Friday, February 6, 2009

SAR #9037

Turns out 'forever' had an expiration date. (Seeking Alpha)

Once over: In case you haven't been sufficiently bombarded, more Americans applied for unemployment last week (626,000 of 'em) than any time in the last 26 years. January retail sales also fell significantly, while credit card delinquencies rose dramatically.

Cardiff Giant: Three senior economists from the Federal Reserve Bank of Minneapolis, having examined the Fed's data closely, conclude that at no point had lending seized up. In fact, " banks were lending to each other at record levels." They went on to conclude “Maybe Bernanke and Paulson had information that they were not making public, but the available data simply did not support what they were saying."

Wreckers: The GOP would prefer to let a depression occur than let government - useless, discredited government - save the day. It is in their political interest to kill the bill, or at least maim it beyond recognition, for the economic disaster will be blamed on the Democrats, and rightly so, if they let the Republicans get away with this.

Consequences: Could the light at the end of the tunnel be peasants with torches? If the economic system fails, can society be far behind?

Real Life vs Bailout: In real life, if a company fails the cause is immaterial, it failed. Failed companies go out of business. The people who ran the failed company are out of work, and labeled as failures. Those who put up the money (stockholders) lose their investments. The assets are auctioned off to the highest bidder and split between the creditors. Taxpayers are not involved. Any resemblance to the bailout process is imaginary.

Dead Heat: In the semi-finals to win the right to face Ireland in the race to bankruptcy, California has pulled ahead of Louisiana as having the worst credit rating in the nation.

Educational Play: Get your kid her own airport screening station, Playmobil's Security Check Point ($62). Comes with wands, metal detector, x-ray belt, racial profiling guide, handcuffs and Mace. Sorry we missed it before Christmas.

California Dreaming Nightmare: Energy Secretary Chu sees California's water shortages becoming ever worse, with the Sierra snowpack nearly disappearing over time. This will lead to "no more agriculture in California," and he added, "I don't actually see how they can keep their cities going." In 1997 California's population was 22 million; in 30 years it has grown to 36 million.

Headline Only: "Congress: A Distinct Criminal Class?

Another One: "Good News: Massive Layoffs Means Big Productivity Gains." Don't you just love the capitalists.

Redundancy: President Obama is establishing a second faith-based office, this one in the White House to coordinate violation of the church-state separation doctrine. It joins the Treasury, a faith-based department which routinely violates the separation of government and Wall Street.

ENOUGH ! In the name of sanity and truth, FOX should be enjoined from using the word 'news'. Now they've got Glen Beck running a Comrade Update for Communist Leader Obama, detailing the nation's descent into socialism. Two things: (1) the US is not descending into socialism, it is striving mightily to save capitalism and (2) ameliorating capitalist excesses is not down - it is up, and a destination devoutly to be wished.

Porn O'Graph: Invitation to a Lynching.


Man of Kent said...

Consequences. William Shakespeare, "King Henry VI - Part 2" Act Four Scene 2 and following. Jack Cade and followers. It says it all.

Anonymous said...

In response to Cardiff Giant:

In "Alternative Instrument for Open Market and Discount Window Operations" found here:

published in 2000 and revised in 2003, the Fed lays out it's plan to reduce it's dependency on US Treasuries to implement monetary policy. The Fed's plan was "to widen the types of assets it acquires for the System Open Market Account."

The plan includes purchasing agencies, foreign debt, corporate equities, and an expansion through a broadly diversified non-Treasury portfolios with outright purchases and repurchase agreements with broadly based collateral.

It reads like a blueprint for the Feds actions since 2007.

The Goal: to make the Federal Government irrelevant.

CKMichaelson said...

MoK - Aye, The first thing we do, let's kill all the lawyers. Bankers next.

maxrates said...

RE: Wreckers

You know as well as I that experts on both sides say the 900-trillion will not help and may hurt the economy.

Have you ever found anything good to say about the GOP ?

You rant...and rant, and rant,and rant.... Oh..excuse me.

Try to be just a little open minded and honest.

CKMichaelson said...

maxrates - No, what I read tells me that nearly all economists agree that spending is needed, very big amounts of spending.(Of course they don't say that the spending will turn into inflation... ) Experience tells me that tax-cuts do not 'trickle down' to become spending and tax rebates end up being saved, which is no help.
I don't recall finding anything good to say about the GOP since Eisenhower. Certainly the current 'cut taxes, kill the government, let the free market work its magic' bunch do not have much, if anything, to recommend them.
Certainly the despicable bait and switch they pulled on Obama is worth condemnation, for it poisons the well. The GOP played winner take all when they could, now they are a minor party want a different set of rules.
But you are right about ranting, and I've been a bit over excitable lately. Tell you what, if you can get the GOP from doing outrageous things, I'll stop pointing out the outrageous things they do.

The Anecdotal Economist said...

Goodness, all this fuss over ARRA 2009, THIS YEAR's stimulus bill. You'd think everyone believes this will be the one-and-only, like EES 2008/TARP.

That's why they add the YEAR to the name of the bill, so we can keep track as they keep coming.

For heaven's sake, just pass ARRA 2009, then start arguing about 2010,etc.

Fred, Cary NC said...

Two things: (1) the US is not descending into socialism, it is striving mightily to save capitalism and (2) ameliorating capitalist excesses is not down - it is up, and a destination devoutly to be wished

What laughable drivable..if it were striving to save capitalism, would have let banks fail and market clearing occur. Clearing capitalistic excess is what debt default is...which is precisely the Govt isnt letting happen. The old saying is true..capitalism without savings(uh 'Capital', bankruptcy and failure is like religion without hell.

Youre really, really, and utterly wrong on these points. Im not crazy about Beck but in this instance his Socialist rantings, when compared to what Americas capitalism even 20 years ago, is spot on.