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View Diary: David Stockman: “get out of the markets and hide out in cash” Corruption Of Capitalism (122 comments)

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  •  He is (5+ / 0-)

    a lot of the things that you say, but it sounds to me like you are too complacent about the state of the union. The one thing he is not wrong about is the dire nature of things. He's probably anticipating a correction to the artificially inflated markets and insolvent banks.  He's just nuts in the way he aims at things like Social Security, entirely stable and solvent and unlike any of the other things he aims at.

    But then again he could just be another Fix the Debt group asshole softening up  the country for some more shock doctrine austerity ahead.  


    "Justice is a commodity"

    by joanneleon on Mon Apr 01, 2013 at 05:22:08 AM PDT

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    •  Sounds like you're saying the same sorts of things (5+ / 0-)

      re: these "fix the debt" people.  They're able to pitch what they're selling because it's difficult to deny that something is wrong right now.  No kidding; something is wrong.  But when he can't even correctly identify the problem - or even get in the same damn ballpark - his solutions shouldn't even be listened to, let alone entertained as serious.

      This guy is the paramedic who recognizes that the patient has a broken arm and as a consequence runs them over with the ambulance so that the rest of the patient's bones will also be broken.  Sure, it's... symmetrical, of a sense, but it's also absolutely fucking insane.  As is Stockman.

      "The first drawback of anger is that it destroys your inner peace; the second is that it distorts your view of reality. If you come to understand that anger is really unhelpful, you can begin to distance yourself from anger." - The Dalai Lama

      by auron renouille on Mon Apr 01, 2013 at 05:30:51 AM PDT

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      •  I'm not listening (3+ / 0-)
        Recommended by:
        Words In Action, corvo, Klusterpuck

        to any of his causes or solutions. I'm simply saying that talking about this as if it is a Chicken Little situation is profoundly foolish.  Whistling past the graveyard.


        "Justice is a commodity"

        by joanneleon on Mon Apr 01, 2013 at 05:35:01 AM PDT

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      •  For instance (11+ / 0-)

        when he says that people are being robbed, that people who are saving money are being robbed every day by Bernanke's quantitative easing, he's right on that.  Artificially low interest rates, kept that way for long periods of time, simply robs anyone who saves money as the amount of interest you can get (almost nothing) is less than inflation.  That is simply the same as going in and grabbing bank deposits like Cyprus.  

        At the same time, money is given to the big banks for almost no interest.  They take it and gamble with it, extort huge relative amounts of interest in credit cards for instance, and even buy Treasuries with it. It's free money, every day.  Meanwhile the Fed also buys tens of billions in toxic assets and takes them off the balance sheets (or from their off balance sheet investments) of the TBTF banks.  

        There are certain things he is saying that are true, especially the part about robbing people who have saved money for all their lives.  Cyprus, American style.


        "Justice is a commodity"

        by joanneleon on Mon Apr 01, 2013 at 05:40:14 AM PDT

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        •  With regards to the low interest rates.... (0+ / 0-)

          its actually a little disingenuous to say that the Fed is robbing people.  Private sector debt is coming down from 300% of GDP at the height of the bubble......and a great amount of that is household debt....meaning that the low interest rates are saving literally millions of people from bankruptcy and further misery.  
          Don't get me wrong......I would love to see the Feds offer a special Govt savings bond that regular people could buy (up to maybe $20,000 a year) that pays inflation plus 5%...this would allow people to save for their own retirement AND prevent the aristocracy from hoarding all that interest income....there are solutions....but you need to understand that there are always 2 sides to every ledger.

          MMT = Reality
          http://neweconomicperspectives.org/

          "The Earth is my country and Science my religion" Christiaan Huygens

          by Auburn Parks on Mon Apr 01, 2013 at 02:42:25 PM PDT

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    •  Yes (3+ / 0-)
      Recommended by:
      PsychoSavannah, howd, jethrock
      But then again he could just be another Fix the Debt group asshole softening up  the country for some more shock doctrine austerity ahead.
      I agree that stock are probably overvalued, especially financials, and in any case are based on income inequality as banks sop up yet more money they didn't really earn, with money that wasn't really theirs. But his attacks on government spending is just Reagan all over again. When they're not being disingenuous crooks these people are imbecilic ideologues stuck in 1928. Is he for real about going back to the gold standard and massively cutting spending on welfare programs and entitlement programs? This guy's Andrew Mellon!
      “Liquidate labor, liquidate stocks, liquidate the farmers, liquidate real estate. It will purge the rottenness out of the system. High costs of living and high living will come down. People will work harder, live a more moral life. Values will be adjusted, and enterprising people will pick up the wrecks from less competent people.”
      He's just another obsessive-compulsive deficit scold who can't stand debt and thus isn't fit to give advice on economic matters. People like him are the economic equivalent of puritanical religious fundamentalists who rail against sex, pleasure and loud noise because it might lead to satanism. They're nuts, and they're the useful idiots exploited by the rich to sell their shock doctrine.

      There are two sorts of people whose advice you should always be wary of. Those who emerge out of nowhere when you suddenly come into lots of money, and those who emerge out of nowhere when you suddenly fall into hard times. They have ulterior motives in mind, and are not to be trusted.

      "Liberty without virtue would be no blessing to us" - Benjamin Rush, 1777

      by kovie on Mon Apr 01, 2013 at 06:39:14 AM PDT

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