Two Years Later, ‘A Completely Unbalanced Situation’
The amount of digital ink devoted to Jackson Hole over the past several days was remarkable. I'm just as "guilty" as anyone else. It's preemptive tasseography -- reading the tea leaves of a speech no one has even heard yet.
The effects of Fed tightening are starting to show up. The lags may be "long and variable," but some of the impact is manifesting in the economy and corporate guidance. A preliminary read on services sector activity for August was disastrous, for example, and higher mortgage
“I found freedom. Losing all hope was freedom.”
“….suggests the Committee is currently trying to reestablish or preserve its reputation as a check on runaway price growth.”
Meanwhile, 20 million US homes are behind on their utility bills.
We’re f&#ked.
I’ve been saying for over 30 years- Our economic problems are political, and our political problems are psychiatric. Financialisation means running the economy with 2 primary goals- 1 higher asset prices. 2 the wellbeing of the financial services industry. The upward movement of money to the already rich coupled with rise of the accidental empire (tech) concentrated money deeply. This money then canceled out one man one vote. Are we shocked that gambling is going on in this establishment?
“Whereas once the problem was just welfare queens and strapping young bucks, now it’s the entire middle and lower classes, the lazy union members, the credit card deadbeats, the unemployed so content with their benefits that they don’t look for work.”
‘We Are All Strapping Young Bucks Now’
Doug J. Balloon Juice January 6, 2011
“ If that characterization makes you feel old (i.e., if you’re uncomfortable with the notion that “modernity” no longer includes the 70s, or even the early 80s, please accept my apologies and know that I sympathize).” Thanks for reminding me of how old I am.
It reminds me that my wife and I felt lucky to get a 13% government insured mortgage loan for our first house in 1984. And the 4-bedroom house only cost $51,400.
These types of articles remind me of the concept of Paradigm Shift (made popular by James Barker in the 90s). The symptoms of a basic shift in the nature of the economy/market clearly are there; but it seems like many market participants are in denial and want to return to safe, earlier times as evidenced by their investing behaviors. Such behavior, fear of the unknown, is typical of painful transitions, especially for folks who have become entitled
^and originated by Thomas Kuhn in his book, The Structure of Scientific Revolutions, in 1962.
” — and “big league,” as one former US government official who enjoys archiving top secret documents in retirement might put it.”
Your humor continues to be “big league”!
I try. I really do. There’s so much buried in these articles that I think people miss. That one is pretty obvious, but a lot of the humor is so subtle that I fear it gets lost.