ALL BLOG POSTS AND COMMENTS COPYRIGHT (C) 2003-2016 VOX DAY. ALL RIGHTS RESERVED. REPRODUCTION WITHOUT WRITTEN PERMISSION IS EXPRESSLY PROHIBITED.

Monday, March 09, 2015

Assuring mutual destruction

The "bad bank" concept only appears to have delayed the inevitable default, not prevented it:
It was the failure of Creditanstalt, a Viennese bank founded in 1855 by Anselm von Rothschild, that arguably sparked the Great Depression, setting off an unstoppable chain reaction of bankruptcies throughout Europe and America.

No-one would think that what happened last week at Austria’s failed Hypo Alpe-Adria Bank International falls into quite the same category; we are meant to be in the recovery phase of the latest global banking crisis, so this is more about re-setting the system than again bringing it to its knees, right?

Well, make up your own mind. I suspect neither financial markets nor policymakers have yet caught onto the full significance of the latest turn of events.

In a nutshell, the Austrian government has had enough of funding the bank’s losses, and announced plans to “bail-in” external creditors to the tune of €7.6bn instead. As such, this marks a test case of new European rules to make creditors pay for failing banks. About time too, you might say. What took them so long?

Only in this case, the bonds are notionally guaranteed by the Austrian state of Carinthia, which now theoretically becomes liable for the bail-in. It’s an echo of the mess Ireland got itself into at the height of the banking crisis, when it foolishly attempted to stem the panic by underwriting all Irish banking liabilities; the move very nearly ended up bankrupting the entire country. Hypo will bankrupt Carinthia.
What the central bankers and politicians are doing is trading risk for time. I, and other economic realists, have been repeatedly wrong about the timing of events; I thought both Greece and Ireland would go bankrupt by 2013. But the fact that the defaults have not begun yet does not mean that the crisis is over, in fact, it does not even mean that the crisis is less serious than before. Quite the opposite, actually.

While I understand if those who don't pay much attention to international economics might simply assume at this point that I don't know what I'm talking about because things don't seem to necessarily be all that bad, it might be helpful to keep in mind that the current situation is unprecedented.

For example, in most previous historical situations, Austria's Hypo Bank would have gone bankrupt back in 2009. Instead, it was nationalized and put Austrian taxpayers on the hook for up to $25 billion.  The assets were divided and a "bad bank" created, but now that bad bank is in such dire straits that the Austrian government isn't willing to continue funding its ongoing operational losses. But instead of simply declaring it bankrupt, they have put the assets of the equivalent of a U.S. state behind it.

This may buy them as much as another five years. But it also assures the financial destruction of an entire region of the country. What the banks have successfully done is create a system of mutually-assured destruction, gambling that electorates would rather let them off the hook than risk their governments defaulting, with all the turmoil that would subsequently ensue.

Labels: ,

54 Comments:

Anonymous DissidentRight March 09, 2015 8:42 AM  

Things that can't continue forever, don't. But I guess we should never underestimate people's willingness to throw good money after bad...if they think the alternative is (magically) worse.

Anonymous Salt March 09, 2015 8:42 AM  

The Bankers are, unwittingly, doing us all a favor by assuring the destruction of a cancer infecting western democracies. It's not just multi-culti going down, it's everything.

Anonymous daddynichol March 09, 2015 8:46 AM  

A Ponzi scheme indeed. Now TPTBwill work overtime to divert attention elsewhere. Let's see, anywhere in the Mid East, Ukraine or the US election cycle will do.

Anonymous George of the Jungle March 09, 2015 8:53 AM  

2 more years to save like a muhfuh and invest in hard assets... I will also want some kind of retribution on the perpetrators after the shit hits the fan, just for a satisfied sense of "closure"...

Blogger David March 09, 2015 8:57 AM  

Stuff exists.
People own it.
The problem is that in this unprecedented credit bubble, nearly every asset on the planet has been used as collateral multiple times, creating a near impenetrable web of cross-linked IOU's that let multiple people count the same asset as part of their wealth base.

The can-kicking (especially direct monetization of debt) has simply shifted ownership of the IOU's around like a game of 3-card-Monte.

Eventually, the dominoes will finally start to fall and a full reconciliation of all the unpayable IOU's will occur. In the end, people will still own stuff, but many, many people who thought they held claim to assets will discover that they didn't, they held an unenforceable contract to pay, issued by someone who never had the means to do so.

We are awash in the belief in wealth that is actually multiples of what really underlies it. The reconciliation will reveal most of that "wealth" is an illusion, and those who are able to maintain title to wealth will see its relative value soar.

Blogger David March 09, 2015 9:03 AM  

Mises published his irrefutable critique of socialism in 1922.

The USSR outlived him.

It is easier to be correct on analysis than it is correct on timing, and sadly, timing is the most critical element. The credit bubble began (depending on how you look at it) 33 to 50 years ago. It seemed ripe to burst in 1995, but instead we launched into the greatest asset mania of all known history.

It is very disorienting to have nothing make sense for 20 full years.

Anonymous Giuseppe March 09, 2015 9:13 AM  

Vox,
Your erroneous predictions on the timeline are, I suspect, almost an order of magnitude better than mine. I got a little insight into the banking world in the late 90s and thought then that in five years the whole world would be reduced to zombie apocalypse type of collapse.

Until 2008 I was trying to figure out if I could have been really so wrong, but no. The maths adds up right every time. I had just not allowed for the variable of absurdly corropt human nature and how that would factor in on the timeline.

Blogger RC March 09, 2015 9:16 AM  

"It is very disorienting to have nothing make sense for 20 full years."

Amen. Investing in public markets over the past two decades has been akin to rhetoric versus didactic methods of persuasion in the public square.

Anonymous George of the Jungle March 09, 2015 9:17 AM  

I'll be the first to admit, I'm not as well educated as I should be on the banks and their Keynesian sleights of hand (although I'm still reading and working on it).

The conclusion I come to at the moment is that, as long as oodles of fiat money are accompanied by inflation, the banks and their respective governments can keep this Ponzi-cum-shell game going forever. The only thing to bring it down will be some unforeseen black-swan event, but until then, interest gets paid on the fake funds, and nobody needs to call in full debts. Is that about right (I hope I'm close)?

Blogger David March 09, 2015 9:33 AM  

Prechter recently addressed what I'd term "seasonality" in economies by noting that during 3rd wave rallies of large degree it is production that drives the advance, whereas during 5th wave advances finance takes over as the larger force. 5th waves are the final impulsive wave in an Elliott Wave progression, and precede the ensuing correction that takes back a chunk of the prior 1-through-5 advance. If the credit mania is a massive 5th wave, this implies that stocks should eventually revisit the 1974/1982 lows. (Yes, this seems impossible, but is it?)

For half a lifetime, services (esp. finance) have been the road to true riches. This suggests that on a long term basis, when this period ends, those engaged in the Groundhog Day Chicken Little dance will prove right, and a period of decline/correction not seen in centuries will play out.

Oh, for a crystal ball on the timing....

Blogger James Dixon March 09, 2015 9:38 AM  

> (Yes, this seems impossible, but is it?)

In the Great Depression crash stocks lost 90% of their value. You do the math.

But money in the bank won't be any safer, and as before you can count on the government to outlaw any and all competing forms of saving. So people are kind of stuck.

Anonymous Cash March 09, 2015 9:52 AM  

@David

Isn't Prechter also basing hus predictions off of sun spots? Maybe that is another guy.

Anonymous Cash March 09, 2015 10:03 AM  

His

Anonymous Titus Didius Tacitus March 09, 2015 10:04 AM  

daddynicho: "A Ponzi scheme indeed. Now TPTBwill work overtime to divert attention elsewhere. Let's see, anywhere in the Mid East, Ukraine or the US election cycle will do."

German: "Gold will still be good, provided you hold it in your own hands and don't merely have the empty promise that it could be produced if needed."

German: "Which reminds me: Mr. American Banker, I'd like my gold back please. Not notionally, but physically."

"American" Banker: "Heinz, Heinz, baby; where is the love, where is the trust..."

German (interrupting): "Where is my damn money!?"

"American" Banker: "Here's... some."

German (counting, slowly): "That's it?"

"American" Banker (sotto voice, to lackey): "Is that pittance our share of Gaddafi's gold? What about the loot from the Ukraine job? Well get more. I don't know, do the Syrians have some? That we can get if we whack them? Anyway, just get it!"

German (looking up): "That had better not be all."

"American" Banker (shouting, waving wildly and pointing somewhere behind the German): "Never mind that! THE RUSSIANS ARE COMING!!"

Anonymous Porky March 09, 2015 10:13 AM  

Brilliant plan. Whoever thought of it should get a big year-end bonus.

Anonymous zen0 March 09, 2015 10:16 AM  

... it might be helpful to keep in mind that the current situation is unprecedented.


Aha. It IS different this time.

Bullish!


/s

Blogger David March 09, 2015 10:20 AM  

@James Dixon
As you know, in the 1920's nowhere near the current levels of overpromising was done. The current amount of debt intended for perpetual rollover is many times that of any prior period. The bust of 1930-32 was baked into the cake by a mountain of unsupportable debt. What does an ocean of such debt now in existence promise?

I expect the DJIA to eventually plumb below its low of 1974 because that's basically what the typical correction does, retrace the entire preceding 5th wave. In order to get to that depth, I consider it near-certain that bank failures and the modern "bail in" will be endemic. The banks' cupboard is bare, and bail-ins are simply the current way to reconcile this fact with depositor fantasy.

Unfortunately, there really isn't anywhere to hide from this, and betting against a continuation of the mania has proved counterproductive.

Que sera, sera. Enjoy the sunsets because they're free.

Blogger David March 09, 2015 10:27 AM  

@Cash. No, that's not his schtick.
http://www.robertprechter.com

I respect his work despite my view that "market forecasting" is for those who make their money off of people's innate desire for reassurance and a guru to provide a systematic explanation for what is otherwise a bewildering reality.

Elliott's Wave Principle (and Prechter's derivative of it, socionomics) are useful, systematic explanations for how mankind's social nature is exhibited. They are not, in my view, useful for "making money."

Blogger rumpole5 March 09, 2015 10:31 AM  

I have commented before on this site that your dystopian economic math, while correct, does not fully, if at all, take into account the fact that our tech geeks are constantly saving our collective asses by making valuable assets out of worthless ones. Point in fact is The fracking boom. Point in fact is the communication information boom, viz: online data vs. paper publishing. Point of fact is driverless robot cars and trucks that will eliminate driver incompetence, fuel expense, and crash repair expense.
Banker theft may turn out to be barnacles on an economic craft that is plunging forward anyway, fueled by the ever rising curve of technology.

Blogger David March 09, 2015 10:47 AM  

Tech geeks have brought humanity innovation after innovation (mostly a laudable condition) but that has not repealed the cyclicality of booms & busts. I'd also argue that prior innovations (the ox yoke, harnessing steam, then electricity) dwarf the incremental benefits of cell phones & robotic transportation, yet financial manias followed by panics reoccurred periodically before, during and after such epochal advances.

Blogger Robert What? March 09, 2015 11:02 AM  

I firmly believe that the reason more banks have not failed yet is because the Banksters and their cronies in government have not yet figured out how to put this all on the taxpayers. For the Banksters and their cronies to suffer significant losses based on their past activity is simply unacceptable to them. Unfortunately for them the productive classes in most countries are shrinking, so the pool to plunder is getting smaller. They haven't figured out this conundrum yet, which is why they keep pumping away.

Anonymous zen0 March 09, 2015 11:05 AM  

> I expect the DJIA to eventually plumb below its low of 1974

Which, adjusted for inflation, would be less than 3000.

= (80%).

There will be gnashing of teeth.

Anonymous The Z Blog March 09, 2015 11:09 AM  

What you're seeing here is the logical extension of modern capitalism to banking. In modern capitalism, the goal is to socialize the costs and privatize the profits. The idea is if you spread the costs over a broad enough spectrum, they effectively disappear as they are too small for anyone to notice. Cable has followed this rule for years.

Cable TV is a good microcosm to consider. For a long time everyone said there must be a limit to the number of channels that can be added. After all, there are only so many ways to slice the content and so many hours to watch TV. Instead of a limit on that end, we're seeing a rise in cord cutting and piracy. With a little effort, you can get all movies and TV free on set top box.

In other words, those thin layers of cost spread over the population do add up and they begin to alter behaviour. The stagnant economies of Europe and the stratification of the American economy are consequences of this neo-feudalism.

Anonymous Alexander March 09, 2015 11:27 AM  

Well, we've had New Coke and New Math. Now I guess we're gonna get New Austrian Economics.

Blogger CarpeOro March 09, 2015 11:28 AM  

Just did a quick check to confirm, but I thought I recalled Carinthia as the gold mining region of Austria historically. Sort of like California leading the way into economic disaster. To bad that the value of gold is so low or they could simply nationalize the remaining mines... /sarcasm

"tech geeks are constantly saving our collective asses by making valuable assets out of worthless ones."
Like Facebook? Or say, tulip bulbs? You can sell manure as gold for only so long before people want gold. Thinking that tech is going to over come that reality is rather naive, because the stench of the manure is recognized by more people than you think, while at the same time the tech doesn't touch as many people as you may think.

Blogger rumpole5 March 09, 2015 12:02 PM  

"Like Facebook?" - Actually a good example. Facebook is a great tool for prospective employers to avoid undesirable employees. Fracking is not a "tulip bulb" development. Neither are the other examples I gave. The additional oil springing out of the ground is like Athena from the head of Zeus: fully armed to pour cash into the pockets of thousands of American workers, land and business owners, and local and state goverments. The Fed is devaluing the dollar by creating more dollars to give to insiders, but the dollars are at the same time worth more because they are underlain by more and more real assets (like fracking oil and gas).

Anonymous Anubis March 09, 2015 12:03 PM  

Its hard to time when the "Greater Fool" theory of economics will run out of greater fools. Hopefully Greece follows Iceland's lead, before its too late.

Blogger Vox March 09, 2015 12:08 PM  

Banker theft may turn out to be barnacles on an economic craft that is plunging forward anyway, fueled by the ever rising curve of technology.

THIS time, it's different....

Anonymous Fetus Eater March 09, 2015 12:11 PM  

I CAN HAZ IPHONE ON WRIST NOW!!

ME HELP ECONOMY!!

Blogger Corvinus March 09, 2015 12:30 PM  

I CAN HAZ IPHONE ON WRIST NOW!!

ME HELP ECONOMY!!


Heh. +1

Blogger Noah B March 09, 2015 12:35 PM  

Banker theft is bad enough on its own, but the damage that has been done to the rule of law to enable the bankers' theft will have much more profound and lasting effects. As the legal system that has been the bedrock of economic and technological development is eroded, it is only a matter of time before technological development diminishes. In fact, that has likely already happened in ways that we will never fully realize.

Blogger praetorian March 09, 2015 1:07 PM  

"It is very disorienting to have nothing make sense for 20 full years."

https://www.youtube.com/watch?v=sBwwUfuJZr8

Anonymous Roundtine March 09, 2015 1:19 PM  

People say this time it's different, yet these Austrian banks keep running into trouble.

Point in fact is The fracking boom. Point in fact is the communication information boom, viz: online data vs. paper publishing. Point of fact is driverless robot cars and trucks that will eliminate driver incompetence, fuel expense, and crash repair expense.
Banker theft may turn out to be barnacles on an economic craft that is plunging forward anyway, fueled by the ever rising curve of technology.


Fracking is a 30-year old technology made profitable by high oil prices. It benefits the US at the expense of the world (via the currency market), but it is a story of expensive energy. Expensive energy kills economies. Fracking also uses massive levels of debt, which is why high yield bonds have been going down since July. The cost of capital is rising in the economy. Replacement technologies such as solar rely heavily on cheap capital.

Ironically, banker theft is the only thing keeping the global economy afloat.

Blogger rumpole5 March 09, 2015 1:52 PM  

"THIS time, it's different. . ."
Point of fact: Using internet tech Vox Day/Castilia House bypasses pre-existing publisher juggernaut. Makes books available for which there is a huge demand. Money changes hands where none did before. Has the entire market increased in size? Vox is reaching guys who were not reading the stagnant dinosaur publishers. This is innovation requiring NEW money. This is not a tulip bulb speculation.

Blogger Danby March 09, 2015 2:03 PM  

Just like how in the 1920s, the development of efficient gasoline engines, mass production techniques and a usable road network popularized automotive ownership. What a great tech boom!, and it of course prevented the economic collapse that otherwise would have consumed the 1930s.
And the development of mainframe computers made the 1970s a golden era economically.

There is no example of a real economic collapse that did not happen in the face of real tech revolution

Blogger justaguy March 09, 2015 2:07 PM  

The acceptance of fiat money throws a wrench in the natural calculations. When the Central Bank simply creates more money and funds the debts, how will the the sovereign default? Inflation perhaps, but with advancing technology- rising productivity and deflation is the natural order of things. Have we merely created a corrupt system where the central banks and the banks can make mistakes and the small rising inflation for fiat money is the result?

Anonymous Stilicho March 09, 2015 2:07 PM  

There will be gnashing of teeth.

And wailing. Can't forget the wailing. I expect white men to be blamed.

Anonymous Stilicho March 09, 2015 2:12 PM  

with advancing technology- rising productivity and deflation is the natural order of things. Have we merely created a corrupt system where the central banks and the banks can make mistakes and the small rising inflation for fiat money is the result?

Well, they might get away with it for some time if they could keep the inflation from which they profit roughly equivalent to natural deflation...but they can't and boom/bust cycles are with us as long as we have such creatures and their policies in power. Nor could they calculate the natural rate of deflation if they tried: the principles behind impossibility of socialist calculation show up there as well.

Blogger David March 09, 2015 2:23 PM  

"... rising productivity and deflation is the natural order of things. Have we merely created a corrupt system where the central banks and the banks can make mistakes and the small rising inflation for fiat money is the result?"

The profits of innovation and the financial benefits of declining prices flow to someone. The credit bubble and financialization simply shifted into whose hands they flow. This is why inflation-adjusted earnings of middle class people are below those of 15 years ago. Also, when the central state takes on the appearance of a something-for-nothing cornucopia, market preferences are warped in favor of demanding (and providing) seemingly endless free goodies (i.e., so-called health care, which actually looks more like Charles Hugh Smith's sickcare system.)

The only way to rationally allocate scarce resources is via market pricing (i.e., profits and losses.) In the absence of this spontaneously organized phenomenon, allocation is via political calculation, essentially like the Mafia is doing the allocating. This, not the "incentive problem," is why socialist "economies" are doomed to fail. Rational allocation requires information that is dispersed and ephemeral. No "planner" or group of experts can overcome this axiom of reality.

Evidence of all this is the fact that industries paid for by Uncle Sam are those continuing to experience price inflation and are swelling with legions of people expecting to get paid to provide university degrees, old-age medical care and weapons of war on an exponentially rising cost curve, forever.

When everything appears free, people increasingly behave like spoiled 7-year-olds. Such permanent children (in adult bodies) are everywhere I look.

Blogger rumpole5 March 09, 2015 2:25 PM  

"Fracking is a 30-year old technology made profitable by high oil prices."
As was the case for whale oil prices and petroleum oil drilling. And, if you check I think that you will find that the cost of Fracking continues to decline reducing the profitable cost of tight oil. I am not saying that economic "Zombie Apocalypse" points are invalid. My point is that the Zomb Apclyps calculation may not include all of the relevant facts. I would especially like to see the result of Vox Day focusing his significant grey matter on the effect, if any, of the Tech-curve-to-Singularity on economic theory.

Anonymous Roundtine March 09, 2015 2:32 PM  

Just like how in the 1920s

You forgot radio, TV and trans-Atlantic flight.

Blogger Josh March 09, 2015 2:32 PM  

I would especially like to see the result of Vox Day focusing his significant grey matter on the effect, if any, of the Tech-curve-to-Singularity on economic theory.

I'm not vox, but I'll give it a shot:

Estimated economic impact of fracking: $150bn annually.

Credit demand gap since 2007: $30,000bn

30,000bn = 150bn * 200

So to combat the credit demand gap, you would need 200 technological breakthroughs of the same economic magnitude as fracking.

Blogger David March 09, 2015 2:38 PM  

" Nor could they calculate the natural rate of deflation if they tried: the principles behind impossibility of socialist calculation show up there as well."

True, but to even speak of an economy as a homogenous whole is fatuous. We often resort to this shorthand, but it masks an essential element of reality: heterogeneity.

Even if an economy could be measured appropriately (impossible, but for the sake of argument), some things would be getting better, some worse, some industries would be experiencing tremendous innovation, some would be moribund, some costs would be rising, others declining, etc.

If a central planner tries to simply choreograph the sum of all this, it warps the profit-loss signals in unpredictable ways. Poorly managed firms are left on life-support, killing the profits of their better-run competitors. Capital that should flow from the former to the latter doesn't, killing incentives for innovation. Running a nation like this embeds parasitic, dead-weight losses into and across sectors and creates entire industries whose raison de-etre becomes political manipulation (US sugar producers, US peanut farming, the "medical" insurance industry, etc.) Eventually you have quasi-monopoly systems that produce declining output of declining value at rising cost...the black hole axiom of monopoly.

It's all subjective, and it affects peoples lives greatly. That this power resides in the hands of unelected bureaucrats and re-election-seeking politicians informs us how far toward the Soviet system we already have traveled.

Anonymous Stilicho March 09, 2015 2:44 PM  

True, but to even speak of an economy as a homogenous whole is fatuous. We often resort to this shorthand, but it masks an essential element of reality: heterogeneity.

Yep. This is part of the reasoning behind the impossibility of socialist calculation.

It's all subjective, and it affects peoples lives greatly. That this power resides in the hands of unelected bureaucrats and re-election-seeking politicians informs us how far toward the Soviet system we already have traveled.

Eventually, they always get around to killing the golden goose. Of course, by that time, they don't even realize that there is a goose...they just assume that it is a massive hoard of golden eggs that they can crack open for fun and profit.

Anonymous Roundtine March 09, 2015 2:46 PM  

rumpole,

Are you familiar with Tainter? I don't think any of the technologies you are talking about are even in the ballpark for what is needed, absent a collapse in asset prices.

Blogger David March 09, 2015 3:49 PM  

"Of course, by that time, they don't even realize that there is a goose...they just assume that it is a massive hoard of golden eggs that they can crack open for fun and profit."

The USA's political system in action. As VD has noted, large numbers of Americans are Cargo Cultists who have zero idea how their electronic gadgets work or from where they (and everything else) come.

Who among us even realizes what knowledge is required to make a common #2 pencil?
http://fee.org/freeman/detail/i-pencil/

People today have essentially no idea from where our stunning living standards arise. They behave as though it's their birthright, or something for which they vote straight ticket democrat.

OT: This is my beef with post-apocalyptic fiction where high tech remains. It takes an unimaginable number of people laboring in a spontaneously organized market to yield the amazing differentiation of labor required for the stuff we now take for granted. Absent the numbers and (relative) coordination, it's back to the 19th century, even if we have libraries full of instructions on "how to."

OpenID simplytimothy March 09, 2015 4:31 PM  

Are you familiar with Tainter?

I am unfamiliar. My first thought was "Twitter, but it is optimized to ruin reputations"

(:

Blogger luagha March 09, 2015 5:36 PM  

There's a web essay out there which discusses the (im)possibility of socialist calculation with respect to Moore's Law and other doubling curve things, contrasting with the linear equations needed to run an economy.

Basically, socialist-calculation will become vaguely possible sometime between the years 2200-2400, more towards the later end as we realize that no matter how just-in-time we want to make things, we need surplus in our supply chains in case of emergency. This is the point at which everything is computerized and linked and tracked, and every object is a device with its own computational power that it adds to the whole.

Either that, or sticks and stones. Maybe both; we might be using the computerized neural network sticks left over from the technological singularity to bop each other over the head with.

Blogger LP 999/Eliza March 09, 2015 6:48 PM  

Dittos Salt, everything is so expensive, no one can afford exported items, times are here when the stock doesn't move off the shelves no matter what the mentally ill stock market is doing.

Anyways, jer markettes can be high as a kite, its no reflection of economics. Banking and econ runs the world no basket weaving 101 or how to play war n' come back from 3rd world country in one piece is help anything.

Bankers are hiding the decline and the coming utter devastation.

Could it be said that many nations including POst Americant is judged?

Blogger LP 999/Eliza March 09, 2015 7:51 PM  

Wait, imports/exports typo.

OpenID cailcorishev March 09, 2015 9:17 PM  

Creditanstalt

I realize it's a different language, but that sounds like the name of a notoriously corrupt bank in an episode of Rocko's Modern Life -- a division of Conglom-O Corporation!

Blogger rumpole5 March 09, 2015 9:38 PM  

"Could it be said that many nations including POst Americant is judged?"
Quite the contrary. Given the malignant malicious, and mendacious clowns who "govern" in Washington D.C., I am astonished by God's outpouring of physical blessings on our increasingly sorry and undeserving selves. I would frankly be less surprised by the commencement of the economic ZA that many sound minds have anticipated for the last decade and a half. That is what we deserve. However, it has been my experience that sometimes what goes around does not come around.

OpenID mattse001 March 09, 2015 11:05 PM  

In observing the world economy for the last couple of years, I've been impressed by how long the Ponzi scheme can be made to go on.
Zerohedge readers understand all the false starts; the crises that appeared to be the beginning of the end, only to be papered over by some new trick.
VD is not alone in getting the timing wrong.

Anonymous A.B. Prosper March 10, 2015 3:09 AM  

These money games will certainly ruin a lot of nations but as Adam Smith once famously told his son "There is a lot of ruin in a nation"

Post a Comment

Rules of the blog
Please do not comment as "Anonymous". Comments by "Anonymous" will be spammed.

<< Home

Newer Posts Older Posts