Jesse's Café Américain Thu 2010-01-07 19:07 EST

Class Warfare American Style

Jesse

Matt Taibbi's reaction to the ZeroHedge story with regard to Turbo Tim's lifting of the government support on Christmas Eve for the GSE's was exactly my own. You can read it in its entirety here. What he does not overtly say is that this is class warfare, and it is becoming worse in the US than at any time since the 1930's. And the outcome of this will be a fundamental test of the US commitment to its republic. The media stokes the viewing public into emotionally-based and virulently distracting arguments about liberal versus conservative, while the gentried class skins them all alive.

Class Warfare American Style; Jesse's Café Américain.

Jesse's Café Américain Fri 2009-11-20 08:01 EST

Krugman Declares "Mission Accomplished," Maginot Line Completed

Jesse

...the key to coming out of a crisis permanently is not how quickly and dramatically one inflates the money supply, or even how long one maintains it, and how many stimulus programs one can create, but rather how quickly and capably a country can reform, can change the underlying structures that caused the problem in the first place. Japan has been doing it slowly because of its embedded kereitsu structure and government bureaucracy supported by a de facto one party system under the LDP. In the 1930's the impetus for reform was overturned by a strict constructionist Supreme Court and an obstructionist Republican Congress. The story of our time might be the perils of regulatory and political capture.

Jesse's Café Américain; Krugman declared; Maginot Line Completed; mission accomplished.

Mish's Global Economic Trend Analysis Mon 2009-10-12 09:22 EDT

One Hand Clapping Theory Analyzed

Michael Shedlock

Numerous people have asked me to comment on Chris Martenson's article The Sound of One Hand Clapping - What Deflationists May Be Missing. Chris Writes: ...``Trillions in probable and provable losses quietly exist, out of sight, on the balance sheets of the Federal Reserve and other financial institutions. If they ever come out of hiding and onto the books, I think the deflationists will be proven correct beyond all doubt. But let me ask this: What prevents the authorities from simply storing them out of sight forever?...I am now wondering if they cannot keep this up indefinitely.'' ...In a credit based economy, the odds of a sustainable rebound without bank credit expanding, and consumers participating is not very good. Even if one mistakenly assumes that the recent rally is a result of pretending, should we count on sustained success now more so than a measurement of stock prices in April of 1930, or any of Japans' four 50% rallies? I think not. Pretending cannot accomplish much other than prolonging the agony for decades. This is the message of Japan. Moreover, the US is arguably is worse shape than Japan because our problems are unsustainable consumer debt, high unemployment, and massive retail sector overcapacity. Those are structural problems that no amount of pretending in the world can possibly cure. In due time, the market will focus on those problems.

hand clapping theory analyzed; Mish's Global Economic Trend Analysis.

zero hedge Wed 2009-09-02 20:01 EDT

Money On The Sidelines... 1930 Versus 2009

There is a saying, that everything new is just well-forgotten old. The same apparently is especially applicable to propaganda that seeks to part fools with their money. Today's brownie point question is: was the statement below just uttered by Larry Kudlow, or did it appear first more than 79 years ago? There's a large amount of money on sidelines waiting for investment opportunities; this should be felt in market when ``cheerful sentiment is more firmly intrenched.'' Economists point out that banks and insurance companies ``never before had so much money lying idle.'' If you answered "the latter" you were correct. It first appeared on August 28, 1930 to be precise (and who knows how many times prior...

1930 Versus 2009; money; sidelined; Zero Hedge.

Thu 2009-07-30 00:00 EDT

Jesse's Café Américain: The Worst Is Yet to Come

Jesse's Café Américain: The Worst Is Yet to Come -- Howard Davidowitz; ``the briefly sunny period in 1930-1 when most economists and public officials agreed that the Depression was already over and the economy was back on track...t was the second half of the great stock decline after the 1929 Crash that did the most damage, because this is when the carnage moved from financial assets and the banks into the real economy''

comes; Jesse's Café Américain; worst.

Tue 2008-11-25 00:00 EST

The History Box | Panics, Depressions and Economic

The History Box | Panics, Depressions and Economic Crisis Prior to 1930

Depression; economic; history box; panic.

Thu 2008-07-03 00:00 EDT

naked capitalism: Are Trichet's Rate Hikes 1930 All Over Again?

"rather have the central bankers simply sit tight and do nothing for a quarter and try to get a better handle on the fundamentals."

naked capitalism; Trichet's Rate Hikes 1930.