Where does Larry Summers get off giving Americans advice on how to fix the continuing housing crisis? And where does this political opportunist find the unmitigated gall to instruct us not to “finger point” and thereby identify culprits in Washington who helped enable the housing mess?
Next, Comes The Impeachment: Republicans Seek All White House Communication On Solyndra Since Obama InaugurationSubmitted by Tyler Durden on 10/05/2011 16:31 -0500
This can not be good news for a president already mired in 20% real unemployment and 98.9% Debt to GDP: “Nearly eight months into our investigation, documents provided to the Committee last Friday confirm those closest to the President - top advisors like Valerie Jarrett, Larry Summers, and Ron Klain - had direct involvement in the Solyndra mess. In addition to the cast of West Wing characters with access to the Oval Office, documents reveal a startlingly cozy relationship between wealthy donors and the President’s confidantes, especially in matters related to Solyndra. While the President claims ‘hindsight is always 20/20’ and the loan went ‘through the regular review process,’ the facts tell a much different story with some of the loudest alarm bells on Solyndra’s viability coming from within his very own administration.” Next up: "please define the term 'crony venture capital taxpayer funded loan." Also, stories like this can not help.
Millions of middle class citizens in the U.S. sink deeper into despair every day. Day by day hope is being lost that the future for our children will be better than our past. The political, financial, and corporate leaders of our country are intellectually and morally bankrupt. The major Wall Street banks are bankrupt. Social Security is bankrupt. Medicare is bankrupt. The whole damned world is bankrupt. Anyone with an unbiased view of our planet would conclude that we are in unfathomable danger. The list of impending catastrophic issues that will blow up the world for millions in the U.S. and across the globe is virtually endless... When I started to detail the issues facing our country today, I expected to come up with 10 to 20 bullet points of key concerns. As I methodically worked through the categories of challenges facing the American Empire, the total reached 76 bullet points. The facts as presented above paint a picture of impending doom for America. The slogans and vapid “solutions” proposed by political candidates and entrenched Washington politicians do not even scratch the surface of what would need to be done to save this country from economic collapse. Many of these problems took decades to create and are not solvable in a reasonable time frame. With the country still delusion, overleveraged, and underemployed, it seems like the existing economic and social structure will need to be blown up to restore hope in this country.
BBC Releases Official Statement On Alessio "The Trader" Rastani: He Is Perfectly Legit And The Interview Was Not A HoaxSubmitted by Tyler Durden on 09/27/2011 12:58 -0500
Zero Hedge's post yesterday of a trader telling the BBC how he (and everyone else) really feels about the current cataclysmic situation, went viral, and as of this writing, was about to generate 100,000 hits (legit ones: no slideshows were massacred in the creation of a some CPM abortion). Needless to say, the trader in question, Alessio Rastani, very suddenly and violently entered the public's eye, the most amusing side effect of which was the emergence a fringe group claiming that just because he looks like some other guy, that he is a spoof, and this was immediately used by the conventional media to attempt to discredit him. And as usually happens, this has backfired. The BBC has just released a statement confirming that Rastani is, indeed, a trader, and that all those (Forbes) who have nothing better to do than to attack the messenger and not the message, may be better advised to taking a Math 101 class and realizing why we are all scroomed, instead of polishing their character assassination skills. To everyone else who attempted to marginalize Rastani, "suck it" is not exactly what we would like to say, but it sure does the job. And to that we would like to add that just because Larry Summers is a spitting image of Jabba the Hut, that does not make him an automatic member of the "Tattoine Men" comedy troupe.
Jobs? They don't need no stinkin' jobs ...
Tune into CNBC or click onto any of the dozens of mainstream financial news sites, and you’ll find an endless array of opinions on the latest wiggle in equity, bond and commodities markets. As often as not, you'll find those opinions nestled side by side with authoritative analysis on the outlook for the economy, complete with the author’s carefully studied judgment on the best way forward. Lost in all the noise, however, is any recognition that the US monetary system – and by extension, that of much of the developed world – may very well be on the verge of collapse. Falling back on metaphor, while the world’s many financial experts and economists sit around arguing about the direction of the ship of state, most are missing the point that the ship has already hit an iceberg and is taking on water fast. Yet if you were to raise your hand to ask 99% of the financial intelligentsia whether we might be on the verge of a failure of the dollar-based world monetary system, the response would be thinly veiled derision. Because, as we all know, such a thing is unimaginable!
The Keynesians had their chance. They controlled the Presidency and both houses of Congress. A Keynesian runs the Federal Reserve. They implemented everything they proposed. The $862 billion porkulus program, the $700 billion TARP program, home buyer tax credits, energy efficiency credits, loan modification programs, zero interest rates, QE1 and QE2. They increased social welfare transfers for Social Security, Unemployment Compensation, food stamps, Medicare, Medicaid, and Veterans by $600 billion since 2007, a 35% increase in four years. No one has foiled their plans. The Tea Party didn’t really exist until 2010. They didn’t lose the House until November 2010. They cannot blame the Tea Party extremists, but they do. The Keynesians have successfully increased Federal spending by $1.1 trillion, or 41% since 2007, and are running deficits exceeding 10% of GDP, but they call the Tea Party extremists. Domestic investment is still 9% below 2008 levels as the Federal government has crowded out the small businesses that create the jobs in this country. And now the Keynesians declare we need more stimulus, more programs, more debt, more quantitative easing and lower interest rates. It just wasn’t enough the first time. None of the Keynesian solutions worked during this crisis, just as they didn’t work during the Great Depression. The solution was simple, yet painful. The banking system needed to be saved, not the banks. The bad debt needed to be purged from the system. Wall Street criminals needed to be prosecuted. Bondholders and stockholders needed bear the losses from their foolish investments. Saving and investment in the country needed to be encouraged, while borrowing and consuming needed to be discouraged. Our leaders have failed to lead.
McGraw-Hill: meet Chicago-style negotiations. And there, in one sentence, is all that is broken with this country. The reason for the beyond ridiculous horse trade, according to CNN: S&P analysis of U.S. revenue, deficit picture was questioned. Presumably S&P ignored to add the $10 quintillion dollars that were saved by America not declaring war on Tatooine and its most infamous Hutt resident: Larry Summers. Indeed, again according to CNN, S&P acknowledged some errors in its analysis. Isn't it amazing what being threatened with having your NRSRO license can do for motivation to double check your work, eh you pathetic sellouts? Who would have thought that last week's farce debt ceiling would continue and develop into a national pastime. Below, for the sake of S&P's non-existent conscience and incompetence, are their own guidelines for what constitutes an AAA-rated credit. Readers can decide if the US is one. In other news, in USSAAA, government downgrade rating agency.
To who expected an imminent departure by the one most incompetent man (after Larry Summers) and tax evading man in the current economic administration (that would be Tim Geithner) of course, we have bad news. He ain't going anywhere. In other words, the foreseeable future will be foreseeable for a long time. Politico's Ben Hill reports: "Treasury Secretary Tim Geithner is under intense pressure to remain at his post through President Obama’s re-election campaign next year but still may head out the door if a confirmable replacement can be found. The White House has made it clear it does not want to lose Geithner, the president’s chief economic advisor and trusted crisis consigliere. But the Treasury secretary has said he wants to return to New York this fall where his son is entering his last year of high school. He had hoped to leave after the debt ceiling drama ended and before bruising battles over tax, entitlement and housing reform resume in earnest this fall." Sorry to disappoint Tim. Which also means that Timmy will be at his rightful place when this whole house of cards finally implodes: at the very top. Lastly, it most certainly means that those who bought MF Global's bond issuance yesterday won't have to worry about springing rates for a long, long time if ever, because something tells us the one thing that could send this country formally over the edge is another former Goldman Sachs Treasury secretary.
David Rosenberg released an emergency note today, in addition to his traditional morning piece, in which the sole topic is the upcoming recession, which he says is now a "virtual certainty". He also says what Zero Hedge has been saying for month: that 2011 is an identical replica of 2010, but with the provision of modestly higher inflation, which needs decline before QE3 is launched. Sure enough, a major market tumble will fix all that in a few days, and ironically we can't help but continue to wonder whether the Fed is not actively doing all in its power to actually crash the market to about 20% lower which will send practically flatten the treasury curve and give Bernanke full reign to do as he sees fit. However, as long as the BTFD and mean reversion algos kick in every time the market makes a 2% correction, such efforts are doomed, which in turn makes all such dip buying futile. We give the market a few more weeks before it comprehends this. In the meantime, with each passing day in which "nothing happens", the recession within a depression looms closer, and soon it will be inevitable and not all the money printed by Bernanke will do much if anything (except to terminally wound the dollar). In the meantime, for those who wish to prepare for the double dip onset, here is Rosie's checklist of what to do, and what not.
When the US does default is when the Second Round of the Great Crisis will hit. At that point the financial systems/ economies of entire countries, not just private banks, will collapse. What will follow will be the equivalent of 2008 on steroids featuring market crashes, debt defaults, civil unrest, food shortages, spikes in crime, etc. The purpose of the reports is to help you prepare for all of these items.
The Economy Cannot Recover As Long As Inequality Continues to Skyrocket ... But Government Policy Is INCREASING InequalitySubmitted by George Washington on 07/06/2011 20:16 -0500
What do Hu Jintao, David Cameron, Warren Buffett, Dominique Strauss-Kahn, Alan Greenspan, Robert Shiller, Joseph Stiglitz, Robert Reich and Mark Thoma - and both conservatives and liberals - all agree on?
We have not recovered from the Great Recession and thus our current economic stagnation is less a new event than a continuation of the original collapse. The basis for the so-called “recovery” was a rise in GDP, that measure of what we have spent in the economy. It’s a fairly useless bit of data.
"It has become part of our day-to-day lexicon… something as American as apple pie. Whatever happens of an unpleasant or nefarious nature, it must have been caused or created by a “few bad apples.”--Ben Tanosborn
That’s two press conferences laden with softball questions from “the press” and two epic flops by The Bernank. Two extremely important things that came out of the disaster that was this event yesterday. First, I want to point your attention to the quote I pasted at the top. In response to the question of where The Bernank stood on monetary policy in light of his prior arrogant and cocksure statements a decade earlier about how the Japanese were being too passive in their methods he stated “Well, I'm a little bit more sympathetic to central bankers now than I was 10 years ago.” BINGO. That was far and away the most important thing he said the whole press conference. Why? Well, for several reasons. First, it was pretty much the only spontaneous unscripted thing he said the whole time. Second, because this is him basically admitting that sitting in an ivory tower telling others how to save the free world via monetary policy was a naive and idiotic thing to do (why people still believe in central banking, I mean planning, is beyond me). Talk is cheap and The Bernank now has had time to test his sad statist theories and guess what happened? He failed miserably in front of the entire world. By saying that he is “more sympathetic to central bankers” he is saying that theories are one thing and he now realizes that. This is HUGE. The Bernank has no clothes.