economic rants

aboutready - this is indeed a sobering read, written so even a common man like myself can understand it.

This is another fairly straightforward piece with some similar themes:

http://market-ticker.denninger.net/archives/1439-WARNING-Deflationary-Collapse-Dead-Ahead.html

and the follow up:

http://market-ticker.denninger.net/archives/1442-More-On-My-Deflationary-Collapse-Ticker.html

Thanks, aboutready, for this link. It makes me wonder how much our government really understands about the economy or if they are just prolonging and exaccerbating the inevitable.

i have been thinking (perhaps obsessing is more correct) over this question for quite a while since reading most of the posts on the economic thread. As much as i don't like this conclusion--it seems inescapable that they understand completely. They don't have any better ideas and are rightly or wrongly terrified of going public with their real opinion so they put one foot in front of the other every day and hope that something somewhere will happen or occur to them that will either magically make the situation better or somehow get them off the hook.

Excellent piece ar. Interesting juiceman, smithers, Fsteve etc can't or won't comment of 'real' economic analysis.

Let me just add this analysis with my economics hat on. In accounting assets plus liabilities equals owners equity (a+l=oe). Seems to me americans have lost it's ability to remember the income statement in this equation. Net income is additive to owners equity and can be viewed as the 'real economy'. Somehow our leaders/wall street are so focused on manipulating the assets and liabiliies, they are just paying lip service to the real economy.

Rest assured, the unemployment rate will be the constant reminder that the real economy is not well. Cali at all time high, NYC at all time high, 13 other states above 10% - but don't worry lemmings -> forget that the rubber has been passed on and patched by Goldman sachs, tim geitner, greenspan, bush, Obama, madoff, Jim cramer, Barney, pelosi, and every 1st year bucket shop worker -> just put on your rubber and go ballz deeep!!!!!

I

Moyers did a piece on his PBS program not that long ago & perhaps it was an interview with an author (?) but he compared the bankers to the oligarchs in the third world, the few in the upper echelon who are calling all the shots, & he said that until & unless the government stands up to these powerful big money special interests, they'll be calling all the shots. 'Too big to fail' means they've got the regulators by the balls.

i am in no way an apologist for wall street but i don't think they are causing our problem. they are benefiting, for sure; my concern is that by focusing exclusively on trading profits, its easy to lose sight of the more complex and thorny problems of an economy/society with mixed priorities and perverse incentives.

Not to mention, CC, that, to the best of my knowledge, the corporations are still getting preferential tax treatment while they continue to offshore jobs & the politicians keep mouthing the platitudes of the value of free trade. What happens when we're all selling drugs & stealing radios 'cause all the jobs have been offshored?

"Interesting juiceman, smithers, Fsteve etc can't or won't comment of 'real' economic analysis."

"real" economic analysis? Is that what you post w67th? Where is it, between the azz and ballz or the tits and pits?

"Let me just add this analysis with my economics hat on. In accounting assets plus liabilities equals owners equity (a+l=oe)"

Straight from the economist I presume? This is deep stuff w67th, not sure I can keep up.

2004 or 1999 prices oj? I say 1999 prices adjusted for inflation. Howz the rent rolls goeth o' great predictor of NYC re rebound in 11/08', yes you are the economic genius whereas I am but a poor LL with an LC from you taxpayers. Flmao. Just look at your comps and your bank account. If u would've just listened to me a year ago you couldve preserved your undeserved bubble riches. Flmao.

(a+l=oe) = Flmao

The ledger system invented by the Egyptians to ensure proper grain payments to the pharoahs. Yeh, worthY of flmao, I guess - shrug-

But again, great call on the GREAT rebound on NYC re on 11/08' OJ. Doez the glove fit?

When did I call a rebound and why are you bringingthe Eqyptians into it? Doesn't Jesus deserve the credit?

Great article AR. I was also confused about why the government was lowering rates to 0% when it didn't help japan. I still say the government is going to be the major player in finance and that nyc will be second to D.C. in that respect. I'm not saying it's all a plot just that's where the chips are falling right now.

These articles and more being linked to are all saying the same thing: we're digging ourselves deeper and deeper into a hole. My favorite aw-shucks-I'm-not-an-economist piece of pithy doomsaying is Warren Buffett's 2004 rant about the dangers of a growing federal deficit:

http://www.freerepublic.com/focus/news/1053684/posts

He was not talking about mortgages, or about consumer debt, or about swaps or dawps or mops. But the illustrative fable/analogy, although it's meant to suggest the USA becoming Second or Third World as another country or countries rise to take our place, seems appropriate. Can't pay off your debt? Take out a bigger loan to pay it off. Can't make the payments? Sell your first-born child and offer all future offspring as collateral for an even bigger loan. "Stimulus"? Shmimulus.

After reading that piece Lowery, maybe the chinese and other creditors of the US may be looking to buy some NYCRE in the near future - just what we need to prop up those monthly sales figures!

Yeah, I've been depressed about the prospects of the "First" World since age 10. Something's gotta give - people have been saying this since the 70s and are the tectonic plates finally budging?

10023, i think they may finally be. i think that those that were so busy offshoring this and that and everything but their grandmother were convinced that the emerging countries would pick up the consumer slack, "decouple" if you will. of course people in those emerging countries haven't been inclined or even probably allowed to do so. and that's the difference about the comments from the 70s forward. not that the people in the 70s didn't have real concerns, they just didn't have a revolution in globalization that we weren't prepared for in the slightest.

lecker, there's cash and a lot of it. just not much of any value to buy with it. bubblicious.

Here's my economic rant of the afternoon...AIG, +6pts b/c the gov is considering giving them even more favorable treatment. Where's my bailout again? Why do I have to pay my taxes?

w67...I generally find your posts pretty funny, so don't take this personally.... but its A=L+OE. You've stated the accounting principle incorrectly. Nonetheless, never let the facts get in the way of a good rant!

If you really want to feel like someone's poor country cousin, go to Europe and see how much your dollars buy at restaurants.

Oh, but..... I keep forgetting..... we have it so much BETTER than they do, because we DON'T have "Socialized" medicine. They're just dying of poverty over there, and everything else, right? I wish it were funny.

Walther7. Thank you sir. You are absolutely correct, my accounting professor would have given my nutz to the dogs. Please don't tell him. You know I was just doing my close out of a liability account my debit line needed an offsetting credit (from chcking) and it hit me, I went way too quickly in putting in the holy trinity of the ledger accounting system. I think I need to go back to school.

Thank you again walther7.

Juiceman, my apologies to you too. You should be absolutely flyao on my complete butchering of the ledger system.

lowery, we have the option of being europe-based.

f if i don't know why, other than our daughter's school, why the f we don't go.

w67thstreet
35 minutes ago
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Juiceman, my apologies to you too. You should be absolutely flyao on my complete butchering of the ledger system.

now now doggie. I thought you were a TA.

What happened?

Was it sitting home all day naked with an occasional jaunt to the gym to show off your squatting skills that left your head atrophying? Wouldn't your family be upset? After all, Only the Best, doggie. Repeat it many times before bed and it'll become true just like all of your other achievements.

aboutready - s/he who hesitates is lost - if you think you're sorry now, just wait a few more years

go east young woman!

Aboutready, in my opinion, giving your child the opportunity to live and study abroad is the best education you could ever give them.

AR: I don't know why you hesitate. Agree that it is fantastic exposure for anyone to live abroad as a young person. And you can do SO many weekend trips to the Continent.