1 fuuuucccckkkk! Stimuli doesn't work. Stop it!!! Or better yet, all the $ you were going to stimulate us with, just do it with tax cuts.

2 Crap! It's a TWO MONTY DAY. I gotta post another headline now.

3

bad , bad, financial news.

I'm glad you followed that devastation with a really handsome man pic. thank g-d for little mercies.

4 Hmmm. My previous post could be misinterpreted. I meant, things are SO BAD that it takes Monty TWO posts to cover them.

5 2 important BP stories:

BP's Tony Hayward starts City charm offensive amid oil spill hurricane fears
Right now, they're trying to decide how much of their assets to sell, & whether they should break the company into pieces.

Hayward to Meet with Russian Officials Next Week
This is extremely important, because Putin smells blood & could use the opportunity to his advantage.

6 Here's the thing about algorithms and equations: they're only as good as the data you feed into them.

-------------

Actually, my algorithm will give you good results no matter what data you put into it.

7

Monty,  and about Orzags resigning , and Joint  chair of chief  giving another heads up.

Is there any chance all this movement  will make anyone that is still an adult in this administration stand up, what about Geitner is He totally  rolled over?

8 Cameron urges G8 to follow Britain's 'unavoidable' cuts as he faces off against Obama at summit

9 Feed them bullshit as input, and you're going to get bullshit right back.

Not right back. You get superbullshit, and sometimes superbullsupershit. That shit's worth its weight in gold! And that's almost 0.00000000000000000294% its weight in gold! BUY!

10 A double dose of the Doom.  It is bitter, but needed, medicine.

11 whether they should break the company into pieces Personally, I think that's pretty much a foregone conclusion right now -- either that, or they form a partnership with an American oil giant. But that probably wouldn't survive antitrust scrutiny, so...Chapter 11. BP is going to get hurt pretty bad if they have to sell their Prudhoe Bay fields and their GoM fields -- those are high producers for them. An alternative would be for the entire corporation to file for bankruptcy in London. They could re-organize under British law and tell the Americans to sit and spin. It would piss off the Americans no end, but I doubt the British give a shit about that right now.

12 Monty - Really been enjoying your work. Classes up the place and really ties the room together. The Financial Briefs are teh awesome! Kudos and keep it up.

13 One of the Democrats' favorite strawmen over the years has been the "predatory lending" businesses that "prey on the poor": the check-cashing joints, the payday loans, and the pawnshops. These joints are unsavory but... Hey, if your car breaks down and you need to get it fixed so you can get to work it's better to get a payday loan that you might not pay off for 5 months than it is to get fired.

14 12 I think breaking-it-up into several pieces & letting portions be bought by other oil companies would be a smart move. Keep the London office, & let companies like Anadarco buy BP America-Houston. As for the Alaska & other sectors, the London office might be able to keep them.

15 Is there any chance all this movement will make anyone that is still an adult in this administration stand up, what about Geitner is He totally rolled over? Geithner is a waste of skin. He's the Fredo Corleone of the Government. Hopeless, helpless, incompetent, and completely in thrall to His Majesty Barack Obama. Geither never had much of a backbone to lose. Bernanke is all-in on the Keynesian express, as I indicated in the links above. He's made it clear that he'll print money until the presses catch fire if he has to. No help there. No, I think it's going to come down to two things: the November elections, and someone like Congressman Ryan convincing the GOP to slam on the brakes and adopt the same austerity measures that Europe is implementing. And it's not going to be an easy sell, because it guarantees a Depression, worldwide -- lasting probably five to ten years. But there's no other way to hack away that huge debt overhang that all developed countries are laboring under. (Unless we talk about a global, synchronized "reset" of debt -- basically, everyone defaults and you have a another Bretton Woods to clean up the wreckage and establish an asset-backed monetary regime. I'm dreaming, of course, because this will never happen given the political cowards who now sit in the halls of power.)

16
Dammit, Monty, it's Friday night for the love of Pete! Allow us morons the courtesy of being able to enjoy our weekend without your Doom and Gloom™ financial roundup. Please?

17

Monty, i do remember several people giving warning that Geitner or Bernanke were not experienced enough to handle the economy. I often wonder if that was the point of their being put in those postitions.

paranoia? guess it really doesn't matter at this point.

yelling FIRE!

heh

18 They could re-organize under British law and tell the Americans to sit and spin. It would piss off the Americans no end, but I doubt the British give a shit about that right now.

They could keep a bust of Churchill on the table during discussions.

19

¡Dios mio! ¡No es bueno!

FIFY.

20 This might muck up things even more in the Gulf.

Update: Unclear if tropical depression will hit oil spill in Gulf of Mexico - AP http://bit.ly/9By7gz

21 Related.  Heh.  Cavuto gets afl-cio guy to call him an asshole on live tv.

22 24 My understanding is that BP has made preparations in the event that occurs. (Though there would only be so much they could do, obviously.)

23 The good news: You'll have twice as many dollars! The bad news: They'll only be worth half as much. Maybe less!

OK, I'm too stupid to understand the link. Can someone explain what that means for my savings account, in small words?  My understanding of inflation is that account will have the SAME amount of dollars, but be worth half as much.

24

The Italians are not fiscally responsible!?

How could that be?

Personally I'm surprised that country has managed to last this long. Actually, now that I think about it, nobody else wants them. never trust a country without a reliable and mostly working postal system.

25 Paul Ryan: A Plan for Prosperity

26 Wouldn't a hurricane be good thing in gulf?  Right now the damage is being done by high concentration "clumps" and O2 depletion -- both of which a good mixing and dilution would minimize.

27 I just bought a new house, I'm still living the American dream. It's gotten a fuckload harder, but I'm still hanging in. I'm actually at the point where I'm taking in family who can't hack it anymore. I lose my house, I lose my shit, I lose control.

End. Of. Story.

I've got a feeling a lot of people are in the same boat I'm in. Once I feel personal pain and it affects my loved ones, all bets are off.

28

No longer can you expect to do a sea-shore-sea rotation.  The Navy wants to cut 2/3's of it's shore billets which means more time at sea. 

That bad, eh?  at that ratio that means no male enlistee will ever get a shore billet because all the preggy females will be filling the slots.

29 OK, I'm too stupid to understand the link. Can someone explain what that means for my savings account, in small words?  My understanding of inflation is that account will have the SAME amount of dollars, but be worth half as much.

Posted by: HeatherRadish at June 25, 2010 06:40 PM (M9BNu)

The bright side is that your interest rate on your savings account could go to 500% a MONTH. You will be a millionaire in no time!

The downside is that is about what a loaf of bread will cost.

Savers ALWAYS get boned by inflation. 

 

30 My understanding of inflation is that account will have the SAME amount of dollars, but be worth half as much. It's kind of a complicated subject, and it's hard to summarize accurately, but briefly: you cannot create "wealth" out of thin air. You can print paper money at will, of course, but you haven't increased your national wealth one iota by doing so. It's like of like putting water into wine: you start with pure wine (money), drink a bit, and replace the bit you drank with water. The volume is the same, but the amount of actual wine is less (replaced by water). Repeat several times, and eventually, you'll have 99% water and 1% wine even if the volume didn't change. It's still "inflation" even if the volume didn't change because the value was adulterated. (The same thing happened in the old days when they'd debase a gold or silver coin with a base metal but insist of valuing the coin at the previous rate.) So imagine what happens if you double the amount of water you pour in after every drink. It's magical! You have more wine even though you've been drinking the whole time! Except you don't. You actaully have much less with each drink, because you're adulterating it twice as fast by increasing the volume of water. You'll end up with a container of liquid that's twice as big as your original glass, but it contains only trace amounts of actual wine (wealth). You "inflated" your wine supply by telling everyone that water is actually wine. Except that it isn't, and no sleight of hand will make it wine. Does that make sense?

31 Would I Bonds be considered a safe harbor now or wait a few months?

32 OK, I'm too stupid to understand the link. Can someone explain what that means for my savings account, in small words?  My understanding of inflation is that account will have the SAME amount of dollars, but be worth half as much.

Posted by: HeatherRadish at June 25, 2010 06:40 PM (M9BNu)

The bright side is that your interest rate on your savings account could go to 500% a MONTH. You will be a millionaire in no time!

My guess is not only will it be worth half as much, but if all of the stimulus is given to banks they may not pay you much above 0% since that is what the fed will give them free, for a while at least, til he tries to stop inflation, at which point you have spent your savings.  This is how they basically steal money from the middle class.

33 Would I Bonds be considered a safe harbor now or wait a few months? Might as well buy them now as later. The interest rate sure isn't going up any time soon.

34 By the way, has anyone seen $20 bills with TurboTax Timmy's signature yet? Haven't seen any and I have a Fisher pen that's dying for a workout.

35 Monty, the problem with that parable is that some people will interpret the increasing volume of transactions (not the value) and declare all is well -- just like some people will drink enough of that watered wine and declare it good shit.

36 My understanding of inflation is that account will have the SAME amount of dollars, but be worth half as much.

Posted by: HeatherRadish at June 25, 2010 06:40 PM (M9BNu)

Shorter version: You're Boned.

37 "juicy background" link about Orszag seems broken

38 My 20 dollar bills have my signature on them.

39 Monty - your advice is as good any of the "pro's", buying 5K online tonight.

40 Monty - your advice is as good any of the "pro's", buying 5K online tonight. Holy Jesus, don't come to me for financial advice! I mean that in all sincerity! Before you spend your money, talk with a financial advisor (there are some good ones out there), or a trusted family member. I'm just some dipshit on the intertubes -- for the love of God, don't take my natterings as financial directives! (And I'm not -- only -- trying to escape moral/ethical liability here. I value my Moron friends, and I'd feel very badly indeed if I led any of you astray, intentionally or no.)

41 Shorter version: You're Boned.

Yeah, that was my instinctual reaction.  I'm trying to guage how boned.

Thanks for the explanation, Monty.  Looking like I'll be better off taking that *snicker* romantic Bavarian beer bender this fall instead of sitting home being prudent, eh?  If I got nothing either way, at least I can get some pictures of castles.

42 How crazy is it that we'll probably be the only G8 nation not to cut spending?

43 Ah, Friday, the perfect occasion for the Full Monty!

44 That bad, eh?  at that ratio that means no male enlistee will ever get a shore billet because all the preggy females will be filling the slots.

LOL, you mean it will go back to the way it was when I was in? Hell, I talked about that in the previous thread.

What this will directly impact is the ability of the Navy to retain married members.  It was explained to me that the Navy preferred married men because they were more "dependable". 

I was single at the time so wondered why I got more duty time and was paid less.  That was the explanation.

45 Monty, your the only one not selling me something - they are a safe bet, you just have to time it right and you are keeping as close an eye as anyone I know.  That 5K was going into CDs, gold, or I Bonds - my wife wouldn't let me get three more rifles with it.

46

80s  it's nutz. I keep hoping most of the American popultion is waking up at this point. But can we do enough, let's say we win 2010. can most of this be walked back? i mean we reallyyyyyyyy do not have the money, will it just happen because no-one will be working to pay taxes?

that's a really bad way to figure it out for all of us.

47 Might as well buy them now as later. The interest rate sure isn't going up any time soon.

Actually based on my experience during this "downturn" buy utility stocks from companies that pay a high dividend. Not only are they better than bonds on payback they are probably actually safer than government bonds right now.

My utility stocks decline during the initial market fall off but quickly recovered to the point they were at before the collapse.

Utility stocks are also a good hedge against inflation. 

48 47 How crazy is it that we'll probably be the only G8 nation not to cut spending?

The world is topsy-turvy these days.  It's bad when a German PM has to explain economics to an American President.

At least in the end, there will be only chaos.

49 and why hasn't the house passeed the anual budget?

50 So, even though it's the weekend, we're still fucked, right?

I've got shit to do.  Like being boned, and stuff..

51 Once again, have to constantly remind myself that the stuff I read in these financial briefings is real, and not the laudanum-addled nightmares of a madman.  And still people whistle...as the blood rises up to their knees.
I remain astounded at the way the market has been bubbling along around the 10k range.  Even a cursory reading of financial news from the US and around the world leads to the inevitable conclusion that the Dow is currently held up by nothing but pixie dust and unicorn farts.

52 54 and why hasn't the house passeed the anual budget?

I thought they said they were abstaining this yr, so nothing can get pinned on them.

53 What the heck else can you say? Try not to get caught in the rush for the exits, remember to hold your breath when the world starts swirling, etc.

54 I remain astounded at the way the market has been bubbling along around the 10k range.  Even a cursory reading of financial news from the US and around the world leads to the inevitable conclusion that the Dow is currently held up by nothing but pixie dust and unicorn farts.

Posted by: Nemo from Erewhon at June 25, 2010 07:07 PM (mHbcC)

srsly.  who is holding up the markets? where do they get all this hope that it is safe?

55

80s. maybe they don't actually know how.

scary thought .

56 november seems so damned far away.

57 World Debt Chart by % of GDP

_{/It's from The Economist, but it sounds accurate.}

58 Vic, I've got a some of those, some oil and mining stocks, defense contractors, and some safe red state bond funds -- the rest is in a really spread wide 401K.

59 Looks like foreign central banks are catching gold fever.

Nothing says financial wizardry like Kazakhstan and the Philippines.

60

"Now begone, and let His Majesty rest; for the weight of the world rests heavily upon his noble brow."

His Majesty? Noble?  When did The Messiah get demoted from god to man?  At the very least, he must be royalty, not merely a noble. 

61 To:  Monty
Subject:  Selection of Text for Posts

"...they abandoned the kids in Branson outside the How-Dee Kountry Komedy Klub and went to blow the family fortune over in Hot Springs."

Nebulous association of Fly-Over Country Hillbillies with the Klan should be avoided in the future.

Carry on.

62 When the first Eurozone country goes tits up , all bets are off . You should start a pool Monty .

63 srsly. who is holding up the markets? where do they get all this hope that it is safe? Those of us fringe Austrian School guys think a lot of it is driven by two things: prices are up on very low volume (mainly hedge funds buying and selling to each other); and HFT/algo driven selling. (High-Frequency Trading, where thousands of trades happen in less than a second.) HFT is a brainless and status-quo heavy mechanism because it can only operate on small moves; big chart moves fuck HFT algos all up. So they profit by tiny little arbitrage transactions all day long -- fractions of a cent per trade, but millions of trades a day. A lot of the volume you see is one computer battling another computer to see who can shave the most pennies off before hitting a "technical" and backing off. (This is probably what was behind the "flash crash" back in may; some algo had a bug in it and it didn't stop when it hit a technical. It just kept rolling merrily along until someone noticed and pulled the plug.)

64 #64  Nothing says financial wizardry like Kazakhstan and the Philippines.

Financially, they look like Mt. Olympus when your country is trying it's damnest to emulate the Zimbabwean financial model. 

65 Vic, I've got a some of those, some oil and mining stocks, defense contractors, and some safe red state bond funds

I presume yours did OK as well.

66 Monty.  thank you for the explanation.

67 _{The nattering of peasants in Monty's Post: President Barack Obama could learn from the old-fashioned German habit of saving money before spending it, argues Jeremy Warner.}  

By Jeremy Warner

he must be a reader here, she was pretty snarky

68  she was pretty snarky  HE was pretty snarky

69 Before you spend your money, talk with a financial advisor  Posted by: Monty

I second the idea. Be sure to look for a 'fee only' advisor. This means an advisor that only charges for the portfolio review and guidance, rather than one that sells securities and bonds.

Bad advisors and brokers will charge you fees and push products that you don't need and don't want.

Nothing beats personal referrals of course but here's a website that can help in locating a 'fee only' advisor.

70

The inflation issue is a hard one to predict, because there is more to it than simply how many dollars are out there.  The velocity of money is vital.  If you printed 10 trillion dollars, yet every dime was piled up in various banks that refused to lend it out, inflation would be essentially unaffected.  To have inflation you need to have more dollars chasing a given amount of goods.  Dollars on the side lines are not doing anything.   Also, American factories (not to mention Chinese ones) are operating WAY below capacity.  Upticks in demand will be immediately met by upticks in production, so the pool of goods will grow. 

If the Fed pulls the dollars back in as the economy picks up (if it ever does) they can short circuit a lot of the inflation that would otherwise occur as folks felt good about spending and banks started lending.  Will they do that?  Who knows.  Bear in mind - bankers hold lots of dollars, too.  They don't gain much by having everything go all Weimar Germany on us.  However, they don't always time things well or know how to gauge the scale of a problem.

71


OT, and before you ask, yes, I realize it's lew rockwell, and yes I hate the anti-Semite douchenozzle (and his minions) but it's where I could find the story of:

10 COPS TAZERING A BEDRIDDEN 86 YEAR OLD GRANNY

For fuck's sake, can we shoot those fuckers now and take them out of the gene pool?

72 Bear in mind - bankers hold lots of dollars, too. That's the problem. If Big Ben doubles the money supply and banks start to release some of their hoards, inflation is going to spike. I think we've got about two years of moderate deflation before that happens, though -- until the mess in Europe sorts itself out, anyway. And the Chinese may not be willing or able to sell cheap crap in America (or buy our bonds) to keep inflation low. Even the Chinese need some profit margin; they can't just give the stuff away. So at some point the number of people wanting stuff will outstrip the stuff available, and prices will climb. However, inflation per se is not my worry -- I'm far more world about sovereign-debt default and the crippling of international trade. I can easily see a repeat of the 1930's-era "tarriff war" as sovereigns bow to pressure to "protect domestic jobs". Poltiicians are depressingly predictable.

73 ¿qué?

¿cómo?

Posted by: The Dread Pirate No Beard at June 25, 2010 06:35 PM (wOtDN)

Reparado para usted.

74 For fuck's sake, can we shoot those fuckers now and take them out of the gene pool?

Posted by: s'moron at June 25, 2010 07:33 PM (UaxA0)

I agree with you in principle, 100%.  Just be aware that we'd have to shoot A LOT of people - the jack boot worshipping type who have infiltrated the police in recent years are all too common.  No surprise here, since the unelected bureaucrats in charge of the day to day administration of the state crave nothing more than a thuggish police state.  No doubt they work daily to insure we get one.  The bigger the city, the worse it gets.

75 I'm far more world Sigh. World = worried. Stupid fingers.

76 The Chair of the Joint Chiefs of Staff experiences what the military calls a BGO:  a blinding glimpse of the obvious.Remember, kids: a robust and capable military costs a lot of money, and right now, we don't have any.

Well, one way to save money would be to focus on old school battle tactics. So, for example, if war with Iran comes, no smart bombs and stealth fighters (at least after AA is taken out). Just level bomb with B-52s and old school "dumb munitions".

77

I find these amateur economic musings to be quite distressing. You, sir, have overstepped your bounds in dispensing advice and observation concerning wealth creation and the rules and techniques therein.

This type of serious minded discussion should only be led by a bona fide financial expert like myself. Why, if we start listening to the ramblings of the economic rabble, we're likely to be led straight off a cliff.

 

 

78 77


OT, and before you ask, yes, I realize it's lew rockwell, and yes I hate the anti-Semite douchenozzle (and his minions) but it's where I could find the story of:

10 COPS TAZERING A BEDRIDDEN 86 YEAR OLD GRANNY

For fuck's sake, can we shoot those fuckers now and take them out of the gene pool?

Posted by: s'moron at June 25, 2010 07:33 PM (UaxA0)

That's a pretty hard-core stance against the elderly, dude.

79

Posted by: s'moron at June 25, 2010 07:33 PM (UaxA0)

Safer link.

80 The basic fact is that poor people are horrible credit risks, and their financial options are severely constrained.

Hey, they are every bit as good at balancing their books as we are!

81 Don't buy the China hype -- they're in deep shit.

If only that were us!

82 Here's the plaintiff's filing in the Tazered Granny lawsuit.

83 At least the banksters are happy .......... which in moronese roughly translates to BOHICA BABY !!!!!

84 "Leave Barack alone!", sobbed Steven Pearlstein. "The economic crisis isn't his fault! Why are you blaming him? He wishes only for our happiness!" At that point several Morons stepped, forcibly revoked Mr. Pearlsteins man-card, and made him write I'M A GREAT BIG PUSSY on his own forehead with a Sharpie. His increasingly-hysterical weeping left them unmoved.

The Democrats, including Obama, took congress at the end of 2006. The economy fell apart at the start of 2008. So the Bush economy weathered the Clinton recession, 9/11, and the Katrina aftermath. However, as soon as we gave the Democrats the keys to the economy - the next major event caused a Depression - all just a coincidence I guess...

85

Here's a good book that's eerily prescient and a damned fine read.

Rogers makes his trek just before the fall of Communism. His observation of the dreary, soul-sucking nature of collectivism is worth the price of the book alone.

 

 

86 Hey, they are every bit as good at balancing their books as we are!

Posted by: The Democrats at June 25, 2010 07:40 PM (bgcml)

Generally better, as they can't usually print their own money -- and when they take money from other people, the police power of the state usually opposes them rather than assists them in doing so.

87

Generally better, as they can't usually print their own money -- and when they take money from other people, the police power of the state usually opposes them rather than assists them in doing so.

Posted by: stuiec at June 25, 2010 07:44 PM (7AOgy)

I can fix that.

88 However, as soon as we gave the Democrats the keys to the economy - they caused the next major event that caused a Depression - all just a coincidence I guess...

Posted by: 18-1 at June 25, 2010 07:44 PM (bgcml)

FIFY.

89

thanks stuie


lulz, jim.

Monty, when will you learn that the whiz kids know how to create wealth.  ex nihilo.

Two years is about right for inflation to start peeking around, sinc ethe banks can't sit on that money forever.  They'll make their cash on deflation in the meantime.

I still don't know why the SBA doesn't get a half-trillion to become the nation's lender of choice.  I mean, if you're gonna federalize finance, at least make it WORK.

90

That's a pretty hard-core stance against the elderly, dude.

Posted by: Jim in San Diego at June 25, 2010 07:39 PM (oIp16)

Seems reasonable to me

91 Hahahaha, join the Navy, it's not a job, it's a tour of the world flat on your motherfucking back1111!!!11! Fuck the US Navy Brass.

92


YAY!  the "jobs bill" (aka AFSCME bail out) died in the Senate.

93 I mean, if you're gonna federalize finance, at least make it WORK.

Why would I want to do that?

94 I still don't know why the SBA doesn't get a half-trillion to become the nation's lender of choice.  I mean, if you're gonna federalize finance, at least make it WORK.

Posted by: s'moron at June 25, 2010 07:45 PM (UaxA0)

I have no clue what you are saying.

However, I have figured out what was wrong with me National Hole Digging Program! I have already submitted a bill to Congress to fully fund my new National Hole Filling program.

95 That's the problem. If Big Ben doubles the money supply and banks start to release some of their hoards, inflation is going to spike.

However, inflation per se is not my worry -- I'm far more world about sovereign-debt default and the crippling of international trade. I can easily see a repeat of the 1930's-era "tarriff war" as sovereigns bow to pressure to "protect domestic jobs". Poltiicians are depressingly predictable.

Posted by: Monty at June 25, 2010 07:34 PM (jM/Et)

I could have stated my point better.  What I meant was, bankers personally hold a lot of dollars.  Nobody wants his personal fortune destroyed.

I understand what you're saying about the supply of stuff, but right now there is so much stuff it boggles the mind.  Excess housing alone is enormous.  If one were cash rich, now would be the time to get a vacation home someplace nice.  There's plenty of time for the central bank to suck the money back in before heavy inflation sets in, if they have enough brains to do it (big if).  And consider - a tremendous amount of what we spend money on is for "services" which can be produced in far, far greater abundance than they are now, because the labor pool is so vast.  There is much to buy - but all of us fear to buy, and are hoarding what we can, if we are still employed. 

As for trade wars, I'm not too worried.  There is plenty of arguement to be made the Smoot Hawley merely coincided with the depression, rather than caused it.  Further, the trade situation was far different in those times.  Americans were not having their middle class destroyed by having to compete with slave labor.  It was largely reasonable competition with civilized people - Europeans - in those days.  I doubt that Viet Nam can do much to hurt us by throwing up trade barriers, and China is already grossly merchantilist and has huge trade barriers in place as is, both open and hidden.  Americans need to buy a lot of the stuff that they currently get from foreigners.  Unless Adam Smith was grossly mistaken, it is always better to buy goods from one's own country if it is reasonable to do so.  Considering how much of what we buy from China is near worthless crap, or actually poisonous, I don't worry about them much.  And at least Europeans expect to earn a decent living, so there's no slave labor element there.

96 Well, going out to see a stupid comedy to numb the economic depression.  Then back to mi casa for some good ole' vodka therapy.

97 It's like of like putting water into wine: you start with pure wine (money), drink a bit, and replace the bit you drank with water. The volume is the same, but the amount of actual wine is less (replaced by water). Repeat several times, and eventually, you'll have 99% water and 1% wine even if the volume didn't change better yet, think of it as homeopathic medicine. the more dilute, the stronger the effect. Hahahahahaha. Only Humanities majors could buy that bullshit. Or Brit Royals.

98 As for trade wars, I'm not too worried. Yeah, but you're thinking in terms of finished goods; I'm thinking in terms of basic commodities. We both originate and consume large amounts of basic commodities, and a trade war would be pretty catastrophic, especially for things like lithium (batteries), copper (anything electronic), and other things that we don't produce much of. And oil is the big one: a trade war would completely fuck up the petroleum market and prices would double or triple practically overnight. Right now oil is cheap because everyone's industrial output is down, but we still import most of our supply. Any interruption to that supply is going to hurt at the pump. And the oil thing might happen anyway if Israel and Iran come to fisticuffs.

99

There is plenty of argument to be made the Smoot Hawley merely coincided with the depression, rather than caused it.

I sort of agree with that statement. Although it didn't help, I think it's harm has been GROSSLY overstated. I also think the harm that Roosevelt's "New Deal" did is also overstated by some too.

If you want a real eyeopener, and at what I suspect is the real culprit at making the 1930's series of depressions a great one, look at the idiocy that the Federal Reserve pulled during that time. It's almost as if they were on an intentional mission to destroy this country.

100 However, I have figured out what was wrong with me National Hole Digging Program!

Where do I sign up?

101 OT: Is anyone else getting a malicious software warning from Google for Gateway Pundit? WTH?

102 108 OT: Is anyone else getting a malicious software warning from Google for Gateway Pundit? WTH?

Just looked it up on Google and yep, there's a warning. 

103

@35: "You "inflated" your wine supply by telling everyone that water is actually wine. Except that it isn't, and no sleight of hand will make it wine.

Does that make sense? "

No, it's an invalid example.  In case you missed it, the good people of the land formerly known as America elected The Messiah to lead them to the Glorious Socialist Utopia.  He can change that water into muthafuckin' wine.

104 108 OT: Is anyone else getting a malicious software warning from Google for Gateway Pundit? WTH?

Posted by: Rocks at June 25, 2010 08:10 PM (UYace)

http://bit.ly/9jqX07

It looks like some of his advertisers are pumping malware.

105 The only thing I'm thankful for with this post is that pic of the supremely hot pic of Sir Maximus.  Gotta appreciate the little things in these dark times. 

106 @108  I'm getting it too with Bing. 

107 Really, how dare somebody blame the economy on the Obama administration ?  Pearlstein's article is just busting out with facts and information showing that it's all the fault of every other person in America but Barack Obama - Bush, Big Business, Joo Bankers, and the whole damned public.  How is it not obvious to all of you wingnuts that the one person who has done nothing but try to help the economy and shares no blame whatsoever is Barack Hussein Obama ?

Mmmm-mmmm-mmmm.  Mmmmm-mmmm-mmmm.  (slurp, slobber, inhale, gobble)

108

@90: "The Democrats, including Obama, took congress at the end of 2006. The economy fell apart at the start of 2008. So the Bush economy weathered the Clinton recession, 9/11, and the Katrina aftermath. However, as soon as we gave the Democrats the keys to the economy - the next major event caused a Depression - all just a coincidence I guess..."

Not really, things got worse when the Dems were in control of the purse strings, but the American economy has been built on a foundation of sand for a long time.  Basically, there has been no real growth for decades, and a lot of wasteful socialist shit layered on top of that.  Note that the GOP is responsible for putting a good bit of it in, too.  At best - they simply slowed the rate of overloading.

109 When the Chinese bubble burst they will be eating each other over there.Mark my words.

110 My son and I did our best to stimulate the economy this afternoon with a trip to Target where we stocked up on nerf guns and super soakers.

111

California is number one!

http://bit.ly/c9S1vU

Times review finds that in more than half of the state's casinos and gaming rooms, welfare recipients can get cash from state-issued EBT cards.

112

Ace et al, perhaps you can do a post on this.

"Rolling Stone broke interview ground rules with McChrystal, military officials say"

That POS reporter set the General up, set him and his aides up really good.

"But 30 questions that a Rolling Stone fact-checker posed in a memo e-mailed last week to McChrystal media adviser Duncan Boothby contained no hint of what became of the controversial portions of the story. "

They set up this good patriotic man up to fall, F U Rolling Stone!!!!!

http://tinyurl.com/2bg9wnf

113 OT: Is anyone else getting a malicious software warning from Google for Gateway Pundit? WTH?
Posted by: Rocks

Yeah, it was mucked up since the AM. It's not just Gateway, it's the whole FirstThings website.

114 How much of an impact on the economy would there be if the Port of New Orleans is shut down due to oil? It would really put a hurting on the wheat and corn harvests, if the closure persists long enough. Most of our wheat and corn ship down the Mississippi through that port. You'd have to ship it by rail to Baltimore or L.A., which would be both more expensive and take more time. Otherwise, I don't know that it would have much impact in the short-term. You could always bring stuff in through Mobile, Galveston, or even Miami.

115 120 There's no question he and his staff said what he wrote they said.McChrystal fucked himself by letting the writer into his inner sanctum.

116 When the Chinese bubble burst they will be eating each other over there.Mark my words. Posted by: steevy

Buuuut, if their bubble breaks, they'll be forced to stop buying bonds. That raise US Fed rates and then we're looking at some new problems here.

117 117 When the Chinese bubble burst they will be eating each other over there.Mark my words.

Or they'll try to start a war.  I'm more worried about that in the long run, especially given the male:female sex imbalance of Chinese children.

118

@120: "They set up this good patriotic man up to fall"

And he fell for it.  Stupid to agree to an interview with Rolling Stone, stupid to let aides drink with a reporter from Rolling Stone, and stupid not to immediately terminate when the questions changed from what had been approved.

119 Why shutdown at all because of oil?Who gives a shit if a harbor is dirty,historically they are fucking filthy.

120 I don't understand, the General is a smart man, did he not know that Rolling Stone is a far lefty, and very far lefty magazine?

121 124 125 Not saying there wont be bad consequences for us,there will be.

122 128 He's a liberal prick himself.Probably thought they'd give him a pass.

123 You could always bring stuff in through Mobile, Galveston, or even Miami. If you pay me first, cabron.

124 He's a liberal prick himself.Probably thought they'd give him a pass.

They'll eat their own, if the recipe is a good one.

125 131 Oh yeah,forgot about those intakes and shit.

126 It's almost as if they were on an intentional mission to destroy this country.

Almost??

127 136 It's almost as if they were on an intentional mission to destroy this country.

Almost??

Posted by: KG at June 25, 2010 08:43 PM (S8TF5)

I only say almost because I lack positive proof they were actually agents of Stalin. Their only trick was to reduce/tighten the monetary supply, and every-time the economy adjusted, they ratcheted the screws tighter. I have a hard time believing they did not have some ulterior motive other than depraved incompetence.

128

I only say almost because I lack positive proof they were actually agents of Stalin. Posted by: Jim in San Diego 

A good rule of thumb to stick with, imho. It's next to impossible to persuade fence-sitters, marginal lefties and others that the US needs to reverse course if we're playing fast and lose with facts in order to score emotionally satisfying political points.

129 139 Throw out the Bill of Rights. Other than that, um...

130

Choice reading about the Federal Reserve and the Great Depression

1. This massive destruction of liquidity began when the Federal Reserve responded to the 1929 stock market crash by allowing the quantity of money to decline by 2.6 percent over the next year. This extremely tight monetary policy put the economy into severe recession.

2. The Federal Reserve was derelict in this responsibility during the three banking crises that culminated in the Great Depression. Indeed, more often than not the Federal Reserve sold bonds and raised the discount rate, thus reducing banking liquidity when it should have increased liquidity. The first banking crisis began in the autumn of 1930 when the Federal Reserve stood aside and permitted banks to fail in the South and Midwest. The result was to undermine confidence in banks. Runs on banks spread as depositors rushed to convert their deposits into currency.

3. In January 1933 the three-year banking crisis brought on by Federal Reserve mismanagement of the money supply entered its final phase. This time the Federal Reserve System itself panicked. Banks were failing because they could not meet frightened depositors’ demands for cash. Statewide bank holidays spread. By March 1933 bank holidays (during which banks were not required to meet their obligations to depositors) had been declared in about half of the states. The Fed responded to these events by again raising the discount rate, making it harder for banks to meet the cash demands of depositors. From January to March the money supply fell dramatically. On March 4 the Federal Reserve Banks themselves closed. Examining this gross negligence 30 years later, Friedman and Schwartz concluded: “The central banking system, set up primarily to render impossible the restriction of payments by commercial banks, itself joined the commercial banks in a more widespread, complete and economically disturbing restriction of payments than had ever been experienced in the history of the country. One can certainly sympathize with President Hoover’s comment about that episode: ‘I concluded the Reserve Board was indeed a weak reed for a nation to lean on in time of trouble.’”

http://bit.ly/bsUaAB

131 #142  "Former VP Cheney admitted to GWU Hospital for testing after not feeling well, expected to remain there this weekend"

Looks like they're going to have to shut down the comments section for HuffPo again.

132 When is this country finally going to hit "Barak Bottom"

133 BP Execs Will Not Receive Golden Parachutes

Not surprising, considering they will have to file for bankruptcy.

134 "Former VP Cheney admitted to GWU Hospital for testing after not feeling well, expected to remain there this weekend"

Posted by: Tiffany at June 25, 2010 08:58 PM (E+/tl)

Oh, I can recommend a great masseuse, there.  Though, she might get frightened by the lower adductor region.

135 139 Almost??

If you were intent on destroying the US, what would you have done DIFFERENTLY than Obama, Pelosi and Reid?

Posted by: CDR M at June 25, 2010 08:55 PM (5I8G0)

I was talking about the Federal Reserve in the 1930's, but Obama, Pelosi and Reid suck too.

136 Looks like they're going to have to shut down the comments section for HuffPo again.

They're sensitive, tolerant, and caring, you know.  Unlike us.

I hope it's nothing serious.

137 British PM David Cameron Set to Tell Pres. Obama to Back-Off

138 Dick Cheney?  Ratfucker better die.

139
"Former VP Cheney admitted to GWU Hospital for testing after not feeling well, expected to remain there this weekend"

Posted by: Tiffany at June 25, 2010 08:58 PM (E+/tl)

All because of comments from the asshole Robert Redford, blaming Cheney and his WarCock for the oil spill. 

140 150 British PM David Cameron Set to Tell Pres. Obama to Back-Off

Posted by: Miss'80sBaby at June 25, 2010 09:09 PM (Yq+qN)

I wonder if BP is a good buy right now? Congress seems determined to hand them unlimited liability, so I don't know just yet.

141 #152  All because of comments from the asshole Robert Redford, blaming Cheney and his WarCock for the oil spill.

Is there any calamity that can't be blamed at least in part on that?

142 All because of comments from the asshole Robert Redford, blaming Cheney and his WarCock for the oil spill. 

Posted by: Fish at June 25, 2010 09:10 PM (v1gw3)

Uh, Robert who?  I have spooges bigger than REDford.

143
Dick Cheney should make peace with Robert Redford and ask him out to a dove hunt in South Texas.  If Cheney doesn't make a tactical error and shoot the insolent prick, maybe we'll get lucky and a rattlesnake bites his dick.  His liberal friends could then argue over who gets to suck the poison out and save Redford.

144 Don't know if anyone already wrote this (haven't read comments yet, sorry) but Dick Cheney has been hospitalized for "discomfort."  I hope he's ok. 

145
No argument about saving Robert Redford, I'll step up to the plate.

146 153 I wonder if BP is a good buy right now? Congress seems determined to hand them unlimited liability, so I don't know just yet.

They will be forced to declare bankruptcy. At this point, they are also considering how many of their assets to sell, as well as how to best break-up or restructure the company. Article here.

147 With Cheney's ticker troubles they are always cautious.The guy really is in fragile health as tough as he comes across.

148 Oops, just started scrolling up and saw Tiffany already commented on Dick Cheney.  Please keep him and his family in your prayers.

149 My FA tried to talk me into taking a chance on some BP stock. I just couldn't pull the trigger on that one.

150 I love how Dick keeps fucking with the left's heads, like this.

151 160 I wonder if the shareholders can sue them for caving to the US government?There certainly is an argument they failed in their fiduciary responsibility.

152 ^{_{BP 'to divest all North Sea assets' in dramatic attempt to reduce its costs}}

153  Hello.

154 161 With Cheney's ticker troubles they are always cautious.The guy really is in fragile health as tough as he comes across.

Indeed.  Hopefully this is nothing and he'll be around for many more years.

If a guy as evil as Soros can live as long as he has, why can't Darth Cheney?

155 9 Cameron urges G8 to follow Britain's 'unavoidable' cuts as he faces off against Obama at summit
Posted by: Miss'80sBaby at June 25, 2010 06:18 PM

America telling Europe to open the spending and debt taps, Europe telling America that the social spending party is over.

Spock has a beard, and Sulu has a huge scar

156 If a guy as evil as Soros can live as long as he has, why can't Darth Cheney?

Posted by: Kratos (missing from the side of Mt Olympus) at June 25, 2010 09:22 PM (c0A3e)

I'm a merciful dude.  I give the one's going to hell more time to change their minds.

157
Posted by: Tony Montana at June 25, 2010 09:22 PM (0pYSi)

Tony, you bitch, where's my Peruvian Marching Powder?

158

and super soakers.

wet t-shirts

pics

newsletters

159 Tony, you bitch, where's my Peruvian Marching Powder?

Posted by: Tony Soprano at June 25, 2010 09:24 PM (v1gw3)

Look at the pelicans flyyyyyy!11!!!!!1!1

160 IRS to tax BP payments to Gulf residents

161 If a guy as evil as Soros can live as long as he has, why can't Darth Cheney?

Don't worry - I'm keeping a seat warm for Georgie down here.

162 Only the good die young.

163 So what does that make Alexander the Great?

164 I doubt the Obama gov will let BP declare bankruptcy.  They'll do what they did with GM--chuck the law out the window, then root through the guts of the company handing out the tasty bits to their pals and themselves.
I'm serious. After what they did to GM, why would anyone be naive enough to  expect them to follow bankruptcy law with BP?

165 This is not good.  Deadmeat.  Lot of good voting will do in 2010.  2011 its all over.

166

Re: Broke USA, a woman interviewed the author on BookTV last weekend. She asked him about lotteries. He said that the focus of his book was on businesses that preyed on the poor (and leads a reader to conclude that these practices should be illegal). The woman said that lotteries prey on the poor a lot more, taking in about 5 times the revenues as the payday-loan industry.

In other words, he identified poverty industries as the bad guys and government as the savior. She identified poverty industries as small-time hoodlums and government as the archvillain.