My way of fighting the fed, I cannot sit still anymore

Quote from plugger:

Landis is right. None of these actions have anything to do with a bailout. It has everything to do with an ORDERLY UNWINDING. No one said the investment banks won't be allowed to fail. No one said that banks won't be allowed to fail.

But what we need to avoid is a large scale crash in the banking system. We need to give the system time to allow the markets to clear in an orderly manner. It does no one any good to see a widescale crash. Everyone is at risk. Right now corporations like Abitibi Bowater may be forced into bankruptcy for the simple fact that their access to credit has been cut off. This is only one example.
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Great advice.

That way, we can tread water for a decade, circa 1990's Japan.

Guess what? Deflation is PERFECTLY NORMAL during recession.

That NORMAL consequence is what returns price levels to their pre-Bubble levels. When those excesses are flushed out, the foundation for new growth is laid.

Propping underwater Banks does more harm to the Average Pleb by deferring the inevitable FLUSH only a little farther (and deeper) down the road.

Whether you like it or not, these are the immutable Laws of Economics.

Maybe one of you geniuses can provide a SINGLE REAL WORLD EXAMPLE that proves an already-exploding Credit Bubble can be neutralized by ramping up with more credit?

Jim Rogers was right. Its NEVER been done.

Advocating more Pinko Banking to solve problems endemic to reckless Fiat Banking is a fools errand. It doesn't work.

As for the sob stories about 401K Mom and Pops going under - just like the entire American Banking system - are Bullshit. Sorry.

Mom and Pop will have to retire on 2003 values (financials). Oh, poor them. They won't get out at market top.

If they were smart and indexed, they'd be up 50% from 2003. When they get off the can at night, shall we wipe their collective asses too??

As for our good friends at Citi, BoA and Merill. Fuck them.

Many other Banks aren't twisting in the wind relative to these jokers.

Unbelievable as it sounds, MANY Banks refrained from diving head first into the now-radioactive pool of CDO debt.

Its these Institutions who had the foresight and restraint to take the cautious road when it smelled like a bubble, that will fill the ranks when Citi and BoA go crashing into bankruptcy.

This is how Capitalism works. The weak and foolish are replaced by the strong and wise.

And who will capitalize their growth? The shrewd specs and investors who shorted these morons on the way down. Wealth isn't destroyed. Its merely transferred. From one broken-ass jalopy to the next Tata.

That also means the Real Estate market would also "crash" back to 2001 levels. Oh well.

Home prices will eventually get back there anyway.

How?

Whats going to arrest surging commodity (and wages) after Bernacke is done saving the Big Boys with rate cuts and bailouts?

Rate HIKES.

When the beleaguered Top Dogs -- who just so happen to OWN THE ENTIRE FEDERAL RESERVE SYSTEM - manage to save their collective asses courtesy of the American Sheeple, they will jack rates to contain the then-"problematic" inflation.

And the Sheeple will get fucked on the way up and way down. Thats how the system works.

You'll get your wish.
 
Here is my letter.

Dear Sir,

Please introduce legislation tomorrow to privatize all aspects of the Federal Government except for the basics such as law and order and defense.

After the national debt is paid off and SS fully funded eliminate the federal income tax. Also please introduce an amendment to require the budget to be balanced each year.

Your prompt attention to this matter is appreciated.

John
 
Quote from achilles28:

Great advice.

That way, we can tread water for a decade, circa 1990's Japan.

Guess what? Deflation is PERFECTLY NORMAL during recession.

That NORMAL consequence is what returns price levels to their pre-Bubble levels. When those excesses are flushed out, the foundation for new growth is laid.

Propping underwater Banks does more harm to the Average Pleb by deferring the inevitable FLUSH only a little farther (and deeper) down the road.

Whether you like it or not, these are the immutable Laws of Economics.

Maybe one of you geniuses can provide a SINGLE REAL WORLD EXAMPLE that proves an already-exploding Credit Bubble can be neutralized by ramping up with more credit?

Jim Rogers was right. Its NEVER been done.

Advocating more Pinko Banking to solve problems endemic to reckless Fiat Banking is a fools errand. It doesn't work.

As for the sob stories about 401K Mom and Pops going under - just like the entire American Banking system - are Bullshit. Sorry.

Mom and Pop will have to retire on 2003 values (financials). Oh, poor them. They won't get out at market top.

If they were smart and indexed, they'd be up 50% from 2003. When they get off the can at night, shall we wipe their collective asses too??

As for our good friends at Citi, BoA and Merill. Fuck them.

Many other Banks aren't twisting in the wind relative to these jokers.

Unbelievable as it sounds, MANY Banks refrained from diving head first into the now-radioactive pool of CDO debt.

Its these Institutions who had the foresight and restraint to take the cautious road when it smelled like a bubble, that will fill the ranks when Citi and BoA go crashing into bankruptcy.

This is how Capitalism works. The weak and foolish are replaced by the strong and wise.

And who will capitalize their growth? The shrewd specs and investors who shorted these morons on the way down. Wealth isn't destroyed. Its merely transferred. From one broken-ass jalopy to the next Tata.

That also means the Real Estate market would also "crash" back to 2001 levels. Oh well.

Home prices will eventually get back there anyway.

How?

Whats going to arrest surging commodity (and wages) after Bernacke is done saving the Big Boys with rate cuts and bailouts?

Rate HIKES.

When the beleaguered Top Dogs -- who just so happen to OWN THE ENTIRE FEDERAL RESERVE SYSTEM - manage to save their collective asses courtesy of the American Sheeple, they will jack rates to contain the then-"problematic" inflation.

And the Sheeple will get fucked on the way up and way down. Thats how the system works.

You'll get your wish.
More...


I think you need to re-read what I wrote. I didn't say or IMPLY anything that you've written above and tried to ascribe to me. Not sure why you're attacking me. If you're angry about something, don't take it out on me.
 
Quote from achilles28:

Great advice.

That way, we can tread water for a decade, circa 1990's Japan.

Guess what? Deflation is PERFECTLY NORMAL during recession.

That NORMAL consequence is what returns price levels to their pre-Bubble levels. When those excesses are flushed out, the foundation for new growth is laid.

Propping underwater Banks does more harm to the Average Pleb by deferring the inevitable FLUSH only a little farther (and deeper) down the road.

Whether you like it or not, these are the immutable Laws of Economics.

Maybe one of you geniuses can provide a SINGLE REAL WORLD EXAMPLE that proves an already-exploding Credit Bubble can be neutralized by ramping up with more credit?

Jim Rogers was right. Its NEVER been done.

Advocating more Pinko Banking to solve problems endemic to reckless Fiat Banking is a fools errand. It doesn't work.

As for the sob stories about 401K Mom and Pops going under - just like the entire American Banking system - are Bullshit. Sorry.

Mom and Pop will have to retire on 2003 values (financials). Oh, poor them. They won't get out at market top.

If they were smart and indexed, they'd be up 50% from 2003. When they get off the can at night, shall we wipe their collective asses too??

As for our good friends at Citi, BoA and Merill. Fuck them.

Many other Banks aren't twisting in the wind relative to these jokers.

Unbelievable as it sounds, MANY Banks refrained from diving head first into the now-radioactive pool of CDO debt.

Its these Institutions who had the foresight and restraint to take the cautious road when it smelled like a bubble, that will fill the ranks when Citi and BoA go crashing into bankruptcy.

This is how Capitalism works. The weak and foolish are replaced by the strong and wise.

And who will capitalize their growth? The shrewd specs and investors who shorted these morons on the way down. Wealth isn't destroyed. Its merely transferred. From one broken-ass jalopy to the next Tata.

That also means the Real Estate market would also "crash" back to 2001 levels. Oh well.

Home prices will eventually get back there anyway.

How?

Whats going to arrest surging commodity (and wages) after Bernacke is done saving the Big Boys with rate cuts and bailouts?

Rate HIKES.

When the beleaguered Top Dogs -- who just so happen to OWN THE ENTIRE FEDERAL RESERVE SYSTEM - manage to save their collective asses courtesy of the American Sheeple, they will jack rates to contain the then-"problematic" inflation.

And the Sheeple will get fucked on the way up and way down. Thats how the system works.

You'll get your wish.
More...


One of the greatest posts in ET history.
 
Quote from plugger:

I think you need to re-read what I wrote. I didn't say or IMPLY anything that you've written above and tried to ascribe to me. Not sure why you're attacking me. If you're angry about something, don't take it out on me.
More...


No, you need to re-read what I wrote.

You think deflation is an anathema to be avoided at all costs - that bailouts are necessary to prevent a catastrophic failure to the ENTIRE banking system.

http://www.elitetrader.com/vb/showthread.php?s=&threadid=120843&perpage=6&pagenumber=2


What Im telling you is this - you believed the lie.

Recessions and market crashes are normal and healthy.

Deflation is a natural consequence of Recessions and crashes.

The US Banking system will not be destroyed, but rather, rebuilt.

Only the players that got their hands caught in the Jar - Citi, BoA, Merill etc - will go under.

Plenty of smaller players who wern't as greedy will rise up and take their place from the "evaporated" market cap of the Big boys.

Japan got fucked because they never bit the bullet. Losses were never realized, excessives never flushed, the market never corrected.

So they sacrificed 15 years of growth for 20 years of stagnation to protect the players responsible from having their asses handed to them.

And Japan never had to undergo a recession, after all that. Because we sustained them.

Who will sustain us when its our turn to shit?

Noone. We will crash too.
 
Quote from achilles28:

No, you need to re-read what I wrote.

You think deflation is an anathema to be avoided at all costs - that bailouts are necessary to prevent a catastrophic failure to the ENTIRE banking system.

http://www.elitetrader.com/vb/showthread.php?s=&threadid=120843&perpage=6&pagenumber=2


What Im telling you is this - you believed the lie.

Recessions and market crashes are normal and healthy.

Deflation is a natural consequence of Recessions and crashes.

The US Banking system will not be destroyed, but rather, rebuilt.

Only the players that got their hands caught in the Jar - Citi, BoA, Merill etc - will go under.

Plenty of smaller players who wern't as greedy that will rise up and take their place from the "evaporated" market cap of the Big boys.

Japan got fucked because they never bit the bullet. Losses were never realized, excessives never flushed, the market never corrected.

So they sacrificed 15 years of growth for 20 years of stagnation to protect the players responsible from having their asses handed to them.

And Japan never had to undergo a recession, after all that. Because we sustained them.

Who will sustain us when its our turn to shit?

Noone. We will crash too.
More...


Is there anything else you would like to say for me? You don't seem to be interested in having a discussion so I'll just say what you want to hear, you're absolutely right. 100% correct in your views. I'm wrong and I've been wrong all along.

Have a nice evening.
 
Quote from plugger:

Is there anything else you would like to say for me? You don't seem to be interested in having a discussion so I'll just say what you want to hear, you're absolutely right. 100% correct in your views. I'm wrong and I've been wrong all along.

Have a nice evening.
More...

I'm contesting points you made.

If you wish to respond with factual rebuttels, by all means.

How is deflation an unnatural occurence during recession?

How will our system of banking and credit cease to exist if the Fed doesn't prop faultering Players?

How will Bernacke avoid massive inflation with endless liquidity pumps?

Please enlighten us free market supporters as to the error and folly of our ways?

My arguments are directed to the group of deflationary Hawks (Landis, Makolda, and yourself). I don't mean to single you out unfairly.
 
Quote from makloda:

When banks become unwilling to extend credit to the economy regardless of the creditworthiness of the counter party then the economy is in deep trouble. Credit contracts in that case.
More...

Now I mentioned this very thing about credit about a month ago. You responded with a link to some article that said credit was expanding and no one was having trouble getting credit. Why the change?
 
Bernanke is in a tight spot. He can't move towards a strict system because such a system requires a solid base or you get an Argentinazo... On the other hand, he can't keep going on the current direction or he'll land himself in 1990 japan, 1923 germany, 1970's nixon's states, or 1985 bolivia. And if he just waits for things to sort themselves out and stops doing anything at all for some time... then there'll be a painful but necesary recession, the market would flush out the ineficiencies we'll all have a healthy dose of deflation and things would work themselves out in the paretto efficient way...

In the 70's it was made clear by Nixon's foolishness that you cannot apply keynesian corrections before you're already in a recession. THat only brings inflation when the markets are still going down... the worst of both worlds.
 
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