by ilene - August 30th, 2010 12:09 am
"Never have so few, done so little, and made so much, while screwing so many." Jim Quinn
Courtesy of Jim Quinn of The Burning Platform
“Financiers – like bank robbers – do not create wealth. They merely distribute it. While the mob may idolize holdup men in good times, in the bad times it lynches them. What they will do to the new money men when their blood is up, we wait eagerly to find out.” - Mobs, Messiahs and Markets
As our economy hurtles towards its meeting with destiny, the political class seeks to assign blame on their enemies for this Greater Depression. The Republicans would like you to believe that Bill Clinton, Robert Rubin, Chris Dodd, and Barney Frank and their Community Reinvest Act caused the collapse of our financial system. Democrats want you to believe that George Bush and his band of unregulated free market capitalists created a financial disaster of epic proportions. The truth is that America has been captured by a financial class that makes no distinction between parties. These barbarians have sucked the life out of a once productive nation by raping and pillaging with impunity while enriching only them. They live in 20,000 square foot $10 million mansions in Greenwich, CT and in $3 million dollar penthouses on Central Park West.
These are the robber barons that represent the Age of Mammon. The greed, avarice, gluttony and acute materialism of these American traitors has not been seen in this country since the 1920′s. The hedge fund managers and Wall Street bank executives that occupy the mansions and penthouses evidently don’t find much time to read the bible in their downtime from raping and pillaging the wealth of the middle class. There are cocktail parties and $5,000 a plate political “fundraisers” to attend. You can’t be cheap when buying off your protection in Washington DC.
Lay not up for yourselves treasures upon earth, where moth and rust doth corrupt, and where thieves break through and steal: But lay up for yourselves treasures in heaven, where neither moth nor rust doth corrupt, and where thieves do not break through nor steal: For where your treasure is, there will your heart be also. No one can serve two masters, for either he will hate the one and love the other; or else he will be devoted to one and despise the other. You…
Tags: anti-competitive business practices, borrowing, capitalism, CDOs, CDSs, consumer debt, corporate CEOs, Economy, financial innovations, Jim Quinn, lenders, middle class, no documentation (liar loans) mortgage loans, Option ARM loans, Simon Johnson, subprime loans, Wall Street, Wall Street elite, wall street financiers
Posted in Immediately available to public, Phil's Favorites | 1 Comment »
by ilene - July 29th, 2010 5:27 pm
Courtesy of Mish
Bill Gross usually writes an interesting column provided you skip over the first few paragraphs of introduction. His August Investment Outlook regarding population demographics is no different. Please consider Private Eyes.
Our modern era of capitalism over the past several centuries has never known a period of time in which population declined or grew less than 1% a year. Currently, the globe is adding over 77 million people a year at a pace of 1.15% annually, but slowing.
Observers will point out, as shown in the following chart, that global population growth rates have been declining since 1970 with no apparent ill effects. True, until 2008, I suppose. The fact is that since the 1970s we have never really experienced a secular period during which the private market could effectively run on its own engine without artificial asset price stimulation. The lack of population growth was likely a significant factor in the leveraging of the developed world’s financial systems and the ballooning of total government and private debt as a percentage of GDP from 150% to over 300% in the United States, for example. Lacking an accelerating population base, all developed countries promoted the financing of more and more consumption per capita in order to maintain existing GDP growth rates. Finally, in the U.S., with consumption at 70% of GDP and a household sector deeply in debt, there was nowhere to go but down. Similar conditions exist in most developed economies.
The danger today, as opposed to prior deleveraging cycles, is that the deleveraging is being attempted into the headwinds of a structural demographic downwave as opposed to a decade of substantial population growth. Japan is the modern-day example of what deleveraging in the face of a slowing and now negatively growing population can do.
The preceding analysis does not even begin to discuss the aging of this slower-growing population base itself. Japan, Germany, Italy and of course the United States, with its boomers moving toward their 60s, are getting older year after year. Even China with their previous one baby policy faces a similar demographic. And while older people spend a larger percentage of their income – that is, they save less and eventually dissave – the fact is that they spend far fewer dollars per capita than their younger counterparts. No new
…
Tags: Bill Gross, capitalism, consumer debt, Deep Demographic Doo-Doo, Mish, population decline
Posted in Phil's Favorites | No Comments »
by ilene - July 10th, 2009 3:31 pm
Sign up for a free subscription to Phil’s Stock World Report, click here!
Courtesy of Tom Lindmark at But Then What?
The Daily Reckoning had a chart up today that’s more than a little interesting. Take a look.
Scary isn’t it. Keep in mind that this does not include real estate debt. The sheer volume that needs to be unwound is astonishing.
I think the chart might, however, overstate the problem. It doesn’t appear to be in constant dollars and isn’t adjusted for population growth. It might not be so bad if this was portrayed on a per capita or per household basis. If anyone out there has a chart like that or knows where I might find one I’d like to hear about it.
Tags: consumer debt
Posted in Phil's Favorites | No Comments »
German
Spanish
French
Italian
Portuguese
Japanese
Korean
Russian
Chinese
Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...
Ilene is editor and affiliate program
coordinator for PSW. She manages the site
