Best of the Week
Most Popular
1. US Housing Market Real Estate Crash The Next Shoe To Drop – Part II - Chris_Vermeulen
2.The Coronavirus Greatest Economic Depression in History? - Nadeem_Walayat
3.US Real Estate Housing Market Crash Is The Next Shoe To Drop - Chris_Vermeulen
4.Coronavirus Stock Market Trend Implications and AI Mega-trend Stocks Buying Levels - Nadeem_Walayat
5. Are Coronavirus Death Statistics Exaggerated? Worse than Seasonal Flu or Not?- Nadeem_Walayat
6.Coronavirus Stock Market Trend Implications, Global Recession and AI Stocks Buying Levels - Nadeem_Walayat
7.US Fourth Turning Accelerating Towards Debt Climax - James_Quinn
8.Dow Stock Market Trend Analysis and Forecast - Nadeem_Walayat
9.Britain's FAKE Coronavirus Death Statistics Exposed - Nadeem_Walayat
10.Commodity Markets Crash Catastrophe Charts - Rambus_Chartology
Last 7 days
Will You Make Money in the New Silver Bull Market ? - 13th Aug 20
Hyper-Deflation Capital Destruction And Gold & Silver - 13th Aug 20
Stock Market Correction Approaching - 13th Aug 20
Silver Took the Stairs to $21 in 2008, Took Escalator to $29 2010. Is Silver on Elevator to 120th floor today? - 13th Aug 20
President Trump Signs Additional COVID Relief – What To Expect from the Markets - 13th Aug 20
Has Gold's Upward Drive Come to an End? - 13th Aug 20
YouTuber Ads Revenue & How to Start a Career on YouTube - 13th Aug 20
Silver Notches Best Month Since 1979 - 12th Aug 20
Silver Shorts Get Squeezed Hard… What’s Next? - 12th Aug 20
A Tale of Two Precious Metal Bulls - 12th Aug 20
Stock Market Melt-Up Continues While Precious Metals Warn of Risks - 12th Aug 20
How Does the Gold Fit the Corona World? - 12th Aug 20
3 (free) ways to ride next big wave in EURUSD, USDJPY, gold, silver and more - 12th Aug 20
A Simple Way to Preserve Your Wealth Amid Uncertainty - 11th Aug 20
Precious Metals Complex Impulse Move : Where Is next Resistance? - 11th Aug 20
Gold Miners Junior Stcks Buying Spree - 11th Aug 20
Has the Fed Let the Inflation Genie Out of the Bottle? - 10th Aug 20
The Strange Food Trend That’s Making Investors Rich - 10th Aug 20
Supply & Demand For Money – The End of Inflation? - 10th Aug 20
Revisiting Our Silver and Gold Predictions – Get Ready For Higher Prices - 10th Aug 20
Storm Clouds Are Gathering for a Major Stock and Commodity Markets Downturn - 10th Aug 20
A 90-Year-Old Stock Market Investment Insight That's Relevant in 2020 - 10th Aug 20
Debt and Dollar Collapse Leading to Potential Stock Market Melt-Up, - 10th Aug 20
Coronavirus: UK Parents Demand ALL Schools OPEN September, 7 Million Children Abandoned by Teachers - 9th Aug 20
Computer GPU Fans Not Spinning Quick FIX - Sticky Fans Solution - 9th Aug 20
Find the Best Speech Converter for You - 9th Aug 20
Silver Bull Market Update - 7th Aug 20
This Inflation-Adjusted Silver Chart Tells An Interesting Story - 7th Aug 20
The Great American Housing Boom Has Begun - 7th Aug 20
NATURAL GAS BEGINS UPSIDE BREAKOUT MOVE - 7th Aug 20
Know About Lotteries With The Best Odds Of Winning - 7th Aug 20
Could Gold Price Reach $7,000 by 2030? - 6th Aug 20
Bananas for All! Keep Dancing… FOMC - 6th Aug 20
How to Do Bets During This Time - 6th Aug 20
How to develop your stock trading strategy - 6th Aug 20
Stock Investors What to do if Trump Bans TikTok - 5th Aug 20
Gold Trifecta of Key Signals for Gold Mining Stocks - 5th Aug 20
ARE YOU LOVING YOUR SERVITUDE? - 5th Aug 20
Stock Market Uptrend Continues? - 4th Aug 20
The Dimensions of Covid-19: The Hong Kong Flu Redux - 4th Aug 20
High Yield Junk Bonds Are Hot Again -- Despite Warning Signs - 4th Aug 20
Gold Stocks Autumn Rally - 4th Aug 20
“Government Sachs” Is Worried About the Federal Reserve Note - 4th Aug 20
Gold Miners Still Pushing That Cart of Rocks Up Hill - 4th Aug 20
UK Government to Cancel Christmas - Crazy Covid Eid 2020! - 4th Aug 20
Covid-19 Exposes NHS Institutional Racism Against Black and Asian Staff and Patients - 4th Aug 20
How Sony Is Fueling the Computer Vision Boom - 3rd Aug 20
Computer Gaming System Rig Top Tips For 6 Years Future Proofing Build Spec - 3rd Aug 20
Cornwwall Bude Caravan Park Holidays 2020 - Look Inside Holiday Resort Caravan - 3rd Aug 20
UK Caravan Park Holidays 2020 Review - Hoseasons Cayton Bay North East England - 3rd Aug 20
Best Travel Bags for 2020 Summer Holidays , Back Sling packs, water proof, money belt and tactical - 3rd Aug 20
Precious Metals Warn Of Increased Volatility Ahead - 2nd Aug 20
The Key USDX Sign for Gold and Silver - 2nd Aug 20
Corona Crisis Will Have Lasting Impact on Gold Market - 2nd Aug 20
Gold & Silver: Two Pictures - 1st Aug 20
The Bullish Case for Stocks Isn't Over Yet - 1st Aug 20
Is Gold Price Action Warning Of Imminent Monetary Collapse - Part 2? - 1st Aug 20
Will America Accept the World's Worst Pandemic Response Government - 1st Aug 20
Stock Market Technical Patterns, Future Expectations and More – Part II - 1st Aug 20
Trump White House Accelerating Toward a US Dollar Crisis - 31st Jul 20
Why US Commercial Real Estate is Set to Get Slammed - 31st Jul 20
Gold Price Blows Through Upside Resistance - The Chase Is On - 31st Jul 20
Is Crude Oil Price Setting Up for a Waterfall Decline? - 31st Jul 20
Stock Market Technical Patterns, Future Expectations and More - 30th Jul 20
Why Big Money Is Already Pouring Into Edge Computing Tech Stocks - 30th Jul 20
Economic and Geopolitical Worries Fuel Gold’s Rally - 30th Jul 20
How to Finance an Investment Property - 30th Jul 20
I Hate Banks - Including Goldman Sachs - 29th Jul 20
NASDAQ Stock Market Double Top & Price Channels Suggest Pending Price Correction - 29th Jul 20
Silver Price Surge Leaves Naysayers in the Dust - 29th Jul 20
UK Supermarket Covid-19 Shop - Few Masks, Lack of Social Distancing (Tesco) - 29th Jul 20
Budgie Clipped Wings, How Long Before it Can Fly Again? - 29th Jul 20
How To Take Advantage Of Tesla's 400% Stock Surge - 29th Jul 20
Gold Makes Record High and Targets $6,000 in New Bull Cycle - 28th Jul 20
Gold Strong Signal For A Secular Bull Market - 28th Jul 20
Anatomy of a Gold and Silver Precious Metals Bull Market - 28th Jul 20
Shopify Is Seizing an $80 Billion Pot of Gold - 28th Jul 20
Stock Market Minor Correction Underway - 28th Jul 20
Why College Is Never Coming Back - 27th Jul 20
Stocks Disconnect from Economy, Gold Responds - 27th Jul 20
Silver Begins Big Upside Rally Attempt - 27th Jul 20
The Gold and Silver Markets Have Changed… What About You? - 27th Jul 20
Google, Apple And Amazon Are Leading A $30 Trillion Assault On Wall Street - 27th Jul 20
This Stock Market Indicator Reaches "Lowest Level in Nearly 20 Years" - 26th Jul 20
New Wave of Economic Stimulus Lifts Gold Price - 26th Jul 20
Stock Market Slow Grind Higher Above the Early June Stock Highs - 26th Jul 20
How High Will Silver Go? - 25th Jul 20
If You Own Gold, Look Out Below - 25th Jul 20
Crude Oil and Energy Sets Up Near Major Resistance – Breakdown Pending - 25th Jul 20
FREE Access to Premium Market Forecasts by Elliott Wave International - 25th Jul 20
The Promise of Silver as August Approaches: Accumulation and Conversation - 25th Jul 20
The Silver Bull Gateway is at Hand - 24th Jul 20
The Prospects of S&P 500 Above the Early June Highs - 24th Jul 20
How Silver Could Surpass Its All-Time High - 24th Jul 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

U.S. U3 Unemployment Going To 13%, Link To Summers And The Russian Mafia?

Economics / Recession 2008 - 2010 Nov 08, 2009 - 05:37 AM GMT

By: Andrew_Butter

Economics

Best Financial Markets Analysis ArticleThere is a theory that Government Stimulus can create jobs. There have been a lot of theories banded around recently; the more they are proven to be totally wrong, the faster they come.


When President Obama announced his stimulus plan it was going to save or create 3.0 million to 3.5 Million jobs depending on what you were smoking. This is the chart from the study put out by the Council of Economic Advisors and the Office of The Vice-President Elect on 9th January 2009.

http://otrans.3cdn.net/ee40602f9a7d8172b8_ozm6bt5oi.pdf

 
Some Plan! (Actual and my projection are overlaid in red; the logic of how you get to 13% is explained here (http://www.marketoracle.co.uk/Article13452.html )

The people behind the plan are of course the Apprentice Wizards who worked with their mentors Alan Greenspan and Dan Rubin to create the credit crunch, none other than President Obama’s Golden Boys, Timothy Geithner and Larry Summers.

Alan Greenspan we all remember as the “Man with a Theory”, this is what he had to say about his great theory when he was questioned by Congress recently:

Republican Henry Waxman asked a question:

“You have been a staunch advocate for letting markets regulate themselves, and my question for you is simple; were you wrong?”

Greenspan:     “Yes, I found a flaw and…but I’ve been very distressed by that fact”.

Waxman:        “You found a flaw in the reality…”

Greenspan:     “A flaw in the market that I perceived was the critical function and structure that defines how the world works, so to speak”.

(By the way, is that “English” wot he’s talking?).

Waxman:        “In other words you found your view of the world, your ideology was not right”.

(That’s English)

Greenspan:     “Precisely! That’s precisely the reason that I was shocked because I’d been going for forty years or more with very considerable evidence that it was working exceptionally well”.

Precisely! After eighteen years aggressively shaping the structure of the US economy and indeed the world economy, Alan Greenspan came to the realization that actually he didn’t know what he was doing. A bit like a chimpanzee in a nuclear power plant who accidentally pushes the wrong button…Oops!

And guess who’s “theory” is being tested out again? Well it’s none other than the great Greenspan theory that if you hand out tons of cash to the banks so they can speculate that’s what Martha Stewart calls a “Good Thing”!

If you want to see a great video of that go to:  http://www.marketoracle.co.uk/financial_markets_analysis_videos.htm

And the Men in Black this time around:

Timothy Geither we all know is the one who cheated on his taxes and was instrumental in getting Goldman Sachs 100 cents on the dollar on the exposure they had to AIG. Talk about diamonds on the soles of his shoes, and all a US taxpayer can say about that is “Thanks a lot Tim”!

Misogynist Larry Summers worked enthusiastically on the “team” to shut up and shut down Brooksley Born when she had the temerity to suggest that the new derivatives being cooked up by Wall Street should be subject to the same sort of regulation as had been keeping derivatives in agricultural futures honest for years. Presumably the fact she was a woman had something to do with that?

With the result that the OTC derivatives exposure (nominal) of banks worldwide is Err…well no one really knows but it’s certainly more than $500 trillion.

Larry the Lad is a real expert on derivatives, he managed to lose Harvard University $1 billion with his expertise in that field.

Summers was of course a big supporter of the Gramm-Leach-Bliley Act in 1999, which lifted more than six decades of restrictions against banks offering commercial banking, insurance, and investment services (by repealing key provisions in the 1933 Glass-Steagall Act), which paved the road that allowed the shadow banking system to milk America dry.

It’s called “Letting market participants  regulate …Err “help”…themselves”.

And that’s the same Larry the Lad who supported his “good friend” Andrei Shleifer who was convicted under the False Claims Act, after he bought Russian stocks while designing that country's privatisation. In 2004, a federal judge ruled that Shleifer and his associate were liable for treble damages.

Err….wasn’t it the Russian Mafia that controlled that scam? I mean I’ve done business in Russia (not that sort of business), one thing I know (everyone knows) is that you just don’t do those sorts of scams unless you got “protection”.

Of course everyone knows that governments don’t create employment, they create waste, and the net result of that is more unemployment.

But perhaps there is a hidden agenda here?

Perhaps the “good friends” of Larry’s “good friend” Andrei Shleifer are lining up themselves and their “protectors” up to “do it to me one more time…baby”?

I got the feeling, Mr. & Mrs. US taxpayer, that you ain’t seen nothing yet!

Hey boys there is money to be made; lots of money, the streets of America are paved with gold, (if you got protection).

By Andrew Butter

Twenty years doing market analysis and valuations for investors in the Middle East, USA, and Europe; currently writing a book about BubbleOmics. Andrew Butter is managing partner of ABMC, an investment advisory firm, based in Dubai ( hbutter@eim.ae ), that he setup in 1999, and is has been involved advising on large scale real estate investments, mainly in Dubai.

© 2009 Copyright Andrew Butter- All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Andrew Butter Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules