Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: orkrious who wrote (7568)	6/5/2004 2:46:32 PM
From: yard_man	Respond to of 116555

no, I really don't think the Fed believes the employment numbers -- rather they think it is a "virtuous lie" that they can tell and this will help us get over the hump until inflation gives us a self-sustaining, but weak recovery. heck, every time they announce them, you get some big corp laying off folks -- like MYG this time. But they will raise for the same reason -- appearance sake -- the damage has been done already -- first in the period leading up to 2000 blow off in tech -- and now in the hyper-refi home price melt-up credit orgy on its back -- I have to laugh at these clowns that come on here and say --things are great -- turning around, etc. -- it's just plain stupid. Again, if printing money -- or simply writing zeroes behind the value of assets made everyone rich -- South America would be beating the pants off of us. All this "supposed" investment in residential real estate is really largely consumption -- I know all these real estate guys can't get it -- don't understand the difference between a house and productive capacity -- or the difference between a real deepening and lengthening of the capital base of the economy vs. the tallying up of consumption in nominal terms -- but it won't take more than a year or two, now, for them to start figuring it out. The Keynsian BS is so entrenched at this pt at institutions of higher learning ... you get folks like the TraderC fellow who has the continual freudian slip sydrome -- talking about Greenspan being responsible for "running the whole economy." This is how far we've come. Most people don't even know what an entrepreneur is -- they can't conceive of a universe where opportunities to make a buck aren't somehow granted by the government -- either through cheaper than market rates or direct missappropriation of private funds, i.e. fiscal stimulus. Sad to say, but EVERY job that I have had since being out of engineering school has been in some part been a product of government or governement intervention in the markets ... what can you say -- Gene Callahan has a wonderful little contrived example in his book -- Economics for Real People -- the scenario is one where at some pt during the day everyones excess capital is forfeited to the government and at 6:00 every morning the loot is place on the public square and everyone has a chance to grab -- clearly not a productive use of ones time -- but if every one is subject to the rule -- what else can you do? That's the way it is today with the financial markets and the easy credit -- continuous government theft and redistribution -- you've got no choice but to play. A crash would be good -- it might awaken folks to the freedom that they have really lost -- OTOH, so many think they DESERVE so much now -- it may just lead to social breakdown. We've reached the point where everything is a right -- except to be able to work hard and to be able to save what you earn. There really is no such thing as freedom without responsibility. If responsibility goes collective -- then freedoms are gone -- even if someone can still wave a flag and cry when they play the national anthem.