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Guest Post: What Have We Learned In the Past 13 Years?

Tyler Durden's picture




 

Submitted by Charles Hugh Smith from Of Two Minds

What Have We Learned In the Past 13 Years?

We have learned nothing since 1999 except the Central State and Central Bank will intervene in the market to bend price and risk to serve the Status Quo.

If we learn nothing, then we deserve to lose. This is not a popular concept in America at this point in its history, when monumental errors are denied, excused, rationalized or quickly absolved by those who committed them.

As a small-fry investor, when I veer away from my discipline and system, I predictably lose money. As I sift the ashes of the trade, I always remind myself: if I learn nothing from my studies and experience, then I deserve to lose.

What exactly has America learned since January 1, 1999, 13 years that included two stupendous financial/credit bubbles, two hot wars and an explosion in public and private debt? If we examine the policy changes and institutional changes since the 2008 global financial meltdown, then we have to conclude that we've learned a very few things:

1. We've learned that the way to "repair" the catastrophic damage of a financial bubble bursting is to inflate another financial bubble in another asset class.

2. Systemic incentives will be put in place for everyone to speculate in the new bubble, with two important caveats: the Financial and Political Elites will get to play the game with moral hazard, i.e. their gains will be private and their losses socialized, and second, these Elites will not be governed by the rule of law; blatant systemic fraud and embezzlement will be ignored or forgiven.

In other words, some are more equal than others when it comes to the founding precept "everyone is equal before the law."

3. The Central Bank (the private Federal Reserve in the U.S.) will sacrifice purchasing power to lower interest rates and flood the economy with liquidity, i.e. nearly-free money for Power Elite speculation and leverage to inflate the new asset/credit bubble.

4. The Central State will address all post-bubble problems by borrowing and squandering trillions of dollars to prop up the Status Quo and transfer Financial Elite losses to the public/taxpayers.

5. These "solutions" are part of a broader strategy of "problem-solving" that can be summarized as "doing more of the same." If doing more of the same doesn't work, then do even more of the same until you resolve the "problem" by bending the market to your will.

6. To create the perception that the Power Elites have actually solved the structural issues rather than just paper them over, then minor "reforms" will be passed that tweak the parameters of the Status Quo without actually changing the power structure: who owns most of the national wealth and income stream, and who controls the political process that diverts an increasing share of the national income stream to State fiefdoms and corporate cartels.

We can find an analogy to these "lessons learned" in a spoiled teenager who refuses to study and is failing but discovers that cheating can "save the day" with much less effort than actually learning. We as a nation have learned how to cheat, and now we think that learning how to cheat and create the perception that we've actually learned something can be substituted for making the necessary sacrifices to actually learn something.

When the cheating controls the marketplace to prop up asset prices and mask systemic risk, then we are in effect giving ourselves "straight As" even though we have torn up the test, i.e. how our policies work in a transparent, open marketplace.

Thirteen years of cheating have created a dangerous confidence that we can keep cheating by controlling the market forever. The problem for the Central State and Central Bank is that socializing the market via cloaked intervention is qualitatively no different than direct command-economy control as practiced by the former Soviet Union: the real market cannot be destroyed, it can only be pushed underground.

This is why the black market flourishes in command economies.

In the U.S., the market has been manipulated and suppressed but there is no black-market outlet for reality. As a result, the market will reassert itself in the one market that is allowed, overpowering the State and Central Bank manipulation.

What we have learned in the past 13 years is the market can be suppressed and controlled forever by a dominant State and Central Bank. But markets cannot be suppressed forever, any more than risk can be eradicated, and so that lesson will have to be unlearned.

The spoiled teen can get through high school by cheating, but eventually he/she will have to navigate reality without the benefit of having learned anything except how to cheat.

 

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Wed, 01/25/2012 - 12:06 | 2096354 Shizzmoney
Shizzmoney's picture

Two words: "Glass Steagall"

Wed, 01/25/2012 - 12:15 | 2096394 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

Why should the elites change their way of behaving when they continue to get richer and rest of us get poorer? They won't. The only way change will come about will be when their decades of mismanagement fails and it will.....

Wed, 01/25/2012 - 12:24 | 2096424 redpill
redpill's picture

What we need to learn is that there is one giant, magnificant lie that is the heart of central banking in the western world: that it exists to smooth out economic volatility and improve the lives of the citizenry.  This is utterly false.  Central banking in the western world, at it's core, exists to get people into debt, and to keep them in debt so that they pay as much in interest to the financial system as possible over the course of their lifetimes.  As long as we continue under the false impression that central bankers in the US and Europe are operating in our best interest we will be debt slaves.

Wed, 01/25/2012 - 12:27 | 2096442 LeBalance
LeBalance's picture

Drag-ON!  (exactly as you say!)

Wed, 01/25/2012 - 14:42 | 2096984 economics1996
economics1996's picture

End the Fed.

Wed, 01/25/2012 - 12:25 | 2096431 Pladizow
Pladizow's picture

"We will learn an enormous amount in the very short term, quite a bit in the medium term and absolutely nothing in the long term." - Unknown to me.

Wed, 01/25/2012 - 15:35 | 2097236 SeanJKerrigan
SeanJKerrigan's picture

Jeremy Grantham

Wed, 01/25/2012 - 12:47 | 2096511 Barbarians_R_Us
Barbarians_R_Us's picture

I want to believe that. But its becoming apparent that nothing short of their heads on a pike will change these traitorous elites minds.

 

Wed, 01/25/2012 - 16:42 | 2097524 LFMayor
LFMayor's picture

I know people who, like myself, heartily endorse and applaud your curative.

Wed, 01/25/2012 - 13:06 | 2096582 midtowng
midtowng's picture

I don't know why the article denounces cheating so much. Just look at the "winners" in society today: politicians, Wall Street bankers and traders, etc.

   They are ALL cheaters, and it has worked for them.

The only problem with cheating is that a whole society can't cheat. There always has to be a larger group of suckers than cheaters.

Wed, 01/25/2012 - 12:27 | 2096445 Tristan
Tristan's picture

+1

Wed, 01/25/2012 - 14:41 | 2096979 economics1996
economics1996's picture

Shizz, Glass-Steagall was nothing more than the Democrats way of breaking up the Morgan Republicans.  It was a payback for the 1890 Sherman Anti Trust act that was designed to fuck with the Rockefeller empire.  Nothing more, nothing less. 

Repealing, or leaving in place Glass-Steagall, would not change a thing with the housing boom and bust. 

Why?

Because the housing boom and bust was created by artificially low interest rates created by the Federal Reserve.

If you want banking stability eliminate the Federal Reserve.

Wed, 01/25/2012 - 22:56 | 2098609 SAT 800
SAT 800's picture

You couldn't figure out that you were supposed to buy Ford at $3/share, on two to one margin? Why could you not figure this out? Is it not what is called obvious? It is what is called obvious; therefore nothing you have to say is worth listening to.

Wed, 01/25/2012 - 12:07 | 2096357 francis_sawyer
francis_sawyer's picture

<deleted>

Wed, 01/25/2012 - 12:22 | 2096420 KingPin 999
KingPin 999's picture

Anybody at Zerohedge watching the total ahnilation of the baltic dry index. Not the best indicator but this kind of move is saying something.

Wed, 01/25/2012 - 12:25 | 2096430 fonzannoon
fonzannoon's picture

I am. Waiting for it to show up somewhere in earnings. Looks like I may be waiting a while.

Wed, 01/25/2012 - 13:35 | 2096676 youngman
youngman's picture

I have been watching...the excuse is a bunch of new ships.....well if thats true...they just killed themselves...but i think its more than that....less trade...but yet the Richmond Fed jumps....I am confused...

Wed, 01/25/2012 - 14:04 | 2096809 vocational tainee
vocational tainee's picture

The index is at a low of 807, which is something we have not seen for years...

Wed, 01/25/2012 - 18:57 | 2098030 ucsbcanuck
ucsbcanuck's picture

Try 784.

(sarc on)

Must be a lot of new ships out there

(sarc off)

Wed, 01/25/2012 - 12:18 | 2096358 TruthInSunshine
TruthInSunshine's picture

People of earth will view this as a brilliant and prophetic documentary in 25 years:

 

Idiocracy - Trailer

Foreign titles will include Keynesianism Bastardized & Used By The Big Club (That You Ain't Part Of)

-and-

You Get The Government You Deserve, Devolved Mutants

-and-

For A Few Krugmans More

-and-

It Came From Chuck Schumer's District

Wed, 01/25/2012 - 12:19 | 2096415 Shocker
Shocker's picture

Ouch, yeah that movie pretty much nails it. We are heading in that direction everyday.

This should be a required movie to watch, then people might say wow, let try can change things a little. You can laugh at the movie, but deep down inside and more like a horror film.

You see how there is only 1 major store, kinda a similarity of whats starting today.

http://www.dailyjobcuts.com

Wed, 01/25/2012 - 12:38 | 2096438 TruthInSunshine
TruthInSunshine's picture

It's already so much closer than we realize. Krugman & Soros are on a natural high. Krugman's fantasy of erasing all sovereign debt by printing an additional amount of tri-colored paper fiat equal to that owed to creditors can finally be implemented, and will be hailed as an economic/monetary miracle. The Krugman 10 million dollar bill:   http://homepage.mac.com/dtrull/pix/idiotcash.jpg
Idiocracy Mash-up
Wed, 01/25/2012 - 12:57 | 2096550 Xkwisetly Paneful
Xkwisetly Paneful's picture

Thought the CROX touch in Idiocracy was brilliant.

Wed, 01/25/2012 - 12:07 | 2096359 digitlman
digitlman's picture

Well played, Francis

Wed, 01/25/2012 - 12:24 | 2096377 francis_sawyer
francis_sawyer's picture

Thanks... Sorry I deleted it... (to those of you who missed it it was about 20 space bars of emptyness... But I decided in the end I'd better not hijack the thread space)...

And now it has 5 UP arrows... Help us out peeps... It's now morphed into a science experiment... How many UP arrows can one get from an original post that was completely blank (for 20 space bars), replaced by one with the word <deleted>...

We're rapidly approaching the crest of human innovation...

 

Wed, 01/25/2012 - 15:42 | 2097267 Goldilocks
Goldilocks's picture

Blank (black) market, bitchez!

Wed, 01/25/2012 - 12:20 | 2096361 Cognitive Dissonance
Cognitive Dissonance's picture

"If we learn nothing, then we deserve to lose."

We need to expand our perception beyond the simplistic paradigm of 'winning and losing' and ask ourselves if a game such as this should be considered the only way to play. We will act as if sheep only as long as we believe ourselves to be sheep.

Helpless mindless sheep are led to slaughter. Sovereign beings would never tolerate such a one sided equation.

Time to wake up Neo.  

Wed, 01/25/2012 - 12:47 | 2096504 alien-IQ
alien-IQ's picture

How can we expect a generation of kids to grow up with any critical thinking capacity when we have a system of education, news media and entertainment that seemingly combine forces to suck the creative and critical soul right out of them and replace it with drone like servants of the status quo?

Our system, in it's current form, rewards conformity and punishes anything resembling original thought.

John Lennon captured this pretty well with the song "Working Class Hero"

"As soon as you're born they make you feel small By giving you no time instead of it all Till the pain is so big you feel nothing at all"

"There's room at the top they're telling you still But first you must learn how to smile as you kill If you want to be like the folks on the hill"

Wed, 01/25/2012 - 13:02 | 2096570 Xkwisetly Paneful
Xkwisetly Paneful's picture

MOhamed it is just so confusing.

Anywhere there is big government there is stifled creativity regardless of the education system.

The confusing part is the "we" and "our" part.

Wed, 01/25/2012 - 15:42 | 2097269 SeanJKerrigan
SeanJKerrigan's picture

Just started reading John Taylor Gatto.  Good stuff.

Wed, 01/25/2012 - 16:46 | 2097539 LFMayor
LFMayor's picture

first thing is we can stop using the prophetic, hidden meanings from songs by a bunch of drug addled counter culturists, sponging their livelyhood off othe the very population they so violently protested.

Now, Yellow Submarine, there's a teaching aide! 

Wed, 01/25/2012 - 21:37 | 2098422 StychoKiller
Wed, 01/25/2012 - 12:46 | 2096507 francis_sawyer
francis_sawyer's picture

I've learned that it would be a good idea to make myself more heavily armed...

Wed, 01/25/2012 - 16:47 | 2097540 LFMayor
LFMayor's picture

this first, before all else.  Be Armed.

Wed, 01/25/2012 - 22:58 | 2098615 SAT 800
SAT 800's picture

You know what, you really are an idiot.

Wed, 01/25/2012 - 12:09 | 2096366 GeneMarchbanks
GeneMarchbanks's picture

'The spoiled teen can get through high school by cheating, but eventually he/she will have to navigate reality without the benefit of having learned anything except how to cheat.'

No cheating is necessary for high school students, only a pulse and attendance.

Learning from mistakes of the past thirteen years is small potatoes, you need to go back farther. Perhaps much farther and given the level of understanding that prevails in modern America, that is now no longer an option.

Wed, 01/25/2012 - 12:09 | 2096369 LawsofPhysics
LawsofPhysics's picture

"The spoiled teen can get through high school by cheating, but eventually he/she will have to navigate reality without the benefit of having learned anything except how to cheat."

 

Yes, but ONE thing the financial sector has taught everyone is that it isn't "cheating" if you buy the politicians and change the laws.  Unfortunately, this greed and lack of prosecution of fraud (i.e. moral hazard) will destroy everything as there is and will always be a real cost for creating capital without adding real value to the system.  Hedge accordingly.

Wed, 01/25/2012 - 12:32 | 2096473 HD
HD's picture

Yes, morality is for the unwashed masses - not for those "benevolent" masters of the universe who trickle down on the 99.9%

As Lloyd will tell you - they are doing God's work.

Wed, 01/25/2012 - 12:13 | 2096385 Caggge
Caggge's picture

We learned we can't trust our political leaders to represent the people who hired them to represent them. They are self service cowards that couldn't survive completing in a real business without gaming the system.

Wed, 01/25/2012 - 12:15 | 2096395 JW n FL
JW n FL's picture

 

 

What Have We Learned In the Past 13 Years?

The Sheepeople have Learned NOTHING!

They have learned how to be just that much more ignorant of the World around them.

They have learned that they only want to know the News that is put into Heavy Rotation on Corporate owned News Outlets!

They can NOT! Handle the Truth!

 

Wed, 01/25/2012 - 12:16 | 2096399 InconvenientCou...
InconvenientCounterParty's picture

It takes significant critical thinking to effectively "cheat". It's that critical thinking which creates more earning opportunity than the learning factoids alone. Point being, it's not all bad.

How to teach empathy between humans? Well, that's a little harder, but it's a worthwhile goal.

Wed, 01/25/2012 - 13:09 | 2096587 Bartanist
Bartanist's picture

I hear ya. Critical thinking = good.

When I think of cheating however, I envision a winner who cheated and a loser who was victimized by the cheater. For me, the negative effect on another would outweigh the positive effect of critical thinking (which under these circumstances seems to be simply a rationalization for allowing oneself to do something antisocial).

If good and evil exist then I see them as the reflection of our actions on others. In serving ourself are we harming others? In serving others are we harming ourselves?

Wed, 01/25/2012 - 16:50 | 2097551 LFMayor
LFMayor's picture

yes... only the foolish criminals get caught.  Or the greedy, which foolishly forget to factor risk/reward. 

Empathy can only come after security?

Wed, 01/25/2012 - 12:17 | 2096402 SheepDog-One
SheepDog-One's picture

Wait...you mean I cant buy stocks with the guarantee that I cant lose because surely I'll be bailed out?

Wed, 01/25/2012 - 12:18 | 2096404 A Lunatic
A Lunatic's picture

I've learned that "winning", as defined by the status quo, is a losing proposition.

Wed, 01/25/2012 - 12:18 | 2096405 CH1
CH1's picture

Some of us have learned a lot in the past 13 years. Joe Corporate, however, is still hiding his head in the sand and lauding those who defend his denial.

Wed, 01/25/2012 - 12:19 | 2096406 Bay of Pigs
Bay of Pigs's picture

Fraudulent bond market, fraudulent accounting, TBTF and regulatory capture.

Cheating? It's much, much worse than that...

Wed, 01/25/2012 - 12:19 | 2096407 falak pema
falak pema's picture

One thing is clear : you don't go from outright hubris to outright lucidity and proactive humility; "fix it" mode, at the turn of a combustion engine car key. People and nation states are not like that; they take time to realize. Today we are still in denial. Its a long way to Tipperary and the war on hubris will run its natural course, like a raging river to appeasement, hopefully not to collective, irretrievable ruin.

Wed, 01/25/2012 - 12:19 | 2096408 Pasadena Phil
Pasadena Phil's picture

We seem to have abandoned as a country our committment to the pursuit of efficiency that brings lasting benefits to the destructive forces of global expediency whose "benefits" are fleeting and only benefit a very few at the expense of the many. Not all "growth" is good. We have lost the "vision thing" since Reagan left the scene. How do we get it back?

Wed, 01/25/2012 - 13:00 | 2096561 Bartanist
Bartanist's picture

Not sure why people trashed your comment. However, I do not necessarily think that efficiency for efficienty's sake is beneficial because efficiency serves fewer people than inefficient and free markets/people/will. Efficiency often kills creativity.

My interpretation would be more along the lines of a "misallocation of resources" instead of an ineffective move toward efficiency.

Wed, 01/25/2012 - 12:19 | 2096411 Money never sleeps
Money never sleeps's picture

In the past 13 years I learned that all FX brokers are cheaters. I now trade with Paul Tudor Jones at Armada Markets. Kevin Kerr also trades there.

Wed, 01/25/2012 - 23:01 | 2098625 SAT 800
SAT 800's picture

Oh, congratualtions. And is that why your Income Tax statement shows nothing for a gain in trading; because of the FX brokers? or is it because you're an idiot.?

Wed, 01/25/2012 - 12:25 | 2096437 UTICA CLUB XX PURE
UTICA CLUB XX PURE's picture

In my surrounding communities I'm witness to a decentralization movement. Local foods purchased directly from persons we know & from farms we can freely visit. Less interest in the "Worldly events" from the outer world we no longer feel a part of. More barter system interactions. Less wasted purchases IE less commercialism. Less Walmart, Lowes, Home Depot etc. More local store purchasing. Nonparticipation is what I'm seeing here in Upstate NY. Its the only way we can feel good about each other anymore. 

Wed, 01/25/2012 - 13:02 | 2096569 sagerxx
sagerxx's picture

We're doing the same thing here in the mid-Hudson valley (just S of Albany). The only way not to lose is to not play their game. Rock = ON!

Viva -- Sager

Wed, 01/25/2012 - 12:27 | 2096446 blabam
blabam's picture

In the past 13 years I have learned to hate socialists and central planners.

Wed, 01/25/2012 - 12:30 | 2096464 Cognitive Dissonance
Cognitive Dissonance's picture

Give it a little more time bro. Like a fungus, it grows on you after awhile. :)

Wed, 01/25/2012 - 13:35 | 2096675 Geruda
Geruda's picture

If the thing you have learned is hate, then the learning you think you have been having has not been learning.  If you are hating you are having a terrible thing that is like a corrosive that is having no thing it can be being stored in because the thing it is being stored in is being destroyed by the terrible thing that cannot be stored in anything.

Wed, 01/25/2012 - 12:32 | 2096469 Dagny Taggart
Dagny Taggart's picture

If you want better answers, you ask better questions.

Wed, 01/25/2012 - 12:32 | 2096472 bankonzhongguo
bankonzhongguo's picture

Sadly, its not going to be enough to simply own a gun.

You are going to need to know how to make one (or more) from scratch in your basement.

Ammo too.

None of any of this nonsense would need to be considered, except Bush and Obama handed the Banks our sovereignty after a "crisis" created by the Banks.

The simplest way out of this nightmare is to seize the bankrupt banks.  Cancel the noncollectable debts and give depositors their money back.

Its that easy.  The solution is not bigger banks.  Its smaller ones operating within the communities they should be serving.

Like it or not, you are going to be forced to draw a line in the sand for the protection and dignity of you and your family.

What will be your personal definition and perception of a "redcoat" operating in Amerika?

At what point is enough, enough?

 

Wed, 01/25/2012 - 12:49 | 2096513 Bartanist
Bartanist's picture

Most of our problems can be solved through the promotion of free will, free markets, greater competition and a general distribution of power ... as opposed to its consolidation. This is the opposite of centrally planned socialism.

The banks have made it ever so much easier to consolidate power and yet, they only consolidate the power of those who give them power. If the economies all implode and people become disenfranchised, then they lose ALL of their power. Who gives a damn about someone with a pile of fiat in a world where there is not enough to eat and the troops and police, created to protect the so called property rights of the fiat rich, are starving. The armed and organized can simply decide to take what they need from the fiat rich at the point of a gun. Poor people have much less to offer.

The new, new feudalism? Or is the point that we are being driven like a herd of cattle to "fear", "distrust", "polarize" and "rebel" ... as a test or as a trap?

Wed, 01/25/2012 - 12:36 | 2096481 Bartanist
Bartanist's picture

The spoiled teen can get through high school by cheating, but eventually he/she will have to navigate reality without the benefit of having learned anything except how to cheat.

This may be true for economies, but I would suggest that AT LEAST our most recent 3 presidents never had to face up to this lesson. The lesson is multigenerational and yet is lost with the transition of generations. So, we are seemingly doomed to repeat our mistakes time and again in a perpetual learning and re-learning process.

And, while the daily distractions of this world provide seemingly infinite entertainment, we must still ask the questions: Where are we? Why are we here? and What does it mean? Because, from our perspective we are a complete mystery that cannot exist and yet seemingly do. Should I really give a damn about people who choose to use their life to cheat and lie to themselves? The answer of course is yes, but not for the reason that most people might think.

Wed, 01/25/2012 - 13:02 | 2096489 game theory
game theory's picture

This is a good article.  In the last 13 years I know I have learned that cheaters usually win.  Not only that, but they tend to win bigger than non-cheating winners.  Game theory suggests tit-for-tat strategies should reduce the incidence of cheating.  But that is only for repeated games.  Our politicians and wall-street masters have learned you only need to cheat once and cheat big...then go home.  We can't seem to find anyone to prosecute the cheaters...because it doesn't seem that any laws have been broken (legal for congress to inside trade and legal for firms to sell their clients dogshit).  So that's it. There is no "tat" in the tit-for-tat strategy. It's all "tits". And it ain't the kind we like.

Wed, 01/25/2012 - 12:42 | 2096492 Derpmonger
Derpmonger's picture

I've learned that I'm horrible with money.  Really really horrible. 

 

Also that tax revenues, much like deficits, simply don't matter anymore.

Wed, 01/25/2012 - 12:39 | 2096493 nobusiness
nobusiness's picture

If the Teen learns how to cheat well enough, he can become a Federal Reserve President or run a major Bank.

Wed, 01/25/2012 - 12:40 | 2096494 eddiebe
eddiebe's picture

The last 13 years have absolutely taught that markets can be suppressed forever. Maybe history has taught that markets cannot be suppressed forever, but that same history has taught that sociopaths and psychopaths will take control and using sheeple will control and abuse same over and over again.

Wed, 01/25/2012 - 12:54 | 2096536 SheepDog-One
SheepDog-One's picture

I dont really think so, the last couple decades have shown theyve planned this 'new world order' under 1 central bank, govt, and currency, and are way behind schedule as they see people simply will not comply with it so theyve been having to 'keep things going' with bailouts and can kicking and all this rubbish. They never intended to create a system where 50% of the people live due to ever more money printing. This is not the plan at all, theyre now just tap dancing and delaying the next act.

Wed, 01/25/2012 - 23:06 | 2098636 SAT 800
SAT 800's picture

Nobody planned anything. When Bernanke said he didn't think the housing problem would be significant; he was 100% sincere. It's a hundred times worse than you think; the power brokers are ignorant and have no idea what's going on.

Wed, 01/25/2012 - 12:53 | 2096533 Xkwisetly Paneful
Xkwisetly Paneful's picture

WHo cares that the WAMUS of the world predated Glass Steagall by 40yrs?

Wed, 01/25/2012 - 12:58 | 2096542 A Lunatic
A Lunatic's picture

Three things are clear here..........well, two things for sure..........I'll get back to those two things, for now the one thing that is clear is............shit, give me a minute................

Wed, 01/25/2012 - 12:56 | 2096547 Cagliostro
Cagliostro's picture

I have learned much from the events which have transpired.  First and foremost that central banking was spawned as a result of the destabilizing effects of credit expansion.  It has no other purpose than to bail out banks engaged in this insalubrious practice.  Bailouts and central banking go hand in hand.

 

Wed, 01/25/2012 - 13:00 | 2096558 Xkwisetly Paneful
Xkwisetly Paneful's picture

One thing apparently not learned the last 13yrs is that no amount of regulations, regulators and/or reserves matter in the end.

 

Wed, 01/25/2012 - 13:00 | 2096559 Marigold
Marigold's picture

The last 10 years have taught me to trust only Gold and Silver.

Wed, 01/25/2012 - 13:03 | 2096567 withnmeans
withnmeans's picture

Well written, I have been preaching this for about 8 years or so. The teenager analogy hits the nail on the head "perfect". Lets not forget that it is also the public's fault as well, maybe more so then the government. Hear me through on this, the public masses can "if it has the balls" change government if they really wanted to, however until the brainwashed peasants can get a grip on what is happening it will not happen! The people are also to blame for the huge debt by their complacent over spending, i.e. I-pad here oversized house there and so on. Much like the government kiting, the people still do by buying on the money they do not have, Hmmm sounds like Greece huh, we made our bed now we have to lay in it , watch out when you roll over "you will be face to face with the Government Devil".

Wed, 01/25/2012 - 13:14 | 2096610 Richard Head
Richard Head's picture

Some vigilante justice could go a long way right now.  I recommend starting with Corzine.  The fact that he is permitted to walk around free is an abomination.

Wed, 01/25/2012 - 13:19 | 2096627 Fix It Again Timmy
Fix It Again Timmy's picture

Our particular system of government cannot solve problems.  When you cannot solve problems, they eventually will overwhelm you and destroy you.  This type of situation has been around since one-celled organisms.  Comforting, isn't it?

Wed, 01/25/2012 - 13:38 | 2096695 hidingfromhelis
hidingfromhelis's picture

The fact that the game continues tells me that as a whole, the only thing we've learned is apathy.  The show must go on, and with that, I quote Emerson, Lake and Palmer in the appropriately titled, Karn Evil 9.

"...Welcome back my friends to the show that never ends
We're so glad you could attend
Come inside! Come inside!
There behind a glass is a real blade of grass
Be careful as you pass.
Move along! Move along!..."

Wed, 01/25/2012 - 15:30 | 2097213 non_anon
non_anon's picture

one only gets so many redoes and then game over, game over

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