I have to tell you some terrible things.
Politicians who have all been bought out by the banks have fallen for this charade so far. But it won’t last much longer. Banks may get you elected… but they can’t keep you safe from a populace that is rioting outside your door. So the banks will all be taking a BIG hit in the future. This in turn will kick off another 2008 episode along with food shortages, civil unrest, outbreaks in crime, bank holidays, and the like. It will, in short, be like what’s going on in the Middle East today (though NATO won’t be bombing us).
The Cost Of Obama's Latest TV Appearance: $112.5 Million Increase In The US Deficit, $150 Million Increase In US DebtSubmitted by Tyler Durden on 07/11/2011 11:10 -0500
The most meaningful summary of Obama's most recent (in a long series) speech, which this time was only 14 minutes delayed: the US Deficit increased $112.5 million during the president's latest teleprompted appearance (9m deficit $973 bn ; $108 bn / mo ; $3.6 bn / day ; $150 mm / hr ; $2.5 mm / minute). Since US debt increases at a rate about 30% higher than the actual deficit, the actual new debt incurred was about $146 million. And that's all you need to know about the latest episode in the political tragicomedy charade.
Obama To Address Nation At 11:00 AM, Announcing Lack Of Agreement On Debt Ceiling, Or T Minus 10 Working Days Until T-DaySubmitted by Tyler Durden on 07/10/2011 19:51 -0500
After meeting for exactly 75 minutes, the president and members of congress achieved absolutely nothing except for what ZH readers already knew: that a debt deal has to be reached by July 22 or else. "President Barack Obama said Sunday that "we need to" work out a debt deal within the next 10 days as he convened a meeting with congressional leaders, aiming to fashion a deficit reduction package for the next 10 years. As the meeting opened, Obama and the leaders sat around the table in Sunday casual dress. Asked whether the White House and Congress could "work it out in 10 days," Obama replied, "We need to." Despite Boehner's preference for a smaller, $2 trillion plan for deficit reduction, White House aides said Sunday that Obama would press the lawmakers to accept the larger deal. Republicans object to its substantial tax increases and Democrats dislike its cuts to programs for seniors and the poor. The aides, however, left room for negotiations on a more modest approach." And just like on Friday when the president's appearance was heralded as a harbinger of a massive NFP beat only to be the biggest let down since Geithner's TV appearances in February which sent the market down by 10 S&P points each time, so the president will address the nation tomorrow. From Reuters: "U.S. President Barack Obama will hold a news conference at 11 a.m. EDT (1500 GMT) on Monday about the status of negotiations to cut the deficit and raise the debt ceiling, the White House said on Sunday. Obama met with congressional leaders for about 75 minutes Sunday evening and will meet again with them on Monday "to discuss the ongoing efforts to find a balanced approach to deficit reduction," the White House said, without giving a time for that session."
The European financial system, like the others, is efficient but is not robust. It makes the most of what it has and runs on a razor edge between efficiency gains for individual agents and horrendous systemic losses. It depends crucially on the performance of its sovereign assets. System survival depends on one hand whether or not counterparties can absorb the necessary haircuts and on the other, whether fundamentals of debtor nations are strong enough to stand on their own. Spain and Italy will have to stand on their own, because when Greece goes, Ireland will most likely go, which will in turn set off a critical mass such that the nation who dictates monetary policy (Germany) will be taking care of its own self.
The soon to be out of a job Treasury Secretary finally admits to reality.
No matter what happens with Rupert Murdoch's media empire, the rottenness of the world always prevails...
In Response To "Shock" NFP Numbers, Democrats Demand Another Payroll Tax Extension As Republicans Say $4 Trillion Deficit Reduction Plan "No Go"Submitted by Tyler Durden on 07/09/2011 19:18 -0500
Proving once again that i) there is no idea on the Hill that is so stupid that it can't be recycled again... and again, and that ii) the last thing politicos care about is deficit reduction (yes $4 trillion cut over the next century works... too bad by then the deficit will be measured in quintillions) is the news from Bloomberg that following the "stunning" news from the BLS that "nobody", and certainly not Joe LaVorgna could predict (odd, we do recall saying on Thursday night that anything out of the ADP is and always has been complete garbage, and that the only definite pink slips should be those handed out to its employees) democrats are now demanding more of the same (failed medicine) that did nothing at all to boost Q1 GDP, namely an extension to the payroll-tax cut, which humiliated none other than Goldman's Jan Hatzius into believing it would do something to boost the economy (first see: Goldman Jumps Shark from December 1, 2010 then Goldman Apologizes For Its Horrendous December "US Economic Renaissance" Call, Begins QE3 Discussion). Hint: it won't. It will merely cost another $100 billion in incremental debt that will never be repaid, and a few dollars boost to Apple's EPS, but aside from the few non-edible iPads being bought, that will be about it. Yet that won't stop the screeching parrots from repeating the only word they know: more, more, more: "Senator Charles Schumer of New York, the chamber’s third- ranking Democrat, called for an “immediate jolt” to the economy by extending and enlarging a one-year payroll-tax cut that’s set to expire Dec. 31. He asked for action “as quickly as possible by including it in the final debt-limit agreement.” Jared Bernstein, until recently Vice President Joe Biden’s chief economic adviser, predicted the White House would step up efforts to include in the debt deal additional infrastructure spending or a new temporary payroll tax reduction." Yeah, good luck with that.
Systemic Risk: In one of his serio-comic sequences, Charlie Chaplin’s little tramp starts pulling a thread from his crumpled suit. Before long, his whole miserable costume dissolves. Is there that kind of loose thread here?
Enough bullshit, it's time to expose the real unemployment scandal...
How could all of those PhD egonomists and Wall Street paid government shills have been so wrong, when all they needed to do is follow the government’s own daily budget data to see what was going on?
Joe LaVorgna, who yesterday raised his NFP estimate from 100,000 to 175,000 was off only by a factor of 972% (and who can forget his 300,000 NFP forecast from last month two days before the final number ended up being a revised 25,000). Here is his, uh, "explanation."
Goldman On The Catastrophic NFP Number: "Basically No Positive Offsets To The Poor Headline Results"Submitted by Tyler Durden on 07/08/2011 08:45 -0500
Ladies and gents: presenting Jan Hatzius.