Not funny at all

I'm just writing a little post here so that I can say I have not forgotten my little blog altogether.  The 2012 Summer Olympics have started in London but I do not know a single one of the athletes - not one. Not a single person in any of the sports. I don't even know how many Olympic sports there are. I know there is swimming and the high jump but that's about it. It's not funny but I really don't care. As long as I have my Daiquiris I am fine. Thanks.

Debt and Futures

A couple of guys just won the Nobel for Economics. We still have very high unemployment and these guys don't have a clue how to create jobs. One of them said he would sit on his money for a while. Sitting on money will not create a single job. Spending it will. The problem is two-fold: too much debt and the futures market. Futures are like the gambling aspect of the economy, really meant only for speculators, which means it creates nothing - no products, no services. When losses occur, someone is left holding the bag which then means a debt that goes unpaid and is written off. That takes money out of the economy without giving anything back in return. I'm only guessing, of course. Have a nice day.

Mexican Bonds

Why is it that so many people seem to be out there selling Mexican bonds when in effect they do not have them? Some of these bonds can be pretty pricy - upwards of 5 billion - and they make for good business if only people would be serious about them. If you have one of these or if you know someone who does, just look me up. We're buying.

Economics vs Poverty

So, the Nobel Prize committee is at it again. This time, they awarded the Economics Prize to three men who teach somewhere - it really doesn't matter. Economics has never actually been a science but there you have it. I submit to my six readers that one of the most pressing needs of our time is to solve the riddle of poverty. Yet, among the dozens of economics gurus who have received the famous Nobel Prize, none has had a fix on the problem, much less a solution. Is that not ironic? They know as much about poverty as this topless woman.

Greece and money management

When you stop to think about it, countries are just like people - after all, countries are made up of people, no? Take Greece, for instance. It has been living off of loans, just like the U.S. It is like a person who lives on credit cards. Now comes the time to reap what they sowed. The E.U. has to rescue it, just like a mother and father would rescue an irresponsible child. Let us hope the lesson has been learned.

Global warming again

It seems that with all the snow and low temperatures we've been having lately people are beginning to doubt the battle cry of global warming that so many have been cackling about. Even I am beginning to doubt. The warm scientists are, OF COURSE, saying that the snow was caused by the global warming!!!! No wonder we are so confused. Did anyone feel warm snow? Did it feel warm anywhere? I certainly did not and neither did this topless woman.

The boss

From a Yahoo! News story: “BEIJING – China's premier didn't say it in so many words, but the implied warning to Washington was blunt: Don't devalue the dollar through reckless spending. Premier Wen Jiabao's message is unlikely to be misunderstood at the White House. It is counting on Beijing to help pay for its stimulus package by buying U.S. bonds. China already is Washington's biggest foreign creditor, with an estimated $1 trillion in U.S. government debt. A weaker dollar would erode the value of those assets. "Of course we are concerned about the safety of our assets. To be honest, I'm a little bit worried," Wen said at a news conference Friday after the closing of China's annual legislative session. "I would like to call on the United States to honor its words, stay a credible nation and ensure the safety of Chinese assets." I told you so.

Trust has left the building

From Yahoo! News: “After Geithner's announcement, stock prices fell further and the dollar extended losses while prices for U.S. Treasury debt securities extended gains. James Ellman, President of Seacliff Capital in San Francisco, said: "Investors want clarity, simplicity, and resolution. This plan is seen as convoluted, obfuscating, and clouded." Geithner acknowledged deep skepticism has developed over the fairness and efficiency of a $700-billion bank bailout program approved by Congress in October. He said leaders of some financial institutions that have received money had squandered the good faith that is needed to make the bank rescue effective. "The spectacle of huge amounts of taxpayer money being provided to the same institutions that helped cause the crisis, with limited transparency and oversight, added to public distrust," Geithner said. The revamped approach to the government's financial rescue war chest would use $100 billion to cover risks the Fed would take in expanding a $200 billion program supporting consumer and small business lending to a $1 trillion program that also supports an array of mortgage-related assets. Markets appeared caught off balance by some of the measures that Geithner offered.”
I guess the psychology is now something like what the financial debacle brought to light: If it’s too complex to understand, don’t buy it. One cannot put too high a price on trust, confidence, and honesty. Perhaps those values are the true backbone of the economy? Who really knows? Is there anyone out there who has some credibility with the big investors? PLEASE.

DEBT

From a prescient newsletter: By Porter Stansberry: "This is how America ends – with the lie that we all can live at the expense of our neighbor and borrow endlessly. Rather than simply face a downturn in the economy, we plan to borrow trillions of dollars our children and grandchildren will be forced to repay. Rather than let all those people and institutions that took on too much debt (like GM) be liquidated and restructured, we plan to risk a hyperinflation. Rather than insist homeowners who can't afford their mortgages lose their homes, we would jeopardize the credit rating of the country. It is all madness. None of the government's bailout plans will solve any of the problems. The government can only shift the burden of the failures. Instead of bondholders and shareholders being wiped out, taxpayers are put on the hook. These actions will temporarily resuscitate the economy – but cause a permanent decline in the value of the dollar." If the first and second lienholders foreclose on the U.S. Treasury, we can all go wash dishes in China and Russia and Quatar and other foreign places in order to work off the debt to them. No problem.