Thursday, March 19, 2009


I have been somewhat Quiet about the TARP, unlike some well-known Personages. The entire package of Stimulus currently under operation was designed by Financials for Financials, and supported by Financials. There is very little Transparency within the program, as it is being administered by Financials., who are hiding the mistakes made by Financials. The Bonus program which Financials do not want disturbed, or described, is heavily supported by Financials; who are truly disturbed about any Publication of their personal Reward systems. They tend to deny Access to Information even for Congress, so there will be no Public information of what individual Financial Accounts lost How much Money, when they lost such Money, or how much Reward those responsible for these Accounts are getting today. Methinks We need a Daniel Ellsberg or Harry S. Truman in the Senate to gain any Insight into the Drain system which is Costing the American Taxpayer so much Money!.

It would not be so bad, except the idea of flooding the internal markets with Cash, the current Treasury and Fed plan, is lunacy. It is imagined that dumping huge funds on the American economy will bring the additional 8% increase in GDP desired by officialdomb (real emphasis should be placed on the last Word in this Sentence). On a Bettors’ Spread, the chances of bringing the rise in GDP is 19-2 Against, while the chance of bringing loss to the entirety of the economy is 12-14 For. Leadership needs a crash course in the consequences of meddling in what they do not know about–I would put them at the center Control Room of a nuclear power plant, and tell them they had the Controls; if it does not teach them to leave well enough alone, then We are all Doomed anyway!

It is really disappointing in that the economy is in Recovery already, while the Fed’s action of releasing a Trillion in Cash may destabilize current economic trends; again throwing the established Pricing system to the Winds. I seriously fear that current Balance Sheets will be further disrupted by this Input of Cash, leading to second generation of instability within the lending institutions. Economists know that We have spent 40 years refuting the basic Keynesian ideology, describing How such Spending worked only under very striated circumstances, none of which are really present today. Unemployment is not unreasonably high–I was going to Check on that, but I am lazy–but I think current Unemployment levels reached this level about 20 times during the last Century. The drop in GDP is not even that unusual, with such a Drop being matched at least 4 times since WWI. What is different is the financial risk which Financials endure today, all the fault of Credit Default Swaps; things which should have been defined as Ponzi schemes when first proposed. They have cost Us as an economy, just like Milken’s Junk Bonds. When are We going to give up the idea that We can design new methods of making Money, in an economy where We are already funded in the traditional manner? lgl

1 comment:

M.G. said...

I contend that CDS are and were pure gambling Securitisation and gambling have a lot in common, including reglation. Yet the debate appears to me surreal.