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Sunday Reading
- Evans-Pritchard: Fiscal ruin of the Western world beckons (Telegraph)
- Mauldin: Europe on the brink (Safe Haven)
- The elusive California housing bottom (Dr Housing Bubble)
- Six reasons to abolish the Fed (Mish)
- It's good to be Goldman (Barron's)
- TARP inspector urges Treasury to track banks' aid more closely (Bloomberg)
- CIT in talks with bondholders as bankruptcy looms (Reuters)
- Philadelphia's Urban Outfitters to lend direct to vendors if CIT files (Bloomberg)
- As Philadelphia halts vendor payments, joining Cali in the IOU fest (WSJ)
- BA and Virgin to stop suspected swine flu victims from flying (Guardian)
- Al-Qaeda's next front: China (Pravda)
»
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Sometimes Mish can be extremely self-serving and condescending. William Greider is an incredibly brilliant man and a great patriot. He wrote about the crimes of the Federal Reserve when Mish was working at McDonalds. Mish's grasp of economics is very limited and he writes ad nauseam about the debt bubble with no prospective solutions. (There are solutions but he doesn't understand enough about economics to talk about them. And they would involve economic policy that he unwittingly rails against. In other words, he's eventually going to be marginalized as the market moves against him because of his limited knowledge.)
And he rails on the Fed yet the real problem is private banking that pays off our Congress. And, I could easily argue for a fractional reserve banking system and how it would work over time without creating this apparent belief that it must always lead to bubbles. I can assure you someone can devise a public banking system that democratizes capital quite efficiently. More efficiently than anything he has every verbalized. But, his own blind spots continue to support this neoliberal ideology of privatizing everything because the government is always bad. Sure it's bad when governance has morphed into fascism. And, his idea that private banking is an answer indeed unwittingly perpetuates an environment he dislikes so.
He obviously has been a constructive voice for change but what kind of change other than abolish the Federal Reserve? I really only read one continual diatribe over and over again on his blog - the world is coming to an end and abolish the Fed. At some point he's going to have to write about something else.
I disagree. Mish has been more correct with his calls on the market and economy than most. Out of curiousity, what are your economic credentials that place you in a postion of such authority....
Yeah, i disagree completely with you. Mish's posts, though redundant, seem well thought and articulated. "Condescending"? I'm not sure when I've seen that on his blog, and what exactly do you have a problem with that he has written about? And, what else is an economics blog going to write about? His blog isn't the most eclectic, but it's only him and not an army of keyboardists preparing something seminole day in day out.
Hey EQ... on a blog-site one cannot hide behind errors. They are there for all to see. If Mish is wrong he calls it. Remembr it is his opnion.
Lets see he dalled deflation, L shaped recession and where he is putting his marbles. Simple fact of the matter is that he is and he does write about a lot of material but you appear fixated on one item.
Instead of being number 1 critic set up your own blog.
"...this neoliberal ideology of privatizing everything because the government is always bad. Sure it's bad when governance has morphed into fascism."
Government is always bad, because it always seems to morph into fascism, or totalitarianism, or some other -ism that eats humans, either socially, economically, literally, or some combination thereof. Read history. History is the story of governments subverting and enslaving their own people to enrich a chosen class.
"I can assure you someone can devise a public banking system that democratizes capital quite efficiently."
So let's all forget everything history, including recent history (past 6 months) has taught us and design another government-run bank system and turn our lives over to it. Right. You can assure us. I feel so much better knowing that some real smart and trustworthy people are going to be in charge of the economy this time.
Who are these men who are above reproach? Who are these men who are wise enough to run an economy by determining the cost of its currency? Who are these men who can make decisions in the best interests of 330 million individual souls? There are no such men. Their decisions will not consider the 330 million as individuals, that is nonsense. The decisions will be made under some pretense of "best interests of the economy", those best interests as they are understood by only a few men. "We are saving or creating jobs" they will say. "We are helping to foster homeownership." "Look at the wealth that has been created under our stewardship."
And then the bubble will burst. Your contention is madness.
"...the real problem is private banking that pays off our Congress."
The real problem has a name: moral hazard. The existence of a central bank creates moral hazard. Regulatory and legislative capture ensures it. As long as others, called taxpayers, can be put on the hook for massive losses, massive risks will be taken in the quest for massive profits.
There must never be a central bank. Audit the Fed, then close it and arrest the directors for fraud.
Absolutely spot on! Cheers.
Baaahaaa! You have exposed yourself to not having any idea what you are talking about. Why don't you share a history of monetary systems with me and why they failed? You have bought into an ideology and not history. I suppose your knowledge starts in 1913 or maybe continental money.
Your neoliberal view of reality seems to me to be one of anarchy given your statement that all government is bad. Maybe that's because people like you work to make it bad. Even Alex Jones won't go that far. He wants a government that works. You want no government. I guess you never learned much of history with respect that government as well. Thomas Paine told us the only thing worse than government was no government.
You aren't worth arguing with because the only information you have is the ideology fed to you by other ideologists. Private banking is the scourge of mankind. And, if you studied history, you would know this. Keep the faith....in your ideology that is.
Now that the kibosh has been put on the Treasury Court Jester job stimulus, our taxpayer funds are being put to even better use: Making fun of the (Swine) Flu via video!
http://flu.gov/psa/index.html
There is going to be some comedy gold here. Bring back War PSAs.
Marvel as HHS studiouly avoids talking about 'going viral'. But anyhow, could there be a better poster child for Michael Mandel's decade-of-stalled-innovation theory?
http://www.businessweek.com/print/magazine/content/09_24/b4135000953288.htm
We're not much better at containing or curing flu pandemics, but now we can crowdsource the PSAs!
Got anymore goldman rumors to break? And more coverups?
@EQ 10012:
What are YOUR answers then, jerky? All you just did is rail against Mish without providing any answers either. Same thing you accuse him of doing. Since you seem to think you've got all the answers, let's hear em? Or go make a zillion dollars with your brilliant analysis and leave us tin-hat types alone on our little blogs.
Nigga please
Now why would I want to enlighten you when you are doing such a good job of defending an ideology you subscribe to? You are doing a fine job as keeper of the faith Dr. Zeus.
FYI, an American Movie Classic is playing on AMC now.
Absolutely Magnificent Catch.
I think he/she meant Fight Club is playing on AMC now.
Evans-Pritchard in the Telegraph is overstating the awfulness of the coming round of Irish cuts a little. There are some nasty special-education and health cuts in the (ugh) "Bord Snip Nua" report, but many of the changes just bring costs and services back to where they were in 2004-ish, before the last round of explosive public-spending growth. (That will also be the case for the anticipated cuts in public-sector pay and benefits, which will be somebody else's report.) The Teachers' Union of Ireland is of course talking its book here. (By the way, the TUI is one of the /three/ teachers' unions in the Republic of Ireland...) And of course we have to see what cuts will actually be implemented ... before and unless the IMF takes over, that is. Naturally further rounds of cuts can't be ruled out, with or without the guiding hand of the IMF.
Oh, speaking of the Telegraph:
http://www.telegraph.co.uk/finance/alex/?cartoon=5790268&cc=5699070
Karl denniger wrote a pice about this. he said about the non recovery of the mortage and fiancne sectors and the Goldman coverrup. I suggest reading it on market ticker.
good finance articles
Some additional Sunday reading - err watching - from Karl Denninger.
http://www.tickerforum.org/cgi-ticker/akcs-www?post=103232
More or less related to KDs appearance on Kudlow (threaded on ZH) which he followed up on here:
http://www.tickerforum.org/cgi-ticker/akcs-www?post=103176
Pete
EQ == completely pwned lol
Either CIT's assets are really garbage or they got 'em by the balls.
From Reuters:
"The $3 billion is new money but securitized by all the remaining unsecuritized assets, which probably exceed $10 billion"
Goldman's line of credit to CIT from last year was actually a total return swap with CIT's assets on the other side of every dollar that was lent out. Make no mistake, CIT is a corpse, and a thin one at that. The vultures will reluctantly pick it over, and soon enough, the worst of its loans will be packaged and sent over to rot at the FED.
The vultures still have a favor to pay back to the government for all of those FDIC floaters they got to issue, so it looks like an "all hands on deck" situation.
So when Goldman says they're fully hedged to CIT, it's through the TRS with some CDS? And prolly at a little bit extra than 100% for their time and effort?
No, not CDS...they opened a line of credit to CIT last year, and at the time it was news that moved the stock price and spreads a bit.
Forsyth compares Goldman bankers and traders to professional atheletes to justify the salaries...which is an argument that has made the rounds for quite a while and usually includes a reference to Tom Cruise or movie stars in general.
Who is buying a ticket to see that?
I'd scrap the comparisons and just be real about it. Forsyth believes that the salaries are justified, so he should just come out and say that. The MickeyMouse-ified way of making a point is alright for daytime television, but serious writers can't get away with it too often.
GO SWRichmond. Get the government out and put fear back in the equation. Too big to fail means too big to exist. Fear of failure would make financial institutions much more disciplined and fair to everyone
its too bad that will never happen
good finance articles opinion articles stock market blog finance opinions
All this talk about how the Fed needs to be changed (or abolished) is completely misplaced. The Fed is a private institution, owned by the country's greatest bankers. All of the policy decisions and consequences are on purpose, and to even suggest that they let some of themselves "fail" will never happen (the largest banks, not the community ones - in fact, those failures will be allowed to increase). What they did with AIG for their own benefit is particulary sickening.
The issue of pushing more money creation is key to these bankers. They will push it every chance they get (especially when they have the most coorperative government partner so far, with their motto "never let a crisis go to waste"). Both are in bed together, and forever will be as long as our politicians beg for their vast amounts of money in exchange for influence.
Everyone should watch Russo's film - you can skip to the 57:09 mark to get the discussion of the Fed. It's not anything super-detailed, but it's more of an introduction than I think 99% of Americans have heard or understand. I really think that virtually all authors/journalists writing about how the Fed needs to be (insert verb here) don't grasp the structure and reasons for their actions.
http://video.google.com/videoplay?docid=-1656880303867390173
Having said all this, of course I want the Fed abolished.
p.s. Love the new Captcha
The fed is primarlily an extension of Goldman and Bank of America, but too bad nothing seems to happen. Goldman guys get richer every year with the help of tax payer money and there's no outrage except on the internet. CIT doesnt get a bailout cuz the feded doesnt deem them important.
Random musings.
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Works.