Guest Post: Welcome To Year Five In The Crazy House

Tyler Durden's picture

Submitted by Charles Hugh Smith of OfTwoMinds blog,

For four long years, the financial and political Status Quo has masked pervasive structural decay with artifice, pretense and lies. It's like we're living in a rotting mansion run by delusional megalomaniacs.

For four long years, the power-drunk Status Quo Elites have piled on pretense and illusion at the expense of truth. Welcome to the Crazy House. The entire rotten edifice of global financialization was visibly crumbling by early 2008, and yet here we are, four long years later, still under the jackboots of artifice and lies. Instead of the cruel illusions of TARP, now we have HAMP, LTRO, The Troika, and assorted other acronyms and inanities passing for policy.

Welcome to the Crazy House, a rotting McMansion ruled by power-drunk megalomaniacs suffering from delusions of invulnerability and god-like powers. Why are we here, you ask? Because the drunks who run the household make it so darned easy: just keep quiet, listen politely to their ravings, and you get subsidized meals, free rent, a houseful of techno-gadgetry and nonstop entertainment--and that's not even counting the amusement value of their delusional, sloppy-drunk ramblings out by the rust-stained pool.

It takes a while to habituate to the Crazy House; at first, all the artifice, illusions, delusions and lies are disorienting. The dysfunctional "family" that runs the place acts like the money is endless, as if borrowing money was the same as actually producing something of value.

Meanwhile, you hear whispers that everything's paid with credit, and some of the vendors are threatening to cut the mansion's credit. That would be curtains for the whole charade, of course, but the "leaders" pontificate about the magnificence of the rotting mansion as if still having credit was the same as having productive wealth.

It doesn't take long before you start noticing the whole mansion is actually falling apart. The surface grandeur is totally illusory: the handrails are held together with duct tape, painted to match the background; the dry-rotted steps have been patched with putty and covered with fresh paint (step on the rotted parts and they crumble); the roof leaks are masked by pans placed in the attic, and the foundation is buckling.

Once you see enough of this decay covered by slipshod repairs, you wonder how much longer the mansion can last before it simply collapses under its own rotting weight.

From a distance, the expansive pool looks inviting, but that's also illusion; the power-drunk "leaders" and their Elite guests have dropped so many wine glasses on the deck that the bottom of the pool is now littered with shards of essentially invisible glass. At first you wonder why nobody ever goes in the pool, and then a whispered explanation fills you in on the sordid truth.

The truth must be whispered, lest the "family" overhear some shred of truth; any challenge to their account of limitless, god-like powers sends them into a spittle-flecked rage. Rage, denial and fear rule the household: fear of the truth, fear of vulnerability, fear of having to face the real world.

Residents' meetings are bizarre, for the "facts" presented about the mansion's upkeep are so blatantly false that you wonder how anyone present can even keep a straight face. Yet they all do; eventually you get used to the complete disconnect between the "official reports" and reality, and you just shrug it off and seek out other more engaging distractions.

It takes much longer to learn how to stomach the "lectures" by the "family leaders," as the subject matter is once again totally disconnected from reality. The "lectures" always extol the glorious wealth the "family" controls, its equally glorious past, and all the "innovations" that are currently increasing the mansion's already immense wealth and reach.

Yet there is no sign of any meaningful innovation being put in place; there are only endless surface repairs and paint jobs to mask the underlying rot, and a front yard that is maintained specifically to display a completely artificial veneer of wealth and solidity.

Will we ever get sick enough of the lies to leave the security offered by the Crazy House? Probably not, because it's too easy to stay: the food is greasy and sugary but tasty, the rent is basically free, and there's plenty of meds, booze and drugs to fix whatever "healthcare" issues you might have. Of course none of the meds actually restores your health; they only treat the symptoms of ill-health and ruin.

The sad thing about living in the Crazy House for four years is how living a life of illusory security saps the will and perhaps even the ability to function in the real world. The grease-soaked sugar bomb food they serve has left everyone obese and malnourished, and all the electronic toys and entertainment has rendered them mentally and physically unfit and terminally distracted.

They know the reassurances of the "leaders" are false, and that beneath the surface, everything in the mansion is either squalid and falling apart or ripe with the rot of corruption and lies. But leaving opens a Pandora's Box of uncertainty and sacrifice; it's easier to stay and listen to the absurd claims of godhood and endless wealth, and phony exhortations of the mansion's mythical "can-do" spirit.

As long as the vendors keep letting the mansion's delusional megalomaniacs run up their credit tab, then it's easier to passively stay put than to face the challenges of truth and reality outside the rotting palace of illusion and lies.

If this recession strikes you as different from previous downturns, you might be interested in my new book An Unconventional Guide to Investing in Troubled Times (print edition) or Kindle ebook format. You can read the ebook on any computer, smart phone, iPad, etc. Click here for links to Kindle apps and Chapter One. The solution in one word: Localism.

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Cognitive Dissonance's picture

"The sad thing about living in the Crazy House for four years is how living a life of illusory security saps the will and perhaps even the ability to function in the real world."

Only if you are dependent upon the illusion for your inner peace and happiness. This is why my constant message is to look within and understand who and what you really are, not what the matrix tells you that you are.

Create your own reality or live within one created by someone else.

LawsofPhysics's picture

Carefully CD, there's a "re-education" camp out there with your name on it.

tickhound's picture

Fairfax County Police continue to remind residents "if you see something, say something"


Cognitive Dissonance's picture

The overhead message boards on the Washington DC Beltway (# 495) are always a treat to read when there's no accidents or traffic slowdowns to report.

Very Big Brother at times.

tickhound's picture

It's getting in your face, big.  And the closer you get to the flagpole, the more comfortably numb you become.  It's like Kryptonite.

trav7777's picture

on the key bridge into DC, the portable sign was reading "report suspicious activity" and whatnot, someone spraypainted "read orwell" on a electrical junction box next to

tickhound's picture

So you're sayin' there's hope.

Fairfax County Police Department

Public Information Office
4100 Chain Bridge Road, Fairfax, Va. 22030

703-246-2253. TTY 703-204-2264. Fax 703-246-4253

News Release: 2012/066/0188/LHC(6)

March 6, 2012


Explosive Device Found in Franconia area Home

Franconia Police District – Police responded to a report of a suspicious device that was found in a townhouse in the 6500 block of Gildar Street around 6:30 p.m. on Monday, March 5.  

The device, described as an unusual looking box with tape and wires, was found by a cleaning crew. Police were called and summoned the Explosive Ordnance Unit who responded, removed the device from the home and rendered it safe.

The home is currently vacant and for sale. Police are continuing the investigation.

Police continue to remind residents “if you see something, say something”; if something appears suspicious and unusual, don’t hesitate to contact police.

                Anyone with information is asked to contact Crime Solvers by phone at 1-866-411-TIPS/8477, e-mail at or text “TIP187” plus your message to CRIMES/274637 or call Fairfax County Police at 703-691-2131.

Sloppy bomb makers always seem to hide their bag full of wires and cords in vacant homes and public street corners.

walküre's picture

Of course the place was vacant!

The FBI took their patsi off the street right in front of the WH where he allegedly wanted to blow himself up! They also found his passport a few yards from the suggested blast area. He had placed it there carefully just in case they'd have trouble iding him afterwards!

fuu's picture

Figures you live near DC.

tmosley's picture

He apparently lives in a DC ghetto, with a couple of crack-whores, apparently.  He thinks he's not racist because they are black crack whores.  lol

CIABS's picture

I agree with what Charles is saying, but "the Crazy House" makes it sound like it might all be a comedy of errors, which it isn't.  Sort of like, "Welcome to the Crazy House! We're all in this together and nobody knows what the heck's going on.  Oh, well, what are you gonna do?"

JPM Hater001's picture

"The sad thing about living in the Crazy House for four years is how living a life of illusory security saps the will and perhaps even the ability to function in the real world."

I've been awake for 2 years and these last 4 months have totally drained me.

Cognitive Dissonance's picture

Released in 1973.

Seems we were sleeping all this time and are only now waking up to the warnings that were obvious back then. Oh well, can't do anything about it now. Might as well go back to sleep.

Maybe just a little snack before I hit the hay. Yeah, that's the ticket.

ElvisDog's picture

where the only food is Big Macs and 64 oz Big Gulps, and they make you watch endless re-runs of "Jersey Shore".

t_kAyk's picture

how long until we get to the point of "Idiocracy"?  perhaps we are there...

t_kAyk's picture

they don't understand.  i got you dawg... 

Shitters_Full's picture

This thread brought to you by Carl's Jr.

Crab Cake's picture

Personally, Im waiting for the day I get to put extra holes in the people that try to take my brothers and myself to "re-education".

Fuck the police.

VulpisVulpis's picture

Plato wrote about this once.


All the crazy house residents see are shadows.

Wrender's picture

Great point Vulpis - just re-read The Rupublic recently and have used the same example with a few people.  Good on ya

Jim in MN's picture
"Suppose that men kill thee, cut thee in pieces, curse thee. What then can these things do to prevent thy mind from remaining pure, wise, sober, just? For instance, if a man should stand by a limpid pure spring, and curse it, the spring never ceases sending up potable water; and if he should cast clay into it or filth, it will speedily disperse them and wash them out, and will not be at all polluted. How then shalt thou possess a perpetual fountain [and not a mere well]? By forming thyself hourly to freedom conjoined with contentment, simplicity and modesty."
--Marcus Aurelius, Meditations
rbhatia613's picture

This. Goes without saying that it's easier to talk about looking within -- or to make fun of other people trying to "find themselves" -- than it is to actually man up and realize that a fancy banking job w/ 70-hour weeks out of college isn't going to help you sleep a night. 

...But then again, those MBA brochures are so damn shiny...

carbonmutant's picture

You can't tell the truth and get elected.

The voters always want a happy ending...

tecno242's picture

correct.  we have passed the event horizon of a larger part of the population taking and taking from the government pot than the part that is producing for it.

thus, now the vote will never be for the man who intends to fix it.

carbonmutant's picture

Pot dependent population...

Jim in MN's picture

Dude, the kettle is rainbow-colored!

non_anon's picture

yeah, just ask Jesse Jackson Sr.

ElvisDog's picture

Could there be a more Orwellian-inspired term than the "Troika"? And the ironic/funny/disturbing thing is that the Euro powers-that-be openly embrace the use of that term when referring to themselves.

Lotus's picture

red arrow was an accident (smart phone.not so smart)  sorry Elvis

Conax's picture

There, I greened him to fix his ratio, Lotus.  Accidents happen.

ElvisDog's picture

No problem, I thought a member of the ECB was monitoring ZH....

FranSix's picture

I think they should put parentheses around each word in the article for emphasis.  Double paretheses.

Piranhanoia's picture

I would only ask that you extend the timeline well past that 4 years Charles.  When did the manager first start ignoring the payments on upkeep?

BliptoP3's picture

I speak for all drunks when I say I find this article offensive; we don't harm anybody but ourselves.  I think crack-addict would be a better comparison.

juangrande's picture

i'm sure there's many a beaten spouse and child that might disagree!

BliptoP3's picture

true, maybe I shouldn't be so glib.  Vehiculer manslaughter is not funny either.


I believe there should be a special drunk drivers permit, with it you could drive no matter how drunk you are - but you can only drive a motorcycle.

walküre's picture

Fiver years in the crazy house

Is this another article on the Ritters?

Give them a break, will ya! The banks are.


Granite Countertops and iTulips

The end of America.


mayhem_korner's picture



All puffed up with vanity

We see what we want to see

To the beautiful and the wise

The mirror always lies.

(War Paint, N. Peart)

Wakanda's picture

In duct tape and Goop I trust.

Any thing else can be fixed with PMs.

Coffin Dodger's picture

Enjoy each day as if it's your last.

When it finally pops, you'll look back at today with envy.

tempo's picture

I just talked to some rich friends who are suing the attorney that represented their son who lost his home in foreclosure after living free for two years. My friends are really pissed that their son's lawyer didn't stop the foreclosure after only two years. The entitlement society goes much deeper than you might think. Its free for the rich and the poor. Obama lit the fuse.

Ayn Rand's picture


If one is judged by the friends they keep, you ain't doing too well.

peekcrackers's picture

Summer breeze makes you feel alright
Neon lights shining brightly make your brain ignite
See the girls with the dresses so tight
Give you love if the price is right
Black or white
In the streets there's no wrong and no right
so forget all that you see
It's not reality
It's just a fantasy

Aldo Nova  life is just a fantasy