Recent YAHOO! Finance Tech Ticker Roubini Interviews
6/18/09 – YAHOO! Finance – Roubini: New Regulations “Go in the Right Direction,” But Not Far Enough (Click here for text and video)
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6/18/09 – YAHOO! Finance – Massive Govt. Spending Prevented a Depression, But “There is No Free Lunch,” Roubini Says (Click here for text and video)
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6/19/09 – YAHOO! Finance - Disaster Averted, But ‘Dr. Doom’ Still Sees Grim Economic Outlook (Click here for text and video)
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6/19/09 – YAHOO! Finance – Nouriel Roubini’s Three Reasons Why Stocks are Bound to Fall (Click here for text and video)
64 Responses to “Recent YAHOO! Finance Tech Ticker Roubini Interviews”
Guest • June 19th, 2009 at 2:07 pm
OK I am the man
Softwarengineer • June 19th, 2009 at 2:38 pm
I’m 2nd
Little Saver • June 19th, 2009 at 3:38 pm
I’ll never succed in being first.
Anonymous • June 19th, 2009 at 4:45 pm
Is it me, or is Roubini looking a little chunkier in recent months than before?
HoneyOrFlies • June 19th, 2009 at 5:17 pm
Little Saver, it’s a matter of perspective. For instance, in terms of quality comments, yours are always FIRSTrate.
Guest • June 19th, 2009 at 5:48 pm
“NATO’s War Plans For The High NorthScandinavia and the Baltic SeaBy Rick RozoffGlobal Research, June 14, 2009Stop NATOSince the beginning of the year the United States and NATO have repeatedly indicated in both word and deed their intention to lay claim to and extend their military presence in what they refer to as the High North: The Arctic Circle and the waters connecting with it, the Barents and the Norwegian Seas, as well as the Baltic.Washington issued National Security Presidential Directive 66 on January 12, 2009 which includes the bellicose claim that “The United States has broad and fundamental national security interests in the Arctic region [which] include such matters as missile defense and early warning; deployment of sea and air systems for strategic sealift, strategic deterrence, maritime presence, and maritime security operations.” [1] Later in the same month the North Atlantic Treaty Organization [NATO] held a two-day Seminar on Security Prospects in the High North in the capital of Iceland attended by the bloc’s secretary general and its top military commanders.This coordinated initiative has been covered in a previous article in this series [2] and plans by the West to encroach on Arctic territory and confront Russia in the western region of the ocean have been addressed in another. [3]Over the past month efforts by NATO member states, individually and collectively, to increase their military presence and warfighting ability in the High North have accelerated dramatically.”http://www.globalresearch.ca/PrintArticle.php?articleId=13975
Guest • June 19th, 2009 at 5:51 pm
http://www.chartoftheday.com/20090619.htm?Tdeflation my ass, sure DOW is being deflated by weakening dollar due to FED’s QE.
Anonymous • June 19th, 2009 at 6:19 pm
No, it is a different tie he is wearing
Guest • June 19th, 2009 at 7:18 pm
That’s mean and unwarranted. He is not ugly.
Michelle • June 19th, 2009 at 7:42 pm
I think NR is sexy and I like the messy hair look. Take some pointers from him and maybe you, too, can score some dates!
Guest • June 19th, 2009 at 7:44 pm
why people from China and Japan think buying dollars or dollar denominated asset can help them to build wealth is beyond me. they have themselves to blame for their destruction of wealth as dollar and USA weaken due to massive debt.
Bob Dobbs • June 19th, 2009 at 8:50 pm
From the other side of the zero everything looks positive.
Guest • June 19th, 2009 at 10:11 pm
what the f do you mean “no offense”….who could not take offense to that…
Guest • June 20th, 2009 at 12:33 am
I guess that is in case they feel the need to protect their own access to the Arctic oil..?On another hand I remember how back in 1980′s there was some article in some Finnish paper about how USA had had plans to invade Finland. Someone later commented to that they in fact had plans for many countries and areas, they are prepared in ‘just in case’ basis.
Guest • June 20th, 2009 at 12:40 am
Debt is the reason why Americans cannot deal with $4 gas. In USA there are more ways to end up in debt without even doing any shopping than in other industrialized countries.Debt pushes millions below poverty line
Four million Americans would fall below the federal poverty line if the interest they pay on their credit cards and other consumer debt were subtracted from their incomes, say two economics professors who call these people the “debt poor.”
Anonymous • June 20th, 2009 at 2:10 am
Beauty is in the eye of the investor . . . and to those on this thread who have profited from the Professor’s sage writings for years past, he is gorgeous.Since the crash he has been on a 24×7 schedule of flights, hotels, conferences, emergency talks, etc., in addition to writing here – and that plays hell with one’s metabolism. If he is beginning to show the strain, it is because it has been more than eight years since he has taken a holiday. The stress of the responsibility he bears now that he is listened to with the respect he deserves is borne better than most could bear it.You title yourself ‘economist’. I’m guessing you’re not half the economist he is, and the petty posting of such offensive insults demonstrates you’re not half the man either.
Anonymous • June 20th, 2009 at 2:38 am
Global Research has predicted 10 of the past 2 wars . . .These guys see American imperialism everywhere, which maybe isn’t surprising when US has over 740 foreign military bases. Nonetheless, take what they say with a pinch of salt and never invest on their hyperventilating warnings.
Guest • June 20th, 2009 at 3:23 am
Since anyone can be a ‘potential’ tax evader this would mean sharing data on everyone?In other words this might be the death knell to the reason for opening a Swiss bank account.Which then would affect the inflows of ca$h into Switzerland…and consequently the value of the Swiss franc?U.S., Swiss Agree to Share Data on Tax Evaders
The U.S. and Switzerland said they agreed to share information on potential tax evaders for the first time, the latest step toward eroding Switzerland’s renowned banking secrecy.U.S. Treasury Secretary Timothy Geithner said the deal, which the governments began negotiating in April, “will help bring an end to an era of offshore accounts and investments being used for tax evasion.” The U.S. declined to release details until the deal, which could face a referendum in Switzerland, has been completed and signed…
(source: http://online.wsj.com/article/SB124545426008332895.html)
Guest • June 20th, 2009 at 3:29 am
about closing tax loopholes…This sort of agreements would reduce peoples reasons for opening bank accounts in the ‘tax havens’.Interestingly it contributes to the same direction as below news…which could make people wonder whether there is some underlying push toward reducing banking diversification…Banks in Georgia, North Carolina, Kansas Closed by Regulatorshttp://www.bloomberg.com/apps/news?pid=20601087&sid=amlPorxs3Als
Banks in Georgia, North Carolina and Kansas with total assets of $1.5 billion were closed yesterday, bringing this year’s tally of failures in the U.S. to 40 amid the highest unemployment in a quarter century.State regulators shut Southern Community bank of Fayetteville, Georgia and Cooperative Bank in Wilmington, North Carolina. The Office of the Comptroller of the Currency closed First National Bank of Anthony, Kansas…
Guest • June 20th, 2009 at 4:02 am
Ooh Ra!
Michelle • June 20th, 2009 at 7:45 am
How much tax evasion is occurring elsewhere? Does the Cayman Island Monetary Authority operate in a similar fashion as Switzerland? Interesting that at the peak of the housing bubble over 9k hedge funds holding $1.5 trillion were registered with the CIMA, yet we hear nothing about about what the U.S. or other countries are doing about averting potential systemic risk of concentrated financial activity located there.
Guest • June 20th, 2009 at 7:45 am
market determine everything, looking at charts of $USD, $USB, where is going, DOWN and hitting pivotal point. If FED continues QE, it will break all sort of yield related securities.
Guest • June 20th, 2009 at 7:50 am
but gas will ultimately push above $4 as global demand will always just go up.
Guest too • June 20th, 2009 at 8:10 am
http://suddendebt.blogspot.com/Tuesday, June 16, 2009Where Are Profits Going?”This blog’s position has always been that the US economy’s performance post-2000 has been due to ever-increasing assumption of debt, particularly by households to finance real estate purchases and personal consumption. I don’t think anyone can dispute this any more: just look at the chart below (click to enlarge).Debt kept accelerating while GDP remained “stuck” at around 5% annually (these are nominal figures). In the end, the debt boom created its own bust and dragged down the entire economy. Cement shoes come to mind….”Sometimes I feel like our Pax Americana is ablaze and we are all gathered round, poking the fire with our marshmallow sticks and laughing, telling each other camp stories.This insanity has got to stop NOW.”
Guest • June 20th, 2009 at 8:41 am
http://onlinejournal.com/artman/publish/article_4584.shtmlThe ugly secret of Pentagon 9/11By Jerry MazzaOnline Journal Associate EditorApr 14, 2009, 00:12Severe VisibilityA film by Paul Cross9/11 films have become a genre, whether non-fiction or fictionalized accounts of the events and truth of that awful day. This latest, Severe Visibility, by actor, writer, director Paul Cross, is a riveting, Kafkaesque film which takes places largely in the matrix of the Pentagon, the belly of the beast on 9/11 and its aftermath. The small cast and independent production reminds me somewhat of The Reflecting Pool, with its relentless questioning of the official story.”…” …Whatever inner peace he had is destroyed by his conscience.To make matters worse, as he leaves the building he is questioned by a foreign journalist who challenges him when he repeats it was a 757. This only pours fuel on Kruter’s internal rage. And we are off and running through his world, suddenly gone dark, and haunted by his deepest fears, not to mention the relentless reporter, military inquirers, the incoming information from eyewitness reports on his car radio and home television that rebut the 757 perception.Suffice it to say, Kruter’s crisis of conscience is full-blown. And even the title, Severe Visibility, begins to sound awfully like, Severe Disability, a perhaps fatal case of PTSD…..”…
Guest • June 20th, 2009 at 8:55 am
He has a cute face. No idea what you are talking about. Maybe you are ugly?
Guest too • June 20th, 2009 at 9:10 am
http://globalresearch.ca/index.php?context=va&aid=14011.The Retreat of the Shadow Lenders, Why Deflation and not Inflation is the Order of the Dayby Ellen BrownWhile contrarians are screaming “hyperinflation!”, the money supply is actually shrinking. This is because most money today comes into existence as bank loans, and lending has shrunk substantially. That means the Fed needs to “monetize” debt just to fill the breach..On June 3, 2009, Federal Reserve Chairman Ben Bernanke assured Congress, “The Federal Reserve will not monetize the debt.” Bill Bonner, writing in The Daily Reckoning, said it had a ring to it, like President Nixon’s “I am not a crook” and President Clinton’s “I did not have sex with that woman.” Monetizing the debt is precisely what the Fed will do, says Bonner, because it has no other choice. The Chinese are growing reluctant to lend, the taxpayers are tapped out, and the deficit is at unprecedented levels. “Even good people do bad things when they get in a jam. The Feds are already in pretty deep . . . and they’re going a lot deeper.”But Mr. Bernanke denied it. “Either cuts in spending or increases in taxes will be necessary to stabilize the fiscal situation,” he said.Both alternatives will be vigorously opposed, leaving Congress in the same deadlock California has been in for the last year. That makes the monetization option at least worth a look. What is wrong with it? Bill Bonner calls it “larceny on the grandest scale. Rather than honestly repaying what it has borrowed, a government merely prints up extra currency and uses it to pay its loans. The debt is ‘monetized’ . . . transformed into an increase in the money supply, thereby lowering the purchasing power of everybody’s savings.”So say the pundits, but in the past year the Fed has “monetized” over a trillion dollars worth of debt, yet the money supply is not expanding. As investment adviser Mark Sunshine observed in a June 12 blog:“[W]hile media talking heads were ranting about how the Fed was running their printing presses overtime to push up money supply, the facts were very different. M1 has actually declined since the middle of December, 2008. During the same six month period M2 has only risen by a little less than 3%.”The Fed is no longer reporting M3, the largest measure of the money supply, but according to Sunshine:“[W]e know that broader measures of money supply, like M3, haven’t materially risen in 2009.M3 followers can get a very rough idea of what M3 would have been, if it were published, by looking at the Federal Reserve quarterly Flow of Funds Accounts of the United States which was distributed yesterday. As it turns out, total net borrowing of the United States (private and public) dropped approximately $255 billion in the first quarter and other indicators of M3 fell or are about flat (on a net basis). . . . [T]his data supports [the] theory that the fall in private borrowing is more than offsetting the rise in government borrowing and therefore, at least for the time being, financing the deficit isn’t a problem.”All of this flap about the Fed driving the economy into hyperinflation because it is creating money on its books reflects a fundamental misconception about how our money and banking system actually works. In monetizing the government’s debt, the Fed is just doing what banks do every day. All money is created by banks on their books, as many authorities have attested. The Fed is just stepping in where the commercial banking system has failed. Except for coins, which are issued by the government and compose only about one ten-thousandth of the money supply (M3), our money today is nothing but bank credit (or debt); and we’re now laboring under a credit freeze, which means banks aren’t creating nearly as many loans as they used to. In February, the Bank for International Settlements published research showing that European banks could not settle their debts because of a $2 trillion shortage of U.S. dollars. Proposals for alternative reserve currencies followed. And in March, Blackstone Group CEO Stephen Schwarzman reported that up to 45% of the world’s wealth has been destroyed by the credit crisis. The missing “wealth” cannot be restored without putting the missing “money” back into the system, and that means getting the credit engine going again.Congress, the Treasury and the Federal Reserve have therefore been throwing money at the banks, trying to build up the banks’ capital so they can make enough loans to refuel the economy. At a capital requirement of 8%, $8 in capital can be leveraged into $100 in loans. But lending remains far below earlier levels, and it’s not because the banks are refusing to lend. The banks insist that they are making as many loans as they’re allowed to make with their existing deposit and capital bases. The real bottleneck is with the “shadow lenders” – those investors who, until late 2007, bought massive amounts of bank loans bundled up as “securities,” taking those loans off the banks’ books, making room for yet more loans to be originated out of the banks’ capital and deposit bases. In a Washington Times article titled “Banks Still Standing Amid Credit Rubble,” Patrice Hill wrote:“Before last fall’s financial crisis, banks provided only $8 trillion of the roughly $25 trillion in loans outstanding in the United States, while traditional bond markets provided another $7 trillion, according to the Federal Reserve. The largest share of the borrowed funds – $10 trillion – came from securitized loan markets that barely existed two decades ago. . . .“Many legislators in Congress complain that banks aren’t lending, and cite that as an excuse to vote against further bank bailout funds. . . . But Mr. Regalia [chief economist at the U.S. Chamber of Commerce] said these critics are wrong. ‘Banks are lending more, but 70 percent of the system isn’t there anymore,’ he said.”Seventy percent of the system isn’t there anymore because the traditional bond markets and securitized loan markets have dried up. Writes Hill:“Congress’ demand that banks fill in for collapsed securities markets poses a dilemma for the banks, not only because most do not have the capacity to ramp up to such large-scale lending quickly. The securitized loan markets provided an essential part of the machinery that enabled banks to lend in the first place. By selling most of their portfolios of mortgages, business and consumer loans to investors, banks in the past freed up money to make new loans. . . .“The market for pooled subprime loans, known as collateralized debt obligations (CDOs), collapsed at the end of 2007 and, by most accounts, will never come back. Because of the surging defaults on subprime and other exotic mortgages, investors have shied away from buying the loans, forcing banks and Wall Street firms to hold them on their books and take the losses.”The retreat of the shadow lenders has created a credit freeze globally; and when credit shrinks, the money supply shrinks with it. That means there is insufficient money to buy goods, so workers get laid off and factories get shut down, perpetuating a vicious spiral of economic collapse and depression. To reverse that cycle, credit needs to be restored; and when the banks can’t do it, the Fed needs to step in and start “monetizing” debt.So why don’t Fed officials just say that is what they are up to and put our minds at ease? Probably because they can’t without exposing the whole banking game. The curtain would be thrown back and we the people would know that our money system is sleight of hand. The banks never had all that money they supposedly lent to us. We’ve been paying interest for something they created out of thin air! Indeed, their credit money is less substantial than air, which at least has some molecules bouncing around in it. Bank credit exists only in cyberspace………
Guest too • June 20th, 2009 at 9:15 am
MMCA • June 20th, 2009 at 9:25 am
So why would nayone beleive anythign that comes out of these mouths. Add giethner, Obama, Summers and all the banksters and wall streeters to this list too…They tell people and the idiotic mianstream news people like CNBC what they want to hear and that all is well…Believe what you want, but this country and its economy and there fore its people are in Deep S..T. Debt, WAGE DESTRUCTION, NO JOBS, HIGH GAS will be here for many yearsI’ve always said that the Bernanke and Paulson lack credibility, accuracy, and quite possibly veracihttp://boombustblog.com/200906181011/I-ve-always-said-that-the-Bernanke-and-Paulson-lack-credibility-accuracy-and-quite-possibly-veraci.htmlThe guys at Austrian Filter have simply put my thoughts in a timeline. I don’t usually reproduce posts from other blogs, but this one is precious [annotation in red are my comments]:Zero Credibility from the Austrian FilterStraight from the horses’ mouths, a quick time line of Paulson’s & Bernanke’s economic assessments:February 28, 2007 – Dow Jones @ 12,268March 13th, 2007 – Henry Paulson: “the fallout in subprime mortgages is “going to be painful to some lenders, but it is largely contained.” A total lack of understanding of what caused this problem. It was never subprime, it was a dearth of underwritng prudence, which means that the losses will appear everywhere a loan was underwritten (or not underwritten). That is any loan, anywhere. A lot of loans in a lot of places. I think we are figuring this out by now, but my blog readers knew this back in 2007, and profited from it. See the Asset Sercuritization Crisis links at the bottom of the post.March 28th, 2007 – Ben Bernanke: “At this juncture . . . the impact on the broader economy and financial markets of the problems in the subprime markets seems likely to be contained,” Same problem as aboveMarch 30, 2007 – Dow Jones @ 12,354April 20th, 2007 – Paulson: “I don’t see (subprime mortgage market troubles) imposing a serious problem. I think it’s going to be largely contained.” , “All the signs I look at” show “the housing market is at or near the bottom,” Same problem as aboveApril 30, 2007 – Dow Jones @ 13,063May 17th, 2007 – Bernanke: “While rising delinquencies and foreclosures will continue to weigh heavily on the housing market this year, it will not cripple the U.S.” Same problem as aboveMay 31, 2007 – Dow Jones @ 13,627June 20th, 2007 – Bernanke: (the subprime fallout) “will not affect the economy overall.” Same problem as aboveJuly 12th, 2007 – Paulson: “This is far and away the strongest global economy I’ve seen in my business lifetime.” This goes to show you the quality of Paulson’s business lifetime!August 1st, 2007 – Paulson: “I see the underlying economy as being very healthy,” He was probably just lying!October 15th, 2007 – Bernanke: “It is not the responsibility of the Federal Reserve – nor would it be appropriate – to protect lenders and investors from the consequences of their financial decisions.” He is right. To be honest, he was probably hamstrung between a rock and a hard place, but it really looks bad to have this thrown in your face in public, doesn’t it???December 31, 2007 – Dow Jones @ 13,265January 31, 2008 – Dow Jones @ 12,650February 14th, 2008 – Paulson: (the economy) “is fundamentally strong, diverse and resilient.” Well, if you look at it from a conceptual perspective…February 28th, 2008 – Paulson: “I’m seeing a series of ideas suggested involving major government intervention in the housing market, and these things are usually presented or sold as a way of helping homeowners stay in their homes. Then when you look at them more carefully what they really amount to is a bailout for financial institutions or Wall Street.” Right, everything is going according to plan…February 29th, 2008 – Bernanke: “I expect there will be some failures. I don’t anticipate any serious problems of that sort among the large internationally active banks that make up a very substantial part of our banking system.” Ignorance right here. He really should have been reading my blog. I told him Bear Stearns was going to fail and Lehman had issues the month before – Is this the Breaking of the Bear? Sunday, 27 January 2008March 16th, 2008 – Paulson: “We’ve got strong financial institutions . . . Our markets are the envy of the world. They’re resilient, they’re…innovative, they’re flexible. I think we move very quickly to address situations in this country, and, as I said, our financial institutions are strong.”March 18th, 2008 – Bear Stearns Bailout Announced – I told you so, right on schedule…May 7, 2008 – Paulson: ‘The worst is likely to be behind us,” Need I comment???May 16th, 2008 – Paulson: “In my judgment, we are closer to the end of the market turmoil than the beginning,” he said. That’s what anybody who relies on his judgement espoused in public deserves. I know a few people who are enamored with Fed and Treasury pronouncements… What a shame.May 30, 2008 – Dow Jones @ 12,638June 9th, 2008 – Bernanke: Despite a recent spike in the nation’s unemployment rate, the danger that the economy has fallen into a “substantial downturn” appears to have waned, Okay, if you say so…July 16th, 2008 – Bernanke: (Freddie and Fannie) “…will make it through the storm”, “… in no danger of failing.”,”…adequately capitalized” The ultimate contrarian indicator…July 20th, 2008 – Paulson: “it’s a safe banking system, a sound banking system. Our regulators are on top of it. This is a very manageable situation.” And to think, some people dismiss me because I had bad quarter….July 31, 2008 – Dow Jones @ 11,378August 10th, 2008 – Paulson: “We have no plans to insert money into either of those two institutions.” (Fannie Mae and Freddie Mac) That reminds me of the joke where the bill collector calls and asks when he can expect payment. The guy on the other end of the phone says, “You can EXPECT payment whenever you damn well please!”September 8th, 2008 – Fannie and Freddie nationalized. The taxpayer is on the hook for an estimated 1 – 1.5 trillion dollars. Over 5 trillion is added to the nation’s balance sheet. Whoa!September 16th, 2008 – $85 Billion AIG Bailout “Loan” Whoa! again.September 19th, 2008 – $700 Billion Bailout Plan Announced Whoa! cubed…September 19th, 2008 – Paulson: “We’re talking hundreds of billions of dollars – this needs to be big enough to make a real difference and get at the heart of the problem,” he said. “This is the way we stabilize the system.” The mathematically challenged Treasury Secretary and ex-Goldman CEO, or does he think we are mathematially challenged?September 19th, 2008 – Bernanke: “most severe financial crisis” in the post-World War II era. Investment banks are seeing “tremendous runs on their cash,” Bernanke said. “Without action, they will fail soon.” There it goes. Should we expect a similar reversal on the Green Shoots Theorem as well?September 21st, 2008 – Paulson: “The credit markets are still very fragile right now and frozen”, “We need to deal with this and deal with it quickly.”, “The financial security of all Americans … depends on our ability to restore our financial institutions to a sound footing.” I really shouldn’t comment any further…September 23rd, 2008 – Paulson: “We must [enact a program quickly] in order to avoid a continuing series of financial institution failures and frozen credit markets that threaten American families’ financial well-being, the viability of businesses, both small and large, and the very health of our economy,” Whoa! to the fourth degreeSeptember 23rd, 2008 – Bernanke: “My interest is solely for the strength and recovery of the U.S. economy,” Why doesn’t the Fed and the Treasury spend some of that TARP money to spring for a subscription to my blog?October 31, 2008 – Dow Jones @ 9,337March 31, 2009 – Dow Jones @ 7,609The authors of this very interesting blog post conclude: If Bernanke and Paulson were doctors, and our economy was the patient, they would be in jail for malpractice. If they were graded for their performance in public, they would have failed, if they had a private sector job, they would have been fired. If they were attached to a lie detector with 500 volt biofeedback, they would have been electrocuted!
Guest • June 20th, 2009 at 9:28 am
p.s. ( the conclusion ).Ben Bernanke’s predecessor Alan Greenspan was sometimes compared to the Wizard of Oz, the little man who hid behind a curtain pulling levers and twisting dials, maintaining the smoke and mirrors illusion that an all-powerful force was keeping things under control. Early in his term, Chairman Bernanke was criticized for revealing too much. “If you’re going to play the Wizard,” said one TV commentator, “you have to stay behind the curtain.” The Chairman has evidently learned his lesson and is now playing the role, wrapping his moves in that veil of mystery expected of the man considered the world’s most powerful banker, the Wizard who moves markets with his words.The problem with the Wizard playing his cards close to the chest is that investors don’t know how to play theirs. The Chinese have grown so concerned about the soundness of their dollar investments that the head of China’s second-largest bank recently said the U.S. government should start issuing bonds in China’s currency, the yuan. What do we want with yuan? We need dollars; and we would be better off getting them from our own central bank than borrowing them from foreign rivals. We could then spend them on projects aimed at internal domestic development – as the Chinese themselves have been doing – and get the wheels of production turning again.If Ben Bernanke stands by his word and refuses to monetize the federal debt, Congress should consider issuing the money itself, as the U.S. Constitution provides. The “full faith and credit of the United States” is an asset of the United States, and it should properly be issued and lent by the United States rather than by unaccountable private banks and shadow lenders. The true path to economic recovery – the path from an economy strangled in debt to one blooming in prosperity – is to reclaim money and credit as public resources, transforming money from private master to public servant.
Guest too • June 20th, 2009 at 10:14 am
http://www.engdahl.oilgeopolitics.net/Financial_Tsunami/Geithner_Secret/geithner_secret.html.Geithner’s Dirty Little SecretBy F. William Engdahl, 30 March 2009US Treasury Secretary Tim Geithner has unveiled his long-awaited plan to put the US banking system back in order. In doing so, he has refused to tell the ‘dirty little secret’ of the present financial crisis. By refusing to do so, he is trying to save de facto bankrupt US banks that threaten to bring the entire global system down in a new more devastating phase of wealth destruction.The Geithner Plan, his so-called Public-Private Partnership Investment Program or PPPIP, as we have noted previously(In German: Obamas Rettungsplan für die Banken: keine Lösung, sondern legaler Diebstahl), is designed not to restore a healthy lending system which would funnel credit to business and consumers. Rather it is yet another intricate scheme to pour even more hundreds of billions directly to the leading banks and Wall Street firms responsible for the current mess in world credit markets without demanding they change their business model. Yet, one might say, won’t this eventually help the problem by getting the banks back to health?Not the way the Obama Administration is proceeding. In defending his plan on US TV recently, Geithner, a protégé of Henry Kissinger who previously was President of the New York Federal Reserve Bank, argued that his intent was ‘not to sustain weak banks at the expense of strong.’ Yet this is precisely what the PPPIP does. The weak banks are the five largest banks in the system.The ‘dirty little secret’ which Geithner is going to great degrees to obscure from the public is very simple. There are only at most perhaps five US banks which are the source of the toxic poison that is causing such dislocation in the world financial system. What Geithner is desperately trying to protect is that reality. The heart of the present problem and the reason ordinary loan losses as in prior bank crises are not the problem, is a variety of exotic financial derivatives, most especially so-called Credit Default Swaps.In 2000 the Clinton Administration then-Treasury Secretary was a man named Larry Summers. Summers had just been promoted from No. 2 under Wall Street Goldman Sachs banker Robert Rubin to be No. 1 when Rubin left Washington to take up the post of Vice Chairman of Citigroup. As I describe in detail in my new book, Power of Money: The Rise and Fall of the American Century, to be released this summer, Summers convinced President Bill Clinton to sign several Republican bills into law which opened the floodgates for banks to abuse their powers. The fact that the Wall Street big banks spent some $5 billion in lobbying for these changes after 1998 was likely not lost on Clinton……..
Guest • June 20th, 2009 at 10:17 am
p.s. ( more ) review….The ‘Dirty Little Secret’What Geithner does not want the public to understand, his ‘dirty little secret’ is that the repeal of Glass-Steagall and the passage of the Commodity Futures Modernization Act in 2000 allowed the creation of a tiny handful of banks that would virtually monopolize key parts of the global ‘off-balance sheet’ or Over-The-Counter derivatives issuance.Today five US banks according to data in the just-released Federal Office of Comptroller of the Currency’s Quarterly Report on Bank Trading and Derivatives Activity, hold 96% of all US bank derivatives positions in terms of nominal values, and an eye-popping 81% of the total net credit risk exposure in event of default.The five are, in declining order of importance: JPMorgan Chase which holds a staggering $88 trillion in derivatives (€66 trillion!). Morgan Chase is followed by Bank of America with $38 trillion in derivatives, and Citibank with $32 trillion. Number four in the derivatives sweepstakes is Goldman Sachs with a ‘mere’ $30 trillion in derivatives. Number five, the merged Wells Fargo -Wachovia Bank, drops dramatically in size to $5 trillion. Number six, Britain’s HSBC Bank USA has $3.7 trillion.After that the size of US bank exposure to these explosive off-balance-sheet unregulated derivative obligations falls off dramatically. Just to underscore the magnitude, trillion is written 1,000,000,000,000. Continuing to pour taxpayer money into these five banks without changing their operating system, is tantamount to treating an alcoholic with unlimited free booze.The Government bailouts of AIG to over $180 billion to date has primarily gone to pay off AIG’s Credit Default Swap obligations to counterparty gamblers Goldman Sachs, Citibank, JP Morgan Chase, Bank of America, the banks who believe they are ‘too big to fail.’ In effect, these five institutions today believe they are so large that they can dictate the policy of the Federal Government. Some have called it a bankers’ coup d’etat. It definitely is not healthy.
economicminor • June 20th, 2009 at 10:24 am
But WHY is this happening?It couldn’t be because we have surpassed the point where servicing all the debts has become impossible.Because so much of the debt was based upon past consumption and has no ability to repay itself and just became a huge dead weight that grew and grew until it could no longer be drug.Income from all sources is inadequate to pay ongoing daily expenses and still service past debt. There is only one direction this can go until enough of the debt burden has been released. Roubini talks about trading debt for equity but that doesn’t work for the average citizen as they have no equity left. All they have are future incomes and those are under pressure from so many directions including but no way limited by income restraints from layoffs, high energy costs, insurance, health care and high taxes and even extremely low interest rates plus actual harm for saving (insane IMO).The people running things are to insulated from the reality of every day life facing most people. They make decisions that make their lives better because they think that will make others better, yet they are the few. The others are not benefiting from the government policies. The majority of us are being harmed by them. What does all this high finance produce in of itself? Nothing! It is just a tax on real productive activities and yet is had grown to 40% of the economy. How insane is that?As for green shoots… When you water and fertilize an unplanted field, you will get green shoots.. The trouble is that they are just weeds and do not provide any useful benefit to society. All they have done is use up the limited water and fertilizer and manpower and have no benefit to anyone but those providing the debt to facilitate this stupid activity… Unless you like to deal with weeds.. Which is what the government likes doing.. It makes politician feel good. They are doing something and it looks good at first.. In the end they will just create some new crisis to divert the public attention and move on to appear to solve that. Such a show.
Guest too • June 20th, 2009 at 12:04 pm
e,the game is as old as man or societies. it isabout defining reality and self and life and the meaning of these things in relation to the attentionspan, consciousness, of the members of the groupsinvolved. consensus and value. what, do we agree?,is value, has value? it changes every day today.one minute it’s cash, then credit, commoditiesor futures or equities etc…a system of gamingvalue at a distance, capturing and encodingvalue (energy) and making it mobile, exploitable,spendable from one place to another place oranyplace. it is man’s attempt at greater and greater power and freedom, greater than thatwhich is ‘self evident’ or granted by ‘Nature’.of course there is a price to all this extra powerand freedom when it is done the way it has been done, it is murder of people and environments. the system has ways of defining value that allow for this ongoing holocaust.it defines us. we say “yes masta”.not no. it assigns value to things it has nocomprehension of or it fails to appreciate thosethings that it has no comprehension of and plowsunder that value.we say we are distracted and someone else willdeal with those problems, and then “yes masta”.not no.soon we won’t need education beyond those twowords, “yes masta”.all we will need is “proper” training, not education. i think it is inevitable as it isthe fruit of the tree of debt at the baseof our comprehension of our “economic” system,our mentality, world view, our communication.if man can develop his intellect, consciousness,all of these illusions that provide certainelites with the psychological tools they use tocapture value will become useless and the problemsassociated with that synthetic world view willdissolve instantly.challenges will remain but they will at least be real challenges that have real solutions. nothobgoblins of some spoiled nightmare.just a thought?ps.and how is that we have so many brilliant peoplein so many fields of study throughout the countryand all we hear from in the mass media are puppetstowing narrow perspectives? again, the system isdependent on the greater fool so the system hasa vested interest in creating many greater fools,stumbling through clouds of greater and greateropacity.the good news is there is always the truth waitingfor us to take a moment to see it. it is alwaysright there with us, just waiting. it is sopatient.
amacfly • June 20th, 2009 at 12:26 pm
How sad that so many of you late comers offer so little of any real value to those of us who have been here a while.If you don’t have anything to add that will help us gain a better understanding of the current economic situation, just shut the f up.
Guest • June 20th, 2009 at 1:16 pm
This is the most intelligent comment that you choose to share with this board? Speaks volumes about your own attractiveness, imo.
Guest • June 20th, 2009 at 1:56 pm
This lift from Boon Bust Blog was posted in a previous thread with references…
Brian • June 20th, 2009 at 3:13 pm
This is a huge oversimplification and a very geocentric (USAcentric) point of view on inflation.These arguments might hold true if there were only one currency in the world, and only one store of value. In fact, because the US dollar has been the world reserve currency, these factors have been the governing factors for US dollar inflation historically.But the game has changed.Inflation (the wealth-destroying kind, not the technical definition kind) is based on supply AND DEMAND. If the US dollar were to lose status as world reserve currency, it would need to fall to its real value, which is probably about 1/3 – 1/2 of its current value.But, of course, as I’ve said repeatedly on this blog, hyperinflation is a different beast entirely. Hyperinflation occurs because DEMAND evaporates, not as a direct result of increased supply. Now, notwithstanding my view that the “facts” presented above are entirely misdirection and in no way reflect what is actually happening on the supply side (I could discuss, but it is much more complicated than I want to deal with in this post), the reality is that hyperinflation will happen as perception of supply and downside risk is recognized by enough major US dollar stakeholders (like Russia and other BRIC, or, of course, China and/or Japan, or any of a combination of similar holders) that some of them start selling BONDS.A fear of the bond market generating a panic wave of selling that results in sellers getting cash US Dollars, which they then unload into other currencies, oil, gold and other commodities will usher in massive inflation (hyperinflation) in a very short timespan. This is all a confidence issue, not a true supply issue (although the supply of bonds is growing so rapidly, that it will be the causal agent).So, when I hear that deflation is the order of the day, and then get technical arguments about dollar supply M1, M3 analysis, I basically tune it out. Yes, deflation is happening right now as leverage is being reduced. But that’s like saying a stock market crash can’t happen because stocks operate in a free market and therefore they should only change incrementally. In the real word, when the dam bursts, it bursts, and when this dollar dam bursts, well, hyperinflation will happen before you can evacuate. Best to prepare in advance…–Brian
Guest too • June 20th, 2009 at 4:42 pm
b,but..how can demand evaporate when we have a mountain ofexisting debt that is in need, desperate, of thosedollars to pay off past, existing and projectedspending. bankruptcies? followed by repatriatednotes?
Guest • June 20th, 2009 at 5:21 pm
http://www.engdahl.oilgeopolitics.net/Geopolitics___Eurasia/Ankara_in_Calculus/ankara_in_calculus.html.Ankara, Moscow and Washingtonin the Eurasian Pipeline CalculusBy F. William Engdahl 17 June 2009..”A market in the end is a political decision. Markets, contrary to what Milton Friedman taught, do not exist free in nature. They are created. There is no abstract ‘world market.’ Regional or local markets can be and are created peacefully.”….
Softwarengineer • June 20th, 2009 at 6:01 pm
EVERYONE THAT IS IN DEBT HOPES FOR INFLATION, WHILE THOSE OUT OF DEBT AND SAVING MONEY CAN BENEFIT FROM DEFLATIONThe media will never admit it, but we’re in deflation right now, COLA is -3.2% for federal retirees to date.But the federal deficit will spike inflation again? See to believe. To date, that’s just words with actuals contradicting it.Now, if we also calculated the unemployment rate the same way they did during the Great Depression [it was a simple survey extrapolated over the entire nation, which of course included those unable to enter the workforce, severely underemployed and giveups]. We’d never do that, unemployment would be like 20-25% doing it honestly.Now, let’s summ up the anomalies: we have current deflation and Great Depression sized unemployment….doesn’t that mean we’re in a depression right now?Oil prices at $147 a barrel should have produced like $6.50/gal gas, assuming $70 a barrel oil produces like $3/gal gas today. Obama needs to investigate why we’re currently getting gouged at the pump, doesn’t he(?)…..but does he want to? It would make the deflation even worse…LOLEven Democrats make good Republicans sometimes.
Guest • June 20th, 2009 at 6:06 pm
MMThought of you while reading this article, even though the subject is not about jobs.California real estate “The Alt-A Mortgage Debacle Gearing Up”.http://www.doctorhousingbubble.com/real-city-of-genius-case-study-of-the-middle-priced-los-angeles-housing-market-pasadena-in-focus-the-alt-a-mortgage-debacle-gearing-up/hlowe
Guest • June 20th, 2009 at 6:34 pm
This may change your mind!http://globaleconomicanalysis.blogspot.com/2009/06/flow-of-funds-report-offers-hard.htmlhlowe
Guest • June 20th, 2009 at 6:40 pm
This may change your mind!Mish talks about Martin Weiss “New, Hard Evidence of Continuing Debt Collapse!”http://globaleconomicanalysis.blogspot.com/2009/06/flow-of-funds-report-offers-hard.htmlhttp://www.moneyandmarkets.com/new-hard-evidence-of-continuing-debt-collapse-34202hlowe
Guest • June 20th, 2009 at 7:34 pm
http://globaleconomicanalysis.blogspot.com/2009/06/nitwits-in-congress-propose-tapping-oil.htmlmoronic democrats running the congress
Guest • June 20th, 2009 at 7:59 pm
BrianWhat I really here you saying is a hyperinflationary depression. Can someone tell me why we won’t have this?hlowe
Guest • June 20th, 2009 at 10:50 pm
What was also interesting to hear about – in one news article some time ago – was about that some US states also provide similar tax ‘evasion’ services as Switzerland. This at least according to a Swiss official who was commenting on the matter.Yes I am sure that Switzerland is not unique in providing that service. Besides I am sure they did not start it as a service to help people to evade taxes but as a service to protect peoples identity.
Guest • June 20th, 2009 at 11:08 pm
demand for debt surely has not and will not evaporate
Guest • June 20th, 2009 at 11:11 pm
…and with the US government keeping on closingmany smaller banks (instead of bailing them out)they might eventually create a monopoly situationwith only a handful banks present.
Guest • June 21st, 2009 at 2:02 am
Americans put more people behind bars than in any other country in the world, while public education, job training, and other resources that might potentially help people stay off drugs or out of crime in the first place are under funded.That is because capitalistic philosophy is against making peoples lives easier (such behaviour would be considered socialistic), yet has nothing to say about making peoples lives more difficult.<>
Yve • June 21st, 2009 at 2:08 am
I’d do him
Brett in Manhattan • June 21st, 2009 at 8:54 am
We’ve had no deflation. Have tuition costs dropped? How ’bout health care? Food?Sure housing has fallen, but, that’s just because they were artifically inflated due to a credit bubble.The only area I’ve seen real deflation is in ultra-discretionary items like high-end clothing and homes items.As far as hyper-inflation, the signature image from the Weimar Republic is a man going to the store with a wheelbarrow full of money. I wouldn’t hold my breath for that to happen, here.
MM CA • June 21st, 2009 at 9:54 am
Thanks… yes its a looming big problem and not just for California…
MM CA • June 21st, 2009 at 10:04 am
NO JOBS – What happens in the west always goes East… Quite sobering correlations and data… and the trends indicate the worst is yet to come… I’ve spoken with many people and no one seesm to know where JOBS will come from in the future (decent jobs). I rack my head to see where and its quite depressing… Take a stab at where you think JOBS will come from… lots of jobs, good and fiar paying jobs, not just minimum wage/walmart jobs.http://seattletimes.nwsource.com/html/businesstechnology/2009250937_apusstateunemployment.htmlJobless rate in Western US tops 10 percentThe housing bust sent the unemployment rate in the West bolting past 10 percent in May – the first time in more than 25 years that a region of the United States has suffered double-digit joblessness.Talton | Oregon feels special pain of unemploymentWashington, Seattle-area figuresThe unemployment rate in Washington state in May was 9.4 percent, up from 9.1 percent in April. The May rate was the highest in Washington since February 1984, when the unemployment rate hit 9.6 percent.The jobless rate in the Seattle-Bellevue-Everett area in May was 8.4 percent, up from 7.9 percent in April.WASHINGTON —The housing bust sent the unemployment rate in the West bolting past 10 percent in May – the first time in more than 25 years that a region of the United States has suffered double-digit joblessness.A Labor Department report released Friday showed the West absorbing the worst of the recession, which is now the longest since World War II. California, Nevada and Oregon endured particularly heavy job losses in construction, manufacturing and tourism.The region has been pounded because it was the epicenter of the housing boom that collapsed. As home values plummeted, the West lost jobs and wealth, and consumers grew skittish about spending.”The West is where houses are being abandoned most quickly because it has the largest percentage of the population under water – owing more on their houses than they’re worth,” said Robert Reich, labor secretary under President Bill Clinton and now a professor at the University of California, Berkeley. “They lose their capacity to borrow. All of that means that they can’t buy very much.”The West reported the highest regional jobless rate for May: 10.1 percent. The last time any region had an unemployment rate of at least 10 percent was in September 1983, when the economy was emerging from a severe recession.The region’s problems also go beyond housing. Cutbacks on businesses travel are hitting hard in Arizona and Nevada.”It’s difficult to keep major projects going – like casinos – in Las Vegas. That’s pretty much come to a halt,” said Steve Cochrane, managing director at Moody’s Economy.com.In California, the jobless rate jumped to 11.5 percent last month. In Nevada, it rose to 11.3 percent, and in Oregon, to 12.4 percent. All three figures were records, based on documentation going back to 1976.In Oregon, makers of plywood, window sashes and doors have suffered from reduced demand. The state also has lost jobs in high-tech industries and at factories that make heavy trucks and recreational vehicles.At a training center in a blue-collar Portland neighborhood, 36-year-old construction worker Michael Clark said he lost a job with a property management company in December.”When I was laid off 2 1/2 years ago, you could mail out resumes, and you’d be getting four, five calls a week, and they’d be hiring,” Clark said. These days, he said, the response is, “Thanks for your interest.” And then silence.Even as jobs have vanished, people who find Oregon a desirable destination keep moving into the state, and those already there are hesitant to leave, state labor economists say. That means more competition among job seekers for the few positions that come available.In addition, many Oregon households that once had a single earner now have two people seeking work as spouses of laid-off workers have entered the labor market. And analysts say retirees seeking to replenish their shrunken 401(k) accounts are re-entering the work force, too.What’s more, hard-to-get credit has cooled once-hot real estate markets in the Portland area and in central Oregon, where the sunny desert climate has long attracted retirees from rainier parts of the Northwest and people cashing out of pricey California homes.In Arizona, which along with Florida suffered the largest percentage drop in jobs last month, the losses were spread across many industries, including health care and government, said Marshall Vest, director of the University of Arizona’s Economic and Business Research Center.After the West, the Midwest had the second-highest unemployment rate, at 9.8 percent. The South’s jobless rate was 8.9 percent. The Northeast had the lowest, 8.3 percent.The government report showed employment conditions deteriorating in 48 states and the District of Columbia last month.Michigan, the heart of the sinking auto industry, had the highest unemployment rate: 14.1 percent.Eight states had record-high jobless rates. Only two – Nebraska and Vermont – reported no increases. Nebraska’s jobless rate dipped, and Vermont’s was flat.The five other states that set new unemployment highs were North Carolina, Oregon, Rhode Island, South Carolina, Florida and Georgia.After Arizona and Florida, the next-largest percentage drop in jobs last month was Oklahoma, followed by Arkansas, Kentucky and Michigan.Nationwide, the jobless rate stands at a quarter-century high of 9.4 percent. Analysts say companies are unlikely to ramp up hiring until they feel sure their sales are rebounding and that any economic recovery will have staying power.Some economists say the nation’s jobless rate could rise as high as 11 percent by the summer of next year before it starts a slow descent. The highest rate since World War II was 10.8 percent at the end of 1982.North Dakota and Nebraska reported the lowest unemployment rates: 4.4 percent each. North Dakota has been helped by the oil business. Nebraska has been supported by farm businesses.Neither state ever got carried away by the housing boom, either, so they never suffered huge hits to household wealth. Nebraska also has benefited from the relative strength of two of its main industries: agriculture and food-production.Jobless rate in Western US tops 10 percentThe housing bust sent the unemployment rate in the West bolting past 10 percent in May – the first time in more than 25 years that a region of the United States has suffered double-digit joblessness.Talton | Oregon feels special pain of unemploymentWashington, Seattle-area figuresThe unemployment rate in Washington state in May was 9.4 percent, up from 9.1 percent in April. The May rate was the highest in Washington since February 1984, when the unemployment rate hit 9.6 percent.The jobless rate in the Seattle-Bellevue-Everett area in May was 8.4 percent, up from 7.9 percent in April.WASHINGTON —The housing bust sent the unemployment rate in the West bolting past 10 percent in May – the first time in more than 25 years that a region of the United States has suffered double-digit joblessness.A Labor Department report released Friday showed the West absorbing the worst of the recession, which is now the longest since World War II. California, Nevada and Oregon endured particularly heavy job losses in construction, manufacturing and tourism.The region has been pounded because it was the epicenter of the housing boom that collapsed. As home values plummeted, the West lost jobs and wealth, and consumers grew skittish about spending.”The West is where houses are being abandoned most quickly because it has the largest percentage of the population under water – owing more on their houses than they’re worth,” said Robert Reich, labor secretary under President Bill Clinton and now a professor at the University of California, Berkeley. “They lose their capacity to borrow. All of that means that they can’t buy very much.”The West reported the highest regional jobless rate for May: 10.1 percent. The last time any region had an unemployment rate of at least 10 percent was in September 1983, when the economy was emerging from a severe recession.The region’s problems also go beyond housing. Cutbacks on businesses travel are hitting hard in Arizona and Nevada.”It’s difficult to keep major projects going – like casinos – in Las Vegas. That’s pretty much come to a halt,” said Steve Cochrane, managing director at Moody’s Economy.com.In California, the jobless rate jumped to 11.5 percent last month. In Nevada, it rose to 11.3 percent, and in Oregon, to 12.4 percent. All three figures were records, based on documentation going back to 1976.In Oregon, makers of plywood, window sashes and doors have suffered from reduced demand. The state also has lost jobs in high-tech industries and at factories that make heavy trucks and recreational vehicles.At a training center in a blue-collar Portland neighborhood, 36-year-old construction worker Michael Clark said he lost a job with a property management company in December.”When I was laid off 2 1/2 years ago, you could mail out resumes, and you’d be getting four, five calls a week, and they’d be hiring,” Clark said. These days, he said, the response is, “Thanks for your interest.” And then silence.Even as jobs have vanished, people who find Oregon a desirable destination keep moving into the state, and those already there are hesitant to leave, state labor economists say. That means more competition among job seekers for the few positions that come available.In addition, many Oregon households that once had a single earner now have two people seeking work as spouses of laid-off workers have entered the labor market. And analysts say retirees seeking to replenish their shrunken 401(k) accounts are re-entering the work force, too.What’s more, hard-to-get credit has cooled once-hot real estate markets in the Portland area and in central Oregon, where the sunny desert climate has long attracted retirees from rainier parts of the Northwest and people cashing out of pricey California homes.In Arizona, which along with Florida suffered the largest percentage drop in jobs last month, the losses were spread across many industries, including health care and government, said Marshall Vest, director of the University of Arizona’s Economic and Business Research Center.After the West, the Midwest had the second-highest unemployment rate, at 9.8 percent. The South’s jobless rate was 8.9 percent. The Northeast had the lowest, 8.3 percent.The government report showed employment conditions deteriorating in 48 states and the District of Columbia last month.Michigan, the heart of the sinking auto industry, had the highest unemployment rate: 14.1 percent.Eight states had record-high jobless rates. Only two – Nebraska and Vermont – reported no increases. Nebraska’s jobless rate dipped, and Vermont’s was flat.The five other states that set new unemployment highs were North Carolina, Oregon, Rhode Island, South Carolina, Florida and Georgia.After Arizona and Florida, the next-largest percentage drop in jobs last month was Oklahoma, followed by Arkansas, Kentucky and Michigan.Nationwide, the jobless rate stands at a quarter-century high of 9.4 percent. Analysts say companies are unlikely to ramp up hiring until they feel sure their sales are rebounding and that any economic recovery will have staying power.Some economists say the nation’s jobless rate could rise as high as 11 percent by the summer of next year before it starts a slow descent. The highest rate since World War II was 10.8 percent at the end of 1982.North Dakota and Nebraska reported the lowest unemployment rates: 4.4 percent each. North Dakota has been helped by the oil business. Nebraska has been supported by farm businesses.Neither state ever got carried away by the housing boom, either, so they never suffered huge hits to household wealth. Nebraska also has benefited from the relative strength of two of its main industries: agriculture and food-production.
Guest • June 21st, 2009 at 10:15 am
More Power to The Fed to Regulate our Economy? They will mess up more!The best way to prevent more bubble and economic meltdown in the future is not by more regulations or power to The Fed, but by the followings:1) Fire incompetent people of regulatory agencies who failed to do their job2) Never allow “Moral Hazard”, which means no bailout in any circumstance3) Criminalize and prosecute the past offenders who played games in Wall Street (bankers, insurers, and all others)4) Terminate lobbyist peddling in Congress and Government OfficesEven we employ these measures now, I think it is already too late to repair this broken economic system. What a sad system we have!!
economicminor • June 21st, 2009 at 10:48 am
Green shoots If you fertilize and water a fallow field you will get a huge crop of green weeds. If you don’t kill the weeds, they go to seed, affecting the surrounding land. If you continue this process, even the productive lands spend so much controlling weeds that their profitability declines and their productivity declines. When the productive lands is encumbered with debt there is a point in this process where that land is defaulted on and allowed to go fallow.. If the government continues its process of fertilizing and watering the fallow fields, we will continue to have less and then more less. It is just the way the world works. So don’t get to excited about green shoots unless you know they are not government funded weeds.
Morbid • June 21st, 2009 at 11:02 am
ObamaNation: Iran to ‘stop all violent and unjust actions’
The Iranian government must understand that the world is watching. We mourn each and every innocent life that is lost. We call on the Iranian government to stop all violent and unjust actions against its own people. The universal rights to assembly and free speech must be respected, and the United States stands with all who seek to exercise those rights.As I said in Cairo, suppressing ideas never succeeds in making them go away. The Iranian people will ultimately judge the actions of their own government. If the Iranian government seeks the respect of the international community, it must respect the dignity of its own people and govern through consent, not coercion.Martin Luther King once said – “The arc of the moral universe is long, but it bends toward justice.” I believe that. The international community believes that. And right now, we are bearing witness to the Iranian peoples’ belief in that truth, and we will continue to bear witness.
What kind of arrogant, naive, Savior complex is it that motivates such demands of a foreign power?
Brian • June 21st, 2009 at 2:08 pm
Great analogy!–Brian
Softwarengineer • June 21st, 2009 at 3:25 pm
HI BRETTI’m not saying I agree with the way the COLA calculation eliminates the current deflation of housing costs….or inflation in the past.I think our unemployment rate, COLA and GDP [excludes the cost of fixing our destroyed infrastructure] statistics are nothing but fairy tales and wild guesses. Of course they are good for tracking degradation deltas in the trends. They certainly are poor math models for accurately comparing our current dilemma to history book Great Depression.
Guest • June 21st, 2009 at 3:33 pm
new thread
kilgores • June 21st, 2009 at 3:35 pm
The U.S. government, as do the governments of all other countries in the world, expresses official positions on the actions of other nation states, whether domestic or foreign. Our criticism of the Iranian regime’s current handling of its election dispute is nothing out of the ordinary, and appears to be justified. Why the polarizing hyperbole? Do you just look for things to hate about the President, Morbid?SWK
Guest • June 21st, 2009 at 4:05 pm
I don’t think this article was hyping or predicting war of any kind.It was merely emphasizing with clarity geo-political posturing over oil via NATO and pointing out that despite recent suggestions to the contrary, the Military Industrial Complex is still alive and thriving.It is unfortunate that you have done poorly with your investments. It might help your bottom line going forward to actually read the articles in full before criticising them.
Guest • June 21st, 2009 at 7:12 pm
are we doing any of what you suggested? NO, end of discussion, we will be screwed now and future.
Guest • June 21st, 2009 at 7:48 pm
Russia ready for deep nuclear arms cutsMedvedev says deal possible if US meets missile concerns (Reuters/via FT)





























