PALOOKAVILLE FINANCIAL stardate : capitulation day+100
...here in palookaville we take 'flation seriously...
...in the square...here in downtownP...is a monument...a rowing boat...
...in the rowing boat is a trinity dude...
...one dude wotz a 'conomist, a'vestor anna banker...
...the Tdude sits facing the way he has come while...turning his...
BACK TO THE FUTURE
peteypinkslip : y'all should know that i was not always a famous artist...
...time was when i wuz a cappin o industry...
...hadda desk anna swivvel chair...view o the car park...anna greasy pole ta climb...
...back then we had INflation an it feel good...real good...(cos we had no dough)
...in 1971 my bro bought a good detached house fo £4,000...
...in 1978 me an beulah bought a semi-detached house for £12,500...
...we sold it in 1980 for £21,900...
...back then it wuz all union power an strikes fo mo pay...
...in 1979 i had a 16% pay rise an in 1980 i had a 21% pay rise...in 1981...no job...
...a car would last six years iffn yo was lucky...but bits was fallin offa it after 2...
...at work the four to 10 pint lunch was not uncommon...especially onna friday...
...prices always rose...you spent money fast to buy before prices rose further...
...money in savings vehicles lost value fast...
...uncle larry saved but did not buy a house...he was wiped out...
...vast areas of the world were industrially unproductive...
...competition and capacity...scarce...think China, USSR...India...
...opec kept raising oil prices...
...interest rates eventually went ta 15.7%
THE L&N DON'T STOP HERE ANY MORE
...today some dismal souls are waitin fo that ta come around again...
...they are waitin fo a great tsunami o INflation ta come float all their boats once more...
...well ma own view is that no such animal exists at this time...
...the 'golden' goose is dead...
...yo house is worth less than you paid fo it...yo car is too...
...yo industry is not in the hands of the wage bargainers...
...capacity has mushroomed all ovva a wurl...
...yo job is not safe and neither is yo currency...
...yo retirement plan is toast...
...yo savins is without interest...your bust bank...state owned...
...globalisation has changed the local outlook...fo evva...
...in work...here in palookaville few people drink, now, at lunch...
...today cars will last for 10, 12, years...without many bits fallin off...
...many have spent their future income...an then some...
...goverment taxes are far higher than they were...an they still deep in debt!
..an still they sit...backs against the current...
...borne back ceaselessy into the past...
beulah : ah lakked it when we woz still shoppin an they was allas sommat we needed ta git...
...nah at painty bastard finds it onna web fo less...or we jus already got one...
TIKKA DUDE...THEY PLAYIN YO RECORD ATTA TIMES
liam : ..."The money markets are locked because the banks don't trust each other. Even they don't know how much toxic debt is out there – and which bank could be the next to fall. That's why the spread between the London Inter-bank Offered Rate and overnight interest rate swaps of the same maturity remains so wide – and wider in the UK, now, than either the States or the eurozone.
The crucial inter-bank market will remain frozen until the banks are forced, under threat of prosecution, to reveal the true extent of their sub-prime liabilities. Such "full disclosure" won't be easy – involving the exploration of millions of complex derivative contracts, often across borders – but it simply must be done.
America's first serious reaction to "sub-prime" was the Troubled Assets Relief Programme – buying up hundreds of billions of dollars of dodgy loans the banks didn't want any more. When that didn't work, the US asked banks to forfeit some share capital in return for government cash, as in the UK.
But that's failing too – as shown by sky-high Libor rates. So, as a matter of urgency, the West must copy the hard-headed Swedes – who, in the early 1990s, insisted nationalised banks write down the full extent of their non-performing loans before more public money is spent on recapitalisation. Only then – once the sub-prime losses are fully-exposed – can securities markets clear and the inter-bank market reboot.
The UK/US approach of piling public sector debts on top of private sector debts prevents this vital purging process. Until it happens the global economy will continue to slide. But the big Western economies remain in self-denial, repeating the mistakes made by the Japanese. We're creating our very own "zombie banks" – technically alive, but commercially dead due to the weight of their toxic debts. A Western "lost decade" now looms.
So we need Swedish-style full disclosure. Nothing else will break the deadlock and get us out of this fix. Western politicians – and commentators – need to stand up to the powerful money men and administer the necessary medicine...." sunday times...
...ZOMBIE BANKS ATE MY BRAINS OUT...
...JAPANESE WEARWOLF IN LONDON...
...IT STARTED ON THREADNEADLE STREET...
...BANK OF THE LIVING DEAD...
oh yeah..an...
ZOMBIEFLATION
No comments:
Post a Comment