A few thoughts from a friend of respected economist Michael Panzner.
Well said - VHF
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Thinking
January 13, 2011
I never have been the brightest bulb in the room nor claimed to be. I have I never been the best ass kissing groveller in the world either. This might account at to why I am not on any list, short or long, for an Administration czar position or a Fed appointment.
But, I have been doing a lot of thinking over the last few days to start the new year. As much as it makes my head hurt I still try to do it.
Things that I have been thinking about....
- the almost universal market bullishness of CNBC pundits.
- municipal pension promises that can never be met.
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so many rats jumping ship on this administration. re: Paul Volker
- the universal belief by 'smart money' that not only do you not fight the Fed but that the Fed can fix all.
- an education system that leaves the holder in debt and holding a sheepskin which is about as useful as a 3 legged chair.
- how you can create what just over 100k jobs which doesn't even keep pace with population growth and yet the unemployment rate falls from 9.6 to 9.4%
- how many of those 100k + jobs that were created were of the 'burger flipper' and barrista type?
- how 40+ million can be on food stamps with numbers increasing yet we can call it a recovery
- how adding $4 trillion to our nations debt has resulted in the weakest recovery in post war history.
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how long can the charade of the tail - FIRE (finance, insurance and real estate) economy - wagging the proverbial dog - the real economy (manufacturing)- go on?state and municipal governments that are flat broke.
- how will things be when denial dies and sobriety returns in the form of the realization that municipal pension/benefit promises can never be honored. How will this affect the annual neighborhood block party?
- how the smart money set rejoices at retail sales numbers when they know it's a direct result of many simply skipping on paying the mortgage?
- how long can we pretend that this pre-meditated mortgage payment avoidance has no repercussions.Oh yeah the Fed fixes everything.
- how long can we ignore the transgressions of fraud and malfeasance in the mortgage and finance arena by the too big to fail banks?
- how long can we go ignoring laws already in place content to act surprised by all that occurs when we refuse to enforce of said laws?
- was the congresswomen, who quite frankly many had never heard of before the tragic news, the target or was the federal judge John Roll the target? my sympathies go out to all the families involved.
and finally
- if things were getting worse would anyone recognize the signs it was even happening?
All the signs of the housing crisis was a debacle in the making were there for anyone that cared to look. I realize when you are slicing the cake (Wall St.) and need the crumbs to live on you do not care to look any further than the continued slicing the cake.
