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Prudential Immiseration

By Al Schumann on Tuesday August 11, 2009 07:10 AM

no secret i hate the billionaire shylocks


and their "do we not bleed ?"pathos
but right now its all about their "do we not lend ?" lying .... i'm urked by the sanctimony..uncle piles on the instant liquifaction and the tower shylocks ...horde ...yes horde and call it .."our savings" .. and yet big lie that it is
who dares call this saving merely rejected borrowing ...
but it is ...this suddenly emergent 6 % gap between total household income and expenditures is nothin but
a fancy three cushion credit shuffle butt ball

my man mike whitney :

"Fed chairman Ben Bernanke has increased excess reserves in the banking system by $800 billion..."

and yet

"The standards for conventional loans have gotten tougher while the pool of qualified credit-worthy borrowers has shrunk. That means less credit flowing into the system..."
how much less ??

well imagine its the whole 6 % swing we've seen into the golden savings zone .. i bet it is ..
.what if the scotch disease of householder saving isn't really saving after all but a simple reduction of net outstanding consumer credit a reduction of say 50 billion per month ???

the source of shylocks remorse ??? caution ??? ..read !!!

"The banks are hoarding capital in order to deal with the losses from toxic assets, non performing loans, and a $3.5 trillion commercial real estate bubble that's following housing into the toilet"

i think (and mike seems to too after his garbled gusto fashion)this forced savings bender we're on
is the consequence of an ultimately contrived cataractic drop in effective demand ...contrived...
-- note the change in standards line mentioned by mike w ---
i cry "foul ball"... is it not about a new middle class thrift but rather about an optimally enemic macro ...optimal by trans nat inc's gage of course

conjecture :
this great recession in regular amerikan jobs and household credit is the inevitable fall out from "prudently managing "
our hyper horror of a trade imbalance ...errr without diving the dollar...get it ???

first they de industrialize us by engineering a high dollar / low rmb massive trade gap profit slurry ..and now
that pile up of uncle iou's so essential to this caper has maybe reached nimrod topwer proportions...
" they " ...are delighted to let us spittoon ready plebs and proles hoik up "the necessary demand correction"

yup we're to take this global wrecks mojo ..right on our collective glass chin

Comments (5)


not clear in post
but obviously the present global markey system climactric is over determined

but the point might be
that technically job market recovery
could have nearly completed itself by now
if the sole objective
of uncle's strategic macro policy
was domestic employment max

possible without diving the dollar???

yes if we desired to re widen
the trade gap
re-accelerate de industrialization

trilemma's only occur when you want
to keep your cake whole
and to eat it too

Al Schumann:

I think we could re-industrialize and still close the gap. As an example, shift the auto industry from cars to road construction to trains, light and heavy rail, which we need anyway, shift coal mining to placement of wind power infrastructure and shift aerospace to manufacture of wind power tech. There's a huge demand for reliable, comparatively inexpensive wind power. Affordable light rail is needed to save cities, globally. We can easily build good, cheap trams and sell them. Lots of value added in the latter two. Put the libertarian paternalists to work nudging the trains along the track, by hand, to keep them from needing imprisonment.


super al
u know i agree
recovery first however
get everyone baack to jobland
then reconstruct the industrial platform
energy platform transport platform etc etc
even the platform platform

with uncle backed cheap and generous funding plus subsidies and other veneal incentives for the entrepreneurial class etc
subsidies on a three year cycal
paygo with tax/penalties for production of bads


"Put the libertarian paternalists to work nudging the trains along the track, by hand, to keep them from needing imprisonment"

hand pulled canal boat staffing ???

the canal fresh air gulag

Al Schumann:

Fresh air gulags. Yes. Exactly. Ideologically, we're committed to the salvageability, if not perfection, of all humans. I'm sure Thaler and Sunstein would agree with the principle, even if the practice left them somewhat the worse for wear.

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