Monday, October 28, 2013
Wall Street will be the last to know when an asset collapse is imminent. Not only do they have trillions in Fed money to play with and a year-end bonus in sight, but in addition the Fed has completely eliminated any feedback loop between the economy and the stock market. Which means that the financial media who have their nose up Wall Street's ass, will realize the risks only well after the fact. And the Dow watchers at home, multi-tasking The Kardashians, will figure it out sometime after that...
Posted by Mac10 at 5:54 PM
"...Shares crash, hopes are dashed.
People forget. Forget they're hiding.
Behind an eminence front - it's a put on..."
- Townshend/The Who
Posted by Mac10 at 5:00 PM
Wednesday, October 23, 2013
The true wealth of a society is based upon what it can build, create, sustain and trade. Financial wealth held in stocks, bonds and other securitized paper assets is merely a transitory illusion. Competitive advantage in producing higher value added goods and services is the ultimate determinant of the wealth of nations, something the Asian nations figured out a long time ago...
Posted by Mac10 at 1:43 PM
Sunday, October 20, 2013
The U.S. is going full Disneyland. Even the Tea Party is no more than a phony apparatus for billionaire interests, masquerading as a throw-back to Little House on the Prairie. This metamorphosis is a very cautionary tale for any country that doesn't assiduously separate private and public interests and otherwise allows itself to become 100% corporatized.
Posted by Mac10 at 1:35 PM
Saturday, October 19, 2013
Friday, October 18, 2013
Saturday, October 12, 2013
A timely reminder as to how and why this global economic lunacy will end with history's largest bank run. Using debt to resolve a debt crisis is history's largest fool's errand aided and abetted by history's largest boatload of fools. 520 global interest rate cuts in five years has incentivized nation states to supplant private borrowing with public borrowings to prop up their economies. The Minsky Moment will arrive when the marginal borrower is no longer able to rollover its debts, causing a cascade of defaults as lenders pull back from the market...
Sunday, October 6, 2013
I just read David Stockman's polemic about the various issues afflicting the U.S. economy. The facts and data were excellent. Other than failing to identify the true root cause of the problem and coming to an altogether wrong conclusion, it was flawless. I suggest that it will be mighty hard to fix a problem when all effort is being put into ignoring its root cause...
Posted by Mac10 at 7:22 AM
Saturday, October 5, 2013
Friday, October 4, 2013
The shutdown of the U.S. government this week was a symbol of the totally dysfunctional clusterfuck that has become the nation's capital. Worse yet, the attack at the Navy Yards two weeks ago, the attack on the Capitol Building this week and news of a self-immolation late this evening on the D.C. Mall are all blatant signs that social mood has peaked and rage is rising...
Posted by Mac10 at 6:56 PM