The loser, social programs mentality has spread FULLY to our economic warriors. What a bunch of bloody wimps! I am embarrassed to be a capitalist.
Did we learn nothing from Japan's lost decade (0r 2)? Dragging out the failures only prolongs the pain. It would be one thing if a socialist like Bill Clinton (and he was only a socialist until he made $100 million) was overseeing the nationalization of American industry, but a free market Republican? Thank G-d I'm Libertarian.
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So the Treasury finally fessed up, announcing a debt auction with the proceeds to shore up the Federal Reserve's balance sheet. This will not be over in the 35 day maturity of the offering, nor will it stop at $40 billion. This is the beginning of the end for the financial system as we know it. No, it won't happen overnight, and at time it may appear as if we pulled it off... but the energy import crisis is going to crimp the availability of the BTU's necessary to increase real GDP, and without that growth the Budget Deficit's percentage of GDP will grow until it consumes us. How long will this process take? Less than 10 years, and maybe less than 5.
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Talent??!! What talent? CEO's barely work. They have teams of highly paid consultants, minions, and assistants to collate and massage the data so that the "Talent" can make brilliant executive decisions, look good in a suit, and get paid 120 times more than some secretary or administrative assistant, whose IQ, by the way, is higher than the CEO.
These corporations are so big, they are like drift wood floating in a tidal current. When things are flowing, the tide can make up for all of the waste, over compensation and poor decisions the "Talent" can muster. But when things go the wrong way, not matter how brilliant the "Talent"... well, they still get paid.
I remember when the previous CEO of Exxon Mobil, Lee Raymond, had a $400 million year! Was it his brilliant execution? Hardly. It was the doubling and tripling of the price of Oil that led to those profits. Was Lee Raymond's contribution responsible for that? NAFC. Peak Oil was responsible, and Raymond denied its existence. I would have done the same, for $400 million.
Tax payer bailouts had better mean the end of the "Talent" rip off.
Back soon.
Mentatt (at) yahoo (d0t) com
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3 comments:
"The loser, social programs mentality has spread FULLY to our economic warriors. What a bunch of bloody wimps! I am embarrassed to be a capitalist."
It looks like corporate welfare, but really its just the top members of the oligarchy looking after each other at the expense of everyone else.
Or as ilargi puts it, the biggest wealth transfer swindle in history. Those in power are making up the rules in order to slurp at the public cash trough. I'm no socialist, but to me this is the logical outcome of unrestrained, unregulated capitalism - those at the top looking after themselves and everyone else paying the bill. No-one ever said capitalism had to be fair or equitable or benefit the interests of the majority.
This has little to do with the post, but I can't assemble the right answers: As a "Mish" fanatic, I do believe that we are in a massive deflation (like with the Great Depression). One of his facts that he uses to promote this is the graph of the cash in the economy (M1?) published by the St. Louis Fed. It is flat. No cash has been added to the U.S. economy. Credit, on the other hand, is flooding the economy. I always thought the price of gold was being moderated by this "cash no/credit yes" approach to Fed policy. Now, for the first time tonight, Brian Williams and the CNBC bigheads suggested that we are now going to have to start printing (dollars). This on the same day the gold price went up higher than it has since 1980. Did gold move because the Fed is finally going to have to start printing dollars and "pumping inflation," or is it something else? They all connected too well -- though I still think we are in a deflation for other reasons. Any ideas, Mr. Jeffers?
Andrew:
"It looks like corporate welfare, but really its just the top members of the oligarchy looking after each other at the expense of everyone else."
Couldn't have said it any better.
It ain't corporate welfare. It is what the "establishment" power in any society always does... Soviet, Chinese, Saudi, different brand, same sh--.
Thanks!
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