Glenn: In the thousands of e-mails you and I have exchanged over the years, I thought I’d persuaded you that the economy’s big cycles have absolutely nothing to do with who is President, or which party dominates in Congress. The “mess” you refer to has been 50 years in the making, and Republicans bear no more blame for it than Clinton deserves credit for good times. If you want to fix blame, try Greenspan, who served under both Democrats and Republicans. And Barney Frank would be a good place to start if you think Fannie/Freddie need to be demonized. Anyway, I know you must miss The Smirking Chimp .com, what with the Bush-ter gone, but I didn’t intend for this forum to become politicized along the liberal/conservative divide; rather, our hostility toward Big Government and legal tender is deservedly bipartisan. Why not let your libertarian side hang loose here? You’ll find many kindred souls.
Funny how nobody in here seems to remember who made this mess. What was his name?? Oh, it was Clinton right or no no Carter right? LOL… Your Repubs. have very very selective memories.
Thanks for your kind words, CP and TKO, and also for sharing your thoughts concerning the issues of the day. It’s too bad the mainstsream press cannot acknowledge the grim facts staring them in the face. Anyone who talks about a recovery “in the second half ” should be ostracized from the public forum. It’s also unfortunate that we evidently will need to go at least $800 billion deeper in the hole before a decisive repudiation of Keynesianism is at hand. In the meantime, I would encourage speculation and debate in this forum concerning what Obama will do when his stimulus package fails to produce the hoped-for recovery.
I always read your colorful and insightful reports, and take them quite seriously, even forwarding them to “my network”. Thanks much and keep the ski’s waxed!
Tahoe Billy
ErnieFeb 11, 2009 @ 12:27
How funny, I didn’t recognize Brian Boitano, but I thought you were trying to depict our new featherweight Treasury Secretary, Tim Geithner. Talk about deer in the headlights.
TKOFeb 11, 2009 @ 11:37
Dear Cp,
I can’t agree with you more in your kudos to Rick A. A stroll through his archives reveals a brilliant and facile mind with a unique perspective comunicated with a humor that is worth twice the price of admission. Moreover, he has managed to survive and thrive in the modern day equivalent of the Roman amphitheatre, the trading pits. His parents were undoubtedly very proud of him, although perhaps a bit chagrined that he did not use his talents to become a medical doctor instead of devolving into an inveterate gold bug!!!!!!! Which brings me to my point. Zero investor confidence in the Obama administration, the polarized legislature, government policymakers, banks, stock and bond markets, housing market, economy etc etc. Yesterday the market was down 5 percent and the dollar was up, but gold popped. Key reversals in trend. The charts, price action and technichals are bullish. It is impossible to turn on the tv without seeing an advertisement to buy or sell gold. The ingredients for a major move. Spike anyone????Let the games begin. What do you think???
AlFeb 11, 2009 @ 10:44
I read parts of a book in 2004 called “Fasle Dawn” ( it was then stolen from the library)
Their was a chapter in there about Britains failed Free Trade and Globalization effort started in 1830’s and by 1850’s-1860 it was a disaster…..all that was promised was “fools gold’ and the populace got “shafted” a la depression.
Sort of like now…repeat from 1987 to now.
I agree with the infrastructure spending. But as Ravi Batra stated, Pay the lowest person on the payroll, 10% of the top executive pay. This should be mandated as law in every PUBLIC COMPANY on the Stock exchanges. Nowhere in Europe or Asia do you find the Top Management absconding with the dough like Wall Street has since 1982 onwards. So if Buddy at the top wants to take $ 200 million then pay the lowest wage person…$2 million and up from there. The CEO joker knows he can’t pay $2 million to the receptionist…so he has to CHANGE HIS HABITS!!
If this was the case, the America would not be bankrupct, people will have money and savings…..savings sustain a country, not profigate spending.
With these measures Rouges CEO”s will be capped and not steal and rape the companies. Funny how stupid shareholders are….if they took Batra’s suggestion…maybe their shares, 401k’s would be worth SOMETHING!!!
I can run the American Banks for $500,000 as the top guy if any of those chumps don’t want the job.
First thing I would do is hire “Traders” and the like..NO MBA’s for me…who know financial markets and value my employees by putting a figure on their talent on the balance sheet. The CPA’s are another bunch of fools…they audit companies,but don’t know “FRAUD” exists.
I doubt these suggestions will ever be enacted. So the “Jokers” in Washington, should get on a Nationalize the BAnks…asap and throw all those crooks in Jail….maybe execute them China Style. Where else do you get “charlatans” running around smiling after they destroyed the economy….and top if off these guys want more dough to fix the problem they created.
Nationalize Banks…and stop the shenanigans. Once this is done…watch the stock market start to rise or go sideways instead on down….STABILITY only come with Nationalization of the banks in a depression.
cpFeb 11, 2009 @ 10:12
“We still have no way to value the assets” clogging up banks’ balance sheets, said Richard Peterson, director of risk strategies at Standard & Poor’s in New York. No argument on that one.”
Although it’s mostly understood, I’d like to see more people who utter these words also finish what’s true about the premise. There is a way….put them out to bid and if they get 5 cents on the dollar bid then that’s what they’re worth.
Perhaps it should read “We have no way to value the assets…that will allow the banks to survive”.
I agree with Occdude, this will soon become Obama’s depression, even tho it’s roots go back decades.
Rick, I really appreciate your daily musings and rants, and believe that in time, these comment sections will grow. Thanks for what you do.
OccdudeFeb 11, 2009 @ 1:19
I think Bernanke is a closet gold bug who had a Freudian slip. It’s amazing that every central banker refers to gold as a “babaric relic of the past” when asked about the feasability of a gold standard, yet when confronted with the crap on their balance sheet, they use the “G” word in an attempt to rouse visions of pristine quality.
And if this stimulus fails, I don’t think Obama will be even a quarter of the populist you think he is. The natives are getting restless and if bread and circuses aren’t soon forthcoming, times may get interesting.
Comments on this entry are closed.
Glenn: In the thousands of e-mails you and I have exchanged over the years, I thought I’d persuaded you that the economy’s big cycles have absolutely nothing to do with who is President, or which party dominates in Congress. The “mess” you refer to has been 50 years in the making, and Republicans bear no more blame for it than Clinton deserves credit for good times. If you want to fix blame, try Greenspan, who served under both Democrats and Republicans. And Barney Frank would be a good place to start if you think Fannie/Freddie need to be demonized. Anyway, I know you must miss The Smirking Chimp .com, what with the Bush-ter gone, but I didn’t intend for this forum to become politicized along the liberal/conservative divide; rather, our hostility toward Big Government and legal tender is deservedly bipartisan. Why not let your libertarian side hang loose here? You’ll find many kindred souls.
Funny how nobody in here seems to remember who made this mess. What was his name?? Oh, it was Clinton right or no no Carter right? LOL… Your Repubs. have very very selective memories.
Thanks for your kind words, CP and TKO, and also for sharing your thoughts concerning the issues of the day. It’s too bad the mainstsream press cannot acknowledge the grim facts staring them in the face. Anyone who talks about a recovery “in the second half ” should be ostracized from the public forum. It’s also unfortunate that we evidently will need to go at least $800 billion deeper in the hole before a decisive repudiation of Keynesianism is at hand. In the meantime, I would encourage speculation and debate in this forum concerning what Obama will do when his stimulus package fails to produce the hoped-for recovery.
Rick,
I always read your colorful and insightful reports, and take them quite seriously, even forwarding them to “my network”. Thanks much and keep the ski’s waxed!
Tahoe Billy
How funny, I didn’t recognize Brian Boitano, but I thought you were trying to depict our new featherweight Treasury Secretary, Tim Geithner. Talk about deer in the headlights.
Dear Cp,
I can’t agree with you more in your kudos to Rick A. A stroll through his archives reveals a brilliant and facile mind with a unique perspective comunicated with a humor that is worth twice the price of admission. Moreover, he has managed to survive and thrive in the modern day equivalent of the Roman amphitheatre, the trading pits. His parents were undoubtedly very proud of him, although perhaps a bit chagrined that he did not use his talents to become a medical doctor instead of devolving into an inveterate gold bug!!!!!!! Which brings me to my point. Zero investor confidence in the Obama administration, the polarized legislature, government policymakers, banks, stock and bond markets, housing market, economy etc etc. Yesterday the market was down 5 percent and the dollar was up, but gold popped. Key reversals in trend. The charts, price action and technichals are bullish. It is impossible to turn on the tv without seeing an advertisement to buy or sell gold. The ingredients for a major move. Spike anyone????Let the games begin. What do you think???
I read parts of a book in 2004 called “Fasle Dawn” ( it was then stolen from the library)
Their was a chapter in there about Britains failed Free Trade and Globalization effort started in 1830’s and by 1850’s-1860 it was a disaster…..all that was promised was “fools gold’ and the populace got “shafted” a la depression.
Sort of like now…repeat from 1987 to now.
I agree with the infrastructure spending. But as Ravi Batra stated, Pay the lowest person on the payroll, 10% of the top executive pay. This should be mandated as law in every PUBLIC COMPANY on the Stock exchanges. Nowhere in Europe or Asia do you find the Top Management absconding with the dough like Wall Street has since 1982 onwards. So if Buddy at the top wants to take $ 200 million then pay the lowest wage person…$2 million and up from there. The CEO joker knows he can’t pay $2 million to the receptionist…so he has to CHANGE HIS HABITS!!
If this was the case, the America would not be bankrupct, people will have money and savings…..savings sustain a country, not profigate spending.
With these measures Rouges CEO”s will be capped and not steal and rape the companies. Funny how stupid shareholders are….if they took Batra’s suggestion…maybe their shares, 401k’s would be worth SOMETHING!!!
I can run the American Banks for $500,000 as the top guy if any of those chumps don’t want the job.
First thing I would do is hire “Traders” and the like..NO MBA’s for me…who know financial markets and value my employees by putting a figure on their talent on the balance sheet. The CPA’s are another bunch of fools…they audit companies,but don’t know “FRAUD” exists.
I doubt these suggestions will ever be enacted. So the “Jokers” in Washington, should get on a Nationalize the BAnks…asap and throw all those crooks in Jail….maybe execute them China Style. Where else do you get “charlatans” running around smiling after they destroyed the economy….and top if off these guys want more dough to fix the problem they created.
Nationalize Banks…and stop the shenanigans. Once this is done…watch the stock market start to rise or go sideways instead on down….STABILITY only come with Nationalization of the banks in a depression.
“We still have no way to value the assets” clogging up banks’ balance sheets, said Richard Peterson, director of risk strategies at Standard & Poor’s in New York. No argument on that one.”
Although it’s mostly understood, I’d like to see more people who utter these words also finish what’s true about the premise. There is a way….put them out to bid and if they get 5 cents on the dollar bid then that’s what they’re worth.
Perhaps it should read “We have no way to value the assets…that will allow the banks to survive”.
I agree with Occdude, this will soon become Obama’s depression, even tho it’s roots go back decades.
Rick, I really appreciate your daily musings and rants, and believe that in time, these comment sections will grow. Thanks for what you do.
I think Bernanke is a closet gold bug who had a Freudian slip. It’s amazing that every central banker refers to gold as a “babaric relic of the past” when asked about the feasability of a gold standard, yet when confronted with the crap on their balance sheet, they use the “G” word in an attempt to rouse visions of pristine quality.
And if this stimulus fails, I don’t think Obama will be even a quarter of the populist you think he is. The natives are getting restless and if bread and circuses aren’t soon forthcoming, times may get interesting.