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

To: Lee who wrote (108851)	2/24/2010 10:46:44 AM
From: Hawkmoon	Respond to of 116555

People tend to forget Mish led a revolt against TARP, calls for abolishment of the Fed, hasn't been a fan of the Treasury, and has called for indictments against bankers. Mish has certainly been a strong advocate for those things he believes in. I certainly agree that there are some bankers who should be receiving indictments for the actions they, and their firms, undertook over the past 10 years. As for TARP, controversial as it may be, ultimately it only propped up the perpetrators, and did very little to support the victims, namely the financial surety (insurers) industry which got left holding the bag. That had a direct impact on Main Street since bankers can claim they don't have viable risk mitigation option, so they don't lend. But I wish Mish was spending more time on CDS and their destructive nature to ANY financial system than he is on union pounding. I consider CDS to be the greatest threat to economic recovery because they are designed to permit investors to bet on, and then create, failure. They must be regulated as have been most other insurance products. Lending to "Main Street" is unlikely to be restored until CDS's are controlled. And I agree that public union members who are receiving 2-3x the average private wage in their locality are going to face some serious wage reductions. But the ratio of gov't to private sector jobs in that locality need to be addressed as well. If government spends money, it needs to do it by contracting with the private sector, not hiring permanent gov't workers wherever possible. to call Mish apologetic of the bankers and political elites is a rewrite of history worthy of Barny Frank. My point was that Mish should reflect upon any use of leverage he's engaging in as a money manager each time he goes short or buys an ultra-short ETF. Because if you're short, you're borrowing. If he's engaging in FOREX, he's likely utilizing leverage to do so. Therefore, any profits he makes from such transactions are just as dependent upon leverage and debt as any Wall St. bank trader. I think it's a fair question given how harsh he's been about excessive leverage and debt. And while Mish is not compelled to answer it, maybe it will generate some self-reflection. Hawk