As Warren Buffet openly states that he believes that a default on US debt will be catastrophic and that lawmakers in Congress need to get their act together and get the federal government back to work by passing the budget we might well wonder if it’s just for show or if he really believes that.
Five years later, while some are congratulating themselves on avoiding another depression, no one in Europe or the United States can claim that prosperity has returned. The financial system may be more stable than it was five years ago, but that is a low bar – back then, it was teetering on the edge of a precipice. Those in government and the financial sector who congratulate themselves on banks’ return to profitability and mild – though hard-won – regulatory improvements should focus on what still needs to be done. Some are pleased that the economy may have bottomed out. But, in any meaningful sense, an economy in which most people’s incomes are below their pre-2008 levels is still in recession. An The glass is, at most, only one-quarter full; for most people, it is three-quarters empty.
Isn’t it wonderful how the US believes (whether that be the citizens or the politicians) that the state will never default on its debt repayments?
As the US government shutdown enters its 7th day today it looks as if we shouldn’t be holding our breath unless we want to go blue in the face in the hope that there might be a compromise or somebody might actually cave in.
Turning over new leaves and all that stuff is great if you believe that your true nature can be changed. But, leopards rarely change their spots and Iranian spots are just as indelible as any others in the world.
At one time it was the Gold Rush that obsessed everyone as there were screams and shouts to be heard of ‘there’s gold in them there hills’. Now, it’s sugar that is creating the buzz in the investment world.
What would you say to working in either Switzerland or Yemen? The choice wouldn’t take too long to ponder over I guess when it comes to providing a healthy environment in which factors that would lead to long-term economic success that might be taken into consideration.
The Chief Economist at Citi Willem Butler has said today on CBC in an interview that the fiasco over the US budget and the lack of money is nothing more than irresponsible on all political wings and that the country is being run by Munchkins in the Land of Oz.
The USA is turning into a sorry state of affairs. But, it only has itself to blame. The successive governments for the past decades have done nothing but increase the debt ceiling in the country.
The financial crisis of 2008 killed a lot of things. It killed the line of credit, it killed the finances of millions of people around the world, it ousted governments and relegated leaders to the back offices and it was the kiss of death to a failed system and brought down entire states.
The Egyptians dispensed with the life of their slaves in the construction of the pyramids as if they were nothing but throw-away products before that had even been invented in the modern day and age in which we live.
When Bubbles Fail: Albert Edwards Explains What Happens When The Fed Can No Longer Contain The Fury Of The "99%"Submitted by Tyler Durden on 09/27/2013 10:49 -0500
"They’re at it again! US inequality is surging and the Fed has created another house price boom. Does this matter? Well I think so. But who cares what I think. Warren Buffet, Bill Gross and Stanley Druckenmiller think it matters. Clients marvel at how the US profits’ share of GDP remains so high and that labour remains so weak. Marc Faber said recently that in postponing the QE taper, we have merely climbed to a higher diving board. I go further. I see growing inequality draining the swimming pool dry. The crunch, when it comes, will be ugly"... Investors should make no mistake. The anger of the 99% will ultimately not be bought off by yet another central bank inspired housing bubble, engineered to pacify them and divert their attention as their real incomes fall and inequality continues to grow." - Albert Edwards
US Treasury Secretary Jack Lew has warned Congress today that the US will be signing its own version of Auld Lang Syne on October 17th 2013
Don’t you just love it when someone gets caught red-handed with cream squidging out of their mouth as they swipe that cream cake out of the fridge? Then they stand there and say ‘no, no, no, it wasn’t me at all’.
When Obamacare was thought up it was more than just a presidential pledge to woo the poverty-stricken Americans into believing (and voting) that healthcare should be provided for all and sundry and that any Tom, Dick and Harry could get through life by being provided for by the state.