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Who’s to Blame?

Bruce Krasting's picture




 

 

I think the President has done an excellent job of scaring the crap out of everyone over the sequester. The administration has used all of the key department heads to get on national TV and warn the country that some very terrible things are about to happen. Liberal Senators and Congressman have all chimed in with the fear talk. But today we went totally over the top.

 

maxine

 

 

Maxine Waters has said that the sequester could cost as many as 170,000,000 jobs. That would be some feat Maxine, there are only 150m workers in the country. I doubt the sequester will put them all out of work, much less the extra 20m.

 

The CBO did a quick review of the sequester today. The cuts for the balance of the fiscal year come to $42b; an amount that is equivalent to 45 points on Apple’s market capitalization. I have trouble believing that the country is going to fall off the cliff with a 2% cut in government spending.

 

The sequester was designed to be a meat axe. The assumption by most observers was that it was would be such a dumb thing to implement, that both sides would come up with a more workable alternative. This sets up the worst-case scenario where a relatively small reduction in spending results in headline problems. While Ms Water’s projections will not be realized, there could be flight delays, disruptions in the food supply and other visible issues.

 

If some of the scare talk about the sequester becomes a reality, there is going to be hell to pay. The question is, Who is going to get blamed?

 

Obama won the election. Mitt got 47% of the votes, Obama got 51%. There is no mandate behind that result. Of those over 18, only 58% voted. The 120 million who did not vote may not have cared about the election, but their voices might be heard if the grocery store runs out of meat. I would not be surprised if some of the 30 million teenagers get involved.

 

The answer to the question of who gets blamed is, “All of them”. I see a silver lining in that outcome. As stupid as the sequester is, I hope it causes all sorts of distortions. I want Obama to take every step possible to make it as painful as possible. (I think the President will do just that.) His motivation will be to get public support to swing further from the Republicans. Obama might end up with a public reaction that he can’t contain. Not much of a legacy.

 

Notes:

- S&P plays into this story. When it downgraded the USA it made the reasoning behind the decision clear. It was not a reflection of the inherent strength of the USA, the reason was the inability of D.C. to do anything but go from month-to-month year-to-year with no budgets and no plans. On that basis, I thought the downgrade was justified. Based on what is about to unfold, another notch downward would also be justified.

 

- The Sequester may prove to be a pain in the ass that causes more problems than anticipated. It's still a side show to the Main Event. There are now 26 days before the government is forced to shut down. Either a budget is passed by Congress or a Continuing Resolution is required. As of today, I see zero possibility of a fix on on the CR.

 

bkblame

 

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Fri, 03/01/2013 - 12:52 | 3290582 I am more equal...
I am more equal than others's picture

List of smart things said by Ms. Waters

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Fri, 03/01/2013 - 11:55 | 3290204 crzyhun
crzyhun's picture

Ahm, so many in America are acting like Wimpy in the cartoon. Folks there is no free lunch, not just in finance, nowhere. Over spend, eat, live, work, play the piper will be paid. Why is it different in the big gubbie world? Well it is not our money...riggggggggghhhht. 

Fri, 03/01/2013 - 13:13 | 3290725 SKY85hawk
SKY85hawk's picture

Has everyone forgotten that Obama, Boehner and Reid and Congress and the Senate did SIGN the   Budget Control Act of 2011 into law?

The100 billion dollar cut in DISCRETIONARY spending will not affect the social safety Net.
It will affect lots of 'non-essential' govt employees, Clinton said 98% are non-ssential.
I suspect all these MSM sound bites are coming from people that don't want to suffer like the rest of us have.

 

Fri, 03/01/2013 - 11:43 | 3290140 philosophers bone
philosophers bone's picture

"Noone ever is to blame."  Who sang that song?

EDIT - HOWARD JONES:

You can look at the menu but you just can't eat
You can feel the cushions but you can't have a seat
You can dip your foot in the pool but you can't have a swim
You can feel the punishment but you can't commit the sin

And you want her, and she wants you
We want everyone
And you want her, and she wants you
No one, no one, no one ever is to blame

You can build a mansion but you just can't live in
You're the fastest runner but you're not allowed to win
Some break the rules and live to count the cost
The insecurity is the thing that won't get lost

And you want her, and she wants you
We want everyone
And you want her, and she wants you
No one, no one, no one ever is to blame

You can see the summit but you can't reach it
It's the last piece of the puzzle but you just can't make it fit
Doctor says you're cured but you still feel the pain
Aspirations in the clouds but your hopes go down the drain

And you want her, and she wants you
We want everyone
And you want her, and she wants you
No one, no one, no one ever is to blame
No one ever is to blame
No one ever is to blame

Fri, 03/01/2013 - 11:13 | 3290032 shovelhead
shovelhead's picture

More smoke and mirrors.

Obama sez: "Look, Here's a deal, if the Supercommittee (love that one) can't work it out, we'll just faggedaboutit and let me campaign and the cuts kick in Jan 15, '13. The Supercomittee was less than super.

Signed, sealed, delivered. Period. No 'do-over's', no wait a minutes, nada. Done deal.

Now, Obama sez: "You can't hold me to my own stupid plan, It's a friggin' disaster (for his voters). I want some Change..."

Que 'dead babies in the streets' meme.

This guy isn't even worth minimum wage level.

Fri, 03/01/2013 - 11:12 | 3290021 psychobilly
psychobilly's picture

"The beginning of wisdom is to call things by their proper name.” Any person who has managed the finances of a business or a household knows what a spending cut really is.  Spending more next year compared to this year is not it.

There are no cuts. The first thing that needs to happen is for people to stop lying. A people who can't even engage in honest dialogue with each other are doomed.

Fri, 03/01/2013 - 11:59 | 3290226 Widowmaker
Widowmaker's picture

Get real.

Bruce and the fraud fuckup banks love TARP, say it saved the world and everyone in pinstripes dry-humped their record taxpayer funded bonuses with spineless little dicks all the way back to their broken families.

The deeper the fraud banks go, the more generational destruction they are doing.  Think it was an accident that your great-grandparents shunned the banks??!

"Nobody saw it coming!  WAHHHH!"

True, you ain't seen nothing yet.

Word on the street is even the common man is realizing without gold their kids inherit absolutely nothing - no wealth, no nothing.

Fri, 03/01/2013 - 10:55 | 3289957 NEOSERF
NEOSERF's picture

Meat axe wielded by Meat heads...there won't be any fallout because no one will notice a $20b prorated effect this fiscal year...those that were going to be cut were already cut and those that were preparing for ACA and wanted to be under 50 employees had to do it in 2012 as 2013 in the year that ACA looks at to figure that number...

Fri, 03/01/2013 - 10:43 | 3289889 Atlantis Consigliore
Atlantis Consigliore's picture

Cut 10% across the board now: Cut $260 B a year in fraud abuse parties meetings and obamaphones and fha houses full of mold:

fire tsa,  hud,  and joint chiefs staffs parties bs;   combine sec cftc,  fire everyone,  and put all on permanent 1 day a week furlough;

then wake me up and ask me if im ready to invest and hire someone at $ 20 an hour?  for a business, in private sector.

 

 

Fri, 03/01/2013 - 10:16 | 3289782 Schmuck Raker
Schmuck Raker's picture

WTF Bruce?

"I want Obama to take every step possible to make it as painful as possible."

I like your writing, usually, but that is stupid.

 

Please explain yourself more explicitly:

Do you hope for political machinations to make the world a worse place?

Do you want people to suffer unnecessarily?

Fri, 03/01/2013 - 10:50 | 3289927 SokPOTUS
SokPOTUS's picture

Um; no - I think it's pretty clear that the point was that Bruce wants him to overplay his hand.

Fri, 03/01/2013 - 11:56 | 3290209 Schmuck Raker
Schmuck Raker's picture

Yes... but...and damn the consequences?

Because the "other guy" would be better?

Fri, 03/01/2013 - 10:12 | 3289757 lindaamick
lindaamick's picture

All these people in Washington remind me of Nortel Executives when that ship went down.

They are totally insane crying out to keep their share of the pie.  

A 2-4% cut.  Give me a break. 

It's nothing more than a soap opera designed to give TV americans exhaustion so they stop paying attention to what these crooks do.

Fri, 03/01/2013 - 10:15 | 3289772 semperfi
semperfi's picture

100% cut is what I want.  I want my money back. 

Fri, 03/01/2013 - 10:01 | 3289714 Handful of Dust
Handful of Dust's picture

I don't see any politicans volunteering to take a pay cut to avoid this "disaster." If they were true patriots (and stop BS'ing about the cuts) they would step up and walk the walk. INstead, it's easy to use scary words like, "drastic" "disaster" and so on when they want to shake down others. I'm surprised no journalist has asked them this?

Fri, 03/01/2013 - 09:39 | 3289636 semperfi
semperfi's picture

YET ANOTHER EXAMPLE WHY ALMOST ALL AMERICANS ARE COMPLETE MORONS

Moronicans (formerly Americans) either believe her or just flat-ass don’t care and support her anyway.  Is Brazil a good country to move to?

 

 

Fri, 03/01/2013 - 09:02 | 3289564 Louie the Dog
Louie the Dog's picture

Look at Waters' district's demographics.  She could say 170 billion jobs will be lost and the dumbass fucks that keep re-electing her will still stand in line to vote for her for a box of day old donuts, an "I heart Maxine" t-shirt, and 100 prepaid minutes for their Obamaphone.

Fri, 03/01/2013 - 09:33 | 3289621 I am more equal...
I am more equal than others's picture

Maxine Waters has said that the sequester could cost as many as 170,000,000 jobs. That would be some feat Maxine, there are only 150m workers in the country.

 

We will make those extra 20,000,000 double secret unemployed. 

Fri, 03/01/2013 - 09:11 | 3289577 YungHungAndLegal
YungHungAndLegal's picture

She must have taken Marion Barry's play book

Fri, 03/01/2013 - 09:02 | 3289561 shovelhead
shovelhead's picture

No rush.

4 years and they haven't turned in an assignment...

Grading on a curve still gets an "F".

Buncha dropouts.

Fri, 03/01/2013 - 08:52 | 3289547 Sudden Debt
Sudden Debt's picture

I EVEN HEARD THAT 360 MILLION US JOBS COULD BE LOST!!!

imagine when the other 97,5% of the economy would grind to a halt...

Fri, 03/01/2013 - 08:32 | 3289516 kaiserhoff
kaiserhoff's picture

Thanks Bruce, I missed that.

Ignorant Cunt.  If we had any journalists in the country that would be the end of her career, but alas we have only the Jew Media, 24/7 pandering to the useless, lard assed, short bus set.

Fri, 03/01/2013 - 07:46 | 3289449 negative rates
negative rates's picture

Once again great work there Bruce. I don't know anything about the CR, but the loss of quality congress people is showing it's colors as the consequences are slowly being paid.

Fri, 03/01/2013 - 08:35 | 3289520 SmallerGovNow2
SmallerGovNow2's picture

Exactly right, congress has become a freak show....

Fri, 03/01/2013 - 12:13 | 3290312 Bob
Bob's picture

The political process is effectively designed to produce nothing but freaks as representatives.

Fri, 03/01/2013 - 07:39 | 3289443 Element
Element's picture

She's obviously including the chinese plastic-crap-work-force in that figure ... who says there's not representative democracy in China?

Fri, 03/01/2013 - 07:32 | 3289438 nmewn
nmewn's picture

Day One...3/1/13AS (After Sequester)...finds the statists in the uncomfortable position of having to explain to the people that, the sun is breaking over the horizon, the birds are beginning to wake up, the traffic signals still work, the police are busily positioning themselves to pounce from the bushes on the unwary motorist, the government is still massively in debt to their paper pushing drug dealers, teachers are still on the job, firefighters too.

Its the first of the month...EBT,SNAP etc. just got reloaded so the titty bars will be full tonight in NYC.

Same as it ever was.

Fri, 03/01/2013 - 08:36 | 3289524 kaiserhoff
kaiserhoff's picture

As if any real cuts ever happen in the gubbermist anyway.  Not even a damn budget, and no one ever gets prosecuted. 

What a parallel universe these fucktards live in.

OMFG     

Budget Cuts = the sky is falling.

Fri, 03/01/2013 - 07:41 | 3289446 Element
Element's picture

I think you should go down there and do some ground-truthing though, ... just to be sure.

Fri, 03/01/2013 - 08:21 | 3289492 nmewn
nmewn's picture

I see what you did there...lol.

I'm off to run the gauntlet of modern day highway men hiding in the bushes (traffic cops)...seeya ;-)

Fri, 03/01/2013 - 05:50 | 3289372 Cultural Capital
Cultural Capital's picture

Bruce, where do you get all of your tags/ups? I always enjoy the graffiti.

Fri, 03/01/2013 - 10:07 | 3289738 southerncomfort
southerncomfort's picture

this picture says "BlameHole" to me.  lol, MaxiWaters is a dirty BlameHole. 

Fri, 03/01/2013 - 08:18 | 3289485 Bruce Krasting
Bruce Krasting's picture

I started with the graffiti thing a few years back. I wanted to be different. I also find graffiti interesting. (I love Banksy)

Now I have a fair # of people who send me new graffiti pics. One fellow works in a train yard (hence all those images painted on trains).

 

I'm always looking for more. The ones I want have words in them. When I see an image that I like, I create a story that ties that image to the story. Today it was "Blame". Who knows, tomorrow it could be "Shame".

Always looking for more.....

bkrasting@gmail.com

Fri, 03/01/2013 - 11:14 | 3290035 strangeglove
strangeglove's picture

Probly "Blink"

Fri, 03/01/2013 - 04:32 | 3289329 Benjamin Glutton
Benjamin Glutton's picture
Who’s to Blame?

 

Since we’ve bailed out the 10 largest banks $83 billion this year alone, should they give it back to us by paying into the U.S. Treasury the amount of this year’s sequester? After all, it’s the same amount.

On February 20th, Bloomberg News editors headlined, “Why Should Taxpayers Give Big Banks $83 Billion a Year?” and issued the first-ever thorough and current analysis of the taxpayer-subsidy to the Wall Street mega-banks. They found that this subsidy is $83 billion this year, but they made no note of the fact that this amount is only $2 billion less than this year’s sequester cuts are estimated to be, so that all that would need to be done, in order to avoid those cuts, would be to have those mega-banks that we bail out every year forego their subsidy from taxpayers, for just one year. Unfortunately, this would be easier said than done.

That $83 billion subsidy this year is, according to Bloomberg’s, also approximately the amount of profits that those banks are “earning” this year. So, if the mega-banks wouldn’t refund it out of what we gave them last year, then they could just refund it by paying to us – who, after all, bailed out their stockholders enormously in 2009 – the “profits” that they made this year.

The editors at Bloomberg News (hardly a bunch of populists) calculated this $83 billion figure based upon their analysis of the figures in a sadly ignored but rigorous study that had been done by IMF economists, a study that had been issued months back, in May 2012, and which was titled “Quantifying Structural Subsidy Values for Systemically Important Financial Institutions.” As Bloomberg’s editors summarized the reason for this ongoing federal subsidy: “The banks that are potentially the most dangerous can borrow at lower rates, because creditors perceive them as too big to fail,” due to the special Government backing for too-big-to-fail (TBTF) institutions.

The taxpayer-funded annual subsidy to these TBTF banks has never before been calculated as to its actual annual dollar-value, but this rigorous IMF study finally provided the means for doing that. Bloomberg’s summarizes: “What if we told you that, by our calculations, the largest U.S. banks aren’t really profitable at all? What if the billions of dollars they allegedly earn for their shareholders were almost entirely a gift from U.S. taxpayers?”

http://www.ritholtz.com/blog/2013/02/this-years-subsidy-to-wall-street-t...

Fri, 03/01/2013 - 02:49 | 3289269 pfairley
pfairley's picture

Why are Dem's not agreeable to Republican's offer to give Obama power to make the cuts in a less damaging way? Same, like no one wants to be a landlord and evict tenants. Obama doesn't want to take any blame for firing anybody; it's easier to blame others, even if it does more damage! And they can't make a budget with anything but endless expensive promises to America....Actually No one would lose a job if others took a small pay cut..or gave up needless trips to hotels and conferences, etc..like there is no waste in govt equal to 2.4% ??....This attitude bodes ill for Senate making budget as required to avoid a debt ceiling crisis end of MARCH.

Fri, 03/01/2013 - 01:42 | 3289203 Desperado
Desperado's picture

Hey Bruce,

170 million jobs...Amazing that she could ever get away with saying such a thing. 

Then again, maybe the extra 20 million + jobs Congresswoman Waters is talking about are the ones held by illegal aliens..ur, undocumented workers. 

What a disgrace. 

Fri, 03/01/2013 - 10:57 | 3289977 geno-econ
geno-econ's picture

What about all those retirees that now will be forced to enter the work force at minimum wages further crowding out boomers looking for jobs.  Sorry, Johnny, I need a job just as much as you do  

Fri, 03/01/2013 - 01:53 | 3289212 Cult_of_Reason
Cult_of_Reason's picture

According to the Bureau of Labor Statistics, there are only 134 million people working in the United States.

 

Maxine Waters: 'Over 170 Million Jobs Could Be Lost' Due To Sequestration

http://www.youtube.com/watch?v=u8-d95SO_3g

Waters is the ranking Democrat on the House Financial Services Committee, which "oversees all components of the nation’s housing and financial services sectors including banking, insurance, real estate, public and assisted housing, and securities." If Democrats should gain control of the House, she would become the chairwoman.

 

Fri, 03/01/2013 - 12:02 | 3290237 waterwitch
waterwitch's picture

Are some of those jobs in China?

Fri, 03/01/2013 - 02:54 | 3289272 pfairley
pfairley's picture

Yes! it is scarey they appointed Maxine to this important finance post!!!  What the hell are they saying to America?  Seems like it is 'TALK TO THE HAND! '

Fri, 03/01/2013 - 11:01 | 3289984 Bob
Bob's picture

Too bad the rest of them can't assert stupidity as a defense. 

Fri, 03/01/2013 - 01:56 | 3289218 Desperado
Desperado's picture

God help us.

Fri, 03/01/2013 - 01:38 | 3289176 Cult_of_Reason
Cult_of_Reason's picture

Wall Street has greatly underestimated the Obamaquester drag (second-order consequences). It will be more severe than just a mathematically derived 0.5% hit to GDP (more like ~1.5% hit).

Both discretionary and defense cuts will involve furloughs and lay-offs. As a result, consumer confidence and consumption growth will decline dramatically.

"In case you haven't seen a sales report these days, February month-to-date sales are a total disaster.... The worst start to a month I have seen in my seven years with the company."
-- Jerry Murray, Wal-Mart's vice president of finance and logistics (in an email to Wal-Mart executives on Feb. 12, 2013)

Fri, 03/01/2013 - 09:24 | 3289590 MassDecep
MassDecep's picture

Hey Cult, you are correct. The reason... they choose to cut the most vital parts, (which I have no problem with), to inflict the most pain. Instead of cutting the blatant waste fraud and abuse, (callous), they went for the vein. They will never go for an artery, or any other vital part. The total collapse will take care of that. I work with Goveys, and they are freaked out maximum.

 

Fri, 03/01/2013 - 00:18 | 3289065 ebworthen
ebworthen's picture

Our kleptoligarchy is utterly broken.

$85 Billion per month spend by the FED to prop the bankers and the casino markets but the sequester is "a disaster".

Dysfunctional government, bent on destroying the middle class and the nation. 

I wonder if history will write the truth, or if it will just  be another partisan tome of left versus right (which matters not as both sides of the aisle don't give a shit about the American people).

WE ARE ROME IN IT'S LAST DAYS.

Fri, 03/01/2013 - 01:01 | 3289149 FeralSerf
FeralSerf's picture

History will not be allowed to write the truth.  Those that own the past control the future.

Fri, 03/01/2013 - 09:30 | 3289609 goldfish1
goldfish1's picture

what are you babbling about.

you control your life and your reality.

get on with it.

Sat, 03/02/2013 - 16:12 | 3293906 FeralSerf
FeralSerf's picture

Another idiot that doesn't believe in Cause and Effect?

Do NOT follow this link or you will be banned from the site!