Saturday, October 24, 2009

The long finger of instability from the Hand or how I learned to stop worrying and love the {blank}

The markets may go either up or down and far be it for this humble blogger to suppose he has the keys to the near-term direction.

We talk of mania and bubbles and no one is bearish, few believe we've fundamentally recovered whilst we're not at Rosie's mania levels yet.

Perhaps that is to come.

They really should wheel Rumsfeld out in a Dr. Strangeglove moment one of these days, for the solution to the 'What Just Happened?' Crisis in the form of the "I Can't Believe it is not Capitalism' plan was right out of Dandy Don's playbook.

How do you solve a problem? Make it a bigger problem.

The JV Hedge fund between the Treasury and the FED has successfully run the carry trade using the sovereign scrip as the funding currency.

The public balance sheet is now the toxic asset.

We live in a Fleck universe starring the battle of unarmed combatants (currencies) where the U.S. is the dealer (reserve), at least for the near term.

Lots of folks have jumped on this Nancy Capitalist train.

It didn't have to be this way but it is what it is.

Armageddon may have been cancelled but the stage has not been taken down.

The banks can shift marks, oh it is so difficult to value don't you know, in their derivatives to create fantasy gains against the few losses they have to admit.

We can take a step past manufacturing govmint statistics through creativity and give away the rentenmarks free and easy, but that doesn't mean GDP growth is much more than the same old chimera of currency debacement that masquerades America's wealth exporting machine and is promulgated by our leaders as an exceptional example of America's resiliency.

But there are also unknown unknowns. These are things we do not know we don’t know.

What we do not know we don't know is what the long finger of instability from the Hand will ultimately do to the markets and the economy that are still the home of the brave but alas are now a different land.

What we do not know that we don't know is how the continuing liquidation of Main Street and bifurcation of America will interact with the bankrupt ideology of the rich that had greatly succeeded in drafting the inner monologue of regular folks so that they would vote against their self interests and are trying to do it again.

Or as Rummy would say,

There are a lot of people who lie and get away with it, and that's just a fact.

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