Friday, October 24, 2008

The Real Shit

Alan Greenspan: I Have Found a Flaw

Well that's just fucking great, man. Seventeen months? We're not going to last seventeen fucking weeks, man!

It's all very heartwarming that Mr. Economy has finally lost the beer goggles and is untying the knot with Lady Laissez (publicly). It's just too bad the nine fools-gold rings are snugly fastened upon the fingers of less repentant military-financial complex triumvirates who are going to shove as many of their spray-painted tin foil tori down our throats in exchange for trillions of our non-existent dollars and sticking us with more Saudi Arabian debt and Chinese misfortune cookies.

We could be addressing the fundamental, systemic elephant in the room, namely that hundreds of banks, several corporations, millions of mortgages and generally the entire American pie is a giant insolvent crap sandwich that needs to all default and be shut down. This would mean millions would lose their house, unemployment would go up, and the American consumer would have to actually BUY THINGS THAT THEY CAN AFFORD. No more charging the Chili's dinner or Mac Book Air 3G or the Camry. (This goes for government and corporations as well) But instead, Treasury is issuing more than $100 billion dollars in debt a week, on average, throwing it into the gaping maws of these zombie entities and spreading the contagion of distrust. Each time the fed stamps "Guaranteed by the Federal Government" on one of these waste dumps, the money gets sucked out of everywhere else into it requiring the government to guarantee yet more cess pools.

So, instead of doing this the right way; forcing full disclosure of all level 3 assets, cracking down on credit default swaps and de-leveraging then letting insolvents go belly up, instead of clearing the rotten apples out of the solvent apples and flushing the shit down the toilet, instead we've plugged all the worm-holes with all our fingers as the entire basket becomes contaminated. And now, we're coming to the point where we've jumped right into the toilet and are up to our chins in shit, perilously close to eating it, a la Iceland.

We're paying interest on borrowed money with more borrowed money, which has a socialist's chance in America of ever being payed back. Over three trillion is what it would cost to continue the failing strategy currently being implemented. A strategy still doomed to failure as the day they 911'ed it into law, that never had a chance of accomplishing anything but giving the bankers and their congressional and administrational friends more time to loot the real economy and multiply the severity of the big hurt when it comes. And when the Real Shit arrives and the big credit dislocation monster comes out to play, it's going to make these 'tough times' look like a wrist slap.


Post a Comment

Subscribe to Post Comments [Atom]

<< Home