“Soft despotism is a term coined by Alexis de Tocqueville describing the state into which a country overrun by "a network of small complicated rules" might degrade. Soft despotism is different from despotism (also called 'hard despotism') in the sense that it is not obvious to the people."

Saturday, January 09, 2010

Money for Nothing: Are we already in another bubble or just Dire Straits?

Bubble warning
Jan 7th 2010
From The Economist print edition

Markets are too dependent on unsustainable government stimulus. Something’s got to give

THE effect of free money is remarkable. A year ago investors were panicking and there was talk of another Depression. Now the MSCI world index of global share prices is more than 70% higher than its low in March 2009. That’s largely thanks to interest rates of 1% or less in America, Japan, Britain and the euro zone, which have persuaded investors to take their money out of cash and to buy risky assets.

For all the panic last year, asset values never quite reached the lows that marked other bear-market bottoms, and now the rally has made several markets look pricey again. In the American housing market, where the crisis started, homes are priced at around fair value on the basis of rental yields, but they are overvalued by almost 30% in Britain and by 50% in Australia, Hong Kong and Spain.

Stockmarkets are still shy of their record peaks in most countries. The American market is around 25% below the level it reached in 2007. But it is still nearly 50% overvalued on the best long-term measure, which adjusts profits to allow for the economic cycle, and is on a par with two of the four great valuation peaks in the 20th century, in 1901 and 1966.

Central banks see these market rallies as a welcome side- effect of their policies. In 2008, falling markets caused a vicious circle of debt defaults and fire sales by investors, pushing asset prices down even further. The market rebound was necessary to stabilise economies last year, but now there is a danger that bubbles are being created (see article).

Forever blowing bubbles?

Aside from high asset valuations, the two classic symptoms of a bubble are rapid growth in private-sector credit and an outbreak of public enthusiasm for particular assets. There’s no sign of either of those. But the longer the world keeps its interest rates close to zero, the greater the danger that bubbles will appear—most likely in emerging markets, where growth keeps investors optimistic and currency pegs import loose monetary policy, and in commodities.

Central banks have a range of tools they can use to discourage the growth of bubbles. Forcing banks to adopt higher capital ratios may curb speculative excesses. As Ben Bernanke, chairman of the Federal Reserve, argued this week, the rise in American house prices could have been limited through better regulation of the banks. The most powerful tool, of course, is the interest rate. But central banks are wary of using it to pop bubbles because it risks crushing growth as well. And, with the world economy in its current fragile state, they are rightly unwilling to jack up interest rates now.

But even if governments judge that the risks posed by raising rates now outweighs that of keeping them low, investors still have plenty of reasons to worry. The problem for them is not just that valuations look high by historic standards. It is also that the current combination of high asset prices, low interest rates and massive fiscal deficits is unsustainable.

Interest rates will stay low only if growth remains slow. But if economies grow slowly, then profits will not rise fast enough to justify current share prices and incomes will not rise far enough to justify the prevailing level of house prices. If, on the other hand, the markets are right about the prospects for economic growth, and the current recovery is sustained, then governments will react by cutting off the supply of cheap money later this year.

It doesn’t add up

But the more immediate risks may be posed by fiscal policy. Many governments responded to the crisis by, in effect, taking the debt burden off the private sector’s balance-sheets and putting it on their own. This caused a huge gap to open up in government finances. Deficits in America and Britain, for instance, stand at more than 10% of GDP.

Most developed-country governments have managed to finance these deficits fairly easily so far. In the early stages of the crisis, investors were happy to opt for the safety of government bonds. Then central banks resorted to quantitative easing (QE), a polite term for the creation of money. The Bank of England, for example, has bought the equivalent of one year’s entire fiscal deficit. There are signs, however, that private-sector investors’ appetite for government debt may be just about sated, as they contemplate the vast amount of government bonds that are due to be issued this year and the ending of QE programmes. The yields on ten-year Treasury bonds and British gilts have both risen by more than half a percentage point since late November.

Investors (along with this newspaper) would like to see governments unveil clear plans for reducing those deficits over the medium term, with the emphasis on spending cuts rather than tax increases. But politicians are nervous about the likely reaction of electorates, not to mention the short-term economic impact of fiscal tightening, and are proving reluctant to specify where the cuts will be made.

Markets have already tested the ability of the weakest governments to bear the burden of their debt. Dubai had to turn to its wealthy neighbour, Abu Dhabi, for help. In the euro zone, doubts have been raised about the willingness of Greece to push through the required austerity measures. Electorates are likely to chafe at the cost of bringing down government deficits, especially if the main result is to repay foreign creditors. That will lead to currency crises and cross-border disputes like the current spat between Iceland, Britain and the Netherlands over the bill for compensating depositors in Icelandic banks (see article). Such disputes will lead to further outbreaks of market volatility.

Investors tempted to take comfort from the fact that asset prices are still below their peaks would do well to remember that they may yet fall back a very long way. The Japanese stock market still trades at a quarter of the high it reached 20 years ago. The NASDAQ trades at half the level it reached during dotcom mania. Today the prices of many assets are being held up by unsustainable fiscal and monetary stimulus. Something has to give.

WTF, When things get tough, open a bottle of wine, say hello to mary jane and get out your air guitar, grab some US prime, just do it.


  1. I don't know, get to 7 minutes on the second video and report in. How's it working for you baby?

  2. Temp's risin' in Arkansas, and I'm only at 6:10.

  3. Besides, we can gamble, in Vegas.

  4. Talking about gambling, by the way, back in the old days here, I was told by a couple of the old ones, somethimes they won or lost a 160 over the poker table. I find this kinda hard to believe, but land was really really cheap then, so, I quess I believe it.

    There was nobody here, and empty land, so I quess I believe it.

  5. I leave for a few hours this afternoon and get back to find the place thoroughly trashed.

    Thoroughly trashed and T gone...again.

  6. She took her comments, packed up and left without so much as a "how do you do".

  7. The comings and going of Ms T. Another sideshow at the Elephant Bar.

    Just stir the pot.

  8. "Roughly 50 percent of Americans do not possess the competence and drive necessary to carve out a meaningful role for themselves in society," said California Senator Barbara Boxer. "We can no longer stand by and allow People of Inability to be ridiculed and passed over. With this legislation, employers will no longer be able to grant special favors to a small group of
    workers, simply because they have some idea of what they are doing



  9. ah, come back Miss T, after all, you were the one called me "Peckerwood", so long ago.

    Come back Miss T. If I've got a thing for Melody, which I do, just let it go.

    You are the best girl I've ever met, for talking about "Huckleberry Finn".

  10. My aunt, my great Swedish aunt, used to get in a snit, every once in a while.

    Then it all blew over, like a mountain storm.

    I don't think she knew what it was about, I sure didn't, know what it was about, just come back, MIss T.

    Just stay away from Melody.

  11. I never would have pegged you for Dire Straits.

    And if you're convinced, I'm the young woman from that unknown site two years ago then you must be the only lucky one here, with one hell of a memory, to boot.

  12. Yes, read that, WiO!

    She is just what Deuce and I said she was.

    She is no liar, nor a man.

    But a beautiful middle aged woman, a little less, depending on how you count things, with beautiful hair, a wonderful smile, and fine, fine skin, among many other things, which I can't mention.

  13. I always thought that she was the lady in her photos.

  14. Not quite, but close, genetically close.

    I want to run away with her and live with her in cabin by the lake, and never speak another human word.

    Now I'm really in troble, cause I shouldn't have said that.

  15. For Doug and Rufus...

    Congressman Mike Rogers

    ...We must, and can, do better. This is a travesty, Mr Chairman.


  16. Let's start a pool.

    How long before Bob self-destructs?

    I give him less than an hour, and if I must pick a discreet integer, 46 minutes.

  17. CNN Breaking News...

    -- Damage, power outages reported after 6.5-magnitude earthquake off the coast of northern California.

    Several PG&E plants in that area, including Diablo Canyon. It's always amused me that "northern California" begins at the south end of the Grapevine.

  18. Ms T left?


    as for bob...

    remember Mrs Bob?

    your online self induced comedy about all things MLD is insane...

    get real...

    be more concerned that after Mrs Bob cuts your nuts off both moneywise and literally your cyber fantasy hardly keep you warm at night...

    wtf is your issue?

    phantom cyber relationships are bullshit... and if it aint? get a room and shut up about it...

  19. Bob, did you not read the last thread? This has got to stop. Not just for the fact that it fuels the fire of the inbreds around here and starts a fiasco but if my memory serves me correctly, I think Whit has mentioned on more than one occasion that he's getting bored with what's going on around here.

  20. This is far more important than bob's bullshit about MLD

    Devaluation ups stakes in Venezuela election year

    By Frank Jack Daniel and Eyanir Chinea

    CARACAS, Jan 9 (Reuters) - Venezuelans rushed to the shops on Saturday, fearful of price rises after a currency devaluation that will let President Hugo Chavez boost government spending ahead of an election but feeds opposition charges of economic mismanagement.

    In a bid to jump-start the recession-hit economy of South America's top oil exporter, Chavez on Friday announced a dual system for the fixed rate bolivar.

    It devalues the currency to 4.3 and 2.6 against the dollar, from a rate of 2.15 per dollar in place since 2005, giving the better rate for basic goods in an attempt to limit the impact of the measure on consumer prices.

    The opposition seized on fears that prices for imported goods will double as shoppers formed lines of more than a hundred people outside some stores in the capital Caracas.

    "It was a Black Friday, tinted red," said sales executive Diana Sevillana in reference to the crimson color of Chavez's socialist party. She stood in a line of 30 people outside an electrical goods store in a middle class neighborhood.

  21. I give myself 45.

    Can I buy in?

    After all, I'm kinda in control of this situation here.

    I've got the .45, you don't you know.

    Right by my head.

    I twirl the cylinder, and think, what shoud I do?

    But I know, she doesn't like me to talk like that.

    The wife would like the estate, if it's meaningful here, but you're all broke, so which should I do?

    I'm goin' to bed now, before make a fatal mistake.


  22. What is deleting all your comments about? Does that mean you change your mind?

  23. Eiland calls to establish 'US of Jordan'
    Jan. 9, 2010
    Herb Keinon , THE JERUSALEM POST
    Forget a two-state solution, the way to solve the Israeli-Palestinian conflict is to create a United States of Jordan that would include three states governed by a federal government in Amman: the East Bank, West Bank and the Gaza Strip.

    That, at least, is one of two solutions that former National Security Adviser Giora Eiland presents in a monograph called "Regional Alternatives to the Two-State Solution," released Thursday by Bar-Ilan University's BESA Center.

    In the 41-page booklet, Eiland - a former head of the IDF's Planning Department and today senior researcher at the Institute for National Security Studies - argues that the conventional wisdom of how to deal with the conflict is stale and mistaken.

    What is needed, he argues, is a completely new way of looking at possible solutions, widening the lens to come up with fresh ideas beyond the idea of a two-state solution.

    The first option is what could be called the US of Jordan, a variation on the old Palestinian-Jordanian federation theme. The second option indeed envisions a Palestinian state, but one with territory that would be enhanced by 720 km. given by Egypt, which would in turn be compensated by a similar amount of land taken from the Negev.

    These new ideas are necessary, Eiland writes, because in 2010 an Israeli-Palestinian peace agreement, based on a two-state model, seems less likely than in 2000 at Camp David, or when the Oslo process was launched in 1993.

    Among the elements making it more difficult now than in the past to solve the conflict, Eiland writes, are the ascendancy of Hamas; the complete lack of trust between the sides; the absence of a Palestinian leader like Yasser Arafat who is recognized by his people as speaking on their behalf; an Israeli leader not convinced that achieving a permanent settlement is possible; and demographics that now have 290,000 Israelis living beyond the Green Line, as opposed to 190,000 on the eve of Camp David.

    "It is hard to believe that the diplomatic effort that failed in 2000 can succeed in 2010, when most of the elements in the equation have change for the worse," he states.

    Eiland argues that over the years Israeli leaders have erred by creating the impression that Israel alone could take upon itself the task of solving the Palestinian issue.

    For instance, at Camp David in 1979 Egyptian president Anwar Sadat wanted to hear Israel's position on the Palestinian problem. "Begin hastened to volunteer: Israel would give the Palestinians autonomy and both sides would be satisfied. This implies that the Palestinians are Israel's problem and Egypt has no reason to get involved."

    Similar missteps were made all the way down to Ariel Sharon's disengagement and Ehud Olmert's convergence plan, he claims. The problem with these unilateral steps, he argues, was that they sent a message that "the Palestinian problem is Israel's problem and Israel alone will know how to solve it."

    The new US administration, Eiland argues, has also made a number of errors based on misconceptions. "The Obama administration errs in believing that resolving the conflict is currently possible."

    Among America's misguided assumptions, Eiland notes, are the following:

  24. · The supreme Palestinian aspiration is to attain independence along the 1967 borders.

    · The gap between the sides' positions is small and bridgeable.

    · Moderate Arab states are interested in ending the conflict and therefore will assist in its solution.

    · The end of the conflict will bring about stability.

    · Resolution of the Israeli-Palestinian conflict is vital to obtaining Arab assistance on the Iranian issue.

    · There is currently an opportunity to resolve the conflict and it must not be squandered.

    · There is only one solution to the conflict, and that is the solution of two states with the 1967 border between them.

    As an alternative to becoming locked into the two-state mindset, Eiland proposes a Jordanian-Palestinian federation whereby Gaza and the West Bank would be states in a Jordanian kingdom, much like Pennsylvania and New York are American states.

    "They will have full independence on domestic issues as well as a budget, governmental institutions, laws, a police force, and symbols of independence, but similar to Pennsylvania or New Jersey they will not have responsibility for two issues: foreign policy and military forces. Those two areas, exactly as in the United States, will remain the responsibility of the 'federal' government in Amman."

    Eiland says the benefits of this proposal to the Palestinians are enormous. First and foremost it would ensure that an independent Palestinian state would not be ruled by Hamas. In addition, he writes, "the Palestinians also understand that under a two-state alternative, they will become citizens of a tiny state. Such a small state is not viable and will have security limitations (for example, conceding sovereignty over its airspace). It is preferable to be equal citizens in a large, respected country where the Palestinians will form the demographic majority."

    Jordan would benefit, he continues, because the way to prevent instability in Jordan, which would be fueled by a future Hamas regime in the West Bank, is through Jordanian military control over this territory.

    And Israel would gain, he says, because it is more likely to get the security it desires if the territories are incorporated into a greater Jordanian state, rather than if a new - and most likely failed - mini-state is created on its doorstep.

    Eiland's other model, based on territorial exchange, calls for Egypt transferring some 720 km. of land - including 24 km. along the Mediterranean coast toward El-Arish - to the Palestinians, in order to allow them to build a million-plus city and a sustainable port and airport.

    Egypt would be compensated by an equal amount of land taken from the Negev, and a tunnel at Israel's southern tip from Egypt to Jordan, which would connect Egypt with the Arab countries to the east. The 720 km. are equal to 12 percent of the West Bank, which would be the percentage of West Bank territory to remain in Israel's hands.

    The enlargement of Gaza is necessary if it is to be a viable entity, Eiland argues, and it could enable the region to become an international trade center, which is impossible with the current dimensions.

    Egypt would benefit primarily from the 10 km. tunnel to Jordan, which would give it important physical and economic access to the main eastern part of the Middle East, and Jordan would get - via the tunnel - an important passage to the Mediterranean.

    As far as Israel is concerned, this type of arrangement would give the Palestinians a much better chance of viability and, by involving Jordan and Egypt, would create "stronger guarantees for the upholding of the agreement."

  25. All right, woman.

    I'll do what you say.

    But WiO is wrong there, the most important parts of life are intimate.

  26. Bob, keep tempting fate and it will bite you in the ass. There is no worse decision than a permanent solution to a temporary problem.

    Quit fucking with the guns.

  27. That's the one thing ticks me off, about the Jews.

    It's always this goddamned tribal thing.

    Never about a man and a woman.

    Always about this goddamned tribal thing.

    Though I love them too, but sometimes I wonder why.

  28. I want to run away with her and live with her in cabin by the lake, and never speak another human word.

    All your friends wish you would.

    Isn't this a second or third repeat of that refrain?


  29. O heck, Deuce, I'm not serious about that, I'm just trying to tell Melody I really like her, she already knows that.

    It's just talk, but serious, in my own way.

    Don't worry, I won't blow my brains out.


    I think that is a sin, by the way, to blow your brains out.

    An escape.

    I'd never do that.

  30. Speaking of inbreds. It is the second or third repeat and so is your answer. So, why don't you stop repeating yourself.

  31. Consequences of cyber-romance.

    Bob and STD

    When an incredulous friend inquired how Bob made love to his darling, he said, "I just roll her in flour and look fer the wet spots."


  32. bob said...
    That's the one thing ticks me off, about the Jews.
    It's always this goddamned tribal thing.
    Never about a man and a woman.
    Always about this goddamned tribal thing.
    Though I love them too, but sometimes I wonder why.

    Dont tell that to king david and bathsheba, samson and delilah, abraham and sarah, isaac and rebekah, george and gracie allen...

  33. In the news

    Craig David Jr., 32, of Smithfield, Pa., has been charged with robbery and disorderly conduct after police say he stole $50 from his ex-girlfriend at a Wal-Mart, then tried to flee on a store-owned motorized shopping scooter, all while wearing a hospital gown.

    Spokespersons at the Wal-Mart home office in Bentonville, Ar., had no comment.

  34. Poll: Republican Brown Leads 48-47 in Mass. Senate Race
    8:29 PM, Jan 9, 2010 · BY JOHN MCCORMACK
    Public Policy Polling, a Democratic firm, releases a stunning new poll:
    The race to replace Ted Kennedy in the US Senate is looking like a toss up, with Republican Scott Brown up 48-47 on Martha Coakley.

    Brown is benefiting from depressed Democratic interest in the election and a huge lead among independents for his surprisingly strong standing. Those planning to vote in the special election only report having voted for Barack Obama in 2008 by a 16 point margin, in contrast to his actual 26 point victory in the state.

    That decline in turnout from Obama voters plagued Democratic candidates for Governor in Virginia and New Jersey last fall. Beyond that 66% of Republicans say they’re ‘very excited’ about turning out while only 48% of Democrats express that sentiment.

    Brown leads 63-31 with independents and is winning 17% of the Democratic vote while Coakley receives only 6% support from GOP voters. Both candidates are relatively popular, with 57% viewing Brown favorably to only 25% unfavorable and 50% with a positive opinion of Coakley to 42% negative.

    Those folks planning to vote in the special election are actually opposed to Obama’s health care plan by a 47/41 margin and only narrowly express approval of the President’s overall job performance 44/43.
    It's great news for Brown to be neck and neck with Coakley, but on the other hand this poll will probably spur the Democratic machine to kick into high gear. Get ready for a wild ten-day slugfest in Massachusetts.

  35. That's the second time you've done that Linear, it's not funny now, it wasn't even funny the first time.

    And yes, WiO at Sat Jan 09, 10:17:00 PM EST, you are right about that.

    I said that about tribalism, because I don't have that all.

    Maybe it's something missing in my life.

    I have no tribalism.

    I understand what you are saying, though.

    I shouldn't have said that.

    I might ask how would george allen have reacted if gracie had been dissed?

    Like Linear just did above?

  36. "I just roll her in flour and look for the wet spots."

    oh, ha, ha, that isn't even funny, it's quite gross, and unbecoming of a grown man.

    Up your ass.

    That joke has been around for a long time, and the tellers of it are all a bunch of shits.

  37. Solely in the interest of conflict resolution, permit me to make a modestly proactive proposal.

    Bob can open his own website devoted to his passions in life: booze, gambling, poetry, and MLD. Not necessarily in that order.

    Simple online instructions are available here.

    He might call it "Bob's Bar and Chat Room--Liquor in the Front, Poker in the Rear."

    I'm available to help, as I'm sure are many of Bob's friends and fellow patrons of the Elephant Bar.


  38. Liquor in the Front, Poker in the Rear

    God that's funny Linear. Just hilarious.

    Just damn hilarious.

    Like people are laughing from Seattle to New York.

    God, what a brilliant smart guy you are.

    Do you get that all you people, licker in the front poker in the rear.

    Oh ha ha....

    Linear is a goddamn moron.

    I ask the management to take Linear's last posts down.

    It is truly disgusting.

  39. I demand that lineman's posts remain, right where they are!

    They are gems of wisdom, worthy of veneration.

    boobie needs to find emotional release, elsewhere.

  40. Disgusting is reading boobie's love poetry, while sober. Though if read while drunk, it does cause regurgitation of stomach content.

  41. I think I know how George Mitchell spite of his best efforts at conciliation...


  42. Bob, I think you need to get some help. I'm starting to worry about you.

  43. Brownshirt boobie, trying to regulate content, once again.
    Another attempt at his being a thought policeman.

    It is funny that he thinks his prose is worthy of publication, but demands that the fine poetry of others be taken down.

    That's a fuckin' hypocritically wide stance taken by brownshirt boobie.

  44. Jesus, Linear, that is so so gross.

    I'm sure that is what all the romantic women are looking for, to get pocked in the ass by you.

    This place has become a cesspool.

  45. You, dear boobie, brought the cunt into the conversation, no one else introduced vulgarity, like you have, boobie, to the Elephant Bar.

    You were the one that shattered that glass ceiling

  46. You did not lovingly call Mrs bob a cunt, did you?

    That'd explain a lot.

  47. A true cesspool, filled with dirty old men, from Arizona, Arkansas, amd Mississippi. And I won't be here again.

    You win rat, it's your place now.

  48. That is a Choice for you to make, boobie.

    Hope it brings you joy, for a Change.

  49. ...And I won't be here again.

    How often have we heard that?

    You'll be back.

    And, if not, thank you.


  50. Hey, hey, hey!

    We don't have "dirty old men" in Mississippi.

    We has "Sexy Senior Citizens."

    Otherwise known as "Uncle."

  51. This comment has been removed by the author.

  52. Shut this blog down, it just is'nt worth it.

    You can't really teach anyone, anything.

    You are just wasting your time,
    Deuce and Whit.

  53. This comment has been removed by a blog administrator.

  54. Let's start a pool.

    How long before Bob returns to the bar?

    I'll take 9 hours and 30 minutes.


  55. How about a pool on: When he returns to "Sanity?"

    I'm not betting on this one.

  56. Help!!!!!!!

    I'm rollin' on the floor an I cain't reach my beer!!!!!!!!!


  57. But, LT, I think THIS hangover is going to last a Lot longer than 9 hrs, and 30 min.

    I'm thinking maybe sometime Monday.

  58. If they gave out tickets for "Commenting Under the Influence" Ol' Bobal would, I'm afeared, be in for a lot of time in the pokey.

  59. I'll put ya down for Monday, Ruf.


  60. Are you one of them inbreeds, Rufus?

    I never had a pedigree. Makes me feel kinda proud.


  61. Monday it is. Meanwhile, we gotta find out what he's been drinkin. Get some of that stuff for the Bar.

    I feel like I'm getting "cheated."

  62. My stuff just gets you 99% Crazy.

  63. Cherokee, Dutch, English, and Dane.

    We mostly had to breed outside the fambly. None of our "kin" would have us.

  64. ...Dutch, English...,

    We ARE cousins...small world, aint it?

  65. I wonder if Stella's gonna come by?

    Looks like we no longer got use of that condo in Ideeho.

    They rent houseboats over your way?


  66. Gettin smaller all the time.

  67. I'm gonna hit the hay.

    If Stella comes by, give her my love, and tell her I'll be back tomorra some time.

  68. Been trying to think about the subject of this post. Having a little trouble with it. Must be getting tired.

    "Bubbles" ain't all bad. We had the "Internet Bubble," and we ended up with a great internet, great laptops, great 4G cell phones, and Great Software/Apps, etc.

    We had the "Housing Bubble," and ended up with a lot of houses being built. The "Pricing" got all goofy, and some people suffered; but others will get/have gotten some fine housing at a semi-affordable price. Of course, the corruption, and wanton speculating from the big money men almost sank the worldwide economy, but we, luckily, have more or less dodged that bullet.

    Is there another "bubble" building? I don't know. In what?

    If there was going to be another bubble it should be in Energy. But, the energy industry is in such turmoil, right now, that a "bubble" in Energy seems unlikely (at least in the near future.)

    A "China Bubble?" Naw, I don't think so. Their growth is largely paid for with "Cash." (something a lot of "China-Worriers" overlook, I think.)

    I don't think we have any "Bubbles" on our immediate horizon. We might have, conversely, several years of slow/no growth, and problems with gasoline prices.

    That's It. Maybe, what we have coming is a "Fretfulness Bubble." :)

  69. If Stella comes by, give her my love,

    Oh, Puhleeeze God, Not Another One.

  70. Besides, Starlight Scopin Stell was prolly a Teresita Sockpuppet.

  71. For boobie, Ms T and whomever else is hitting the highway, even habu

    Sail on, sailor!

  72. Senate poll: Coakley up 15 points

    Boston Globe - Matt Viser, Frank Phillips

    Democrat Martha Coakley, buoyed by her durable statewide popularity, enjoys a solid, 15-percentage-point lead over Republican rival Scott Brown as the race for US Senate enters the homestretch, according to a new Boston ...

  73. what we have here is a failure to communicate, compounded by a circular firing squad.


    It is no secret that a certain contributor and I do not see eye-to-eye on a particular issue. That said, his comments force me to study issues more carefully and, thereby, arrive at more rational conclusions.

    To get the continuing education I want, I must tolerate a bad professor. It is a price worth paying, just as in youth.

    Ms. T, I love you as a human being and respect your intelligence and wit. You must learn to live with the fact that I will not always agree with your conclusions or means of delivery. This revolving door behavior is immature and unworthy of a woman of your talent.

  74. BBC News - ‎

    The defence correspondent for the Sunday Mirror newspaper has been killed in an explosion in Afghanistan, the UK's Ministry of Defence has said.

  75. Rupert Hamer, 39, was one of two Mirror journalists embedded with the US Marine Corps when their vehicle hit an improvised bomb near Nawa, in Helmand.

    The father-of-three's colleague, photographer Philip Coburn, 43, is in a serious but stable condition.

    A US Marine and an Afghan soldier were also killed in the blast on Saturday.

    Four US Marines were seriously injured.

  76. I think China is a bubble..

    Much of China's excess cash is being plowed into brand new cities and infrastructure in CHINA..

    These pristine "cities" are Chinese investor vehicles in which Chinese richie riches get to dump their piles of useless cash into...

    They stand empty as investments, no one can afford to live in them...

    I have read reports of China dumping 2-3% of GDP as stimulus on white elephant projects to keep up the illusion of China's expanding economy...

    If the dollar sinks and the Chinese's yuan goes any lower china LOOSES more trade advantage and the Chinese miracle evaporates and no longer has any trade advantage over any nation including the usa...

    China has falsely pegged it's currency to the dollar for over 15-20 years...

    The total debt that China holds of the USA is a measly 1.2 trillion, that figure is now (thanks to the fed's printing cash like cat litter) really just about 550 billion in yesterday's dollars...

    Reagan did something similar back in 1984 when he devalued the dollar against the yen, thus minimizing Japan's real estate holdings and dumping of products into the states.

    Bubbles are cerated by cash chasing value...

    Housing in California is still 2x the price from 8 years ago and is overvalued.

    50% of all commercial real estate is under water...

    a million of more homes are underwater and are scheduled to get dumped into the fray soon (they being held back as to not let it all hit the fan at one time)

    this over build is rampant all over the globe...

    money chasing value and return...

    energy is up from 26 a barrel (look at the dollar's decline) to 80... is this a bubble?

    how many billions have been poured into the arab world and africa with ZERO results (other than inflatin the swiss's bankin system)

    maybe currency from the euro, yuan & dollar are all bubbles...

  77. is gold also a bubble?

  78. Go to Google and type Judaism is into the text box. You get some suggestions like:

    Judaism is false
    Judaism is not a race

    Go to Google and type Christianity is into the text box. You get some suggestions like:

    Christianity is bullshit
    Christianity is a lie
    Christianity is false
    Christianity is a cult
    Christianity is wrong
    Christianity is fake

    Go to Google and type Islam is into the text box. You get nothing. Nada.

    Amazing the power of intimidation.

  79. Lilith said...
    Go to Google and type Judaism is into the text box. You get some suggestions like:
    Judaism is false
    Judaism is not a race


    no surprise..

    what I like to say about Islam?

    far greater an enemy, far more fearsome a foe, far move evil that islam has tried and failed to erase the Jewish people.

    If Islam and it's orcs take this path they will to destroy themselves.

    We already have seen it begin..

  80. Gold when adjusted for inflation is still not close to it's all time high...

    I dont think gold is a bubble

  81. This comment has been removed by the author.

  82. What is Occupation, no dollar-denominated assets are in a bubble, the dollar is in a sinkhole. Commodities are in a fixed supply, and there's an endless supply of warm dollars fresh from Bernanke's printing press chasing them. The market prices represent the balancing point.

  83. is gold also a bubble?

    I'll give you the answer in December. That is probably the best answer you will get.

  84. The most important thing to understand, right now, is not what's bubbling, but what's "Undervalued."

    That would be Oil. Look for $100.00/Barrel by April. $120.00 by July.

    That would be $3.50+/Gallon Gasoline by the 4th.