Market Socialism Will Not Work
Flecks latest, A Great Pretender of a Rally,
defrocks the "logic" of the latest Wall Street shenanigans and concurs with our latest Natterings,
The market keeps ignoring all the bad news and the fact we are in a recession. Investors keep buying into a fantasy...
somehow, more of what got us into trouble (cheap money via rate cuts) will get us out, trapping the investors in the teeth of a massive tidal wave.
(The announced monoline guarantor bailout) was nothing more than an agreement by the ratings agencies to pretend that the monolines were still worthy of AAA ratings.
How could MBIA which recently had to pay 14% to borrow money,
and whose debt still yields over 13.5% -- ever possibly be considered AAA?
Just like every other aspect of the sanity that some of us might like to see break out,
it seems to be politically unacceptable for anyone in a position of real responsibility to act like an honest adult.
Once again we are right smack in the middle of a full-blown Wall Street fantasy,
whereby more of what got us into this mess is supposed to get us out of it.
Nothing has been learned, and the game of price suppression continues apace.
Unsupervised price discovery (as pertains to securitized assets) continues to be avoided at all cost.
The determination to suppress the destructive downside of capitalism and ensure permanent prosperity is a terrible idea that will not work.
defrocks the "logic" of the latest Wall Street shenanigans and concurs with our latest Natterings,
The market keeps ignoring all the bad news and the fact we are in a recession. Investors keep buying into a fantasy...
somehow, more of what got us into trouble (cheap money via rate cuts) will get us out, trapping the investors in the teeth of a massive tidal wave.
(The announced monoline guarantor bailout) was nothing more than an agreement by the ratings agencies to pretend that the monolines were still worthy of AAA ratings.
How could MBIA which recently had to pay 14% to borrow money,
and whose debt still yields over 13.5% -- ever possibly be considered AAA?
Just like every other aspect of the sanity that some of us might like to see break out,
it seems to be politically unacceptable for anyone in a position of real responsibility to act like an honest adult.
Once again we are right smack in the middle of a full-blown Wall Street fantasy,
whereby more of what got us into this mess is supposed to get us out of it.
Nothing has been learned, and the game of price suppression continues apace.
Unsupervised price discovery (as pertains to securitized assets) continues to be avoided at all cost.
The determination to suppress the destructive downside of capitalism and ensure permanent prosperity is a terrible idea that will not work.
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