Perhaps a little more deflation will convince Trichet what type of battle he is really in….
Comments »El-Erian Warns of a Meltdown for Tomorrow’s Trade
Essentially Europeans are mishandling their banking crisis with squabbles and a lack of conviction to fix the problems with decisive measures.
Comments »Some Highlights From the GOP Debate Hosted by DeMint in S.C.
European Markets Implode on Expectations of Bailout Fatigue For Germany and France
Merkel got a reality check at a regional election and the Finns demanded collateral for participation in bailout participation.
Comments »Gross Reminds Tea Party Americans to Rethink Austerity
Sarah Palin and her tea party movement need to learn the painful lessons being experienced in the U.K.
While being frugal and cutting wasteful spending is a great goal we need to be very careful of not going too far as austerity can have painful affects upon a economy.
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FLASH: UK PMI Falls Most in a Decade
August services PMI falls to 51.1 from 55.4 in July, as manufacturing falls sharply.
Comments »Will Washington Force Bernanke to Make the Next Move ?
Labor’s Dwindling Share of the Economy and the Crisis of Advanced Capitalism
Charles Hugh Smith publishes Foreclosure Crisis Weekly, dedicated to documenting the often-amazing foreclosure crisis.
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All attempts to reform the Status Quo of advanced finance-based Capitalism will fail, as its historically inevitable crisis is finally at hand. It is self-evident that conventional economics has failed, completely, utterly and totally. The two competing cargo cults of tax cuts/trickle-down and borrow-and-spend stimulus coupled with monetary manipulation have failed to restore advanced Capitalism’s vigor, not just in America, but everywhere.
Conventional econometrics is clueless about the root causes of advanced finance-based Capitalism’s ills. To really understand what’s going on beneath the surface, we must return to “discredited” non-quant models of economics: for example, Marx’s critique of monopoly/cartel, finance-dominated advanced Capitalism. (“Capitalism” is capitalized here to distinguish it from “primitive capitalism.”)
All those fancy equation-based econometrics that supposedly model human behavior have failed because they are fundamentally and purposefully superficial: they are incapable of understanding deeper dynamics that don’t fit the ruling political-economy conventions.
Marx predicted a crisis of advanced Capitalism based on the rising imbalance of capital and labor in finance-dominated Capitalism. The basic Marxist context is history, not morality, and so the Marxist critique is light on blaming the rich for Capitalism’s core ills and heavy on the inevitability of larger historic forces.
In other words, what’s wrong with advanced Capitalism cannot be fixed by taxing the super-wealthy at the same rate we self-employed pay (40% basic Federal rate), though that would certainly be a fair and just step in the right direction. Advanced Capitalism’s ills run much deeper than superficial “class warfare” models in which the “solution” is to redistribute wealth from the top down the pyramid.
This redistributive “socialist” flavor of advanced Capitalism has bought time–the crisis of the 1930s was staved off for 70 years–but now redistribution as a saving strategy has reached its limits.
To read the rest and see some nice chart porn, go here.
Comments »The Equity Markets Hold Their Breath for Bundesverfassungsgericht
Wednesday September 7th, is an important day for equity markets and bank stocks specifically. The German high court has a chance to rule on continued bailouts for the Euro zone. It is expected that they will rule in favor of the German government to continue bailing out bankrupt countries in the zone.
Comments »World Bank’s Zoellick: “World Economy Is Entering A New Danger Zone”
Obama Urges Congress to Renew a Transportation Bill To Save Jobs and Continue Funding
“Allowing this bill to expire would be a disaster for our infrastructure and our economy,”…..”If it’s delayed for just 10 days, we will lose nearly $1 billion in highway funding that we can never get back. And if we wait even longer, almost 1 million workers could be in danger of losing their jobs over the next year,”
Comments »Trichet Gives Another Worthless Speech on Austerity; Trichet Has No Comments on ECB Bond Buying Action
Late Night Fun: Trick or Treat
[youtube:http://www.youtube.com/watch?v=tkJNyQfAprY 450 300]
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Chart of the Day: THE SCARIEST JOBS CHART EVER
Pimco’s El-Erian: US Economy Is ‘Grim and Scary’
41.8% Of The Working U.S. Population Do Not Have Jobs
We Are in ‘Worse Situation’ Than in 2008: Roubini
The world’s developed economies are trapped at the “stall speed” of low growth and need to have greater fiscal stimulus and less austerity to kick-start growth, leading economist Nouriel Roubini told CNBC Friday.
Speaking at the Ambrosetti Forum on the shores of Lake Como, near Milan, Roubini said in an interview: “We are in a worse situation than we were in 2008. This time around we have fiscal austerity and banks that are being cautious.”
Read the rest here.
Comments »A Must See Documentary: Debt Collapse and The Road to True Wealth
[youtube:http://www.youtube.com/watch?v=tj2s6vzErqY&feature=pyv 450 300]
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