Archive for December 28th, 2009

Hoarding With Interest

Monday, December 28th, 2009

Term deposits are in at the Fed!

10% unemployment apparently is acceptable on Maiden Lane, but the non-existent threat of inflation must be fought tooth and nail!

So haul out the reverse repos, line up the toasters, and get those depositors in the door!!!

Helicopter Ben clearly doesn’t want all that money the zombie banks are hoarding to start being used in the real economy!

It’s truly astonishing how absolutely blind the nation’s economic policymakers are to the very real pain of an unemployment rate that’s actually around 15% (when you add in those who have given up looking for jobs).

The Fed’s mission is supposed to be equally divided between price stability and employment, but there’s been zero done so far for all the poor shnooks looking for jobs.

Blank checks for Fannie and Freddie, the dollar carry trade, and the guarantees of toxic assets obviously are more important to Wall Street and Washington than another lost decade of zero job and income growth.

The bankers have Ben and Timmy in their pockets, and the worst Congress money can buy.

Gorilla doesn’t understand: “CD shouldn’t stand for Coming Depression, but it looks like we’re headed that way again!”

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Taking It To The Streets

Monday, December 28th, 2009

In Iran, the opposition has taken to the streets again, and the regime has acted predictably with a violent response.

It’s still much too early to say whether Iran will change for the better. The opposition is neither secular nor democratic.

But if there is a willingness by Iranians to die in the thousands so as to overthrow a brutal regime, then progress may be achieved.

In the meantime, the US should be engaging in dialogue with Iran. Sooner or later, the Chinese and the Russians will abandon their support of limited sanctions, and the President will have to decide which is more important to US national security: allowing Tehran to have nuclear capability or trying to undermine the regime through an expanded relationship, including diplomatic recognition, support for human rights, and a regional security conference that would include the Israelis.

Unfortunately, the President is distracted at the moment by yet another failed terrorist attempt, the endless negotiations over minor health care reform, and the need to figure out once and for all what to do about Afghanistan and Pakistan. Iran’s well down the list of priorities.

Gorilla thinks: “Better keep your eye on the ball before the Israelis hit it out of the park!”

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An Empty House

Monday, December 28th, 2009

Calculated Risk has a quick synopsis of all the government efforts to support house prices.

These attempts have been more or less a total failure, with the number of permanent mortgage modifications numbering in the tens of thousands while the number of foreclosures continues in the millions.

The best solution, namely allowing bankruptcy court judges to reduce mortgage principle, has been voted down twice in Congress.

So, prices will fall further, foreclosures will parallel the unemployment rate, and remaining homeowners who do hang on will become renters in practical terms.

Gorilla thinks: “Our leaders live in an empty house, they remain a wholly owned subidiary of Wall Street!”

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Stay Very Unafraid

Monday, December 28th, 2009

Yet another attempt to blow up an airline, this time by a nutjob Islamist who could only set himself on fire.

Followed almost immediately by a fierce overreaction from officialdom, with more delays for travelers in the US, although the flight didn’t originate there, and more promises of screening (passengers, not cargo, which remains largely ignored) and air marshals.

The problem with all this fiddling is that it’s virtually impossible to stop a determined, well financed outfit from taking down an airliner whenever it likes. Shoulder mounted rocket launchers are easily obtainable. Sarin gas is not a difficult carry on.

What authorities should be doing is telling the public that they have a better chance being killed crossing the street than they do being terrorist victims. A grown up society doesn’t cower before a bunch of fifth-rate nihilists who occasionally get lucky.

Gorilla says: “Worry more about organized religion, it’s a far greater threat to life, liberty and the pursuit of happiness!”

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