it, they feed it
Brush with it, bathe with it, breathe it
Inject it direct to the blood
It seems to be replacing love

Why must we stay where we don't belong
Why must we stay where we don't belong, don't belong

Because there's always gonna be token truth
Forgotten code discarded youth
You know there's always gonna be pedigree
One own the air one pay to breathe

Why must we stay where we don't belong, don't belong

Fri, 12/11/2009 - 01:33 | 159830 Master Bates
Master Bates's picture

I fucking love NOFX!!!!!!!!!!!

Thu, 12/10/2009 - 18:06 | 159505 deadhead
deadhead's picture

Bianco is full of shit and nothing but a sell side hypster. kinda like his spx call back in 07.

how the man can overweight the financial sector that is propped up by false accounting via 157 is beyond sane thought.  so, Dave, tell us about the 166,167 matter and how that will impact the festering balance sheet.  or, are you betting that Bair (per directions of the diet coke boy and helicopter ben) will provide capital relief via a 5 yr delay and then a 10 yr sliding scale implementation?

i'm a merrill client and the last thing i would do is listen to your shit advice

the fed and the fed only is propping up the banking system...

Thu, 12/10/2009 - 18:48 | 159548 Unscarred
Unscarred's picture

So who is diet coke boy, and how did he get that name?  I google searched "diet coke boy," and this was the first thing that came up:


Thu, 12/10/2009 - 18:57 | 159556 deadhead
deadhead's picture

Larry Summers is Diet Coke boy.

He is notoriously addicted to the stuff.

I can also say with all confidence that he did NOT have a sexual relationship with Tiger Woods.

I can further say that he is in the top 5 group of people who have completely fucked up the USA's economy and financial system.

Thu, 12/10/2009 - 20:11 | 159628 Anonymous
Anonymous's picture

Oh so that's what happened to Larry brain.

Thu, 12/10/2009 - 21:19 | 159677 Green Sharts
Green Sharts's picture

Did you see this story on Summers and the Harvard endowment fund?


It happened at least once a year, every year. In a roomful of a dozen Harvard University financial officials, Jack Meyer, the hugely successful head of Harvard’s endowment, and Lawrence Summers, then the school’s president, would face off in a heated debate. The topic: cash and how the university was managing - or mismanaging - its basic operating funds.

Through the first half of this decade, Meyer repeatedly warned Summers and other Harvard officials that the school was being too aggressive with billions of dollars in cash, according to people present for the discussions, investing almost all of it with the endowment’s risky mix of stocks, bonds, hedge funds, and private equity. Meyer’s successor, Mohamed El-Erian, would later sound the same warnings to Summers, and to Harvard financial staff and board members.

“Mohamed was having a heart attack,’’ said one former financial executive, who spoke on the condition of anonymity for fear of angering Harvard and Summers. He considered the cash investment a “doubling up’’ of the university’s investment risk.

But the warnings fell on deaf ears, under Summers’s regime and beyond. And when the market crashed in the fall of 2008, Harvard would pay dearly, as $1.8 billion in cash simply vanished. Indeed, it is still paying, in the form of tighter budgets, deferred expansion plans, and big interest payments on bonds issued to cover the losses. 

How did we end up with the 3 Stooges running the Fed and Treasury?  What have Summers, Geithner or Bernanke ever been right about?

Thu, 12/10/2009 - 22:34 | 159733 Unscarred
Unscarred's picture


Thanks.  I would have guessed Timmah, so I appreciate the clarification.

I also agree about your inclusion of Larry in your top 5, and I think that people too often discount the role that Larry played in Gramm-Leach-Bliley.

Fri, 12/11/2009 - 00:23 | 159800 Vulgus Porkulus
Vulgus Porkulus's picture

Larry thinks the female brain can't 'handle' science/math too.  Dork.  Whose your #1?  Do it rhyme with Dick Boobin?

Fri, 12/11/2009 - 06:17 | 159904 delacroix
delacroix's picture

good thing he doesn't drink regular coke, he might get fat.

Thu, 12/10/2009 - 18:14 | 159514 nope-1004
nope-1004's picture

This is another vote for deflation.  Spending down some 30% among the upper class since the peak, by choice or by necessity, is not really a concern.  What is a concern is that the velocity of money is rapidly declining.  Print - print - print.... does nothing if all the big banks do is bet on the dollar carry trade.

Deflation is here.  How long it stays will be interesting to watch.

Thu, 12/10/2009 - 18:15 | 159516 AnonymousMonetarist
AnonymousMonetarist's picture



For the last quarter century, commensurate with the rise of conservatism from stodgy to snazzy, regular folks' inner monologues have been written in direct opposition of their interests. Poor folks voted for rich folks interests because in their hearts they felt that they were entitled someday to be rich. My generation has grown up in an aspirational society.

For our children, though, it looks more like a perspirational society with perpetual government subsidies. 

Ask not what you can do for your country, ask what your country can do for you.

Thu, 12/10/2009 - 18:20 | 159519 virgilcaine
virgilcaine's picture

OC wives , Think of all that silicone that will no longer be used.

Thu, 12/10/2009 - 18:29 | 159530 carbonmutant
carbonmutant's picture

Yea but all those stress related wrinkles are causing a significant increase in Botox injections.

Thu, 12/10/2009 - 18:27 | 159524 Cursive
Cursive's picture

Safe to say that Gallup won't be awarded any government contracts soon, eh?

Thu, 12/10/2009 - 18:48 | 159545 virgilcaine
virgilcaine's picture

Tamra has been stressed, hubbys Tequlia business  is floundering and are upside down on the Mcmansion..  the Botox queen.  Trainwreck like consumer spending.

Thu, 12/10/2009 - 20:30 | 159642 Anonymous
Anonymous's picture

I'm so surprised the Tequila business isn't doing well in a bad economy. Don't people drink more when they're depressed?

Thu, 12/10/2009 - 18:57 | 159557 Anonymous
Anonymous's picture

Oh Darn-and I was counten on um

Thu, 12/10/2009 - 19:19 | 159579 Anonymous
Anonymous's picture

The solution is to merely tax everyone at 100% over a certain level of personal income, adjusted for regional cost of living differences(say 10% over median income for a locale).

Also, impose a 100% inheritance tax on all non business related assets.

If this model is followed. Everyone can retire comfortably at 72 and receive free health care up until the age of 72.

Thu, 12/10/2009 - 20:15 | 159630 Anonymous
Anonymous's picture

No, no. First $100,000.00 tax free for all income, gains, etc. and then the rest can be taxed at a nice fat rate.

Thu, 12/10/2009 - 20:23 | 159633 Anonymous
Anonymous's picture

The richest man I know is also the cheapest. Really: At a certain point they just get over it. The spending, I mean. Then it becomes a competition with your buddies to see how little you can spend.

A lover had a (millionaire) father who used to solicit loose change from strangers to ride the jitney in Atlantic city to his beachfront penthouse in Ventnor.

Another paramour figured out long ago how to own a private jet and fly for free (answer: start another company and charter the plane out when you're not using it, and make sure you at least break even before the end of the year).

These are the things rich men brag about. This economy isn't getting a dime from them. Especially in an emotional climate, when Joe Sixpack is so angry. You kidding? The ones who haven't already left the country (wouldn't you?) are dressing like homeless men and going incognito. By now they already have all they want.

Their wives on the other hand . . . if they can't figure it out on their own their husbands shame them. Some of them are really tone deaf though . . . Could these ladies be our only hope?

Thu, 12/10/2009 - 22:56 | 159747 docj
docj's picture

Same here - and I find the first-generation rich (usually people who started with zero and built it all during their working lives) tend to be quite frugal.

Their layabout kids?  Well, not so much - at all.

Fri, 12/11/2009 - 01:42 | 159836 carbonmutant
carbonmutant's picture

"These are the things rich men brag about. This economy isn't getting a dime from them."


Thu, 12/10/2009 - 22:00 | 159704 Anonymous
Anonymous's picture

China might be in more trouble than it realizes. It already has a massive overcapacity problem.

Lucky for them the US has minimum wage laws!

Thu, 12/10/2009 - 22:21 | 159722 no cnbc cretin
no cnbc cretin's picture

Depression. Thanks for saying it, because we're not in a Recession. We're in a Depression, that's going to make the last one, look like a walk in the park.

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