Ever wondered why we’re in this economic pit of cess despair. Well the following clip from Fox News discussing “Bulls and Bears” makes it all pretty clear.
It’s pulled from a comment on the David McWilliams website. One guy, Peter Schiff, points out what is just now taken to be the realistic view of the extravagance of the past few years and is ridiculed by everybody around him.
It’s funny that bullish analysts are obsessed with talking about the so-called “fundamentals of the economy”. How about a discussion about the “fundamentals of the economists” who don’t understand basic supply/demand theory and talked themselves into believing in a never-ending upward spiral.
- bull1: How’s those fundamentals today fred?
- bull2: Pretty good fannie. If you ignore the inflation, competitiveness, balance of trade and all that old-fangled econometric shit of course.
- bull1: Yep, I’m feeling pretty fundmental-ist my self.
- bull2: Boom boom fred
I know.. a bull called fannie. It flies in the face of everything we know about bulls which is kinda appropriate 🙂 If that’s not close enough to the bone then watch this.
With a 7 Billion Euro budget deficit the Irish government could do worse than spend some consulting money on the EuroPacific Capital president. Perhaps listening to economists closer to home like McWilliams and Morgan Kelly who were reasonably bearish on the housing market.. Now that Bertie’s gone we can finally admit the emperor is butt naked without being labelled as scare mongering. Unfortunately for Schiff’s Euro Pacific it’s difficult to figure out where to put the money even if the “get the hell out of the US message” seems compelling right now.
China’s amassing a significant dollar credit to the US. If the USD is devalued then that’s a problem. Russia is … strike all this. Despite the conservatism of German banks they were over exposed on sub-prime. Oh how they must wish we’d just voted Yes to Lisbon. It seems like there’s a new stock market casualty in Europe and the US every week. There are the emerging arab markets, in particular the growth in the emirates region where trillion dollar investment plans across Abu Dhabi and Dubai are creating new “designer economies” from oil wealth. You’d have to feel these are sustainable on the back of the huge price of oil and the significant decreases in the value of bluechip US and European assets.