comments by uomo_senza_nome

uomo_senza_nome   befriend   ignore   Mon, 15 Apr 2013, 10:47am PDT   Share   Quote   Like (1)   Dislike     Comment 1

WSJ reports:

http://online.wsj.com/article/SB10001424127887323346304578424950102614148.html

uomo_senza_nome   befriend   ignore   Mon, 15 Apr 2013, 10:37am PDT   Share   Quote   Like (1)   Dislike     Comment 2

Patrick says

Was the bomber trying to assassinate someone in particular?

http://screwtapefiles.blogspot.com/2013/04/bombings-and-bombers.html

uomo_senza_nome   befriend   ignore   Wed, 13 Feb 2013, 8:09am PST   Share   Quote   Like   Dislike     Comment 3

curious2 says

Your link refers more broadly, "The Ever-Increasing Cost of Propping Up A Fragile And Dysfunctional System." You narrowed it to "financial", which is on topic, but the same applies to other systems, e.g. medical.

Of course. Complex systems are everywhere.

Seeking Stability undermines resilience.

uomo_senza_nome   befriend   ignore   Wed, 13 Feb 2013, 7:59am PST   Share   Quote   Like (1)   Dislike     Comment 4

Roberto,

Consider data related to FIRE sector:

America’s period of robust economic growth coincided with FIRE sector profits being between 10 and 20 percent of total profits, and wages in the FIRE sector being below 5 percent of total wages.

The government can and should play a sincere role in ensuring no single sector becomes a parasite that wrecks the rest of the economy. However what we have today is that the government is colluding with the parasitic private sector and making the situation even worse.

There is an ever-increasing cost to propping up a fragile and a dysfunctional financial system.

uomo_senza_nome   befriend   ignore   Wed, 13 Feb 2013, 7:52am PST   Share   Quote   Like   Dislike     Comment 5

JFP says

My point was that there are a whole bunch of people saying that because what is happening is bad for society, it has to change. That's not the case, and your financial planning should take that into account.

Excellent point, it's essentially called pragmatism.

uomo_senza_nome   befriend   ignore   Wed, 13 Feb 2013, 7:51am PST   Share   Quote   Like (3)   Dislike     Comment 6

curious2 says

I'm guessing you don't know what lemon socialism is

I think what's happening in America can be appropriately termed as corporate fascism.

uomo_senza_nome   befriend   ignore   Tue, 12 Feb 2013, 9:11pm PST   Share   Quote   Like (1)   Dislike     Comment 7

There are a number of different channels -- mortgage rates, I mentioned other interest rates, corporate bond rates, but also the prices of various assets, like, for example, the prices of homes. To the extent that home prices begin to rise, consumers will feel wealthier, they'll feel more -- more disposed to spend. If house prices are rising, people may be more willing to buy homes because they think that they'll, you know, make a better return on that purchase. So house prices is one vehicle. - Bernanke, Sept 2012

It is an explicit defense of reflation. So Bernanke wants it and he's getting it. Bernanke's models apparently do not tell him that Ponzi financial policies are unsustainable in the long run. They will blow up.

uomo_senza_nome   befriend   ignore   Sun, 3 Feb 2013, 2:27am PST   Share   Quote   Like (6)   Dislike     Comment 8

Roberto,

Patrick has the Ignore tool built for a reason :)

I agree with bmwman, 'don't feed the trolls' is usually a good guideline to follow.

uomo_senza_nome   befriend   ignore   Sat, 2 Feb 2013, 8:36am PST   Share   Quote   Like (1)   Dislike     Comment 9

bgamall4 says

Keynes stimulus and Mises austerity

Both are equally absurd with their solutions. How about Hyman Minsky and Steve Keen, who have debunked neoclassical economics?

http://www.debtdeflation.com/blogs/manifesto/

uomo_senza_nome   befriend   ignore   Fri, 1 Feb 2013, 11:57pm PST   Share   Quote   Like   Dislike     Comment 10

bgamall4 says

Keynes stimulus and Mises austerity

Both are equally absurd in their solutions, because they both ignore the problem of rent.

How about Hyman Minsky and Steve Keen, who has debunked neoclassical economics.

http://www.debtdeflation.com/blogs/manifesto/

uomo_senza_nome   befriend   ignore   Fri, 1 Feb 2013, 4:40am PST   Share   Quote   Like   Dislike     Comment 11

Mick Russom says

The problem is the rent seeking is a behavior allowed by the banking cabal to make certain members of the upper middle class wealthy via unearned and rentier income.

These become the highest members of the outer party.

Not everything is because of bankers. Finance is one form of rent seeking, but there are several other forms as well.

For a proper primer on rent seeking, consider this paper.

As for your accusation on upper middle class, here's the actual data regarding income redistribution. Most gains go to the top 1%.

uomo_senza_nome   befriend   ignore   Wed, 30 Jan 2013, 12:22am PST   Share   Quote   Like   Dislike     Comment 12

everything says

The Euro will implode first, but it looks like they're going to keep backing it with dollars and bonds for another 7 years as a Euro slow bust is good for the dollar, although if they don't stop marrying each other they could both go bust close to the same time.

everything,

have you seen this chart?

Euro system actually marks their gold reserves to market every quarter. You can see the rebalancing of the central bank balance sheet with gold in live action.

So I don't think the Euro will implode. The Euro was built to resolve the dollar's flaws.

uomo_senza_nome   befriend   ignore   Tue, 29 Jan 2013, 8:36am PST   Share   Quote   Like   Dislike     Comment 13

Mick Russom says

Yes, it gets messy because you have to use smoke and mirrors to keep brutally expensive things expensive.

I don't think that is the causality. The causality is extreme wealth disparity, which will lead to social and civil unrest if nothing is done about it. By keeping it orderly - I meant we resolve this problem of wealth disparity without wrecking the whole economy.

uomo_senza_nome   befriend   ignore   Tue, 29 Jan 2013, 4:59am PST   Share   Quote   Like   Dislike     Comment 14

iwog says

Don't forget who the bad guys are again. They are the banks who create money out of thin air and cry for a government bailout whenever they make bad investments. A global default that kills mega-banks COMBINED WITH DIRECT GOVERNMENT INSURANCE OF DEPOSITS AND LENDING will result in an economic boom EXACTLY like it did in Iceland and EXACTLY like never happened (to their horror) in Ireland.

iwog - I completely agree with you.

I was saying that since politics can be disorderly, defaults tend to be disorderly, which is severely disruptive.

Deleveraging can get very disorderly if not managed properly. The real conflict is between creditors and debtors, and if there is an adult conversation - mutual consensus would be inflation and trying to keep it orderly.

uomo_senza_nome   befriend   ignore   Tue, 29 Jan 2013, 3:55am PST   Share   Quote   Like   Dislike     Comment 15

iwog says

Soooooooo........where's all the inflation? Or was your entire rant for no other purpose than to bitch about my "triple" comment?

"Inflation is increase in money supply" - Austrians

"Inflation is general increase in price level of goods and services" - Keynesians

"Inflation is increase in money supply accompanied by the behavioral shift among economic agents towards increased velocity, which then leads to increased price level" - Reality.

So no behavioral shift, no inflation.

uomo_senza_nome   befriend   ignore   Tue, 29 Jan 2013, 3:51am PST   Share   Quote   Like   Dislike     Comment 16

PockyClipsNow says

The whole country is set up for banks, wall street, flippers, brokers, agents to make moe-nay. Get on board!

Bang on accurate.

uomo_senza_nome   befriend   ignore   Tue, 29 Jan 2013, 3:43am PST   Share   Quote   Like   Dislike     Comment 17

iwog says

That's what bankruptcy is for. Private debt is money owed to ourselves. I don't think there are severe macro-economic consequences beyond the usual problem of wealth disparity.

Destroying private debt in a disorderly fashion like a default can lead to a severe macro economic contraction, Great Depression I being a classic example.

So I think the statement "no severe macroeconomic consequences" is patently false.

uomo_senza_nome   befriend   ignore   Mon, 28 Jan 2013, 8:24am PST   Share   Quote   Like (1)   Dislike     Comment 18

iwog says

Why produce wealth when you can steal it from others via printing?

The exact same question is applicable to the banker cabal as well. Finance is rent seeking through seignorage.

The only way rent seeking can be avoided is through public policy.

uomo_senza_nome   befriend   ignore   Mon, 28 Jan 2013, 8:19am PST   Share   Quote   Like (1)   Dislike (2)     Comment 19

iwog says

We are currently in a demand side crisis. Giving Americans money will cause increased production which will offset the amount of money created by growing the market. This is how the REAL economy works.

It's the private debt, stupid!

demand is destroyed because of too much debt. not the other way around.

uomo_senza_nome   befriend   ignore   Mon, 28 Jan 2013, 2:34am PST   Share   Quote   Like (2)   Dislike     Comment 20

david1 says

I think you have built a trawman against Krugman and Keynesians in general. This is a common criticism of Keynes, the "robbing the economic seed corn" by a combination of deficit spending and increasing liquidity.

I don't think it is a strawman attack on Keynesians because they DO ignore debt in their models.

In particular, he asserts that putting banks in the story is essential. Now, I’m all for including the banking sector in stories where it’s relevant; but why is it so crucial to a story about debt and leverage? - Krugman on Steve Keen

http://krugman.blogs.nytimes.com/2012/03/27/minksy-and-methodology-wonkish/

The reason why the FIRE sector continues to dominate the economy is because rent seeking is rampant and encouraged. Krugman can nail the problem of rent seeking if he chooses to include debt in his models.

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