Wall Street Pro

Courtesy of zerohedge, here's a blast from the past--2009 in fact, when US economists were drivelling about the 'green shoots of recovery' in an unwise fashion. It's a fine demonstration of what the phrase 'An Active and Informed Citizenry' means, though very sweary, so if you have sensitivities in that regard, don't watch.


Toni said…
I have felt like this guy many times. Its crazy the way things seem to be going now. Greek 1 yr debt is now yielding way over 150% which makes it impossible to ever repay. How much longer can this go on? The Dexia bail out has already caused Belgium to be downgraded. Somehow a rescue was cobbled together but Dexia is hardly the biggest bank in Europe and I am pretty sure it wouldnt have been possible if the Qataris weren't so keen to purchase part of Luxembourg. The European governments were clearly rattled that if Dexia collapsed it would cause a contagion to other International banks. and yet Mrkel and her French lapdog are still pretending they can buy time for Greece. The incredible thing is how ill-informed and oblivious people are. The decision to add £75bn to the quatative easing program in the UK was absurd, inflation is already high but so what, print some more money. Despite this countries record a level results, seems that most people cant get their head around the concept of a bank creating money out of nothing whilst still expecting us to put our faith in that same paper money. Doesn't matter, anyway few of them will leave university with a job. I currently live in a fairly affluent area and the amount of disposable income is quite shocking, if anything it reminds me of reading about the world right before the great depression, car companies producing ever expensive limited edition supercars, restaurants that charge £300 a head and are booked several months in advance and all the time you have this feeling the music has to stop. The banks got themselves into a tremendous mess and they were consolidated and the exposure was kicked up to a national level, now the countries are in trouble so the risk is going to a continental level - what next?
Martin Meenagh said…
I concur with everything you write. We've been through the looking glass for some time though.

Dexia's an intersting one, though. As I wrote way back in 2007 when first warning of what was coming, the banks covering municipal and regional debt in the eurozone and the US were going to be the real canaries in the coal mine. Dexia was one of them. Just the other day, Harrisburg (Pennsylvania's capital) joined a growing list of officially protected bankrupt cities stateside, and the only thing keeping European cities from following is dishonest charging, tax-farming, and dodgy accounting.

What I can't get over is how breathlessly everyone is lying to themselves, to others, to anyone, in the markets and elsewhere, and how pathologically people who consider themselves intelligent are clutching at straws and shutting off what they don't want to hear. The media has been terribly complicit in all this, and the class-conscious nexus of politicians, media and economics graduates (all the same sort of people, in awe of each other in a kind of group narcissism) has been awful.

I think the coming phase of the long crisis is like a mix of the two ends of the twenties--stored up inflation exploding in the way Jens Parsson described, then stagflation. The bastard Keynesianism we're holding things off with--and the ignorance of how banks create money in an electronic and global age--means that people are blind to a hyper-stagflation. They won't be when it hits.

Still, m'friend--you've got to laugh....

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