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David Rosenberg On Austerity, Politics, And The Light At The End Of The Tunnel

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David Rosenberg, Gluskin Sheff: PARTING OF THE CLOUDS?

Austerity is not some dirty nine-letter word as the socialists in Europe would have you believe. It is all about living within your means and living up to your commitments.

There is some good news in the United States with respect to this topic.

Wisconsin and the controversial Governor Scott Walker and his electoral victory grabbed the headlines last week. But the really big development took place in California where San Diego, by a two-thirds majority vote, approved a plan that puts new city workers on a private sector-type retirement fund and a six-year wage freeze for current employees. San Jose also saw a 70% majority pass of a reform bill that offers civil servants two choices: contribute more to fund their pensions or be willing to accept a cut in benefits.

As last Thursday's Investor's Business Daily aptly put it in its lead editorial piece:

San Diego, and San Jose are emblematic of the tidal wave of pension liabilities faced by cities across California — and, indeed, the U.S. It's unsustainable...if liberal California recognizes the depths of its public-sector union problems, no doubt others will too.

Amen to that.

I've been saying for a while that if Canada could pull back from the brink of fiscal insanity in the early 1990s, then certainly America can do it today. Don't wait for a crisis to shock you into it as we did — it makes the transition to budgetary integrity much tougher. There are more than 80 million millennials out there — kids between the ages of new-born to twenty. This cohort (our future) is even bigger than the boomers. It is imperative that we don't saddle them with a debt noose around their necks and no job prospects to speak of. As it stands, the average college student has an average debt load of $30,000 and the male unemployment rate for those between 20 and 24 years old is 14%. That, my friends, is the statistic that keeps me up most at night because the longer it stays that high, the more one should be concerned over social stability.

Mitt Romney seems to have taken over in the polls and is the candidate who is taking the high road so far in this campaign. He managed to raise more money in May than the President — an impressive feat (nearly $77 million dollars versus $60 million for President Obama). To be sure, it is difficult to unseat a sitting president but when it has happened, it was because of a deteriorating economic backdrop. This economy was already growing slowly and is about to slow down even more as the European recession and Asian softening hit our exports and production data in coming months.

The uncertainty over the extent of next year's tax bite is also likely to cause households and businesses to pull spending back and raise cash, at the margin. All this means the economy won't turn around in time for Mr. Obama — by the time the election rolls around, we could be talking about a 9% unemployment rate, especially with those on emergency jobless benefits getting termed out and as such will be compelled to come into the workforce to engage in a job search (either that or move into your brother-in-law's basement -- if he'll let you).

In any event, it's all about resolve, courage, discipline ... and the right political moment to strike. Canada has the benefit of granting governments on occasion the benefit of running the country with a majority. The advantage of a parliamentary system — so long as the party in power doesn't blow it. Canada is blessed with that today — a Conservative majority with a pro-business agenda — as it was in the 1990s with the Liberals under the leadership of Jean Chretien and Paul Martin. Stalwarts who were willing to part from their populist election campaign in 1993 and embark on the road towards fiscal austerity.

It wasn't easy— cuts to health and education. Privatization. Various revenue- raising initiatives. Keeping the national sales tax that was imposed by the prior Mulroney government (which deserves a lot of credit for blazing the trail). Means-testing Old Age Security and the Guaranteed Income Supplement. Cutbacks to the civil service and wage freezes. Raising the retirement age too in order to curtail bloated actuarial pension liabilities. And a move towards privately delivered medical care. All in formerly Socialist Canada — what Lord Black once labeled a 'Banana Republic' (not exactly the right climate to grow the fruit, mind you).

The United States can do the same. But having one party in power at both the executive and legislative levels would be necessary since the divide between the GOP and the Democrats is far too wide to get anything done. A lot can be accomplished, even in a two-year span. The Republicans look set to take the Senate and reclaim the House, so it would stand to reason that those who believe this is a time for courageous action to replace gridlock, would be opting for Mr. Romney.

No candidate is perfect, but let's just say, from a purely economics standpoint, that Mitt, based on his background as a businessman, understands the time-worn link between profits and jobs. And the U.S., to be sure, has a jobs crisis. Solve that, and you'll be surprised at how the other ills from social divisiveness to health care funding to government revenues will be resolved.

This will thus require a re-write of the tax code, a highly inefficient tax code that promotes consumption at the expense of savings and investment — investment that is at the root of future productivity growth and in turn the critical driver of our standard-of-living. This means "no" to higher top marginal tax rates — it is imperative to keep the incentive system for success fully intact. You can't mess with that. Better to build public support for and enact a national sales tax like Canada did over two decades ago. Was it controversial? Yes. Did the retailer lobby picket the parliament buildings and make a whole lot of noise? Absolutely. But in the end, it allowed for lower marginal rates and over time, a declining path for the unemployment rate — which is now far below the level prevailing in the U.S. Tax consumption and this will also fall on foreign producers and help narrow the bloated trade deficit. Encourage the development of natural gas and finally wean us off of oil import dependency and the United States could again emerge as a nation with a trade surplus, deserving of being the world's reserve currency. Reducing tax breaks and loopholes is necessary — especially those that favour housing. Having a system that encourages a shift in the nation's resources to basically an unproductive asset is plain wrong — who else has both mortgage interest deductible and tax-free capital gains on the sale of the principal residence? Not just wrong but wasteful.

In a world of finite financial resources, it is important to not have policies that encourage resource mis-allocation. Studies from decades past indicating that homeowners are better citizens than renters have already been proven to be out-dated. So the National Retail Federation would undoubtedly throw a fit over a VAT and the National Association of Homebuilders would rattle the cage over the phasing-out of the tax goodies that promote overconsumption of an unproductive asset — simply put, a house is a large consumer durable good, it's a place we live and that's about it — but if replaced by a system that encourages growth in the private sector capital stock, the job creation that will follow should quiet down these lobby groups.

At the same time, there is little doubt that "entitlements" are going to have to be amended — one first step would be to get rid of that word. The only "entitlement" that really is or should be in America is a fair shot at the yellow brick road — not a cheque from Uncle Sam.

Resolve. Courage. Discipline. Shared sacrifice. I can sense it coming down the pike. As was the case with Ronald Reagan, just having a clear and coherent fiscal plan will part the clouds of uncertainty and encourage capital to be put at risk rather than sit as idle unproductive cash on corporate balance sheets.

We've seen this before, by the way. The rewrite of the tax code during the Reagan era wasn't legislated until 1986 and this was the reform that took sky- high top marginal rates on a declining path. But the bottom of the economy and the market was in 1982 as households and businesses responded ahead of the fact to a new level of certainty and confidence as it pertained to the outlook for fiscal policy. There is no shortage of books on behavioral economics that deal with how "expectations" play a crucial role in spending patterns today.

I may be cautious on the outlook for risk assets and cyclical securities over the near- and intermediate term. But change is always at the margin. And it usually starts in the political sphere. Within that realm, it is the local levels that tend to lead reforms at the national level. And that we could see the pension reforms take hold in California of all states — hey, isn't that our "Greece"? — is a real bellwether. The temptation to stay bearish at the peak level of desperation in 1982 must have been strong, but superimposing the experience of the prior 16 years of cost-push inflation, excessive regulation, extreme labour power, the costs of the Vietnam War (at every level), economic sclerosis and labour immobility to the next 16 years would have been a colossal error, because as it turned out, the 1980s and 90s belonged to America. Fancy that. But you couldn't have sold that story in 1982, that much is for sure.

The future is brighter than you think. This does not mean we will not have another recession, by the way — we had a doozy within the first two years of the fabled Reagan presidency, but we endured nonetheless and came out stronger on the other side once the inflationary excesses of the day were purged (today, it is a case of curing a deflationary debt deleveraging). The structural tax reforms, a new approach for dealing with the Soviet Union, and the air traffic comptroller lockout (which forever changed management-union relations) ultimately ushered in a prolonged period of prosperity that would have seemed like a dream in the 1970s when families had to line up on different days of the week to fill their cars up with gas. What Reagan managed to do was instill confidence with a coherent, credible and cogent strategy that gave people — who make up the economy — a higher degree of certainty over the future. I cannot stress how important it is for any government to ensure at all times that households and businesses have as much clarity over the policy outlook as possible. That makes it easier to plan ahead. And in turn, it leads to better economic results.

I'm noticing a certain degree of despair these days, just as I am getting enthusiastic about the future. Much depends on what happens on November 6th and between now and then we still have the European mess, China hard landing risks and the U.S. debt ceiling issue to confront. Be that as it may, those with some dry powder on hand will have their clients in a solid position to take advantage of whatever forced "panic" selling takes place.

For the record, I do see a light at the end of the dark tunnel. Don't be surprised if I end up turning bullish ahead of the pack — though it may not be until the like of my good friend, Jim Paulsen, is hiding under his desk screaming "uncle"! But the Rosenberg shift to perma-bull status — I was there in the 80s and 90s, but obscurity got in the way — could come as early as Thanksgiving.

I'm so excited I just can't hide it. But for now, I'm keeping the powder dry.


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Mon, 06/11/2012 - 21:32 | 2516621 francis_sawyer
francis_sawyer's picture

it's an oncoming train...


Mon, 06/11/2012 - 21:40 | 2516641 BKbroiler
BKbroiler's picture

It's the 2nd Great Depression leading to the 2nd Dark Age.  Get your camping gear!

Mon, 06/11/2012 - 21:51 | 2516677 notbot
notbot's picture

Rosie nails it...again.

Mon, 06/11/2012 - 22:12 | 2516711 The Big Ching-aso
The Big Ching-aso's picture



If I was a bullish bear I would be nailing it at least some of the time 2.  Kinda like flipping a coin & getting accolades when it turns up tails because 2 times B4 that it came up heads.

Mon, 06/11/2012 - 23:54 | 2516821 economics9698
economics9698's picture

The only difference between Reagan and his insane spending and Obama and his insane spending is Reagan had Volcker jacking up the interest rate to 19% and Bernanke lowering the interest rate to 0.00001%.

Both are ideological fools spending money on bull shit.  Both suck.

Volcker stopped Reagan’s bull shit economy; Bernanke is the head cheerleader for Obama’s bull shit economy.  Any mother fucker who tells you Reagan was a good economic leader is full of shit.



Tue, 06/12/2012 - 00:05 | 2517003 jeff montanye
jeff montanye's picture

i think you got it righter than rosie.  "much depends on what happens november 6"?  really.  like the huge difference that having a change agent like obama made in fixing what that police statist bush mucked up?  rosie might be right though.  romney may have fewer fixed beliefs than obama so anything might happen.


Tue, 06/12/2012 - 00:54 | 2517058 Michael
Michael's picture

Let's just all agree to stop calling it "Austerity", and start calling it what it really is, "Government Spending Cuts".

Tue, 06/12/2012 - 01:16 | 2517077 Michael
Michael's picture

Lawyers For Ron Paul Civil Rights (Voting Rights) Lawsuit FAQ

Tue, 06/12/2012 - 01:21 | 2517088 walküre
walküre's picture

spending cuts affecting the 99% and the top 1% are having another banner year.

thx, Michael for setting the record straight

want extra whipping cream with that cake?

Tue, 06/12/2012 - 06:17 | 2517224 Escapeclaws
Escapeclaws's picture

Let's agree to stop calling it "Austerity" and start calling it "Hell on Earth" for the true guilty party--the American middle class which cannot suffer enough in the coming 15 or 20 years. Yes, it was the middle class that egged on the bankster mafia to take over government, privatize the gains and socialize the losses. Kneel before Baal you craven slaves!

Something tells me that libertarianism isn't going to survive the coming austerity under the hard-right turn we're about to make with piranha-faced Mitt as the new puppet. Rosie just sees what is coming and is already paying homage to Baal in the hopes that his children won't end up in concentration camps. Can't blame him really--this population shrinkage project is serious business.

Tue, 06/12/2012 - 10:50 | 2517889 The Big Ching-aso
The Big Ching-aso's picture



Until systemic fraud is prosecuted then all of Rosie's feeling-good spouting about a rosier future is absurd.  Essentially I think he's delusionally FOS.

Tue, 06/12/2012 - 01:59 | 2517120 SeattleBruce
SeattleBruce's picture

It's not Presidents that spend money, it's Presidents, Congress and vested constituencies that spend money.  And especially since 1971, both parties have spent debt based money like drunken sailors.

Create accountability - end debt based money.

Mon, 06/11/2012 - 22:35 | 2516786 Mugatu
Mugatu's picture

I like Rosie too.  His economic thoughts are always provoking and inciteful.  Unfortunately, his short term and even intermediate timing can sometimes be off.  Economists never make great traders.  This whole story is chock full of "2-4 years out" stuff which is great, but some serious shit storms will hit us before the U.S. is on a happy pill diet again.

Mon, 06/11/2012 - 22:40 | 2516800 economics9698
economics9698's picture

The shit is already hitting the fan.  This monetary blow up is about 3 year, 8 months, on a 3-5 year time line.  No one can hit the timing exactly but by year 4 all but the dullest will see this bitch exploding.

Tue, 06/12/2012 - 10:12 | 2517776 Doubleguns
Doubleguns's picture

Rosie is dreaming if he thinks the "R's" are going to save the day. What is the budget they propose doing, deficit spending for 28 more years. That sounds like a swell plan folks. /s


Dont trust either party to be the savior, both are corrupt and have an agenda to deal with. You the voter are just an annoyance every couple of years. Kiss your ass, tell you stories, get your vote and then promply bend you over all the while making you feel good about it. 


The question simply comes down to "who do you want standing behind you when your bent over".

Tue, 06/12/2012 - 00:23 | 2517024 masterinchancery
masterinchancery's picture

Delusional.  When has one (massively indebted and taxed) country ever prospered in a world wide depression?

Tue, 06/12/2012 - 04:02 | 2517191 Cadavre
Cadavre's picture

Rosie nails it...again

If, by "nails it" you mean Gluskin Schlepberg's non profit 501s just got a fat check and can meet budet for the next quarter from an Obeeannabe's Cyber Army grant or the GE Foundation for the particular sweat shirt ivy league smarty pants banner he penned below, ...
Austerity is not some dirty nine-letter word as the socialists in Europe would have you believe. It is all about living within your means and living up to your commitments.

... you may have "nailed it" as well ...

If by "austerity" author means means the US closing down 900 forward foreign genocide base of operations or extracting the commons military service employees from 3 (or more) war crime theaters, and getting ALCIADA out of the smack money laundering business, and our employees stop spending money on cyber warfare to create stuxnet and flame that cause mass death catastrophic accidents like the reactor failures in Japan, and fire the the mercs the commons pays it's employees working in the  ALCIADA or Department State Sponsored Terrorism, or the Obewannabe administration not deploying the 30,000 drones to spy or shoot Americans, of which one, at a cost of 176 Million per, crashed today in Maryland while a Blackwater trainee was at the stick while working through a cocaine hangover or ending the Department of Wasteland Insecurity that views all it's employers (that's be us) and  our 3 year old children as terror suspects, and quit monitoring the net and flagging content that publishes one of them 377 verbotten terms, including words like "pork" - if he means ending that shit - then he nailed it and you nailed it when you nailed him for nailing it (get it?)!

If he-you means Ending the Mafia Banks and Trillion Dollar Bails to Wall Street so the Bankster Mafia has the "disposable" cash to payout 144 Billion in bonuses at year end when the fruits of their collective corruptive fraudulent extorting influence came to a head , with the complicity of those same ass wipes fascists the Diebold Flippers been [s]electing since time was time and the wack jobs those very same Diebold Droids keep appointing to head the commons's Federal Agencies,, then you and the author both nailed it flush with one single "manly" stroke.

Speaking of "stroke" .. allow me to offer a chorus from a blues tune urs true penned years back .. a chunka chunka 1-5-1 progression

was sitting on the toilet
  my hand wrapped around my blues
yeah .. was sitting on the toilet
  with my hand wrapped all round my blues

one more stroke pretty momma
  this last shot just for you

But the article's author didn't say that stuff and neither did you - so what lines were you reading in between when you came to that confusing conclusion and shared it with ZH?

Mon, 06/11/2012 - 23:11 | 2516869 Lucius Corneliu...
Lucius Cornelius Sulla's picture

Funny how Rosey never mentioned bringing finance down.  Romney is a GS shill just as O is a public employee union shill.  Talk about picking the lesser of two evils!  Putting your faith in politics is a waste of energy.  The only thing that will set this economy straight is Mr. Market.  The longer deleveraging is dragged out, the more pain will be inflicted.  

Mon, 06/11/2012 - 23:26 | 2516917 batterycharged
batterycharged's picture

I saw this coming 10 years ago...maybe more. It's as bad as we think it is.


People scream xenophobia when you blame globalization, but dig this. This is the sum of all sums of what the hell is going on:

The west is like a person that once made $100,000, but now makes $10/hr with no benefits....but still has outstanding debt for 2 trucks, 2 vacation homes, 2 wives and a penchant for fine cuisine.

That's it in a nutshell. The great depression was the result of the destruction of millions of farm-intensive jobs. And nothing to replace them.

What we have now is the 3rd world providing adequate replacement of labor at 3rd world costs.

Now this would be fine if we could compete with 3rd world wages. And even more importantly, we could compete if we didn't have a mortgage that was based on our previous higher-than-global-standard wages.

Essentially what we have is an income mismatch with debt. We have past expectations with future realities. We have debts that we obviously can't pay.

Blame globalization. Blame the lack of any planned economy and the blind consent to the financial industry that lives off of slave debt holders.


Tue, 06/12/2012 - 00:17 | 2517015 Freddie
Freddie's picture


Yup. I had about the same discussion with a friend about 6 years ago.

The west is like a person that once made $100,000, but now makes $10/hr with no benefits....but still has outstanding debt for 2 trucks, 2 vacation homes, 2 wives and a penchant for fine cuisine.


Tue, 06/12/2012 - 02:52 | 2517161 Likstane
Likstane's picture

...and 2 TeeVees

Tue, 06/12/2012 - 07:17 | 2517276 Bobbyrib
Bobbyrib's picture

What's amazing to me it that no one is really talking about letting the economy adjust and restructure (other than Ron Paul) rather than keeping the same failed economic policies going.


Obamney 2012..we're fucked.

Tue, 06/12/2012 - 08:52 | 2517355 IBelieveInMagic
IBelieveInMagic's picture

We had a choice.

We could have avoided reserve currency status and scrambled to compete for jobs with the best of the third world (how does wage of $0.80/day sound!) -- of course we would not have enjoyed the outsized consumption that the reserve currency status enables (even if it is for short term -- turned out to be 40+ years and going!).

Or we could have opted for reserve currency with all it's related consumption benefits. But, this required shedding of jobs like so much ballast from a gondola.

So, what is an entitled people to choose?

The American publiic chose instant gratification -- consumption. And by-and-large, loved the free ride.

Now the free ride is under threat and the entitled public is whining like crazy. An entitled (and armed) populace gets down right nasty when the freebies are taken away.

And denies responsibility for making this choice. And constantly blames everyone... except themselves.

Tue, 06/12/2012 - 09:40 | 2517663 ATM
ATM's picture

They chose consumption for a couple of reasons but neither was "instant gratification".

People chose consumption because it was so cheap. Credit has been basically free from a rate standpoint. I can pay back debt with debased currency. Or I bought a house that was increasing in price faster than the rate of interest paid on the debt. Then I could use that phantom increase in price to buy all the shit I needed to put in that house! It's simple.

What made the choice even easier was the "social safety net". That's nothing more than the government encouraging people and businesses to take on far more risk than they normally would because the consequences of bad decision making have been skewed. The risks aren't that bad because I can always count on the government cheese. I got a guarantees SSI check in retirment so I don't need to save what I really should.

Instant gratification is nice and absent true consequences and a social safety net the vast majority would not choose the new TV over living on the street. It's just that our system that has evolved to create nothing but consumerism and debt has led them to make those decisions.

I've had some interesting thoughts on that subject. (maybe not interesting to anyone else however.) That debt, both individual and sovereign is the key to the one world government. As I expect, all those debts will be refinanced via a world wide governing body and the rules of ownership will be changed. The true owners and all their rights will simply be subordinated to the IMF, UN or whatever other bullshit appointed, non-elected body may arise. Worldwide Peonism. That's how they do it.  

Tue, 06/12/2012 - 10:39 | 2517886 IBelieveInMagic
IBelieveInMagic's picture

Reserve currency makes financing cheap and money is created and dribbled on the American citizenry in the form of wages for make work, entitlements, government boondoggles, low cost lending, etc. Americans get first use of $ which then flows out and buys goods and services from competing sources around the world which keeps prices low for the buyers.

Hence the reserve currency is stoutly defended by the US as it gives us unbelievable advantages while all the time falsely and misleadingly complaining about how burdensome the role of reserve currency provider and consumer of last resort is!

Tue, 06/12/2012 - 10:05 | 2517739 ATM
ATM's picture

They chose consumption for a couple of reasons but neither was "instant gratification".

People chose consumption because it was so cheap. Credit has been basically free from a rate standpoint. I can pay back debt with debased currency. Or I bought a house that was increasing in price faster than the rate of interest paid on the debt. Then I could use that phantom increase in price to buy all the shit I needed to put in that house! It's simple.

What made the choice even easier was the "social safety net". That's nothing more than the government encouraging people and businesses to take on far more risk than they normally would because the consequences of bad decision making have been skewed. The risks aren't that bad because I can always count on the government cheese. I got a guarantees SSI check in retirment so I don't need to save what I really should.

Instant gratification is nice and with true consequences and without a social safety net the vast majority would not choose the new TV over living on the street. It's just that our debt based system can only survive as long as debt is increasing. The system becomes selfserving creating the very conditions necessary for the expansion of debt until it cannot expand any longer.

So peole are pissed and they don't understand why their decision was not correct. They made the right choices based on the conditions that they were presented with, the decisions that furthered the system but they weren't told the system itself could and would collapse.

Tue, 06/12/2012 - 08:57 | 2517483 Mitzibitzi
Mitzibitzi's picture

All true. But... how exactly does one sell this truth to J6P, when he is addicted to all his now unaffordable stuff? And has a locker full of guns. And 100 million friends just like him?

On the moral level, we in the West do need to stop living high on the hog at the expense of every bugger else on the planet. It's unpardonable that people are starving all over the world, by deliberate policy, so a relative minority can live like kings. But our elite handlers can't tell us that (the few that care about it, anyway. The rest just see $-signs) or Mr. 6P will start racking shells into his Mossberg.

Tue, 06/12/2012 - 09:03 | 2517509 IBelieveInMagic
IBelieveInMagic's picture

Was just making observation in response to the blatantly pious and false denial upthread -- was not recommending any solutions.

Tue, 06/12/2012 - 09:29 | 2517621 GeezerGeek
GeezerGeek's picture

If "people are starving all over the world" it is most likely because the local government is impeding agricultural production and distribution. It would not help for "we in the West do need to stop living high on the hog". Was that the origin of the famines induced by Stalin in the USSR? Was the West's living standards responsible for famines in China under Mao? I frecall stories from a few decades ago where people in Africa starved while food supplies were accumulating on docks. The local warlords refused to distribute the food donated by extranational groups.

Before I buy into your claims I need to see some examples of policies requiring deliberate starvation implemented by the West.

Tue, 06/12/2012 - 01:08 | 2517071 dolce vita
dolce vita's picture

"change the terms to Entitlements:" mean that  ACCOUNT i was FORCED to contribute to since i was a 15 years old working stiff? Now the govi thinks that" I" should sacrifice?

Dudes ...this is your marker...yes ,change the name ,means test it, stop giving it out to illegal seniors, deal with fraud with hammers  jailtime and stockades, and cut friggin bloated  spending...but this is my ACCOUNT... not some handout i didnt earn. Yea , im "entitled" to my account.

see... problem is pensioners dont contribute but expect lavish payoffs...somethings gotta give.

Mon, 06/11/2012 - 21:33 | 2516622 ACP
ACP's picture

That light at the end of the tunnel... a freight train full of DEBT, BITCHEZ!

Mon, 06/11/2012 - 21:54 | 2516679 Paul Atreides
Paul Atreides's picture

Triple headed, in run 8 with the emergency breaks burnt off...

Tue, 06/12/2012 - 00:07 | 2516948 HarryM
HarryM's picture

The argument against austerity is that with historical increases in productivity , it takes a lower percentage of the population working to provide a given standard of living for the entire population.

A farmer today can feed exponentially more people than 100 years ago.

It takes less workers to produce a car , etc.

Take it one step further and eliminate useless agencies and positions -  ( these people are essentially on welfare )

i.e. - simplify the tax code so it would only take 5000 IRS agents - 95 percent of accountants and tax lawyers would no longer needed, etc

Self navigating vehicles will soon eliminate truck and cab drivers.

In the end , we should all be working 20 hours a week and retire at 50, but the 1% would not get as rich.

Instead it takes 2 people working 50 hours a week - and they want more.

Attica  ... Attica ... Attica !!!

(all figures are complete guestimates of course)








Mon, 06/11/2012 - 21:35 | 2516627 chunga
chunga's picture


Mon, 06/11/2012 - 21:35 | 2516630 CommunityStandard
CommunityStandard's picture

Tyler seems to like trolling us with the guest posts every so often.  Sorry.  I've learned to avoid hopium.

Mon, 06/11/2012 - 21:49 | 2516670 veyron
veyron's picture

that's how ZH makes $$

Mon, 06/11/2012 - 22:04 | 2516706 CommunityStandard
CommunityStandard's picture

Really????  And here I thought it was only from ads for Obama dinners and some dude that language professors hate.  Now I have even less respect for guest posts (well, some of them).

Mon, 06/11/2012 - 21:38 | 2516633 Fail2Deliver
Fail2Deliver's picture

The futures are up...did I miss ANOTHER country get a bail out? That would obviously be bullish...

Mon, 06/11/2012 - 21:39 | 2516637 Calculated_Risk
Calculated_Risk's picture

"Austerity is not some dirty nine-letter word as the socialists in Europe would have you believe. It is all about living within your means and living up to your commitments."

Ya, give me my SS$ I've put in all these years, THEN talk austerity!
Otherwise it's just plain fucking fraud and theft douchenberg!!!

Mon, 06/11/2012 - 21:46 | 2516650 LetThemEatRand
LetThemEatRand's picture

Hadn't you heard?  The teachers destroyed the economy and forced the bankers to create $70+Trillion in derivatives.  The bankers need your SS money.  Sorry.

Mon, 06/11/2012 - 21:57 | 2516687 Sophist Economicus
Sophist Economicus's picture

He "hadn't heard" about the teachers destroying the economy, but I can see that the teachers destroyed your mastery of the English language.


BTW, read any Rand yet?

Mon, 06/11/2012 - 21:59 | 2516694 LetThemEatRand
LetThemEatRand's picture

Sorry about Travolta being gay and all.  Who saw that coming?   BTW, which color pants do you get to wear this week?  Wait, do I have the wrong cult?  Sorry.  Carry on.

Mon, 06/11/2012 - 22:04 | 2516707 Sophist Economicus
Sophist Economicus's picture

Is that what passes for wit in your "mind"?    LOLz

Mon, 06/11/2012 - 22:09 | 2516719 LetThemEatRand
LetThemEatRand's picture

Hit a nerve, did I?  Don't worry, I'm sure there are some additional rarely seen abbreviations you can throw at me to demonstrate your superior intellect.  Now go back and reread your daily Rand.  It will help to calm you.

Mon, 06/11/2012 - 22:14 | 2516728 Sophist Economicus
Sophist Economicus's picture

Still boring...

Mon, 06/11/2012 - 22:16 | 2516733 LetThemEatRand
LetThemEatRand's picture

Here's a new one for you, as it seems you've run out.  LRLY (L. Ron Loves You)

Mon, 06/11/2012 - 22:19 | 2516742 Sophist Economicus
Sophist Economicus's picture

He might at that.   But, nobody could love you...

Tue, 06/12/2012 - 08:03 | 2517352 Ricky Bobby
Ricky Bobby's picture

Sophist - He is obviously a delusional leftist. You know the type that believes racial and gender identity is more important then sound economics. You know the type that believe that scarcity really does not exist and that utopia is achievable by just the right amount tyranny from the peoples party.


There are some good arguments on ZH from both sides but God I really tire of these useful idiots.

Tue, 06/12/2012 - 00:27 | 2517026 masterinchancery
masterinchancery's picture

The Teachers, and especially their unions, have indeed helped destroy the economy with their terrible public education level, combined with politically liberal brainwashing.

Mon, 06/11/2012 - 22:01 | 2516700 Jack Burton
Jack Burton's picture

Yeah, We all know the greedy teachers crashed the world economy! I know that because the bankers told me so.

Grandma on her $1,200 a month pension after her and graddad payed in for 45 years are also worthless leeches who are cutting into banker profits.

You want to know about the above guest post. He quotes something about Canada moving towrds private health care delivery to save money!

Now how fucking stupid does he think we are?

Mon, 06/11/2012 - 22:19 | 2516739 BKbroiler
BKbroiler's picture

greedy teachers crashed the world economy


You state this irony and get a few thumbs up by the sample people who are buying that nonsense.   Entitlements are called that because when you pay into a fund your whole life, you are ENTITLED to get it back at some point.  That's not socialism.  But that is the scapegoat, the idea that social security, medicare, and medicaid were what caused the crisis.  Unchecked greed caused the crisis.  Nafta caused the crisis (Clinton).  De-regulation caused the crisis (Bush).  The middle class got fucked in the ass and turned against each other in one fell propaganda swoop and lost 40% of their wealth in 3 years according to today's headlines.

Mon, 06/11/2012 - 22:42 | 2516803 CommunityStandard
CommunityStandard's picture

The entitlement system was far more sustainable in 1935 when there were 60 workers for every retiree, as opposed to 2 workers for every retiree.  Yes, greed caused a crisis.  Deregulation caused a crisis.  But when 100% of tax revenue goes to support social security, medicare, and medicaid - that's a crisis too.

Mon, 06/11/2012 - 22:54 | 2516837 BKbroiler
BKbroiler's picture

there were 60 workers for every retiree

then the answer is simple. we should all have more sex and more babies, the first part of which I agree with.  but since weez broek deez daze, more kids just isn't feasible.  since we can't increase the birth rate, we can increase the death rate, which I think is getting its initial trials in Greece via electrical shortages.  from what I remember from the 2003 NYC blackout, an electrical outage lasting more than a day in August would cut the AARP sizably.  We just need one. big. BLACKOUT. and when the smoke clears, the giraffes or whatever will dance. bourbon. (?)

Mon, 06/11/2012 - 23:30 | 2516928 Miles Kendig
Miles Kendig's picture

then the answer is simple. we should all have more sex...

Sounds like you're an advocate for a program of procreation stimulus. 

Mon, 06/11/2012 - 23:57 | 2516990 sitenine
sitenine's picture

That's stimulus I can support!

Sign me up!

Mon, 06/11/2012 - 23:57 | 2516992 mkhs
mkhs's picture

Yeah, in the thirties, you were supposed to be dead two and a half years before you could collect.

Mon, 06/11/2012 - 22:56 | 2516842 LetThemEatRand
LetThemEatRand's picture

Anyone else notice that 400 people control more wealth in the U.S. than one half of the entire population combined?   Corporate tax rates for large companies are at generational lows.  Countless trillions have been spent on foreign wars, bank bailouts, endless new weapons systems, the prison industrial complex, and on and on.   TPTB decided 40 years ago to "starve the beast" of social programs, a term coined by Grover Norquist.   It is true that the money is no longer available to fund SS, Medicare, and Medicaid.  It is also true that this was accomplished by design, and the money is sitting in the offshore accounts of the 400 and their ilk.

Mon, 06/11/2012 - 23:02 | 2516860 BKbroiler
BKbroiler's picture


Mon, 06/11/2012 - 22:44 | 2516811 malek
malek's picture

What "fund"?

Mon, 06/11/2012 - 21:47 | 2516654 Paul Atreides
Paul Atreides's picture

"It is imperative that we don't saddle them with a debt noose around their necks and no job prospects to speak of."

Tad bit late don't you think Rosenberg?

Mon, 06/11/2012 - 21:48 | 2516667 e_goldstein
e_goldstein's picture

Just vote for Mittens and everything will be okay :-/

Mon, 06/11/2012 - 22:14 | 2516721 Paul Atreides
Paul Atreides's picture

Better off writing "Liberty or Death" or "Don't tread on me" on the ballot. Voting in their rigged bullshit only gives them your approval of the current system, at least send them a clear message.

Mon, 06/11/2012 - 22:18 | 2516740 e_goldstein
e_goldstein's picture

Last time I voted I didn't see those options on the Diebold machine, but I agree with the sentiment.

Mon, 06/11/2012 - 22:19 | 2516744 Paul Atreides
Paul Atreides's picture

Spill some pop on it then.

Mon, 06/11/2012 - 21:45 | 2516656 Whoa Dammit
Whoa Dammit's picture

30 year old Reagan/Thatcher pablum doesn't cut it these days.

Mon, 06/11/2012 - 22:30 | 2516772 Yes_Questions
Yes_Questions's picture




You just don have what it takes to be a PNAC'er then.


Mon, 06/11/2012 - 21:46 | 2516659 gwar5
gwar5's picture

Thomas Sowell had a good article out today about Obama. He said Obama is much closer to fascist than socialist, and it even fits his style better. By directing the means of production, instead of nationalizing them, Obama gets to scapegoat "greedy" industries when things go wrong, and he can take credit if anything works out.

Mon, 06/11/2012 - 22:38 | 2516784 Zero Govt
Zero Govt's picture

we've been taught to swallow the jingoism that fascist is right and socialists are lefties

when in fact as Hitler proved (socialist turned fascist) they're both just politicians (parasites), chips off the same block

drop the coloured rosettes and academic garbage, Govt is just theft 

Mon, 06/11/2012 - 21:49 | 2516669 RoadKill
RoadKill's picture

Let the uninformed Romney is worse then Obama, banksterz control everything, anti-rothschild conspiratorial BS commence.

Im with this g uy. Romney will go down in history with Regan for bringing America back from the brink and kicking off another 20 years of America destroying the competition. His 1st 2 years are going to be tough, but unlike Commrade O by year 3 we will be coming out of out torpor.

Ive given money to Romney, Walker and The National Right to Work campaign so far. Probably double up Romney and RTW in the next few weeks.

Mon, 06/11/2012 - 21:55 | 2516686 RoadKill
RoadKill's picture

After reading that I want to vote for the Author for President

Mon, 06/11/2012 - 22:13 | 2516690 LetThemEatRand
LetThemEatRand's picture

And I thought Obama smoked a lot of dope....   But putting that aside, you really don't need to waste your money on either presidential candidate.  The banks and MIC have both their backs.

Mon, 06/11/2012 - 22:23 | 2516753 Troll Magnet
Troll Magnet's picture

no shit...what a moron, giving $ to obamney. i'm buying me some PMs instead!

Tue, 06/12/2012 - 07:52 | 2517326 my puppy for prez
my puppy for prez's picture

He only smokes weed before he sings A Green....the rest of the time it's blow...

Mon, 06/11/2012 - 22:16 | 2516734 otto skorzeny
otto skorzeny's picture

they need to get rid of Davis-Bacon so it doesn't cost miilions to pave 1 mile of road so that some mouth-breathing heavy equipment operator can make $150k a year

Mon, 06/11/2012 - 22:45 | 2516813 Yes_Questions
Yes_Questions's picture



Your right, his mouth breathing knuckle dragging boss should get it instead.


Do you have any idea what a construction jobsite is actually like?

The bosses tend to be the trogs especially the fuck in the trailer counting down the days "managing" while those mouthbreathers work in conditions that can kill them to make your road.

This is my wheelhouse, not fucking stocks, so I reveal my bias, but, I'll take a $150k/yr heavy equipment operator over a $10,000,000/yr bankster ANY DAY OF THE FUCKING YEAR.


Mon, 06/11/2012 - 22:59 | 2516835 xtop23
xtop23's picture

Oh wow.


Romney's got your back.

The only difference between the two is Romney has better hair, greater net worth, and serves a slightly more tolerable poison for your conservative sensibilities.

Obama's top donors are either people that want the student loan bubble further inflated, unions whose main contribution is to further diminish our capacity to compete in the marketplace, and "green energy" companies that disintigrate due to faulty or fraudulent business models.

Romney's top contributors are the same fucktards who orchestrated this entire farce or profited enormously because of it.

The net result is the same. Further destruction of the middle class, more bloodshed in foreign lands because the little brown people supposedly hate us for our freedom, and a national debt pushing 20 fucking trillion dollars at the end of his first term.

Your assertion is that after 2 years or so of pain America will be right back on top "destroying the competition."

On that you approach correct.

The difference is you honestly believe it will be as a result of financial prudence and savvy economic principle application.

I know better. It will be done with drones and the blood of Iowa farm boys that had no other vocational option but to join the military.





Tue, 06/12/2012 - 00:29 | 2517029 Freddie
Freddie's picture

" ....for your conservative sensibilities."

No conservatives like Romney - they just know the alternative is a lot worse.  We get to chose between various Yale/Harvard oligarch/elites docuhebag puppets/CIA cutouts.

The Yale/Harvard/CIA cabal did not like Reagan because he was not one of them and they tried to whack him.

Tue, 06/12/2012 - 01:04 | 2517044 xtop23
xtop23's picture

To my neocon junker;

It's fight club. Grow a pair and respond with your name so that I can destroy you and your "anyone but Obama" fuck fantasy.  

If it was you Freddie I would just say, if it's picking the lesser of two evils, but both continue the destruction of our country .... what is the point of bothering to vote?

It's ridiculous.

You either vote your heart regardless of whether or not your horse wins, or you recognize the futility of voting and divert your attention to things you can actually affect positively.

Write-in Gary Busey, if he best represents your ideal as POTUS, for Christ's sake. At least you'll be satisfied knowing you voted your heart.

Tue, 06/12/2012 - 09:12 | 2517543 GCT
GCT's picture

Xtop do not think for a minute that Obama is not getting the same funding that Romney is getting.  The funny thing is the same bunch your commenting about fund both. 

Right now Romney is winning the battle so he is getting more.  If the tide shifts to Obama he will get more.  Just a game they play.

Wed, 06/13/2012 - 03:12 | 2520633 xtop23
xtop23's picture

Of course. I was referring to listed primary contributors, not PAC money.

Mon, 06/11/2012 - 21:58 | 2516680 Zero Govt
Zero Govt's picture

"...managed to raise more money in May than the President — an impressive feat (nearly $77 million dollars versus $60 million for President Obama)"

there's nothing "impressive" about the most openly corrupt voting system on the planet

" would stand to reason that those who believe this is a time for courageous action to replace gridlock, would be opting for Mr. Romney."

it stands to reason that nobody (voter) will get represented in Washongton except the roll-call of campaign sponsors and that the sheeple should ditch the election as a sad sorry joke and the total pretense it is democracy

".. the U.S., to be sure, has a jobs crisis. Solve that.."

Er, how Rosey?

Can you give me any politician in history that has solved any issue... you have millions of examples to choose from stretching back mellenium, this should be easy yes?

"Better to build public support for and enact a national sales tax like Canada did.."

Rosey wants "more, more, more" taxes.. 80 not enough for you mate? ...what just 1 more tax and it'll turn everything around right??   ...what a total tool

"...But in the end, it allowed for lower marginal rates and over time, a declining path for the unemployment rate."

Did it fuck. 

The Tory Govt in Britain has just yanked up sales taxes (VAT) from 17.5 to 18.5% and the economy is now double dipping, unempolyment getting worse.

Taking more tax out of the economy sucks (on the economy) and makes goods MORE EXPENSIVE destroying an already declining standard of living but enriching the parasites (politicians) who are the ones killing the economy

you are an economist Rosey, a tax toady, and haven't a clue old bean (counter)

Mon, 06/11/2012 - 22:00 | 2516695 bigwavedave
bigwavedave's picture

"Can you give me any politician in history that has solved any issue... you have millions of examples to choose from stretching back mellenium, this should be easy yes?"


Hitler did a pretty good job. Just saying.

Mon, 06/11/2012 - 22:24 | 2516752 Zero Govt
Zero Govt's picture

Hitler is a perfect example of the politician that makes the biggest promises are the biggest mistakes

Obumma is another, the biggest spending failure in socialist history

Romney is an ultra-conservative Republican, he's Bush with slick-back hair

GOP and the Democrats are splintering, they're both shot and on their last legs, as is Govt and the entire stinking shambolic public sector

Rosey is a Statist tool who cannot see past his own nose that the State is destroying the economy and society and has no hope in Hell of turning anything around when it is the rotten institution driving the country off the cliff

Mon, 06/11/2012 - 23:16 | 2516886 Yes_Questions
Yes_Questions's picture



OK, reluctantly, I have to step in here not to defend Obama, but, Bush managed to keep war spending in supplemental/off budget accounting and that is not the case with Barry O. These costs became more explicit (I know, I know mil $pending is never truly accurate), during budgets post Bushie.


And the first Washington approved bailout was not Barry either, and the fucking FED made another $26tril available for bailouts. 


I agree though on the Splintering and especially the fact that the institution is rotten.  Its the same with Bush: a horrible president, but a lot less culpable then he was put out there to be.  Barry is taking heat for things he probably is not responsible for which begs the question once again.  WHO is really running this damn circus anyway?

Just say'n.

Tue, 06/12/2012 - 07:11 | 2517250 Zero Govt
Zero Govt's picture

you are re-arranging deckchairs on the Titanic, not altering its course, by talking about which coloured rosette is slightly less damaging than the other, which budget destroys the economy at a slower pace than the other etc

Govt sucks. It kills the economy by taxing/thieving productive peoples money and pissing it away on special (minority) groups to gain re-election

the institution has been a total and complete failure for Millenium. 3 terms of Socialists in Britain and the country is always a bankrupt trainwreck by end. 3 terms of Tories and the Govt is so riddled in corruption, scandal and stink it's amazing anyone even considers voting for the Party again every 14 years

It's the same rotten story everywhere on the planet isn't it? Govt isn't a 'surprise' it's totally rotten nature is as predictable as Goldman Sucks fleecing another flock of investors

Govt the world over is orruption, incompetence and ultimately socio-economic destruction... nobody kills an economy or civil society like this (monopoly) institution, thre biggest nation and peace wrecker in history by mega-miles

it's a sad fucking joke, on us... long over-time we dump this stinking pile of garbage and its thieving parasites and move on as a society. It's called Freedom, people self-governing as we were born to be, just like nature, no central monopoly of parasites required

The 'Law of the Jungle' beats the living crap out of this destructive parasitical moron called Govt and its futile pompous laws (thousands of rules for us, zero applies to them: Govt is anarchy)

Tue, 06/12/2012 - 08:48 | 2517458 Yes_Questions
Yes_Questions's picture



The Obama comment caught my attention exactly because politcal talking points labeling him big spender and socialist do nothing but focus on the deck chairs.  I usually agree with you, was just wondering why you'd bother to push a useless talking point like this. 

Tue, 06/12/2012 - 07:48 | 2517316 my puppy for prez
my puppy for prez's picture

Barry's bosses:

  • CFR
  • PNAC
  • Brookings
  • Bilderberg
  • Trilateral Commission
  • Committee of 300
  • Tavistock Institute
  • Rockefeller Institute
  • Carnegie Institute
  • Chamber of Commerce
  • The City of London
  • And last but not least, the international bankers, of course!

Please feel free to add to this list....

Tue, 06/12/2012 - 15:40 | 2519143 Yes_Questions
Yes_Questions's picture




  • Michelle
Mon, 06/11/2012 - 21:54 | 2516682 knukles
knukles's picture


Mon, 06/11/2012 - 21:55 | 2516685 Doomer
Doomer's picture

"Resolve. Courage. Discipline. Shared sacrifice. I can sense it coming down the pike. "

I almost sprayed a mouthful of beer across the living room! 


Mon, 06/11/2012 - 22:03 | 2516701 ihedgemyhedges
ihedgemyhedges's picture

Ahhhh, nothing like reading ZH while guzzling a 30 pack...............

Mon, 06/11/2012 - 22:19 | 2516743 azzhatter
azzhatter's picture

What Rosie doesn't account for is the horrible culture decline in the US over the past 30-40 years. The only segment of the population that has grown is the underclass. There might be 80 million millenials but 60 million of them ain't worth a bottle of warm piss. Our cities have <50% high school grad rates, we have permanent unemployment, welfare, and healthcare free loaders. This is what happens when you coddle a society. Guys like Rosie never venture into the vast canyons of the underclass. All is well at the steakhouse where he dines and his friends send Ashley and Skip to private schools. Look hard at the real society and the rose colored glasses will shatter

Tue, 06/12/2012 - 02:34 | 2517151 ceilidh_trail
ceilidh_trail's picture

Totally agree. I drive into the inner city 5x/week. The road goes by public housing. 7AM- very few people out with plenty of parked cars with shiney wheels and oversize tires. 4PM- lots of people hanging out, others cruising in those cars- no regard for rules of the road and don't dare honk when they cut you off. I even drive by a place named "Rent and Roll" that leases those shiney rims. As for the guy defending 150k construction workers- fine if they get it from private projects, but hell no if we have to pay it from public funds. If I screw up, real people die right away. My career choice puts me at real risk of death- HIV, HepC, CDiff, assaults, etc. I sure as heck don't make that kind of coin for the risk, and neither should any of the 5-6 guys standing/sitting around while one guy pushes dirt.

Tue, 06/12/2012 - 07:38 | 2517299 my puppy for prez
my puppy for prez's picture

My husband does the same thing you do.  The hours and risks are crap.  I used to have to take the kids to the hospital when he was in training just so they didn't forget what their daddy looked like.  That schedule continued for the next 10 years, non-stop.  Not a good lifestyle for raising chidren sometimes.  And soon, this profession will be completely overhauled by the govt to where you will WISH you had one of those great paying construction jobs!  Interesting times coming....the good ol' days are over.

Mon, 06/11/2012 - 21:58 | 2516691 world_debt_slave
world_debt_slave's picture

the only light will be if a Phoenix rises from the ashes

Mon, 06/11/2012 - 22:06 | 2516692 bigwavedave
bigwavedave's picture

Mitt will raise again privatizing all federal govt pernsion funds and converting to 401(k) - Ripfest/Ripoff

Mon, 06/11/2012 - 21:58 | 2516693 proLiberty
proLiberty's picture

Only in the Keynesian madness of economic theoy could a reduction in government spending money that it must borrow be considered "austerity".    But when you believe that the total economy is the sum of consumer spending, investment and government spending, then anything the government spends is good.  Consequently there is no such thing as wasteful spending.  Such madmess!  Out of such madness comes the idea that slowing down the amount of inflating and borrowing is being "austere".  

Mon, 06/11/2012 - 22:03 | 2516698 buzzardsluck
buzzardsluck's picture

Economy is slightly growing, employment might be 9%? 

This guy has been rammed in the ass one too many times with that big red, white & blue dildo Carlin spoke of to be believing the US government (yes, I know where he's from).

Mon, 06/11/2012 - 23:18 | 2516712 Dr. Engali
Dr. Engali's picture

It seems to me the republicans held the presidency and both chambers a few years back. Let's see what did we get? Oh yeah a donut hole and wars in Afghanistan & Iraq. I could go on but I'm preaching to the choir.

Mon, 06/11/2012 - 22:06 | 2516714 imapopulistnow
imapopulistnow's picture
Rosenberg is far too rational to be considered believable today.
Mon, 06/11/2012 - 22:13 | 2516725 Yen Cross
Yen Cross's picture

 Last i checked? Zero Hedge was a post!

                                                         ZERO hEDGE IS not a commentary!     Get Long Some Thing?

Mon, 06/11/2012 - 22:14 | 2516727 otto skorzeny
otto skorzeny's picture

utter tripe

Mon, 06/11/2012 - 22:14 | 2516729 3MonthsZHober
3MonthsZHober's picture

Rosie, Bitterman, and Creggie Middleman. Oh brother!

Mon, 06/11/2012 - 22:15 | 2516731 CURWAR2012
CURWAR2012's picture

hehehe..he said "dry powder"...hehe

Mon, 06/11/2012 - 22:23 | 2516736 wang (not verified)
wang's picture

and in other news,  just a short 32 years later it has been confirmed

a dingo ate her baby


and Dave, thanks for the heads up re perma bull potential by the end of November 2012???  we hearken back to your suckers rally call circa spring 2009 

Mon, 06/11/2012 - 22:18 | 2516741 tjfxh
tjfxh's picture

Just one tiny glitch in this analysis. Long bull markets are driven by bottoms in the financial (credit) cycle described by Hyman Minsky. We are still a long way from the bottom in the US, and the world, well, just look around at what is happening. Far more likely is the second leg down in Great Depression II until the debt is squeezed out globally. Have a listen to Steve Keen for numbers.

Mon, 06/11/2012 - 22:20 | 2516745 jimmyjames
jimmyjames's picture

Canada is blessed with that today — a Conservative majority with a pro-business agenda


If you call blowing a housing bubble that has yet to pop- pro-business-then i suppose he's right-

Mon, 06/11/2012 - 22:47 | 2516810 Paul Atreides
Paul Atreides's picture

I guess he doesn't know about Harper transforming a $16 billion surplus into a $58 billion deficit and the shutdown not once but twice of parliament. One of those to avoid a vote of non-confidence which he was expected to lose.

Mon, 06/11/2012 - 23:23 | 2516904 Matt
Matt's picture

The one big advantage in Parliament is that if you vote against the Party, you may no longer be in the Party.

The President would have alot more power, too, if any Democrat who voted against him suddenly became an independant. You have to do it early, with something small, so you can make an example early on, without lossing too many people.

Also, if the President got to hand pick senators, that would probably help too.

What I'm getting at, is that with a strong majority, a Prime Minister can be quite autocratic.

Mon, 06/11/2012 - 22:21 | 2516751 lotusblue
lotusblue's picture

I disagree with "Rosie"on this one,as  he sees that lite through glasses that don't provide the massive strucural changes that must take place.May sense is what may exist by thanksgiving is a bowl of lumpy oatmeal moving with mealy worms confused for steak.

Mon, 06/11/2012 - 22:26 | 2516761 i_call_you_my_base
i_call_you_my_base's picture

Delusional. The American political system is completely corrupted by money, which is delivered to both parties in exchange for tax benefits, subsidies, and entitlements. Neither side will yield the funds that got them into office. And each side will bring the whole thing down to protect themselves - the rich their money, the poor, what they live on. If you don't operate under this reality you are living in another world.

Mon, 06/11/2012 - 22:40 | 2516801 QQQBall
QQQBall's picture

zactly. Someone om the net said it best - the government thinks its the center of the body with hypotermia nad will start lopping of appendages to sustain itself. This doesn't end with a Rosie re-write of the tax code and DC being hit by a wave of fiscal sanity. Punish the prudent is still in full force - borrow our way to financial security is still in force- and on and on... Mittsy is no better than Obomber.

Mon, 06/11/2012 - 22:27 | 2516765 Yes_Questions
Yes_Questions's picture



Through Rosie eyes...

Tue, 06/12/2012 - 02:55 | 2517165 hidingfromhelis
hidingfromhelis's picture a Ros(y) palm.  The check's in the mail.  Love, Mitt & the gang at the RNC.

Mon, 06/11/2012 - 22:39 | 2516794 surf0766
surf0766's picture

European austerity  > increase taxes and no decreases in spending.

What is needed ? decrease spending dramatically and decrease taxes. Stop paying people to sit on their ass.

Mon, 06/11/2012 - 22:44 | 2516812 Deep79
Deep79's picture

This guy has been dead wrong for 3 years now and now his notes sound more and more bullish. His analysis is good, probably the best out their, but if you trade off this guy he is dead wrong. Seeing light at the end of the tunnel, seriously Rosie. maybe when sp is reaching 500. This guy is a joke. And I live in Canada and the spin that's gonna hit here is gonna be HUGE. Rosie has lost all credibility in my eyes. Get out of your ivory tower once in awhile and see what's really going on. Easy writing notes in your little rosy world you live in. The fact this guy sees light at the end of tunnel tells me we are NO WHERE NEAR BOTTOM

Tue, 06/12/2012 - 20:23 | 2520023 Absinthe Minded
Absinthe Minded's picture

My company is in NH and we make rolled ice and water barrier for roofs. We were on a tear to start the year, Jan. up 60%, Feb. up 56%, March up 54%, April up 48%. Then May we were up 25% and June we are not getting any orders. I think everyone stocked up thinking we were going to have a big building season and now it's all collecting dust on their shelves. I hope I'm wrong but I have a feeling the pink slips are going to start going out pretty soon.

Mon, 06/11/2012 - 22:51 | 2516831 deerhunter
deerhunter's picture

18K per student in DC public schools.  Graduation rate,  low 50's.  30 x 18K  480K per classroom with a 50% failure rate.  For 480 K and 50% grad rate.  We can do better.  Wait a minute,  people do what you inspect not what you expect.  Sorry all you tenured teachers out there.  Our country needs fixing from the bottom up.  Educating kids is ground zero.  I am afraid we are 20 years too late.  Nothing to fix,  sorry. 

Mon, 06/11/2012 - 22:52 | 2516833 Hedgetard55
Hedgetard55's picture

Those Rosie colored glasses remind me of the X-ray glasses at the back of the comic books I read as a kid. What is Rosie this week? Bull/bear or on the fence again?

Mon, 06/11/2012 - 22:53 | 2516834 williambanzai7
williambanzai7's picture


Mon, 06/11/2012 - 23:01 | 2516858 Plumplechook
Plumplechook's picture

How many times does this clown Rosenberg have to get it wrong before people stop listening - and Tyler stops giving him column inches?

Mon, 06/11/2012 - 23:04 | 2516863 oldman
oldman's picture

Hopium from Rosie?????

Mon, 06/11/2012 - 23:09 | 2516871 barroter
barroter's picture

End Soc. Security, Medicare and all of that. Next is the panacea of privatization huh? . Too bad they've proven to me what crooks they are and I WILL NEVER trust the markets.  You can keep trying to persuade me to liquify my money onto the market but I'm not. Sorry thieves, my money isn't where you'll be able to get at it. Does this piss you off? Good, I hope it does.

Mon, 06/11/2012 - 23:09 | 2516876 Bicycle Repairman
Bicycle Repairman's picture

"enact a national sales tax"

My income was taxed on the way in.  Now tax it again on the way out?  Fuck that.

Mon, 06/11/2012 - 23:18 | 2516890 SPAREPARTS
SPAREPARTS's picture

Amen, that is true, reagan another shit bag that gets credit, volker changed the game, no one has the the guts to lead except Ron Paul, right or wrong the only leader

Mon, 06/11/2012 - 23:25 | 2516916 glass
glass's picture

These cheap snapback hats are one the few providers of hip-hop look to the world of fashion and thereby look into the luxury zone of the customers. This brand can give you guarantee to satisfy both with its design and quality. It has the best quality and long lasting surety on the product. People from different ages would like to prefer these hats so for all those who are taking a keen interest gets these snapback hats on sale.

Mon, 06/11/2012 - 23:32 | 2516933 Bill the Cat
Bill the Cat's picture


Mon, 06/11/2012 - 23:33 | 2516937 EFNuttin
EFNuttin's picture

change is always at the margin. And it usually starts in the political sphere.

In my experience, all the politicians are there for is to try and let The Powers That Be remain The Powers That Will Be.  The only thing that starts in the political sphere is silly rhetoric about "it's for the children, poor, veterans, homeowners, teachers....etc.  And that's why you have to give up some more freedom while looking down the barrel of an IRS pen.  Oh, and my brother-in-law will be managing the contract to disburse the funds."

Rosie is completely full of crap.  Next time, like with WilliamBanzai7, I will be careful not to have any beverages on hand when daring to click a Rosie link.

Tue, 06/12/2012 - 00:00 | 2516993 DarthVaderMentor
DarthVaderMentor's picture

If Mitt is elected and if Mitt does the right thing for the country he'll be a one term President thrown out in the 2016 election and the GOP as we know it today will be gone forever.


Rosie may be right, but I think a little too early. If Mitt wins he'll need at least a few months of his term to change the ship around at the earliest.



Mon, 06/11/2012 - 23:59 | 2516995 Animal Cracker
Animal Cracker's picture

Air Traffic Comptrollers: They wear many hats.


Tue, 06/12/2012 - 00:11 | 2517007 cpt crash
cpt crash's picture

hmmm. Sounds like a  Propagandist. Anyone pushing the notion that there is a difference between Obama and Romney and the Election will make some kind of difference IS either dumb or has an agenda.  The United States has "two" parties, but both are right wing. This man is pushing the Corporate State (fascism). This ideology is getting prevalent around the internet.

Tue, 06/12/2012 - 00:12 | 2517009 Marty Rothbard
Marty Rothbard's picture

If mortgage interest were not deductible, and capital gains on primary residence not excluded, then the sales price of housing would be much, much lower.  Some folks would buy outright, rather than borrow.  The point is that the tax advantages don't help the consumer, since they just serve to raise prices.  They work to help who is really important, the banks, the construction industry, the real estate industry.  Just like college tuition, or medical care, when the government subsidizes it, the price goes up, the corporations benefit, some stupid citizens think they benefit, but they are screwed. Wake up America.  Your current, and you and your children's future taxes, are going towards raising the price of everything you need to live your life.  There are no free lunches!

Tue, 06/12/2012 - 22:06 | 2520176 EFNuttin
EFNuttin's picture

I would add that those same prices are carefully excluded from the government's official Bureau of Labor Statistics basket of goods used to determine inflation rates.  They insanely assume that if home prices decline, you will just pop right out of your current home (on which you may be underwater) and into another one.  Home price deflation of more than 30 percent has offset so many other price rises in the BLS basket these past four years.

Tue, 06/12/2012 - 00:16 | 2517012 slewie the pi-rat
slewie the pi-rat's picture

slewie still loves ya, rosie!

this reminded me of the shit i usta make up, more or less, in mathematical symbols, when i usta pay fuking taxes, after dinner on 4.14.__;  and which invariably looked like it was done by charles manson on his worst acid trip ever, in soup and blood and oil and tooth paste and always signed in #2 pencil:  ^%$#$^&*%^$-rat, (p 657 of 3,089,329 fuking pages)

it was hogwash, but it got the job done...

so he earned his pay this week...  bfd...

but i appreciate the way he just made most of this shit up!  mebbe he's breaking in a new boss...

Tue, 06/12/2012 - 00:28 | 2517027 shutdown
shutdown's picture




Tue, 06/12/2012 - 00:51 | 2517053 baldski
baldski's picture

Who is this Rosie Clown? What is his claim to fame? He must like to listen to himself!

Tue, 06/12/2012 - 01:20 | 2517081 q99x2
q99x2's picture

This author obviously is losing clients because things have become so dire. He seems to need clients to turn a buck.

Tue, 06/12/2012 - 01:26 | 2517098 Marty Rothbard
Marty Rothbard's picture

This guy is crazy.  Grid lock is just what we need.   No destructive legislation will get through.  The only bad thing is that it might delay the final crash of the currency, which is what will lead to real political change.  Wait until the FRNs the public worship, become worth 10 to 15 percent of what they were, in terms of imports.  Of course, lots of people will know "gold nut's" that will do just fine, despite what the MSM and Charlie Munger have been saying.  That will change a few minds, in terms of trusting the government to do what's best.  It will be quite easy to see that, Yes, it could and was forseen.  Then, maybe, the public will realize that the people that understand the problems, are the ones to solve them.

Tue, 06/12/2012 - 01:54 | 2517116 jarboejl
jarboejl's picture

Look, when the dude's right, the dude's least that's what The Big Lebowski taught me.

But did anyone else notice that Rosie mislabeled the generation after the Millennials as the Millennials? "There are more than 80 million millennials out there — kids between the ages of new-born to twenty." Huh. I'm a Millennial and I'm turning 31 next week. We're also called the "Echo-boomers" cause our parents are boomers. So if newborns are millenials, then boomers are having babies at the young age of 48-67...uh no.

Tue, 06/12/2012 - 02:44 | 2517156 snblitz
snblitz's picture

No worries. The generational boundaries are re-written every few years.

Tue, 06/12/2012 - 02:13 | 2517136 ebworthen
ebworthen's picture

Oh great, another plan to screw over public workers who were promised "XYZ" benefits 20-30 years ago who now will be screwed.

"Free market capitalism" blah-blah-blah.

If you promise something, stick to it.

This goes for property rights, habeus corpus, speech, pensions, bond-holder rights, property rights, etc., etc., etc.

This pissing match between the disenfranchised on the left and the right is moot, pointless, and a distraction.

Don't promise shit if you aren't going to follow through; whether it is a private or public pension, returns, bonds, mortgage, taxes, election, or enforcing the rule of law.

Get with the program - fuck over the regular decent people and the only thing you have to look forward to is a noose, a guillotine, or a near death beating.

Tue, 06/12/2012 - 02:15 | 2517139 Debugas
Debugas's picture

austerity is about control of the capital - who owns all the capital and who has nothing left and has to suffer austerity as a result

Tue, 06/12/2012 - 02:27 | 2517146 Peter K
Peter K's picture

Just love how the lunatic left likes to dis Walker and the Tea Parties. But if it wasn't for them, places like San Diego and San Jose couldn't get their reforms through.

God bless the USA :)

Tue, 06/12/2012 - 03:02 | 2517170 AurorusBorealus
AurorusBorealus's picture

Yeah... Mr. Rosenberg... that's how this all goes down.  Everyone takes a big paycut and loses a lot of their retirement benefits... especially baby-boomers who demanded and received government jobs... and goes home happy; economic growth resumes and there are no dandylions in anyone's suburban lawn.

  The young generation shoulders the burden of debt and underemployment while the elders live lives of leisure.  And nations don't fight over resources valued in currency without any credibility.  Everyone continues trading for funny money. 

Can I have what you are smoking?

Tue, 06/12/2012 - 03:17 | 2517174 ozzzo
ozzzo's picture

We don't need austerity, we need to stop participating in government. Government is nothing but a scam that steals money from working people. The sooner it collapses, the better off we'll all be.

Tue, 06/12/2012 - 03:18 | 2517175 AnAnonymous
AnAnonymous's picture

The cure for US citizenism's ailments is always more US citizenism.

As evidenced by this US citizen's call for a Reagan like plan.

Obama is not big enough, a bigger Reagan like is needed.

US world order. Push people under the train until you run out of people to push under the train. At that moment, change the rules.

Quite a lot of remaining people to be pushed under the train.

Tue, 06/12/2012 - 04:34 | 2517199 Moe Howard
Moe Howard's picture

Light at the end of the tunnel turned out to be a lamp advert on the right hand side of the page.


Tue, 06/12/2012 - 05:11 | 2517213 Tum
Tum's picture

@ebworthen - I didn't promise anything to public sector unions where I live. Someone else 'on my behalf' did so; someone I didn't elect nor hire to represent me. I can't think of any other entity other than the State which can obligate someone financially, against their will, to a contract?

Respect for property rights? Where is the respect for my property? And what other entity other than public sector unions seem to have some claim of property rights to tax revenue? By what right? Because a majority of my State elected a bunch of union-owned Democrats, I need to shut up and pay for the private property (taxes) of the unions? What a funny view of property rights; State assisted theft, justified morally by a voting majority, becomes property rights.

I don't care what politicians promised to unions. If they want to keep their promises, they can fund it with their own money. I promised nothing.

Tue, 06/12/2012 - 05:31 | 2517218 Escapeclaws
Escapeclaws's picture

Austerity is not some dirty nine-letter word as those filthy nose-picking pinko fellow-traveler Marxist communists in Europe (socialists--10 letters) would have you believe. It is all about living within your means and living up to your commitments.

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