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How much longer can it possibly last. Why issue credit to an individual who is going to lose their job and not be able to pay you back? There has to be a new bubble soon. All the funny $ created since Bernanke crashed rates to 2% has to go somewhere. The TAF,TSLAF,TSAF, took care of their balance sheet issues to a degree. Where is all the other funny fiat gonna go?

Val Larry Gandre Lush

plate of spaghetti and day old salad again honey ?


no raman noodles, bought too much SDLI and EMC kool aid in 2000 and 2001. the $33 billion undersea pump laser market didn't pan out like the 980 nanometer brochures said, but at least the singularity is near!

yes dear, those paradigm shifts get us everytime.

Jill Stewart

Chart readers. If I paid attention to all the charts, I would quit my job a long time ago. You see the Canadian RE market was not doing so good lately, but on many of those charts the numbers looked grim. But the facts were not as bad as the "chart worms" predicted. But hey. They need to make a living too. But sometimes the charts aren`t that bad. They give other people jobs. Like the media for example. They make use of these charts far beyond what they are. in the end, in my ob, the charts don`t mean anything, because it`s always about the personal feelings.


Well Elaine,

As you know, I look at things from the primitive angle. You are a real expert on the economics angle.

From my primitive perspective, you need four things to prosper: WORKER KNOWLEDGE AND DISCIPLINE, HARD ENERGY, HARD INDUSTRY, and COMPREHENSIVE INDUSTRY.

The 120 Volt power in your wall outlets represents fairly soft energy; it will not refine steel. Burning coke is hard energy that can, because it's intense and focused.

Your industry must be synergistic, thus comprehensive. You need mines to get ore to make steel. You need industries to make things from the steel. You need light bulbs so the workers can see. You need glass to make the lights. You need engineers too, of course. And so on and so on...

Very obviously, the masterclass has been relentlessly and systematically destroying and exporting these four things.

They want the USA to die. I find no other plausible explanation. Meanwhile, we are left to ponder the behavior of John Edwards. Collectively, we are so pathetic.


short, short... (uh oh, the temporary ban on short didn't work)


Bank Shares Decline as Merrill Says Crisis Isn't Over

Shares Decline

The index dropped 3.6 percent today, with Charlotte, North Carolina-based Bank of America down $2.16 to $28.97 at 12:34 p.m. Morgan Stanley, based in New York, dropped $2.88 to $39.62.

Mayo cut his third-quarter estimate on Lehman, citing concern that slowing revenue from capital markets and writedowns will erode profit. He estimates a third-quarter per share loss of $2.68, compared with his earlier estimate of profit of 33 cents. Mayo reduced his share-price target to $32 from $42. Lehman fell 85 cents, or 5.2 percent, to $15.36.

Elaine Meinel Supkis

Merrill Finch is so effing doomed. I have some very scary graphs from the Comptroller of the Currency that shows how very doomed several Bear Stearns clones really are. OUCH.

There is no way on god's good green earth these entities can survive. Period.


I work in wall st. I agree with you 110%. IVE SEEN THEIR DEMISE COMING FOR A LONG TIME. They continue to pay sell-side execution traders with massive order-flow. In return for lavish dinners,expensive hookers,weekend bash's in the Hamptons etc. This funny money existence deserves to be decimated. Your are 100% right about "gnome" like behavior. Wall st. are all "gnomes" all they want is pussy,drugs,easy money, etc.. Its a joke, and its time has come.


The new housing bill has a provision in it. All credit card transactions get sent through IRS. This will hurt the "gnome" like behavior on wall st. as well as reduced bonuses. The hedge fund guys getting pampered by wall st. sell-sellside traders is going to end. Its the most egrigeous waste of $ ever.


Elaine's link to "Seeking Alpha" didn't work for me, but this one did:



Elaine, Thanks for your excellent commentary.

What we are witnessing is the most hideous and hidden tax system ever perpetrated on a people; truly historical in proportion.

George Bush told the American people, and I paraphrase: “we’re going to blow-up and rebuild Iraq but please just go on shopping and spending because the war is almost free and we will be re-reimbursed with Iraqi oil anyways.” Then we were told “don’t worry, taxes won’t go up, in fact we’ll reduce them to allow you to spend more.”

The reality is that deficit spending is simply a hidden tax. At least in medieval times the peasants were lined up, eye to eye, for the shake-down. Recognizing that this bred dissention, progressive elites moved to deception. Inflation and the declining dollar (how can any nation prosper with perpetual trade deficits) are zapping the value of our homes and savings while reducing our buying power at a rate that would simply be intolerable if expressed as taxes.

Like the English people of the 18th century, we, and our colonies, are paying to sustain and grow an empire that acts on its own accord and benefits only the elite few. Like any empire, the driving lust is for power. Why exploit a country when you can slice off a piece of the planet?

Hopefully, like the 18th century colony that is now America, we will rise up and say no to empire building and return to aspiring to the advancement of individual freedom and prosperity.

Royal Dutch Paper

Actually I was rather fond of Nixon. It took some balls to take us off the gold standard. The big picture there I believe was that the previous administrations squandered our gold reserves and Nixon point blank pointed a gun at everyone and said you will accept this paper!
One more thing I liked about Nixon, is that he was the President that ended the Vietnam war. A war that I believe was the only successful war that the US has fought this century! And eventually cost him his office, so I say HUZZAH for Tricky Dick!

Elaine Meinel Supkis

Royal, he ended it by kissing MAO's ass!!!

HAHAHA. While accusing me of being friends with Mao! Then he sent my dad to Mao to make nice! HAHAHA again.

Gads. Nixon hated me and I teased him mercilessly. On the other hand, when the Chinese leaders were living with me, Reagan was President. And in the pay of the Japanese.

Heavy Metal

I read somewhere that China is, in fact, a Libra country. They thus have keen sense of balance and value balance in all things. From the martial arts to bicycle riding to gymnastics and diving events, you see balance in action.

Indeed, as "The Middle Kingdom" they are the very balance between heaven and earth, as it were. Now, if we could only sit down and discuss the balance of trade and how that affects the balance of power...


Dear Elaine,
Try and listen to jeff rense radio show now. Catherine fitts is on. Shes slick. You will like this



In addition to the cozy (but unstable) currency relationship which you frequently discuss in which Japan supresses its interest rates and the value of the Yen in order to promote exports and the U.S. (and others) uses this cheap credit to inflate its own currency and consumption, there is a global currency trend setting in that will add to the economic disaster engufing us.

In order to survive the global trade downturn that is developing as the massive credit bubble which expanded for the last 25 years goes into contraction (think of reverse labor pains), country after country is effectively devaluing its currency to prop up exports. Japan, of course, wrote the book. China has permitted the RMB to appreciate vs. the dollar for a couple of years, but not much, and now its reversing course. The Europeans - who were so proud of the appreciation of the Euro vs. the dollar for a decade - are now devaluing it as fast as they can. And, of course, the U.S. is outracing the pack in currency devaluation.

This is comparable to the "beggar thy neighbor" tariff wars that helped make the Great Depression so Great. This time it's "undercut your neighbor" - sort of an international WalMart Principle in which destroying your own economy in the long run is acceptable as long as you maintain market share by making your exports cheaper than your competitor in the short run.

In the relatively stable environment of the 1990's where Japan was the main country doing this, it worked just fine for them (when only one store cuts all its prices by 50%, it naturally gets everybody else's business). But when everybody goes into a price war at the same time, the effect is a downward spiral of cutthroat devaluation. No one can afford to blink first and watch their economy tank as their exports fall to zero.

The net effect of this is to feed the flames of the credit contraction (just as the tariff wars did to the credit contraction of the Depression). As one of my mentors, who was a young man during the Depression, once said, "Yeah, things were really cheap. You could get a steak dinner and a beer for a quarter. But how could you get your hands on a quarter?"


ralph said:

"Wall St. are all "gnomes," all they want is pussy, drugs, easy money, etc.. Its a joke, and its time has come."

I'm from Connecticut. It's true! Millionaires spend their quality time picking out dildoes, while their business interests crumble. Hell, what do they care? They can always sell everything to China.

They want booze and drugs and flashy broads. They have no responsibility to anyone. The $250,000 a year grunts watch on in horror. But they are owned.

Maybe we could use a financial edition of WikiLeaks. Talk about a chamber of horrors!

Elaine Meinel Supkis

How very true, Michael.


So Elaine, that was you in real life playing the Michelle Williams character in 'Dick'?

Elaine Meinel Supkis

Yikes, no.

Paul S

David Walker was the head of the GAO. This is an interesting video re his predictions:
http://www.youtube.com/watch?v=OS2fI2p9iVs. Speaking of videos, has anyone seen the movie "American Psycho"? Christian Bale stars in it. It's a movie where the main character (Bale) is an investment banker by day and a raging psychopath by night. In real life, I suppose the lines are more blurred.

Elaine Meinel Supkis

You are telling me the lines are blurred? HAHAHA. A gnome is a gnome, day or night.

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