Deflationary pressure?

June 30, 2009

Five States brace for shutdowns
Time is running out for the legislatures in Arizona, California, Indiana, Mississippi and Pennsylvania to solve budget gaps.

“Of the 46 states whose fiscal year ends today, 32 did not have budgets passed and approved by their governors as of Monday afternoon, according to the National Conference of State Legislatures.” [LAT]


Ten States Race to Finish Budgets [WSJ]

How much of the problem is that taxes (“income” via sales, income, property levies) increasingly go to pay down debt- bonds, interest on borrowed money, etc. to finance pet projects, build Taj Mahal’s to stupidity and the petit bureacracy, overpaying their pet contractors in the process?

From my POV politicians imprudently leveraged *everyone’s* future to make *their* careers.

How different is that REALLY from Wall Street firms which for years goosed earnings to earn record bonuses?

Of course, if they hadn’t crashed the car from blind drunkenness, nobody would be in harm’s way, right? In a sober moment, perhaps you’d realize a crash was inevitable.  As a drunk driver who was sued civilly by the man whose car he ‘borrowed’ once said:

“I take full responsibility… but you should have never trusted me, so it’s really all your fault.”

I’m starting to doubt CA will ever get that bullet train from LA to SF.

We’re all subprime now!


Madoff’s Ponzi Partner Roams Free

June 30, 2009

This guy is one of apparently many accomplices that benefited (and perhaps helped direct) such massive fraud. They are doing everything in their power to stay off the radar.

Let’s hope the Madoff “victims” continue to keep the cross-hairs zeroed on Bernie’s fellow Ponzers.

After reading this account of Jeffry Picower’s involvement (let’s call it bezzling) with big pharma (see this series of articles on Milken too), I am starting to come to the conclusion that the games these investor types  (among their cohorts: Martha Stewart) are playing with pharma is but nothing better than a very advanced shell game.

He isn’t under investigation, he isn’t answering questions, he’s laying low and and he’ll do everything he can to stonewall any and all inquiries until people just lose interest. And he’ll likely keep every cent (and then some) of his billion-dollar bezzle proceeds.

Clawback Now! Disgorgement is the Way Forward!

Dem snake oil salesmen have come a long way, baby.

Weekend reading

June 27, 2009

Some pieces to keep you out of trouble over the upcoming (and ironically named) Independence Day weekend.


Palace Coup:
Matt Taibbi’s piece on Goldman Sucks. [Rolling Stone]

We Are Devo:
Charlie Smith, Domino Devolutions: Credit, Assets, Spending, Taxes, Jobs [Of Two Minds]

Preview of coming attractions:
Alt-A and Option ARM Economic Disaster Update: California Solution? Workout 3,430 Alt-A loans in March. Good Job. All we have is an additional 643,000 Alt-A Loans in the State. At this Rate it will take us 15 years to Modify or Alter all Alt-A Loans. [Dr. Housing Bubble]

Say it ain’t so, Matt:
Goldman Sucks and their tool Drudge [GoldmanSucksRules]

Hope[tm] for service-sector droids:
The Case for Working With Your Hands [NYT]

When Meddlesome Bureacrats and Masters of the Universe COLLIDE!
Treasury/ESF Interference In US Free Markets (Draft), by Eric deCarbonnel [Market Skeptics]

Long (ish):

It’s Over, It’s Over, It’s OOOOOOoooooooo-ver
It’s Finished, by John Lancaster [London Review of Books]

Americans Would Be Paranoid if They Knew Everyone Really Was Out to Get Them
De-Dollarization: Dismantling America’s Financial-Military Empire, by Michael Hudson

Moscow on the Hudson:
REDWASH: The untold story of the Bank of New York, global money laundering and financing of international terror [Moscow Telegraph]

The next two entries are actual books:

Oh Smedley, Smedley Butler! Where for art thou?
America’s Hidden History, The Plot To Seize The White House By Jules Archer [Information Clearing House]

From the Dept. of (the facetiously named) It Can Never Happen Here:
When Money Dies: The Nightmare of the Weimar Collapse, by ADAM FERGUSSON [Mises dot org]

[Rolling Stone

Enveloped in a Green Chute

June 27, 2009

“… indentured servants who have fewer options than renters.”

June 26, 2009

Got to love them banks.

Wishful thinking

They get bailed out, and farm out the mortgage-mod grunt work to criminals, liars, and thieves (former <spit>  mortgage brokers). How’s that working out?

In March, about 10% were actually finalized.

1/10 of one percent of all  ‘mortage workouts’ actually see a reduction in principle.

Dr. Housing Bubble does an excellent job of bringing this part of the Grandest Boondoggle of Them All into sharper focus with each post. Folks, the Alt-A and option ARM tsunami is out in the middle of the Pacific and be assured, it is heading this way.

I’m not in favor of reducing principal per se, but when banks got such generous bailout terms that came right off the table (we’re in this mess together, like it or not). Shouldn’t the banks be encouraged to pass the savings on to the bailer-outers, i.e. underwater home-renters homedebtors?

That would work out similarly to the way the funding passed right through the golden goose of AIG- which shat out of their anus BILLIONS into the waiting mouths of Goldman Sucks.

BTW, a ‘workout’ completely favors the bank. If a workout is ever ‘successful’ (YMMV), it guarantees a life of indentured servitude. Term extensions, a short-term extension of the teaser rate, and small principal deferral are the main methods being used to bind the homedebtor slave.

Workouts are simply buying time, kicking the can down the road… and eventually today’s workouts fall permanently into the default column too.

You’re really better off walking away.

Debtors are the slaves to the world.

Capital crimes

June 23, 2009

The U.S. is about to go broke and they’ll take us down with them []

America is about to go broke and every Western country, including Canada, will pay the price.

Abortive coup in the US ignored by media, hushed up by TPTB [Info Clearing House]

On the coming neo-feudalism [Animal Spirits]

FEMA’s National Level Exercise scheduled for late July is supposedly a counter-terrorism drill, but I would bet it involves practicing how to impose martial law.

What’s in your bug-out bag? [Chris]

You bought your neighbor a house, you paid off their credit cards, and now you get to buy them a car. Congratulations America, you have now gone full retard.

New, Hard Evidence of Continuing Debt Collapse! [Martin Weiss]

Goldman Sachs has “Self-Actualizing” information on Hyper-Inflation [Goldman Sachs Rules]

“The Greenspan era has nurtured a vast financial sector. All the people in this business need something to do. Since they invest other people’s money, they are biased toward bullish sentiment. Otherwise, if they say it’s all bad, their investors will take back the money, and they will lose their jobs. Governments know that, and create noise to give them excuses to be bullish.” -Andy Xie

The Treasury is really the nasty piece of work, so why does the Fed gets all the blame? [Market Skeptics]

Its a plan to crash our currencies, what comes nexts is special drawing rights, the 2009 name for the Bancor devised by john maynard keynes backed by 12 or so different commodities or the amero. However, it will have the same problems as the dollar, just on a global scale. We want sound money and money that is not issued by globalists. Wake up people there is a worldwide conspiracy going on to bring all of us further into global and regional government. We need currency competition and national soveriegnty all of us. US, Canada Mexico . -Bukkake-sake

Andy Xie: Tight Spot for Fed, Blind Spot for Investors []

“In the long run, all companies go bankrupt.” -Andy Xie

It’s Finished, It’s Over, The Fat Lady has Sung, rotsa ruck [London Review of Books]

De-Dollarization: Dismantling America’s Financial-Military Empire [Prof. Michael Hudson]

Devolution doesn’t threaten the Status Quo, so that’s why it is: Coming Soon! [Of Two Minds]

Middle class household(s) might actually respond with an anger deep and hot enough to become political if their middle-class lifestyle was taken away in one swoop. But devolution insures that the process is akin to the famous analogy of the boiled frog: if the temperature of the water is increased slowly enough, the frog never notices (or so the story goes) that he is being boiled alive.  [Charles Hugh Smith]

In hindsight, perhaps I should have hung on to that storage locker.

Who regulates the regulators?

Benron is just getting tired of his shit

June 22, 2009