The "Muddle Through" Has Failed: BCG Says "There May Be Only Painful Ways Out Of The Crisis"

Tyler Durden's picture

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X.inf.capt's picture

damn, and i was going to back up the truck on monday....

DoChenRollingBearing's picture

I'm visiting the ATM again on my way home...

X.inf.capt's picture

hey, bearing, thanks for the advise earlier, i think ill stay with silver, though, 

im not as rich as you:)

baten's picture

It's not that they are ignorant - it's that they know so much that isnt so...

Mark Twain

Ethics Gradient's picture

I agree completely. Except that bit about hamsters, but then what you do in your free time is none of my business.

Ruffcut's picture

Denial is easy. Then comes turd polishing, candy coating, capital raising by diluting, diluted planning, printing, manipulating, lying, cheating, conning, candy coating turds, an occasional easter egg hunt and there you have it.

upWising's picture

Don't matter how much frosting you put on a pile of still aint a chocholate cake.

I'm putting new battrys in my magic wand and re-soling my magic tap shoes.  That should work!

slewie the pi-rat's picture

ok, now the new juice for the magic wand is a great idea, i think

but if you have worn out the soles on your magic tap shoes, you might just put them up for a while and maybe hold off getting them re-furb'd til after christmas...

agent default's picture

This seems to be the way it will be implemented.  Stagflation will in fact do exactly what the article describes in an almost imperceptible way.  It will be just like the 70's, with equities going nowhere and commodity prices going up.  And no real political cost, because the process will be slow and will not shock the masses.

AustriAnnie's picture

Agree on all but the "political cost"

I think there will be huge cost, because the masses have priced in a recovery.  The exponential increase in credit has gone on long enough that people now in their 20's and 30's have known no other way.  They do not consider that debt was what got them everything they own.  They want not only their previous purchasing power back, they want it increased.

They simply NEED to have their free credit money machine turned back on.  I just don't see any way the masses will endure having their cable shut off and their gas tanks empty, without demanding the gov't steal from someone and give to them.  And the gov't will oblige.  I think the unrest has begun, albeit quietly and in isolated incidents.


Tuffmug's picture

BCG = more useless brainwashed idiots who believe more government coersion and taxation are the solution to every problem!

BORT's picture

It will take a civil war to get to this solution

Phil Free's picture

Try a world-wide, global revolution. 


When wallets and stomachs empty, eyes will widen and feet will move.

High Plains Drifter's picture

but, but , but, the deflationistas like mish will say that we are going into a deflationary depression..............

jdelano's picture

Morgan Stanley CDs now at 457 bps---far wider than soc gen. I smell smoke. Did zh light the match? What exactly is going on at ms?

darkstar7646's picture

Frankly, it is about the only way to get to the next election -- Print AND basically Jubilee the mess.

Between now and the moment that the President for the next four years is successfully projected by the networks, it basically has to end.

There is too much anger, resentment, and the like on the table for the next 15 months to go by without massive violence (even if only on the basis of the election and economy -- as I think we have hit the point where a significant portion of the voter base now believes that, for the future of the country, another significant portion of the voter base must be done away with and killed!) on an even larger scale than we've seen now.

Edward Fiatski's picture

Holeeee shit, indeed! Up on HFT volume.

Trillions of transactions. Per second, bitches. :)

darkstar7646's picture

What did I hear, that the average share of stock is held for 8 seconds?

There is no freaking "stock exchange" anymore -- the machines set the price and financially rape the real-time human traders blind.

Comay Mierda's picture

perfectly normal, nothing to see here, move along

upWising's picture

i'm going long on that yellow police tape; that helps keep folks movin' past all the stuff there ISN'T there to see.

 Also goin' long on that factory in Nebraska where they make "zero's"  When Ben and his helicopters are done, we're gunna need a lot of zero's


 and remember:
Jesus was American...that's why the BIble is in English. 


knukles's picture

If Jesus was Americun, the Bible woulda been in Americun, too.
Fucking simpleton.

Imminent Crucible's picture

No, no, no. King James was American, that's why the Bible is in Gideon's room at Motel 6. How can you guys be so stoopid?

Mr_Wonderful's picture

Actually Jesus never existed but that´s another story.

I posit that in last decades stupidity has become a norm as ever larger unemployment reservoirs have needed to be filled/hidden. Every idiot has a so called degree and by now the bar is about two inches above ground. Your dog probably could have good chance of landing a job at the Treasury. So, stupidity has in time become stimulative to the economy, something that is bound to crash down to earth with serious consequences, perhaps as early as next month.This is bizarro world as opposed to the market and its compnies where the incentive to hire total idiots for management would seem to be very limited. But in this system you have the intellectually challenged in charge and their hopeless policies damage and confound he market and its necessary functions. It can´t end well.



SheepDog-One's picture

SO sick of seeing the same old bullshit day after day. Wheres the SEC? Oh I remember, theyre worried about adjusting market breakers. The big one is coming and wont be recovered....this is conditioning only.

WhatCouldGoWrong's picture

Easy now, big dog. What do you mean, "where's the SEC"? They're right there for all to see. The chairman of the SEC, or his designants are part of the PPT.

For those ammo and food hoarders now amongst us and the young G-20 protesters taking a break from anarchy to post on ZH from their parent's basement, here's the wiki definition for the PPT;

WhatCouldGoWrong's picture

My guess is that you're looking at a PPT volume spike not HFT volume. Most of the HFT volume is exiting ES at that time of day. Today would have been truly ugly if your +20 day ends up in the red. Something had to be done....

Veteran's picture

le systéme D always seemed to work for the french

I am a Man I am Forty's picture

wait, hold on, i'm going to get my check book out.......fucking not

Chicago bear's picture

Good time for Dems to implement plan C: hand over control to Ron Paul now that the pin is out of the grenade. Then, 2016, liberal fascism/global government answers to the fact that he implemented austerity and taxed the rich against his pledge.

Who let this piece of analysis out of the BCG office? Don't they understand their clients need to keep the cat in the bag.  

upWising's picture

that's exactly the plan.  Let the next dude try to get the hysterical, madly scratching cat anywhere NEAR the bag, much less in it. It aint liberal fascism/global's greed.

Bicycle Repairman's picture

I hope Rick Parry publicly endorses this plan.

High Plains Drifter's picture

but, but , but , perry has friends with black hats and beards...

Bicycle Repairman's picture

I know.  Who better to introduce this POS that is also DOA.

darkstar7646's picture

Perry has been anointed by the Bildeberg Group, it appears.

My guess: He's the next President.


Ha! You think this is a Democratic plan?  Democrats aren't smart enough to conceive of this approach; they will merely do to the Republicans what the Republicans did to them in 2008--hand over a steaming pile of shit and say "your turn, but don't expect one iota of help from us." 

darkstar7646's picture

You honestly believe we make it another five years...

That's delusion enough!!

AcidRastaHead's picture

What? The extend and pretend strategy isn't going to solve the crisis?  Where's that dollar loving reporter when you need her.  She's got the answers.

kevinearick's picture


The S&P goes through 0 with a 40 VIX, and the Obama venture capitalists let out another $1B for solar, to dramatically increase amps while driving more holes in the magnet. Does it get any better?

Stupid + paper = stupid + paper

If you adjust for inflation/computer money, we are in a depression. If we were monetizing future productivity there would be a counter argument, but we are not. We are monetizing government, of, by, and for government. Government workers are paying themselves with artificial demand to put everyone else out of business. It’s not the fault of stupid individuals; they are playing the system the way it was designed to be played, of, by, and for zombies.

The private sector walks away, and the government takes over. If you’re a government-related worker that has made the latest cut, it doesn’t get any better, until the next cut. Government is not capable of producing an economic profit, try as it might, and placing a gun to the head of economic producers is counter-productive, especially when they can shut the economy off with a switch on their way out.

Currency has no intrinsic value. Giving 4% loans to the people creating massive economic losses and 0% loans to the governments employing them is not going to solve the problem. It is the problem, and inflating the balance sheets of corporations with no real economic function doesn’t help any. They cannot maintain what they have, but they want to build more? What is the function of Home Depot(Boeing,etc) at this point, and why isn’t its balance sheet elastic?

If you don’t set your own tax rate, you don’t own, have an equity stake in anything. Only make-workers make decisions based on government self-reinforcing data. Do the same when you want to build a bigger catapult. Government is simply a fulcrum supporting a counter-weight, which may be replaced at will. Normally, you are better off with the devil you know, but you only have yourself to blame if you think it’s God.

Every so often, the spring is released to reach the next orbit. Don't fight city hall; become city hall.

Re-examine the voices in your head frequently. Are they pulling you back or propelling you forward? Where are they coming from?

Stoploss's picture

You left out that the biggest loan went to the solar company run by Nancy Pelosi's brother in law.  Coincidence?? I think not.