Not only is the United States slouching toward a double dip, but so is Europe. New data out today show even Europe’s strongest core economies – Germany, France, and the Netherlands – slowing to a crawl.
We’re on the cusp of a global recession.
Policy makers be warned: Austerity is the wrong…
August 16, 2011
Robert Reich: How Austerity Is Ushering in a Global Recession
June 17, 2011
Chomsky: Wealthiest 1% rule our politics
So Noam talks about the global capital concentrated within the hands of the few, and the struggle it will take to combat it. I wanted to share this article because of how different it is than Noam’s usual rants. I agree with most of what he says, but his analyses contain a pessimistic and cynical theme. This is one of the rare reads where he actually has positive input about the future and the freedoms available in the US. It was a nice change.
May 19, 2011
Matt Taibbi: Hammer about to come down on WallStreet
According to Matt Taibbi of Rollingstones, New York attorney General Eric Schneiderman is about to do some serious damage to the major banks by running an investigation into dealings during the financial crisis. The three companies under focus are Morgan Stanley, Bank of America, and Goldman Sachs. This investigation will attempt to figure out if the banks were aware of the loans’ toxicity when they packaged them into securities and sold them to investors.
MY TAKE
Although it seems like a very positive development, unfortunately I don’t believe this will result in satisfactory retribution. First of all, going back to those times, it will be very difficult to prove that the banks knowingly took risky loans and passed them on to investors. Unless they find ample testimony and written proof, how will they know if consumers were intentionally sold bad loans or if it was just a case of blind risk taking. Keep in mind, from consumers to lenders to Wall street all thought that this ride would never stop, and when it did everyone was in for a rude awakening.
I want to put an end to the idea that this was a plan by Wall Street to screw over investors. Keep in mind, the companies’ reputations are on the line when people invest with them, and they can seriously damage their well being with acts like that. Now having said that, do I believe they had an idea before most of the public that they had gone too far, of course they did! Once they realized it was too late, they had no choice but to let investors and tax payers take the heat for the extreme risk taking.
Was this completely immoral? Yes. Do they deserve being punished for this? No, I don’t think so. I know this may sound crazy to liberals, but you have to understand it was lack of oversight that led to this mess. The idea that there should not be any regulation is what caused this catastrophe. A business will do what it can to maximize profit. If we claim to be a capitalistic democracy, we have to let business operate within the rules. We should not expect moral judgement from business. The answer lies in making the laws tough enough to prevent this from occurring.
May 12, 2011
According to Forbes: US could be on Gold Standard within 5 years
MY TAKE
So according to business fiend Steve Forbes, the US will have no choice but to be back on the gold standard within the next five years. His reasoning: well he didn’t really say except that the idea will gain popularity and it will be the only way to attract foreign investors. News Flash for Mr. Forbes, that’s not good enough to bring back the gold standard. Our own corporations don’t invest in the US, never mind foreign investors. Why is that again? Oh because costs are less overseas. China continues to intentionally devalue their own currency to make sure costs for businesses stay low. In an environment like that, does Mr. Forbes really believe that the US will suddenly decide to worsen their own situation.
Now don’t get me wrong if everyone was on a level playing field, having a gold standard is a great way to keep the federal government responsible. Unfortunately in today’s one world global economy, Tariffs have a better shot at making a comeback than the gold standard.
May 12, 2011
Japan’s coming hyper-Inflation!!!
*Taken from Zerohedge.com To those who follow Dylan Grice’s writings closely (and everyone should), his proposal that the only possible outcome for Japan, where stunningly tax revenues no longer ever cover non-discretionary expenditures - a sad fate that awaits none other than the US eventually, is to hyperinflate its way out, is not new. Nonetheless, during the just completed annual CFA Institute annual institute held in Edinburgh, he gave an updated presentation which indicates that he has not yet changed his opinion that if forced to pick between the lesser of two defaults, the only option is that of unbridled printing, now that the US has firm leg up in the global fiat race to the currency bottom, which we predicted back in 2009, will be the key feature of the macro theme until the end of the Keynesian experiment. So, as before, Grice’s recommendation, away from the natural trade of shorting bonds (a negative carry trade which has cost the likes of Kyle Bass a pretty penny over the years) as one awaits this only possible outcome, is to actually discount the future, something the market has completely forgotten how to do, and buy stocks, in advance of the Weimar Rally for the Rising Sun. Below we present “Hoping for the best, preparing for the worst…in Japan” - Grice’s presentation of an upcoming Japanese hyperinflation, which explains not only why Japan can’t afford higher JGB yields, but why its to-date favorable demographic are now looking uglier by the day, and the only outcome for Shirakawa is to finally bite the bullet and beat the Chairsatan at his own game, in the process forcing the Bernank’s own hand if he wishes to retain the USD’s place at the head of the FX devaluation race. For the really ADHD afflicted, here is the “CDS trader” abridged version:
(Source: zerohedge.com)
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“This is my first video so be kind:) I was super nervous! And this is …………..Why everyone should get a Heart On for the Zeitgeist Movement.”
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“People are never more insecure than when they become obsessed with their fears at the expense of their dreams.”— Norman Cousins
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The Obama Budget: And Why the Coming Debate Over Spending Cuts Has Nothing to Do With Reviving the Economy
President Obama has chosen to fight fire...
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“I pray for success everyday and then I act on it. Too many people just pray for it.”— ATIF KAZMI
