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Blowback, The Law of Unintended Consequences: AKA The High Cost of Big Government
Our problem is not lack of debt and deficits, but lack of cash productive savings. Transferring IOUs in the USS Titanic Casino is not prosperity.
Those in position to know say banks virtually stopped foreclosing, if not evicting, and it has little to do with the Holidays. Big bad bank balance sheets cannot handle more toxic asset write-offs without another TARP.
Another TARP budget buster and consumer back breaker is not likely to happen, unless DC wants to attack civil disobedience with pitchforks, shotguns and scarce National Guard Troops policing their streets.
We’re from the Government and we’re here to help you does not play well in Peoria anymore, if it ever did.
It appears Wall Street and Washington are building yet more sand castles in the sky with no firm economic rock foundation understanding.
Governments and overleveraged Wall Street Masters of the Universe who barely shave forgot their limits, place and role in the economic drama of the Great Depression.
The Big D was not over in a mere two years. The Greatest Depression now is unlikely to be over until it cleanses all the bad debt. This may take more than two decades if 1929 to 1949 in America and 1989 to 2009 in Japan are any reliable economic weather forecast.
Monopoly Corporate Government destroys efficient free markets from Charity to Energy to Healthcare to Pensions to Properties to T Bills to extended vampire empire Wars.
Even Doug Kass who called the March 2009 turn a generational low forgets this as he widely prognosticates for 2010 a financial porn Q1 blowout.
DK also predicts Buffett retiring, Goldman going private, Palin leaving her husband, Pandit out of Citicorp, a Tiger Woods Obama Dem 2010 comeback sweep, Insider Trading Stings, another Short-Selling ban, Israel bombing Iran, $900 gold, an exploding dollar and falling Treasury yields, more Hedge Fund Meisters calling it quits (as John Paulson lays a giant golden egg), and Jack Welch buying the Yankees.
