Economist Adam Smith coined the “Invisible Hand” to describe the self-regulating nature of the marketplace. Then maybe. Utter nonsense now!
This write/pictorial will make the invisible visible.
The “Fed” cuts rates & floods the economy with cheap dollars.
Lending “institutions” become shylock's for “The Street”. Anyone with a pulse could now buy a house.
The Street looks for even bigger fools to unload it’s trash on. Trash gets a Tripple A rating, which is then bundled into complex investment vehicles. The mob gives complex, confusing names to this fleet of garbage trucks. Trucks filled with crappy mortgages are sold as investments. Many rating agencies never looked at any of the individual mortgages until after the trucks blew up. Then the auditors claimed that the majority of them were fraudulent.
Nice!
The 1.5 Trillion Dollar ‘Subprime Megaton Bomb’ explodes on the housing market. A market in which 70% of Americans are invested in. It decimates the banks, the economy, and the stock market by blowing up the number of home buyers, which skewed supply and demand, which drove demand to insane levels. The housing market consists of about 70 million owners, in 2006 one third of originators were subprime. Adding 7-10 million buyers to a market with a cap of 70 million (70 million +/- is the number of homes not the value of those homes) will create one thing and one thing only - a bubble. Despite what this moron said.
People became quickly fooled into believing that house prices always went up and would always go up. They used their homes as ATM machines to add some real froth to the economy. The bomb detonates: 93% Of Subprime loans had interest rate resets. Borrowers who were hanging on by their fingernails lost it. Everything collapsed.
The Ex-CEO of Goldman Sachs creates a short document, Congress scared by Paulson & Bernanke pass this “Bailout”, which is nothing more than an extend and pretend game and anything but 700 billion dollars. At 10.4 trillion and counting all we have done is gone deeper into debt and sealed our deficit fate with the devil. The Invisible Hand became visible again as companies who created this stupidity were rewarded. Stupidity which blew up the economy and put our Great Republic (AKA Democracy) at risk.
The talking heads on CNBBS and MSNBBS fail to realize that in 2006 30% of all originators were Subprime. They don’t get that those buyers, some 7-10 million of them created a false never been seen before demand. They were the bubbles air. And here is the biggie: They aren’t coming back. Ever! Worse, soon after the bubble popped, in 2008 Prime Borrowers got taken out by this collateral damage that our financial terrorist created. There are just not enough buyers, housing is done, stick a fork in it.
The economy isn’t coming back either. Bulls are full of bull. The money for “that” economy came largely in part from borrowing. Jim Quinn who runs the blog The Burning Platform did a peice years ago that pointed that in 2008 consumers BORROWED 9 billion dollars to go buy coffees at Starbucks. Since then 900 Starbucks stores have closed. These clowns think that we can have a jobless recovery, they are fooling themselves and anyone who listens. There is NO such thing. They tell their listeners that unemployment is 9.7% percent. Unemployment Is 22% (www.ShadowStatistics.com) The BLS should be called the BS Bureau of Labor Statistics. The economy needs people to put money into it, for them to do that people need jobs. 1 out of 6 jobs was housing related. These fools are arguing about the chicken or the egg.
Clueless.
Dennis Kneale calls himself an optimist. Personally, I think there is a huge difference between an optimist and a ‘delusionalist’.
Looking at the economic radar we see that we are about to get bombed again. The Prime Mortgage meltdown is pushing 4.5 trillion, Commercail Real Estate is 3.5 to 5 trillion, Alt-A and Option Arms is another 1.5 to 4 trillion.
Ask Yourself This: If 1.5 trillion in Subprimes did this, what will these next bombs do to a very weak economy?
Our two biggest economic booms have been caused by bubbles. Today there is NO bubble. A dead cat bounce, some sloshing stimulus but NO bubble.
The moron in the White House who is part of out 38 million dollar staffing drain professes: Never let a crisis go to waste! He couldn’t find a crisis or his rear with both hands and the lights on.
- In the 1990s we sent our manufacturing base oversees, so we now compete with laborers in a global market. Laborers who on average make 2 bucks a day.We have a manufacturing crisis, we have a salary crisis. Wages have been flat for a decade or 2.
- We have the most serous energy crisis ever. When you ask why BP was drilling for oil 35,000 feet down and began drilling nearly a mile under the ocean’s surface you don’t have to be a rocket scientist to realize that all the easy to drill oil is gone.
- With 7 billion people on this planet we have a serious resource depletion issue which needs to be addressed
- A bloated government.
This Crisis Should Have Been Used As An Opportunity To::
- Have gotten our economic house in order by re-structuring our debt and our existing money supply system (Read: Get rid of the BIS and the Fed, the BIS has just turned out an Austrian economic paper, they might have just as well titled it: We are morons who had it (Keynes) wrong.
- Addressed Peak Oil & Resource Depletion.
- Gotten rid of lobbyist, amputated the invisible hand of Corporatocracy thus restoring capitalism. Every echo-system needs balance or it will destroy itself and us.
- Depleted our leadership deficit and filled it with real leaders not self serving ignorant morons who do what corporations and lobbyist tell them to do despite what harm it will cause.
In Summary: 99.9% of economist have NO clue what the “Invisible Hand” is. That is ONE reason they never saw this crisis coming and still are calling for this inane jobless recovery and housing recovery.
The Invisible Hand is the hand which corporations use to control our elected clowns (Ron Paul, Paul Ryan and a handful of responsible adults excluded). The “Invisible Hand” is the hand that robbed you, charging this ,400,000,000,000.00 bag of horse manure to you, your children and their children on that credit card known as TaxTreasury.
