Thursday, December 31, 2009
A Look At The Dollar, The S&P And Bonds Since The Start Of This Economic Crisis
Wednesday, December 30, 2009
Here It Comes - Rising Nationalism
Tuesday, December 29, 2009
American Empire And Japan's New Populist Prime Minister
Finally Serious Discussions Of Banking Reform - Some In Congress Wish To Restore Glass Steagall
Sunday, December 27, 2009
The Card Game - How U.S. Banks Are Scheming New Ways To Rip Off Society
That Washington politicians keep playing their corrupt game of meddling with specific regulation in the economy is driven by the lobbyist money machine. Washington should lay down basic rules to compete in the economy and get out of the way. Only when some new, unforeseen invention impacts the economy's rules should the government ever meddle with existing regulation. And that need for change should be explained to the American people before ever being considered. Instead, we have constant meddling and changing of the rules to the game by money-seeking pandering bureaucrats.
A perfect example of this corruption is the credit card industry. That these firms can continually prey on American people by skirting regulation is heinous. You can't offer credit terms or any other economic contract then change the rules of the contract half way into the game. That the government allows this predatory activity by banksters is criminal. But the banksters are well into creating new schemes to rip off Americans, all courtesy of your elected government officials.
Thursday, December 24, 2009
Wednesday, December 23, 2009
November New Home Sales Plunge
It's not bad enough that the government is encouraging a reduction in the glut of homes for sale by attempting to direct economic activity without understanding the root cause of this crisis. Government meddling is why we have an economic crisis in the first place. In the end, these incentives to reduce the housing inventory glut will fail because as we have stated countless times over the last four years, the problem is not housing. As we have said, that everyone if focused on housing is because that is what they understand, not because they are right. In fact, we wrote numerous times on here that it is impossible for housing to create the crisis we see before us. A free holiday gift to drive this point home will be posted by the end of the year or the first week of January. In the mean time we keep seeing the same asinine government policy that is creating future economic problems. That being incentives to reduce the housing glut. It's the same foolish policy that was cash for clunkers. We saw how that ended. The government, ie taxpayers, basically bought new cars for its participants. A lovely policy indeed.
Btw, I love the headlines every time bad data comes out. It is always unexpected. Unexpected to whom? The status quo?
Wall Street's Scheming To Create Its Next Great Fraud - Cap And Trade
If for no other reason than climate change benefits big business, big government and Wall Street, it should be doubted for its legitimacy. The same tremendously fraudulent voices who have destroyed the American economy, are now plotting its future with more corrupt policy - the climate change initiatives. Were climate initiatives driven by bottoms up economic policy benefiting the people of this country, it would be more believable. Instead it's more of the same sham. A handful of crooked politicians and elitists are attempting to make untold riches off of the back of the majority of Americans. ie, It's the same goddamn mess that created Enron, unregulated commodity trading and Frankenstein finance now trying to trade its way to economic prosperity with cap and trade.
After you read the first two paragraphs of the article link above what are your impressions? Mine? It is very clear. Developed economies are trying to keep poor nations poor through climate change initiatives. To stop any countries from self-determined lives. To stop economic development. To keep underprivileged people cooking in clay pots while the privileged few drive their Land Rovers. In return those driving the Land Rovers will pay those cooking in clay pots a small stipend out of yours and my pocket. To me, this sounds like nothing more than twenty first century economic colonialism. The same fraud which has plunged the generally innocent people of Africa into a quagmire of constant corruption, constant death, constant war and constant misery. All courtesy of colonial Europe.
Albert Schweitzer was right about colonial Europe. Climate change initiatives in their current form are equally fraudulent.
Credit Card Reform Starts Off With A Bang - 80% Interest Rates
Frankly, not only is this morally bankrupt but I believe it's treasonous. And apparently credit card reform was just another fraud.
Change you can believe in.
Government Employees Live High On The Hog While Its Masters Live In Greater And Greater Squalor
Some view any form of government as evil. As we have highlighted before, Thomas Paine, America's first progressive (often misquoted and misrepresented by less than progressive elements) said the only thing worse than government was no government. And, in fact, that is often what we see today. Where regulation has been dismantled we see the rule of law left to the vices of always fallible people. To businesses concerned first about personal gain at the expense of society. A reminder of why we have a written rule of law. A written Constitution. For were we not protected by either, we would have lost all of our liberties long ago. Frankly, I believe it has become apparent that not only do we need a constitution to protect our personal liberties, but we need an economic constitution protecting those considered the least in our society by elitists. Protection from the ravages of cronyism, corruption, sociopathic Wall Street-types and crooked politicians. We'll talk more about this in the future.
One timeless element that never changes is that concentrated power without transparency and oversight (effectively regulation of government) always results in evil. I don't care if that is the Catholic Church or the government of the most free society or your favorite charity. Even if its action is well-intentioned, all concentrated power without good governance will ultimately induce evil policy. That is why we have a Constitution. Good governance. Our government is such a mess because the American people have little oversight and transparency into its dirty little secrets. And because we trusted those who were elected to be the stewards of our country. Because the Constitution has become just a piece of paper rather than the rule of law in the eyes of crooked politicians. Instead, what they have turned our government into is a personal brothel. Now the cloak has been removed and we see the level of whoremongering that is government without transparency. With a dismantled rule of law.
The capital-producing economy - which pays for every single dollar the government and our banks rake in - has seen salaries and opportunity declining for decades. At the same time, the tax on society has increased astronomically to fund out of control government. And while the average American's wages have not kept pace, the federal government's wages are now double those of the private sector. The private sector who pays government wages. A clearly unsustainable dynamic.
The government in its current form has become an unsustainable tax on society. I told some friends who work for the government a few years ago that they should brace for potential standard of living reductions. It seems quite impossible to fathom but this situation must resolve itself. We now live in an economic model which bears more resemblance to the Soviet Union than the United States of yore. That is, the government provides the best job opportunities for average Americans and government-supported businesses (monopolies in every private sector industry similar in structure to state-run Soviet businesses) stifle innovation and competition.
There are two ways to remedy this situation. Or some combination of the two. Drastically raise private sector wages and economic opportunity or drastically lower federal wages. But, it will resolve itself at some point. The trend is clearly not sustainable.
Civil servants or our masters?
Tuesday, December 22, 2009
Derivatives Reform Update- The Wall Street Profit Bubble Will Collapse
Monday, December 21, 2009
Health Care Insurance Stocks Soar On Passage Of Senate's Corrupt Health Reform Bill
Sunday, December 20, 2009
New Pan Arabian Monetary Pact Signed
China Central Banker Says Harder To Buy U.S. Treasuries
Saturday, December 19, 2009
Florida Leads The Nation In New Job Losses. Unemployment In The State Continues To Rise.
Friday, December 18, 2009
President's Administration Writes A Check It Cannot Cash - $100 Billion In Annual Climate Change Aid (Other People's Money) To Corrupt Governments
Thursday, December 17, 2009
Chaos At Climate Conference - Good For America
Wednesday, December 16, 2009
Bernanke Is Time Person Of The Year
Paul Volcker - The Banking Changes Proposed Are Like A Dimple. More Like A Pimple On The Ass Of Society Put There By Profligate Pimpled Politicians.
Tuesday, December 15, 2009
Rasmussen Reports: 85% Of Americans With Populist Views Are Angry At The Federal Government And The Number Continues To Rise
If we truly believe in democracy, in other words that people of all walks of life and abilities are able to self-govern, to rule our society by electing people from amongst us to manage our affairs, we should be embracing populism, not to be confused with the will of the mob. Populism defines America's greatness and always has. Populism is a repudiation of authority by birth right, by economic standing and cronyism. Populism embraces free will and free determination. Populism embraces economic opportunity for the many not determined by the few. Populism embraces entrepreneurs at the expense of monied interests. Today that populism is being driven by a search for truth, a return to self-rule, cleaning up corruption and economic populism. Concern that Washington is run amok. Realization that a very few are setting our economic policy for their personal gain and stealing our economic opportunity and livelihood.
The President has an opportunity to use this populist movement to transform American politics and the American economy. Or, he'll eventually be mowed over by some deft politician and leader who will. This data supports our thesis that the U.S. will lead the world out of this morass. In other words, a populist economic transformation will drive a resurgence of American economic might. It's not a matter of if but when. America is far from dead. But in order for it to assert its rightful economic standing, the rightful owners of this country, its people must save us from the political stooges and lobbyists who destroyed it.
85% of populists are angry at the federal government. The elitist liberal media fawning all over our new President initially blamed dissent on right wing nut jobs, Ted Kaczynski-types who feel marginalized by society and racists. Ditto with Homeland Security in their report on dissent which labeled many upstanding Americans as terrorist threats to our government. Preposterous and degrading to the vast majority of Americans who are none of the above. They are Americans. They seek a return to a self-determined life. They seek economic freedom. They seek justice and a government which represents the will of the people be that a conservative or a progressive will. Not the neoliberalism and liberalism which defines the Republican and Democratic agendas. Agendas driven by political stooges seeking to maintain their grip on power and monied interests. The polling data confirms this is not a right versus left divide. It is a right versus wrong divide.
Monday, December 14, 2009
Once Again The Myth Of Goldman Sachs' Brilliance Is Replaced With The Reality Of Complete Incompetence
President Obama Gives Himself B+ For His First Year Performance - A Performance Marked By The Embrace Of Corrupt Clinton And Bush Neoliberal Economics
Friday, December 11, 2009
Matt Taibbi - Obama's Big Sellout
Thursday, December 10, 2009
The Movie 'Escape From New York' Pretold Reality .... And So Did We
Now we see foreclosure activity in New York is through the roof, albeit it is starting at a reasonably low level. Imagine what it would be were the government not to handed so much money to Wall Street crooks? And if the government would actually ban much of the ridiculous behavior of our banks - using our money to gamble with bets equivalent in scale to the GDP of the universe.
Separately, yesterday Governor Paterson made a personal pledge that New York would not run out of money. A laughable statement unless he is about to unveil himself as the caped crusader from Gotham. If the governor is really up to the task, I'd appreciate a visit to my house to fill my coffers first. The only way the governor can make this claim is to actually do the opposite of what government is doing today. That is, to empower Americans to recover this economy in lieu of spending money to prop up government and big business. Return America to a self-determined, self-sufficient, market-driven economy. A first step is for the governor to clean up the corruption in New York government.
New York is just starting to crack around the edges. New York is headed for a very hard landing as is Wall Street. Untold thousands upon thousands of New York jobs are going to be gone by the time this crisis is over. And they will be gone forever. That's a long, long time.
The caped crusader has much work to do.
Howard Zinn's The People Speak - Democracy Is Not A Spectator Sport
We are now living through a time of great evil and wrong perpetuated on the American people. Wrong perpetrated by the tyranny of a crooked few. Tune in and join the populist movement for constructive progress. Take back our country from the tyranny of those who desire to be our kings and queens were they able to steal our freedoms from us. And steal they try. Even if they believe they do so for misplaced reasons of virtue.
What Dirty Secrets Of Transferred Sovereignty Are Being Negotiated Outside Of The American Citizen's View In The Copenhagen Climate Boondoggle?
I have no problems with international cooperation on many issues. I have enormous problems with any attempt at usurping our national sovereignty to a bunch of international political goons for any reason, let alone a dubious one.
Funny how those posts on State's Rights over the past few years are looking more than prescient. The political ideologues tried to marginalize State's Rights advocates as fringe fruitcakes. Thomas Jefferson would be proud. Our federal government is out of control.
GDP Update And A Few Remarks About Unemployment
The announcement that we only had 11,000 job losses could be taken as positive news if taken at face value. Yet the trend may be accurate but the specific date surely is not.
There are many data points which do not make sense with the most recent unemployment report. Likely to be flaws in the calculation and/or the data capture process. ie, A tremendous amount of Americans are self-employed or small business owners. Additionally, the services ISM employment numbers are horrible yet the government data shows services as the source of job growth. The industrial ISM data is marginally better yet the jobs data shows the industrial data to continue to shed jobs. The unemployment rate dropping is also dubious for many reasons. I would guesstimate the economy must add somewhere around two hundred thousand jobs just to absorb new entries into the work force and maintain employment levels. That the unemployment rate dropped while we are well below that trend tells you the data is flawed. I'm sure many people have already written of these dynamics but because I don't really follow this data in any detail, I am simply making anecdotal observations about substantial inconsistencies.
Wednesday, December 09, 2009
Bloomberg Chart Of The Day - State Tax Receipts8:35 AM links to this post
The Next Scheme - Wall Street Starts The Ramp Up For Carbon Trading
The Lynch Amendment And Derivatives Reform - Will Congress Disable Or Enable The Banksters?5:35 AM links to this post
Tuesday, December 08, 2009
Is 70% Of Afghanistan's Current GDP Heroin?
John Stossel Teaches Al Gore Second Grade Mathematics And Other Global Warming Myths
Monday, December 07, 2009
Bill Gross And Nouriel Roubini Focused On Yesterday's News
Now both are focused on yesterday's news. I find it almost hilarious that people are now talking about a bubble building in China. The bubble has been building for at least ten years and it popped two years ago. Just a little late to be considered any type of serious insight. How is worrying about what China is doing right now of any relevance to investors? The money has been lost long ago whether it was financial investment or soon to be physical investment. Looking at the chart of the Shanghai Index below, we can see the bubble collapsed two years ago. What China is doing today is simply trying to keep the scheme going. It will fail and the bubble will continue deflating.
My point with these types of posts is that society needs to realize most hero-worship is misplaced and most people held on a pedestal don't generally have any great insight into policy or economics. The sooner we as a people jettison this belief that we should defer decisions about our lives, our economy and society's money to someone else, the sooner we will get out of this crisis. That most definitely includes politicians as well. The fact that Gross and El-Erian are making tens to hundreds of millions of dollars off of other people's money by supposedly providing superior insight is just laughable.
American Banksters Association Attempts To Pull Gestapo Tactics On Credit Unions - No Loans For Small Businesses
Saturday, December 05, 2009
70% Of Nevada Homeowners Upside Down On Mortgages - Survey Ranks Nevada As One Of Unhappiest States
China's Media Control - A Culture Of Lying. The Future Will Be Much Different Than The Mob Believed.
There is very little incontrovertible truth in this world. That includes a substantial amount of science where group think also exists. China's media control is truth. And so is the fact that the communist party has been moving towards locking down the country and possibly even taking away many of the short term freedoms granted over the last decade.
The future will not be as most anticipate across a wide array of topics. A testimony to the herding mentality of humanity. Whether that is the cult of personality that defines our current President regardless of whether his policy actions match the hopes of many or the rabid certainty that humanity is clearly the cause of global warming by many liberal journalists and the political class or the desire to immediately blow up something or anyone after 9/11 (including rage against many innocent Americans of color) or the xenophobic blame of job losses on immigrants or the belief (hope) that electing a new President was going to fix our problems or the global consensus (schadenfreude) that America is forever doomed or that America is clearly the biggest economic crisis in the world or any of a dozen other topics which define the mainstream psyche at any given point in time. Remember, the intellectual capacity of any crowd is defined by its basest component. A frightening reality of a mob.
It is that distorted sense of self that defines the herd. When one realizes the forever distorted sense of self that defines the human condition, how can anyone be anything other than a contrarian if one's position is backed by reason and analysis? Being a contrarian is as timeless and proven as humanity itself.
It has been a few years since I have mentioned one of my favorite books written long, long ago. Gustave LeBon's The Crowd - A Study of the Popular Mind. It's still available at Amazon for a few bucks but it now available online for free at the University of Virginia. I would encourage everyone to read it. It not only provides insight into our interactions with the world around us but it is a primer for becoming more self-aware in your own journey of self-discovery.
Friday, December 04, 2009
Hedge Funds Most Bullish Since Late 2007
We have discussed the dynamic of money flows in numerous posts. People, businesses, banks and governments are unwinding and often selling investments, selling businesses, raising capital, etc, not because they are panicking or making a poor investment decision. They are or will be doing so because they need to raise capital. We have been writing of this dynamic for a long time. Long before the collapse. The dynamic hasn't passed. Not even close. That Mr. Dunigan doesn't understand this simple fact in his perspective of why money is flowing out of stocks shows he doesn't understand what is happening in the economy or how it will affect the financial markets.
In Two Weeks, China Unicom Sells Five iPhones At Their Online Store
Apple still hasn't issued a momentum sell (a favorite algorithm of Wall Street boneheads) but it has been stuck for the last two months. To date, it appears the iPhone is a complete flop in China. At some point momentum traders are going to dump Apple hard. The trigger could be a forced sell or could be poor business results. We already witnessed this once. Regardless of hedge fund and trading desk games in the stock, my downside target discussed before the first collapse still holds. That's a long drop from here.
Story link here.
Thursday, December 03, 2009
Senator Bunning Goes Postal On Ben Bernanke
Majority Of Private Sector Economy Is Shrinking Again
Japan's Prime Minister Will Not Tolerate A Rising Yen
Bernie Sanders Set To Block Bernanke Confirmation
I would encourage anyone and everyone to remain actively involved in this process by letting your voice be heard with your Congressional representatives. Your voice and vote are the only difference makers.