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Yeah, but more importantly, I heard on CNBC that Bernie Madoff's house is for sale?
And now we are treated to Elmo on CNBC. Perhaps we would be better served by Triumph the Insult Dog. At least he would call 'em as he sees 'em.
S&P 500 Moving Averages Show ‘Fierce’ Rally: Technical Analysis http://www.bloomberg.com/apps/news?pid=20603037&sid=akblT1V_KXPg
Some more stuff.
Wealthy individuals’ Chapter 11 bankruptcy filings jumped 73 percent in the second quarter from a year earlier, according to the National Bankruptcy Research Center, a research firm in Burlingame, California.
At the sametime this one is a surprise.
U.S. Stocks at Risk for 20 Percent Decline: Technical Analysis
ANOTHER WONDERFUL one!
Goldman’s Blankfein Calls for Pay Rules to Stem Risk
That is strange!
Wow. Just the chapter headings on the rest of the document look daunting. Maybe looking into other writings of Mr. Panitchpakdi are warranted.
Not that my hindsight in finding this is any virtue, but (from a Sept. 2008 interview, same guy):
"Already a year ago, UNCTAD highlighted – as is now widely accepted – that the sub-prime market crisis was due largely to a lack of transparency and insufficient regulatory oversight of financial institutions. The crisis then spread, creating an ongoing credit crunch in many other advanced economies. As such, it has become one of the factors precipitating a global slowdown, with significant consequences for development. [...] More broadly, however, for UNCTAD, the recurrence of financial crises every three or four years is a sign that there is something more fundamentallywrong with the international financial system, and that greater efforts are needed to devise institutional arrangements that ensure greater stability. A new financial system should also be built to avoid prolonged misalignments of exchange rates of the kind that have led to the build-up of the global imbalances now threatening the stability of the global economy. In our view, this will require a more multilateral approach to global finance. Just consider that while there is a comprehensive set of binding rules governing international trade relations, nothing of the kind exists in the area of finance, even though the adverse effects of financial crisis can wipe out gains from trade liberalization in almost an instant."
If you click around on the site, you can come across a rather interesting (scary?) list in one of their reports, page 2: http://www.unctad.org/sections/dite_dir/docs/wir08_fs_us_en.pdf As far as I can tell, this shows the top owners of the 50 largest multi-national corporations (but please do correct me if I'm wrong). If so, this does put a whole new spin on TBTF... How many of these are TARP babies now...?
Presence in the Top 50 financial TNCs ranked by Spread Index, 2006
Citigroup IncGeneral Electric Capital CorporationAmerican International Group Inc Jp Morgan Chase & Company Merrill Lynch & Company IncMorgan StanleyGoldman Sachs Group IncGmac LlcPrudential Financial Inc
why is madoff's house important? madoff is just a front created by SEC to hide the crimes of GS, JPM, C, BSC, LEH, DB, CS et al...
madoff is a cia agent who was running cia intelligence
operations and important work for his wealthy clients.....
madoff's house is very important because it shows
us what lifestyles of the rich and famous is like
and would be an excellent reprise location for
robin leach's hard hitting investigative
It's called sarcasam. Instead of real news, CNBC and other "corporate fawning media" talk about non-news stuff like the sale of Madoff's house.
Laissez faire capitalism is NOT the problem. The problem is CRONY CAPITALISM. Essentially, when the rules of the market apply to most, except a chosen few who receive unfair subsidies.
That is what creates imbalances. The problem is that it is very easy to introduce hidden subsidies.
This is exactly the problem. We have sink or swim capitalism for the masses but for the folks who write campaign contributions the get to keep the profits and socialize the losses.
Except that laissez faire capitalism is damn difficult to implement. Who knew a vacuum would be so hard to build? How many markets are actually perfect...wheat? Is Hong Kong the only example of a laissez faire polity? Aiming for laissez faire and falling short will almost always devolve into crony capitalism. Laissez faire capitalism in practice means that those who capture strategic economic positions early on are able to parlay their windfall into political influence and use the government to restrict competition. US crony capitalists humorously and predictably use laissez faire jargon to justify their actions.
Best to hedge and use politics to empower economically weaker segments of the society so that they can act as a counterbalance to the crony capitalists. If the polity becomes unbalanced, then eventually the economy will become unbalanced, and vice-versa. This feeds on itself. The health of our democracy is dependent more on the Gini coefficient than on the highest marginal tax rates or GDP per capita.
Mixed economies must strike a balance between opportunity and equity. It's hard and requires debate and the banishment of doctrine, but that's pragmatism for you.
although i disagree with your antagonism toward
laissez-faire theories i do agree that providing
strong safeguards against corruption is very
historically we have relied upon regulatory,
tax, and enfranchisement strategies to seek
has unraveled especially since 1980...but the
origins of that unraveling started decades
i agree with michael hudson's critique that the
growth of the rentier/fire economy has been a
key catalyst for imbalance
favoring and creating a new class of plutocrat
never before seen in the country....
ultimately moral sensibilities are required to
govern fairly but i see no way of developing
a moral consensus in this highly fractured
and diverse nation....
to make war against the plutocrat or even to
counterweigh against him requires a knowledge
and resolve which is totally lacking....but
we battle on...
Absolutely. Capitalism is owning the means of production--not stealing it! The alleged captains of finance who are forcing the appointments of treasury secretaries, presidential advisors and Fed chairmen on a revolving door basis are on the opposite political scale from capitalism. To control a nation's currency, its means of production and the reigns of its government is statism, soft tyranny--not capitalism.
Laissez faire capitalism, my theory, will always end in crony capitalism.
The winners (sophisticated investors, see Goldman) are the capitalists that get to write - and re-write the rules.
Goldman has smart employees but the reason they outperform the way they do is that they own the government - the know the rule changes before they happen. Now that is sophisticated!!
The only difference between the past and now is that the average guy is more sophisticated about how the game works (the internet -sharing of information). Suddenly, the corruption seems so much more obvious to everyone.
Greenspan's a classic laissez faire capitalist. Gee, how did that work out? (He brought a wreath in the shape of a dollar sign to Ayn Rand's funeral!) The economy is too complex to expect a simple theory to govern it. Analogous:: Let's do away with traffic signs, speed limits, the police, the DMV, driver education, driver's licenses, road repair, safety requirements, medical/rescue services, stop lights and let every individual unencumbered driver make their own rules. Have a nice drive.
greenspan is not a classical laissez faire capitalist...
he is an opportunist and charlatan of the
you have created a caricature of laissez faire
doctrine of which greenspan was an example....and
all quite by design at that...
Laissez faire: "a doctrine that opposes governmental regulation of or interference in commerce beyond minimum necessary for free- enterprise system to operate according to its own economic laws." Pure Greenspan.
Now, now, you're going to annoy all the Libertarians.
I dunno why some really smart people think that you can really run a country without plenty of laws, rules, regulations, etc. It assumes a sort of pervasive human goodness and wisdom that is not currently the case.
hey tyler d ((or whoever u think u are)) - forget not who writes America's ding-dang books... unfortunately, history does not judge appropriately or harshly as one would hope.
If it were that easy and if any such chapters were possible (non-nationalistic-patrio-anglo-saxon-bs), then the little global predicament we all loathe would have been easily avoidable. If history was documented accurately anywhere on the planet, there would be no demand for such fountainheads of unconventional wisdom as ZH in a vast blogosphere of willful ignorance.
The history book that speaks most directly to what TD has touched upon here may well come from China, or Germany, or, perish the thought given the unfair beating they have taken in the bought-off US press, France.
This is the best overview of the current situation I have read. Thank you for providing it.
There is nothing in place in America that will keep the Fed from finally taking all the wealth from the American people – no bar against it.
Here is a case in point from “Criminal Banks and Brokers Continue To Ply Their Trade… Stealing From You and Me As the Public Carries On Its Belief in Fantasies” by Richard J. Greene published by Financial Sense on February 27, 2009.
“In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value…"
Obviously, with this eloquent explanation on how gold protects the property of the common man it is certain that Greenspan clearly understood BEFORE he took his job at the Fed that there was no longer anything that kept the privately owned Fed from confiscating the wealth of the American people. So he knowingly took a job that he understood beforehand was confiscating the wealth of the American people and for 20 years this man moved rates for the privately owned Fed to the advantage of the many banks worldwide that own a stake in the Fed that subcontracts monetary policy for our country. It would not be hard to convict this man as he has provided his own evidence. The only thing lacking is enough intelligent individuals to cause a big enough ruckus to bring this man to justice, and of course, the bigger task of overcoming his grateful friends in high places. It is imperative if you are against many of the things this article mentions to let your representatives know. There is a constant shift of attitude more and more toward the Government feeling that it is in charge of us rather than them serving us…
The quickest way to get back on a recovery path is to end sending billions, and eventually trillions if this is not stopped, to failed organizations. Guess what, the world will not come to an end if Citigroup, Bank of America, and JP Morgan are allowed to fail. It will only end the gravy train for the top officers that feel they are in a privileged class. Hank Paulson diverted billions to his Goldman cronies before he stepped down and John Thain made sure $4 billion! in bonuses were paid early to Merrill henchman in a year when they not only blew themselves up but brought down the entire US economy in the process…
Are we going to allow the heavy hands of Government to move America toward the Communism that brought down Russia? Don’t be surprised if the same banks are left in charge when you wake up one morning and find out they are trying to stuff a new fiat currency down your throat and try to give you one of the new ones for three of your old ones that you have on deposit…
Unfortunately JR, as much as I agree with everything else you said, I can't agree about the world not coming to an end if the big bans are allowed to fail. In a sane world that would be possible and all we would face is a healthy round of Great Depression style deflation. Unfortunately the Federal Reserve and Treasury have too many stakes riding on the wellbeing of our unsuccessful corporations. If they fail there is a high chance that the very entity protecting the rule of law (except for those with money) and property rights will fail. The fusion of corporate interests and government is pretty much cemented now.
In a sense this is a case of an economic MAD scenario. But we all know that I guess. The key is how return to the United States Constitution in the least harmful manner. How do we return to the rule of law and eliminate the moral hazard in such a way that the cost of this action/enforcement is the lowest possible, both present and future? That is a question that Ron Paul has to answer if he plans to win the Presidency in 2012. Keep in mind, that the present cost is the one that holds the most weight with voters and with his options, the cost is based more on the resent, while BO's cost for his actions is more weighted towards the future.
On the other hand TumblingDice, these bankers are desperate and, IMO, are taking desperate moves that may already be toppling their centrally-controlled money system. It is my belief that unless this insider control--that outlaws competition--is destroyed, time has run out on the United States and other Western democracies. For the reality is, the party is over. The sooner America admits her errors, accepts her punishment, and gets back to freedom, the sooner she will return to true prosperity.
The private cartel of bankers that the Fed represents are really only “capitalist” banks in that they specialize in grabbing other people’s capital. Goldman-Sachs’ free market capitalism is where we all get to play and when the night is over, Goldman goes home with all the chips. Goldman-style capitalism is where Goldman makes the rules, picks the politicians, punishes the competitors, swamps and buys out other “capitalists,” and steals the tax money and the mites of the widows and orphans.
The American Dream was not about false prosperity, which is possible only through slavery. As Robert Ringer said in 1979, “The heart of the American Dream is freedom; the lifeblood is free enterprise… Wealth can be produced if men are free. If men are not free, then slaves produce wealth for those in power.”
Either Goldman Sachs goes, or freedom goes. I opt for freedom, whatever the cost.
The medicine has to be taken, or else the cancer latches on permanantly. We just have to convince enough people that it is better to have freedom now, even with the extrodinary present cost, than lose it forever and have the future cost be that much greater.
The author is blaming our financial problems on long only index traders while never stopping to ask.....Why? Why own an asset that has no dividend yield or income stream. Nobody in DC asks this question either. Because the answer to that question points in a direction folks like this don't want to go.
The the author writes this beauty:
"In the present situation with, with capacity utilization at historic lows and unemployment rising at a dramatic rate, there is little danger of either overheating or wage inflation for several years to come."
Har, har, har. He is so funny.
He doesn't know much history either so you can pretty much discount everything he wrote. Folks, inflation can happen with or without high unemployment. Yes, you can have high inflation with a large output gap.
Don't believe me? Read some economic history. Wiemar Germany is but one example of a country with huge inflation problems, high unemployment and a large "output gap" that the Keynes loons love to trumpet. Check out Zimbabwe recently. Check out any number of countries that have experienced high inflation.
very good...monetary inflation is a monetary
problem - not one of capacity utilization or
employment...the problem is currency debasement.
and don't forget 1970s usa as another more mild
regarding a focus on long positions - the same
problem exists at cftc - no one looks at shorts
because reforms there would take away major
government-plutocrat power to control key markets...
I don't know all about this stuff, I just know the next crash is going to be a doozy, and the revolution that follows will be talked about for thousands of years.
"It is, frankly, shocking that an organization so disconnected from finance and capital markets as the United Nations, can have such a solid grasp of the entire chain of events and risk players that have brought us to where we are now, and are perpetuating the same mistakes that the regulators and all other market participants hope are different this time, and will not result in the same outcome."
Actually Tyler, it's not shocking. The entire blogosphere knows what's up, and frankly so does most of Main Street. The only people who don't are Wall Streeters and mainstream journalists who think this "crisis" is some sort of act-of-god, and don't understand that we're not all on the same team.
What's stunning is the complicity of the press. And the passivity of the American people while being fleeced and subjugated.
five entities control 90% of the press in america
to play my broken record i will remind folks
that the cia controls the press - the news
newsfakers and press whores to serve the interests
of the plutocrats....the cia answers to the
rockefellers, bundys, harrimans and other invisible
the people are taught in school to be obedient
sheep....critical thinking is discouraged if not
many of the institutions which in the past have
served to homogenize and civilize this country
are now the very tools for subjugating it...
the press must be viewed as an enemy but let's
remember its newsfakers are trained in the
universities...taking on that institution is no
people at different times have had to take
radical action to tear down walls, statues of
adulation, and icons of arrogance....americans
are not yet there....it will be jungle warfare
requiring bold strikes against bastions of
Financial Crisis: The Bubble Bursts
The causes of the economic downturn that gripped the world economy are widely disputed. Speculation, interest rate mismanagement by the Federal Reserve, excessive debt and loss of confidence are all cited as catalysts. However, further research indicates that the primary reason for the recession was the absence of liquidity in the system; the economy simply required more money to function. The determined actions of President Barack Obama and Federal Reserve Chairman Ben Bernanke provided the necessary fiscal and monetary stimulus to bring the economy back to prosperity. The recession officially ended in early 2010 as inflation and growth resumed their forward march.
Although pessimism persisted well into the late stages of the recession, mostly due to high unemployment, the naysayers were proven wrong by rising prices and the second boom of the service industry. Persintant trade deficit and increasing debt fueled the growth of next two decades of economic growth after saving it from the brink of the abyss in the 2008 to early 2010 period. The improvement of social efficiency by the government helped set the path...
...just kidding. Your version is better. Call me an idealist but I believe future history books will be based on the truth, with ZH quoted frequently.
Stop messing with my brain Dice...
Im starting to get sick of all the hating on speculators. ALL INVESTORS ARE SPECULATORS!!!!!! Just because you may hold stock for a couple years instead of a couple days, we are supposed to make laws that favor your type of trading. Seems like gambling to me to speculate on the future growth of the US economy which is what long term investors are doing. Some think its just easier to predict when all the retail investors will put more money into the market and trade around that.
When is Mozillo going to prison?
When are Moody's and S&P going to be closed down for fraud?
When is Buffett going to barred from the security industry?
When is Goldman Sachs going to undergo a CRA exam?
When are Dodd and Frank going to be impeached?
When are Phil and Wendy Gramm going to have their assets seized under RICO?
The difference is that one is speculation of fair value, and the other is speculation in what others are willing to pay.
The disconnect between the two is due to moral hazard.
No one has a problem with speculators using their own money. The issue is with speculators using other peoples money with no reprocussions in failure.
Its not only using other people's money, but using other people's to leverage twenty to one and keeping the profit if successful or loosing the other people's money plus the leveraged loan which the other people get stuck paying off if it fails.
Let them piss away their own future.
no - all investors are not speculators...
speculators trade on technicals and money
created largely out of thin air....investors
buy based upon fundamental considerations....
i agree that the holding period of an asset
should not be limited...
however to remove the speculative nature
of trading, monetary inflation needs to end
and taxes on capital gains and rentier type
activity needs to go up while labor taxes go down....
i don't hate speculators - only the regulators
and lawmakers who make their activities
Thank you TD for the air of simple realism indeed lacking. We are not on the sidelines, but spectators as we await the new day.
...The good news in the article is that polls show that Americans are waking up the fact that the Federal Reserve is a disastrous failure and it has ruined the dollar and America, which I interpret from the news that “Americans think less of the Fed than of the Internal Revenue Service.”
And since the smart play is to buy gold, silver and oil when the government is behaving so badly, the best news was not in the article at all, but for us greedy money-grubbers who want to make a lot of money without working and think that gold, silver and oil is the way to do that because that is what seems to be the lesson of the last 4,500 years, it is wonderful news that the majority of investors are not yet buying gold, silver and oil, which makes sense because it is mathematically impossible for the majority of investors in anything to make a profit, and only a minority betting against the crowd can, by mathematical imperative, make a profit!
Wow. Obama has been in office for only eight months, and his actions, or lack thereof, have "allowed the capital development of our country to become a by-product of the activities of a casino."
Uh, no. He's certainly complicit in its continuation, but it was like that before Obama got into office. What are you, Mr. Short-Term Memory?
Bush already guarenteed himself a spot as one of the worst Presidents. He's over and done with. What Tyler was saying was that it's Obama's chance to prove otherwise now.
Lets keep our eye on the ball, shall we?
I read the UNCTAD report which goes where? Global warming, bastards. So the USA plan is for the Oblame-all administration and bought / paid for hall of congress clowns to kill America as we know it with CAP & TAX green nonsense. Meanwhile uncle Ben plays test tube economics, balancing restoral of more wealth to swindle out the back door...sorry I need to go in to foul language now...
..The feds are in the print shop already. They’re printing up more dollars intentionally – to try to get inflation rates up…and to finance federal borrowing. It will be a miraculous thing if their new dollars don’t eventually cause inflation. But the macroeconomists who run the print shop tell us not to worry. They’ve got it all under control. They’re already talking about when and how to withdraw the dollars they so helpfully provided during the crisis period.
The simpletons – who had no idea that the crisis would come…and then thought it could be easily contained…and then mistook it for a monetary, banking crisis…and then judged it over before it had really started…
…these same simpletons still do not understand that the problem is not a lack of money, it’s a surplus of debt…
I've been noticing more critical commentary in the msm lately...
HEY TD, I've been reading your posts almost since inception. You're definitely knowledeable and you've made a good case for deflation, destruction, asset devaluation etc. BUT......I feel like a fool having spent so much time analyzing what you have been writing and concluding its best to stay on the sidelines, as this market has gone up 50%. Pretcher called it better, and after all, what's the point of all this venting if you can't make money at it. SO CAPTAIN, where to from here? Make a call with a time frame for the audience.
It's a sock puppet market kid. My call would be for you to go with Pretcher since you feel confident in his abilites. Timeframe? NOW!
This site performs the function of a forum for the exchange of information and ideas... if you have been following for as long as you say you should know this already.
I honestly wish you luck... you may need it.
As long as history is "a set of lies agreed apon" crony capitalism will come up smelling roses even when all you see is shite.
WOW. A MUST READ.
Here are a couple of decent books for ZH readers on Money, Creation of Money, Credit, and Economic Cycles:
(1) Money, Bank Credit, and Economic Cycles (885 pages, very expansive & indepth reading) found at:
(2) The Ascent of Money: A Financial History of the World by Niall Ferguson (432 pages, much ligher reading), found at:
Good luck ZH ...
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