If the government isn't doing anything to fix this dangerous situation, we'll have to do it ourselves ...
Considering it was just a year ago when we were jolted into this banking-induced recession, you can imagine my astonishment when I read this recent Forbes headline:
“Dubai's Failure Exposes A U.S. Advantage
The well-regulated U.S. financial sector has a lot to show for itself.”
IMF Chief Shares Concerns About The Economy, Excess Liquidity, The Sino-US Coupling, And Wall Street CompensationSubmitted by Tyler Durden on 11/25/2009 10:00 -0500
In an interview with Le Figaro, Dominique Strauss-Kahn shares his thoughts on a variety of economic subjects. Notable is his desire for central banks to begin soaking up the "water" which was used to put out the "1929-style" fire. Then again, as the Chairman has said, there is no threat that the Fed will ever end its risky assets Blue Light special, at least not under His watch (still, his December 3 confirmation hearing should be on everyone's TiVo schedule). Furthermore, this will certainly not happen so long as China keeps funding burgeoning US budget deficits, US importers be damned. And that won't happen as long as China needs the disappearing and maxed out credit consumer. Yet the various themes are starting to converge to a point in the future of maximum instability. Their resolution should be quite spectacular. Which is why by then all Goldman Sachs newly minted MD's hope to be far away, on a beach, collecting zero percent, courtesy of their gold holdings.
Or so claims none other than bailout abuser extraordinaire, the International Monetary Fund. As the TimesOnline reports: "Dominique Strauss-Kahn told the CBI annual conference of business leaders that another huge call on public finances by the financial services sector would not be tolerated by the “man in the street” and could even threaten democracy." Yet the man on the street is oddly mesmerized by recurring appearance of solemn-looking political leaders on their daily TV jaunt, so perhaps Mr. Strauss-Khan is unfortunately overestimating the ordinary citizen's attention span or interest in anything more than being able to procure the latest 50 inch plasma TV at sub $500. Or the fact that instead of a formal "Second" bailout which will still undoubtedly occur "when needed" courtesy of trillions and trillions of new pieces of still unprinted paper, the Obama's latest plan is to have rolling bailouts/stimuli/Cash for Cxxx/dollar plunge enforcement sorties from now until Wall Street bonuses are paid for the 2009 and potentially 2010 calendar year. After all, someone from 85 Broad has to confirm daily that the economic policies are certainly working, contrary to what every Tom, Dick and Harry is seeing after a 5 minute walk on any given street.
When Obama sets foot in China for the first time, he will confront a dramatically altered balance of power between China and the United States. This seismic shift is driven by China's astonishing economic growth over the past two decades and has accelerated during the global financial crisis. Its 9% to 10% annualized GDP growth rate in the past two and a half decades is unprecedented in world history.
In the letter to the IASB, Jörgen Holmquist, director general of Internal Markets at the European Commission, said more assets might be marked to market under the new system than even under existing rules. He urged the IASB “urgently” to consider further changes.
For clues on inflation expectations in this carry-trade-crazed market, Tuesday’s auction of some $25 billion in 10-year treasury notes is something to pay attention to.
"Money Multipliers Have Collapsed Everywhere...Confidence Is Missing. I Don't See Any Way To Stabilise M3 In Such Circumstances"Submitted by George Washington on 10/29/2009 13:37 -0500
Why is M3 falling?
The IMF's unprecedented sale of one eighth of its total gold holdings is sure to incite a moderate revolution among gold fans.