'FLATION

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....

http://www.nakedcapitalism.com/2008/07/has-deleveraging-even-begun-not-for.html

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 :

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.

LAVERNE

Yo! Innit!

Back from Aldeburgh! now in downtown Palookaville. The heat is peelin the flock 'paper off the breakfast nook.

Opkins is dozing with his tail in a bowl a ice water. Spider has all seven his legs in there too.

This garret is not the best place to be in a heatwave, but it's home, then again where is?

Whilst chillin by the sea, me an Beulah and Beulah's sista Laverne (and Halfcat), was readin some real cool littature. Seems Laverne is a swot and books is wot she does.

I sez - Yo! Laverne, sista! why you don't write me some ree voos fo the blog?

Laverne : What for I wanna do no writin ree voows for some skinny ass painter?

Me : Say wot? You missin a trick sista! suckers out there don't know they asses from tuesday man. Y'all could be nokkin em ded wi yo smart ass liiature nous.

Laverne : Yeah like they all gon take notice of some asshole's sista-in-law without no badges an stuff.

Me : Shoot sister, y'all the coolest reader inna world dude. just looka wot yo bin readin man...
'Day', 'The Little Friend', 'The Englishman's Boy', 'Headlong'....lots o diff'rnt stuff.

Laverne : Supposin I do rite some stuff, you gon trash it jus fo kicks innit.

Me : Sista, I promiss yo I aint gon do no such thing. Why I be jus ovver a moon to get genuine ree voos wrote fo the suckers by sumwon at cares and aint onna make.

Laverne : Huhn i'll think about it asshole but don't let that skinny- ass, seven legged spider a yorn near it or the deal's off!

BUCKET AND SPADE TIME

SPIDER

Woz over @ mish's jus now an brought this back fo ya

Short Squeeze Continues
......This move in financials is going to fail spectacularly once the panic buying ends, but for now the bulls are having a bit of fun.
usual caveats : not advice etc...

get the full @ (link on this page...on the right) or click below.
http://globaleconomicanalysis.blogspot.com/2008/07/short-squeeze-in-financials-continues.html

just when you thought it was safe to go out...

IMF lifts its forecast for UK economic growth over next two years

Are they taking the piss?
Spider just came up with this from the telegraph
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/07/18/cnimf118.xml
By Edmund Conway, Economics Editor

Last Updated: 1:10am BST 18/07/2008

Gimnopedie No.3 Erik Satie. Piano : Branka Parlic

...is they is or is they aint?

Yo suckers! Look at this. Everone out there is runnin aroun screamin "fed gonna print money roun the clock"... "cause all this inflation an stuff."

"Banks is bust...oil sky high...pay an unemployment risin by the minute...house prices goin thru the roof!"

Scratch that buster! Seems like either we bust or we boomin cain't have both right?

"Way to go painter man" (it's the mouse)
"Go painter" (Halfcat)
"sock it to em" (Spider)
"Is that sonofabich on that freakin computer again?...wher's that freakin rollin pin?"(you got it...it's Beulah!)

Up in the garret, here in Palookaville, we are sadly confused.
Last night that little biddy ole mouse he looked over at me and ast "dude, is we is or is we aint inflatin?'
I swear they was tears in his little eye peeps - he takes his economy muy serious.
"Little mouse dude, I just a dumbass artist from Palookaville but I know some real clevva dudes onna net'.
"Yo Sider! Git on that web o yorn an find me some stuff by Mish (he some clevva dude man) an while yo about it get me some other stuff so the suckers out there can see fo theyselves jus wots appnin."

'Comin up boss"

Thursday, March 27, 2008

Fed Drains Again: 9 Straight POMOs

Every day I hear from someone how the Fed is "printing". My typical reaction is to ask for proof. I never see any. I just looked again. I still don't see any. Oh sure, people point to various Fed sponsored facilities like these as printing.....
http://globaleconomicanalysis.blogspot.com/2008/03/fed-drains-again-9-straight-pomos.html

Onna uvva hand -
Posted to the web on: 07 July 2008
Time to put the brakes on this runaway train
Kenneth Rogoff........

This runaway-train global economy has all the hallmarks of a giant crisis in the making — financial, political, and economic. Will policy makers find a way to achieve the necessary international
co-ordination? Getting the diagnosis right
is the place to start. The world as a whole needs tighter monetary and fiscal policy. It is time to put the brakes on this runaway train before it is too late. Project Syndicate, 2008. www.project-syndicate.org.

Rogoff is professor of economics and public policy at Harvard University, and was formerly chief economist at the IMF..... get the full article @

http://www.businessday.co.za/articles/article.aspx?ID=BD4A797286

Thats all for now folks. Spider on a bathroom break an Beulah is wavin that ole rollin pin and lookin meaner an a skunk with a cold.

LATER...

We're back. "Spider sock it to em"-
"OK boss" -

Friday, 18 July 2008

UK money supply continues to grow at double digit rates

Brace yourself for more inflation. The UK money supply is currently growing at 11.5 percent a year. In fact, the growth rate picked up in June, reversing the declining trend of the early months of the year.... http://ukhousebubble.blogspot.com/

Then get this -

Britain's lonely monetarists fear Bank of England may trigger severe crunch

By Ambrose Evans-Pritchard, International Business Editor

Last Updated: 11:45pm BST 17/06/2008

Britain's lonely band of monetarists fear that the Bank of England will trigger a severe crunch if it overreacts to the inflation spike and keeps interest rates too high as the downturn gathers pace.

Like I said - "is there is or is there aint?"

-http://www.telegraph.co.uk/money/main.jhtml?view=DETAILS&grid=&xml=/money/2008/06/17/bcnmonet117.xml