Consequences
They are increasingly hard to hide. One truism of the global financial markets is that there's no free lunch. Rates are not rising because "the economy's strong" (seen the stock market recently?). They are rising because foreign central banks are refusing to underwrite us on favorable terms, and because of the situation in Iraq we've lost the leverage we once had to change that.
Consequences are particularly unwelcome in Washington during election years. That has important geopolitical implications, which I'll try to post about in the next few days.
Consequences are particularly unwelcome in Washington during election years. That has important geopolitical implications, which I'll try to post about in the next few days.
posted by The Cunning Realist at Friday, July 21, 2006
7 Comments:
I don't think central banks are refusing to underwrite us (maybe Norway); long rates here are still below short rates. The problem is the economy is strong - in China - and resource demands there are feeding inflation here. Since China insists on its peg and has little control over its own economy, the Fed must slow China by slowing the market for its goods here resulting in the inverted yield curve.
Okay, I'm no economist, not even close. I teach American literature for a living. But I'm currently in the housing market, hoping to go under contract TODAY and lock a 30-year fixed mortgage before end of business tomorrow.
Contrary to everything that is being said about mortgage rates, from Bankrate.com to the Detroit Free Press, rates are dropping, not rising.
I wish someone would give Middle America a clear picture of what the hell is going on - with EVERYTHING! Sometimes I honestly believe that our addiction to spin will be our ultimate demise. Everyone is so wrapped up in their own interests, it's difficult to know which way is up anymore.
Saudi Arabia’s Pilates Help President Bushmert Destroy Lebanon
After having washed their hands of the daily carnage taking place in Palestine and Iraq, Saudi Arabia’s Pontius Pilates chose to offer a bleeding Lebanon as sacrificial lamb to the people of Israel.
This “new friendship” bringing together Wahhabi Islamist thugs and rightwing Israeli fascists should come as no surprise for those who know the history of the Middle-East.
But I’m sure the Saudi government will eventually meet the retribution it deserves, for, as Winston Churchill famously said:
"They've been given a choice between dishonor and war. They've chosen dishonor and they shall have war."
The clear picture of what's going on is Asians are financing our purchase of their goods. As long as we keep buying, they keep lending. Heaven help is if we don't feel like spending, though...
Have you bought your Asian gizmo today?
WHAT IS THE REAL NATURE of American capitalism today?, The Predator State by James K. Galbraith
"The Best Way to Rob a Bank Is to Own One", by William Black (Saving and loan crisis whistle blower).
"So, how can the political system reform itself? How can we reestablish checks, balances, countervailing power, and a sense of public purpose? How can we get modern economic predation back under control, restoring the possibilities not only for progressive social action but also—just as important—for honest private economic activity? Until we can answer those questions, the predators will run wild."
One of these years, we really have to take our politicians and our elections seriously.
The bank of Walmart?
"The moratorium, which takes effect immediately and extends until next Jan. 31, will give the regulators time "to assess developments in the ILC industry, to determine if any emerging safety and soundness or policy issues exist involving ILCs, and to evaluate whether statutory, regulatory or policy changes need to be made in the oversight of these charters," the agency said"
Keep up the good work » » »
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