September 5, 2011

Latest Pajamas Media Column (‘Nation Suffering from Obama-Induced Irregularity’) Is Up

Filed under: Economy,Taxes & Government — Tom @ 2:52 pm

It’s here.

It will go up here at BizzyBlog on Wednesday (link won’t work until then) after the blackout expires.

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3 Comments

  1. Proof why the Republicans just don’t get it, and even if they finally do get it in the end it will not be sincere belief but just a shallow desperate attempt to win votes.

    http://dailycaller.com/2011/09/02/constitution-less-conservatives/

    Comment by Greg — September 6, 2011 @ 7:19 am

  2. It’s Over
    http://market-ticker.org/akcs-www?post=193560

    Put a fork in it folks.

    As I write this the DAX is down well over 5% and there are multiple banks that are lock-limit down and have been suspended over in Europe.

    Greek 1 and 2 year bonds are trading over 50% on yield. That’s not a yield, it’s an implied recovery on a default which the market now says is inevitable.

    The fraud has finally caught up with the scammers and taking on more and more debt to cover up unpayable debt has run its course. Nobody believes it will work any longer, essentially. The market has called on the scams and frauds and is now serially demanding proof that the banks can fund their liabilities. It is doing so by driving down equity prices, forcing the institutions into a corner where their cash flow inadequacy is exposed.

    Banks in the US and Europe have covered this up for the last three years. I pointed out the scams in 2007 and used as an example Washington Mutual when I caught them paying dividends with money they did not have.

    That was all that honest regulators (call them “cops” if you wish) needed to step in and demand that crap stop immediately, and to close the institution if they couldn’t or wouldn’t cease and desist.

    But that was not done.

    Then 2008 happened, exactly as I predicted it would. Why? Because while you can lie about balance sheets for a long time, I’ve never seen a bank anywhere in the world that will let you lie about a deposit ticket. That is, cash flow always wins.

    The solution? Borrow more money! Look Ma, I can’t be broke – I still have checks!

    That was good for two years. But now that scam has run out of gas as well, as the ability to continue to roll over paper one instrument after another finally hit the wall and people said “wait a second, this is a scam – you can’t pay the original note and are trying to con me!”

    Well, yes. They were. This is a surprise when we’ve spent 30 years running the same scam? Exactly how dumb are you to continue to buy into the same scheme that you know blew up in your face in 2008?

    In 2007 and early 08 I counseled “ring-fencing” the government in the United States and pulling the supports, forcing the over-levered to default. Yes, I know, that would be disruptive. Very disruptive. But the government would go on and in the places where there was too much leverage, those people would go bankrupt on both sides of the transaction. Instead of blowing $4.5 trillion on “stimulus” programs we could have spent $200 billion providing three hots and cot to a quarter of the population for a year. “Creative destruction” would have taken care of the rest – the bad institutions would have gone under, bankruptcy would have been rampant, but from the ashes there would have been a massive rebound in the economy and the clouds would lift – with about half the debt in the nation gone.

    But now the $4.5 trillion is gone and it did nothing other than make the problem worse! …

    Comment by Greg — September 6, 2011 @ 7:58 am

  3. [...] This column went up at Pajamas Media and was teased here at BizzyBlog on Monday. [...]

    Pingback by BizzyBlog — September 7, 2011 @ 7:43 am

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