Why Plumbers are Smarter Than the Ben Bernank


Matt Taibbi has a link to a priceless animated cartoon by ZeRO HEDGE.  It is a must see.  Two Bears explain what Ben Bernanke (They call him The Ben Bernank) is up to in doing this “quantitative easing” deal.  The bears say QE is “printing a ton of money”.  But Taibbi thinks the big deal is the continual funneling of money to Goldman Sachs.  Watch the two bears and you will finally understand what is going on and it’s not pretty.


QE is designed to buy Treasuries and other assets, but the Fed does not simply go out and buy Treasuries itself; it does it through its primary dealers, who include of course banks like Goldman, Sachs. The Fed all but announces when it’s going to be doing this buying and in what quantity, which allows the banks to buy up this stuff at lower prices ahead of time and then sell it to the Fed at inflated cost.

Watch the bears explain why “blowing up the whole world” is not the change we can believe in.  One bear asks, “Is this an episode of the “Twilight Zone”?”

Maybe, but for sure we are all on ‘Mr Toad’s Wild Ride” with the ride operator on a permanent break.


“Soak the Fat Boys”

(Cross posted at correntewire.com)

Doug Henwood’s latest issue of “Left Business Observer” is out. (Subscription is $22 a year for 11 issues.) Henwood wrote the visionary book “Wall Street” in 1997 predicting this mess we are in now. Henwood reminds us that in “All the King’s Men”, Willie Stark is urged not to speak so wonkish and instead just say that “he’s gonna soak the fat boys.”
Why should we soak ’em? We’ve had the lowest growth in 80 years. And Henwood points out that the economy is arguably weaker than the Great Depression. The Depression “was preceded by a serious boom…and while the 1920s expansion was hardly short on froth, it also put the radio and the automobile into wide circulation. The 2001-2007 expansion gave us little more than some empty subdivisions outside Vegas and see-through condos in Miami.” Continue reading

It’s Health Care Costs, Stupid

Dean Baker again points out that if we can get health care costs down and in line with the other wealthy countries, our deficit would be pretty much fixed.  The Center for Economic and  Policy Research has a nifty chart showing. http://www.cepr.net/calculators/hc/hc-calculator.html

This Deficit Commission is a joke. If we have to have these self serving silly commissions, it should have been a “Jobs Commission”.

The Terrorism Scam

Maybe now that the Transit Authority is groping men’s crotches, people are going to wake up to the huge flim flam bamboozle  that has been going down since fall of 2001.  The Department of Homeland Security was put in place to take more money from the taxpayers for the cronies of the Fat Cats and their congress lackeys.  Joe Lieberman came up with this idea although probably not on his own.  And it was up and ready to go very soon after 9/11.

You see the crooks in Washington were kind of straining the Defense budget, so they thought a clever way of siphoning money from the middle class to their friend would be to make up a whole new department.  So we get hundreds of new ventures in spying on the American people.  We get wiretapping companies and now we get body scanners at the airport. Continue reading

Bush Would Have Endorsed Obama

if he could. Ian Welsh has a great catch from the Financial Times.

Here's to Cowboys