Monday, 28 July 2008


Yo! innit!

We trekkin today man I'm gon be Picard, Spider gon be Data, Opkin gon be Deanna Troy, Halfcat, he be gon be Zooney.

Say what? I aint gon be no freakin puppet from Fireball XL5 man! Poxy alien muppet pet. I a pedigree mutt man I got class. What for I gotta be the puppet?

Yeesh! enough already with the backchat 'cat. Yo gon be wotever I says you gon be dude.

Beulah gon be Lootenant Urura, an Laverne gon be Spock.

Up heh, onna bridge o the Starship Turnerprize, we cruzin in outaspace an can see all kinda crazy stuff onna screen.

Incommin! (Spider)(sheeit! man I'm not Spider! I'm Data)(innit! sorry man)(suckers'l think we amaters)

Ahem! Data man! Wot you got for us?

Data : It some fancy big signal man. looks lak a S.O.S...

Uhura : These here maps is all messed up man! I caint make out where Earth is on here! We lost in space man!

Laverne : Sheeit man! Wot kinda mess you landed us in now? Sista can't even sleep inna freeza fo a cupla years for some sucker start S.O.S in an wake us all up. Man I feel like sh*t.

Yo! here! It me, Deanna! - Always let yo feelins hang out man. Am gettin some crazy vibe from all yous guys here onna bridge. Wotz appnin? Is it a bird? Is it a plane?

No man it 'Flation (itz Zooney).

Picard : Say wot? Wot a muppet know bout no 'flation? What is flation anyhow?

Zooney : (the muppet)(alien) 'Flation caused by too much or too little money man.

Data : Yo a poxy alien muppet man! Wot a muppet know about stuff? aint even inna right show.

Zooney : Y'all betta button it dudes cos somink out ere onna screen...

Laverne : Sheeit! Wot is that?

Opkin : it big man!

Picard (back in role, just in time) : Is it a Black Swan? ora Nebula? it INflation or DEflation? Mr Data! Onscreen ifn you pleez....

Lootenant Uhura : Boss, check this out. It don't look like no S.O.S - it more like a warnin!

A comment on the above article :
Anonymous ryb said...

Interesting stuff. However, there may be a few more factors at work here:

1.) The flow of fund data uses the carrying costs of the debt, i.e. the price banks companies etc. carry the debt on their balance sheets. I think that the carrying values of these debts is much higher than their “market” prices (without getting into a discussion of what market prices are, level III etc.). In other words, the value of these loans – mortgages, commercial credit whatever – will be written down further to reflect real values. Thus, the numerator is smaller and % of GDP is not as high as in that graph (although still high).

2.) As the economy in general and real estate in particular continue to deteriorate, the process described above should accelerate.

3.) Many corporates that have access to liquidity, like lines of credit, are drawing on them, not because they need the funds per se, but are willing to eat a small spread to make sure the funds will be available in the future. (As far as I understand, total debt here is gross, not net of cash or ST investments.)

4.) The same is true for households, although the numbers are smaller.

5.) The same is true for those banks that have access to liquidity, either from Central Banks or interbank/commercial paper. Much of the liquidity they receive they hoard, fearing demands from their best clients, or expenses associated with bring off-balance sheet back on balance.

In general, I think destruction of credit has already led to deleveraging. It’s just that the data does not reflect it, due to accounting standards and perverse economic incentives. But I agree with the article (& Rosenberg): real deleveraging is coming soon, and it won’t be pretty.

July 28, 2008 4:38 AM

This next comment looks suspiciously familiar :

from the financial ninja...

"Repeat After Me; All Bubbles Are The Same! Always. Forever."

"Risky assets will continue to lose value. Not necessarily because they all deserve to, but because they must. The entire financial system is de-leveraging. Yes, that means that even commodities will face the wrath of the margin clerks... Eventually. They’ve all gone parabolic. That NEVER ends well. EVER… and it ALWAYS signals the beginning of the end."

from me - Yo post today is well right on bro. an ryb above is good too.

I been lookin inta this here flation stuff an this floats my boat man! amen.

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