THE MORE I OWE, THE MORE I MAKE

yo!...some are more equal than others...innit!

PALOOKAVILLE FINANCIAL
capitulation day
+137...


...palookaville 2009...


...debt has reached the nexus phase...

...retirement is not an option...


...the debtists have passed new laws to increase debt - quantum time...


...the cure for debt is debt...


...long live the debt!...


...their friends the boomists have lobbied hard for this day...


...they believe in perpetual boom...



IGNORANCE IS STRENGTH


...nobody knows what we've done...


...they're all so f**kin thick...

...we keep them up to date with what is happening in the soaps...

...with who is F**king whom...

...they check their 'phones every minute...

...to see who is "on the bus" or "at the checkout"...

...meanwhile we f**k them over...


...we bury them in debt, we take away their savings or at least their interest...


THE MORTGAGE-GO-ROUND


...we give their money to the debtors...

...the more they owe, the more they make...


...we hate savers...

...so we rob their savings...

...we f**k up their investments...

...we rob their pension plans...

...


WAR IS PEACE


...war is good...

...it increases economic growth...

...bullets and bombs must be replaced...

...we can start a new war any time we want...

...all the twats will be watching the soaps...

...or reading about some sports or movie or soap "star"...


FREEDOM IS SLAVERY


...we will be the spender of last resort...

...all their money is ours...


...we create it...

...so we shall spend it...


...big goverment sets you free...

...cradle to grave without the need to think...

...like mushrooms, we keep you warm, in the dark...and covered in sh*t...


...we decide how much tax you will pay...

...and how we spend your money...

...we provide your education and health service...

...and we decide what quality of care you get...


...we tax your income and your spending and your saving...

...you get to decide who wins big brother...



...Ha ha ha ha ha ha ha ha ha ha ha ha...



THE GOVERNATOR


...the great depressionist artist...

...arnold terminator...

...is trying to balance the budget...


...the debtists just don geddit...

...they think the boom can be restarted...

...in time to save their bacon...


...but...


...perpetual boom is an illusion...

...the boomists have done their best...

...but...

...now it's over...

...bust follows boom as night follows day...

...

ZOMBIESTEIN

...they like to keep their money off shore...

... in tax havens and secret accounts...

...not here in zombiestein...

...land of the living dead...

...where all that moves is subsidised...

...state owned...

...insolvent...

...devalued...

...

THE MSM TELLS THE TRUTH AT LAST

yo!...abaht time...innit!

PALOOKAVILLE FINANCIAL
capitulation day
+122...

peteynation : foolin alla the people alla the time is difficult...

...1997 - 2007...

smoke an mirrors...profits of wax...

...less of the benefit...

...more of the tax...

DOWN BY BROWN

albert edwards : ..."What I find amazing is that people aren’t really nailing Gordon Brown and [Bank of England Governor] Mervyn King for this,” he said. “At least in the US they had the excuse of the arrival of sub-prime — a new sector of the market. We didn’t really have anything similar but we ended up with a bigger national Ponzi scheme than the US.”

THEY ARE NOW

from the times :-

The case against Gordon Brown

...seven nails in his political coffin...

THE MORE I SAVE...THE MORE I LOSE

yo!...hell hath no fury...innit!

PALOOKAVILLE FINANCIAL
capitulation day
+109...


...on sunset boulevard...peterthepainter lies...

...face down in vilma banky's pool...

...beulah...a famous ex gansta's moll...

...has shot him inna head with a reactivated .45...



...the lazy, painty b*stard had shrunk the pension stash...


GIRL ON A RAMPAGE


beulah : who soever seeks ta f**k up mi finances shall...pay!...

...itz that brown wot done it...

...alla msm bollox are too scared ta tell atruth...

...he caused us ta lose...

...our pension stash...our holiday...our savins interest...


BROWN : BLAME ANYONE BUT ME


...he allas sayin it were a sub prime or it caused by america...


...he says he saved the world...that he saved the banks...


...but the banks is still bust...an they won't lend...


...an they gon be commin back fo mo...



BOULEVARD OF BROKEN DREAMS


edmond conway :..."

Definitive proof that the Bank of England saw the financial crisis coming

edmond conway : ..."As we wrote in our City Comment that day: "One statistic in particular shows precisely how exposed the City is to the bursting of the household debt bubble. At the beginning of 2001, our banks were not lending customers any more than the total amount of deposits they held. By the end of 2005, banks were lending customers £500bn in cash which simply wasn't in the vaults. Should customers default on their loans, these banks could be in trouble, having to resort to borrowing chunks of money at penal interbank rates."

Not only did the Bank's report, which can be found here (page 28 is the one on the funding gap - p30 on the pdf version), lay out the City's increased reliance on wholesale funding - it also warned that this leaves banks extremely vulnerable in the event of a slowdown. Now, the Bank was not the first to diagnose the seeds of the crisis: there were one or two hedge funds which were already trading on the likelihood of a UK banking breakdown caused by this reliance on securitisation. There were plenty of commentators warning on the excessive build-up of debt. But as far as I can tell this was about the earliest warning on the problems inherent to the UK mortgage market.

The report completely debunks the notion that the financial crisis came as a surprise to the City, or indeed the Bank. The Government had been warned explicitly not by some crackpot economist but by its own employees in Threadneedle Street about precisely how the crisis could erupt. Not only this, but the report also revealed that its "war games" plotting out scenarios including a credit crunch revealed that a debt-fuelled crisis could cause a severe UK recession, a 25pc fall in house prices and a wiping out of a third of banks' tier one capital - around £40bn at the time. It is difficult to think how it could have made more noise about the possible risks the debt build-up entailed...."

...Of course, the eventual crisis has been far greater than even this worst-case scenario, but remember that this was a warning delivered more than a year before the securitisation markets broke down in August 2007. Had it been heeded in Government, Northern Rock - not to mention the rest of the banking system - could very possibly have been saved from complete collapse. The UK could have been let off with a mild rather than severe recession. House prices could have been brought back under control, rather than booming again for another breakneck year of growth." Telegraph


HERE IS THE NEWS

...vilma banky looks out of the orangery at the leaves floatin in her new pool...

...yikes!...is that petey?...floatin there?


...petey is sayin nuthin...not because he's dead...

...thats just a minor detail inna much bigger plot...


...he's waitin fo beulah ta git dahn ta the msm bollox...


...she gon tell em fo sho...


...yo sat on yo asses an did nowt...

...while brown and his gang...


...bullied their way ta this bust...


...the plan ta bust the country was in place from the start...


...increase taxes, increase the public sector workforce, create a client state...


...put alla the voters onna state payroll, nationalise the banks...


...punish savers, rob the private pensions, complicate the tax system...


...increase treasury power, politicise the civil service...


HERE IS THE BILL


...a devalued currency...

...unsustainable public finances...

...insolvent banks...

...pension funds in deficit...

...no income for people who rely on interest on their savings...

...house price crash...

...negative equity...

...first time buyers kept out of the housing market...

...rapidly rising unemployment...

...stock market crash...

...commercial property crash...

...20% cuts in with profits policy bonuses...

...no jobs for graduates...

...middle class poverty...

...a new wave of violent robberies...

...car sales slump...

...tax revenues wiped out...

...massive national debt...


INDEXED LINKED PENSIONS FOR POLITICIANS


...and when you have gone...

...whether we recover or not...


...you and your gang will have the best pensions in the land...

safe from any inflation you will have caused...

SLOW BOAT TO JAPAN

yo!..turnin japanese but wiyout a dosh...innit!

paintybollox : back from Firenze nah...an it all still crap!

lamont : ..."Before the Government adopts full-blown Keynesian policies, it should examine their effect on Japan after the bursting of its “property bubble”. Between 1991 and 1998, Japan spent 100 trillion yen on new railway lines and other public works. Little good did it do. Its economy stagnated. Since 1991, Japan’s government debt as a proportion of GDP rose from 64 per cent of GDP in 1991 to 171 per cent this year. Japan is in a debt trap it can’t escape.

Gordon Brown’s policies would take Britain down the Japanese route — with one important difference. Japan runs large trade surpluses and can fund its borrowing from domestic savers. The British Government depends on international capital markets to finance its borrowing. Deficits and excessive borrowing may not have mattered when the world was awash with money. That has changed. Confidence is all.

Today’s bust was inevitable. But recovery will follow. The economy adjusts. Prices fall, buyers come back into the market, confidence slowly returns. It is mistaken government action that turns recessions into depressions .

Adding higher government borrowing to private sector borrowing does not improve the performance of the economy. If consumption has grown too fast, increasing government spending is the equivalent of driving through a red light.

Gordon Brown is like a gambler on a losing streak, doubling up by spending. More huge tax increases lie ahead. Because he has already exhausted the scope for stealth taxes, his policies mean we could see VAT raised to 20 per cent or the basic rate of income tax heading back towards 30p. One thing we can be sure of: it will be horrible. But once the consequences of Gordon Brown’s fiscal management are plain, it will take a generation before the voters trust Labour again. Times

V SIGN FOR THE POOR

yo!..pension politix issue...innit!

PALOOKAVILLE FINANCIAL stardate capitulation day+32

...Admiral Brown is onna bridge o a dorkship TURNERPRIZE...struttin arahn pretendin ta be a great dictator...practicin salutes an stuff...

...all around him the economy lies in ruins...frozen by the withdrawal o the great credit binge of the labour years...

...he hopes to put the leverage handle back onna broken money machine an restart a BOOM wotz BUST...

...he wants first time buyers ta bailout a property market by buyin houses before they become fair value again...

THE GRAPES OF WRATH

liam : "I'm staggered – there is no other word for it – at the way Gordon Brown is strutting around the world like a pumped-up super-hero.

Does he have no shame? I know he's the Prime Minister; I'm meant to show due respect. But I'm still forced to ask myself – what planet is this man on?

I don't deny there is merit in the UK bail-out scheme. Some of us have argued for months that only "direct capitalisation" of the banks would even begin to break this crisis. Brown's plan is certainly better that the "made in America" version involving the state buying-up Wall Street's bad assets, without insisting on equity ownership. US Treasury Secretary Hank Paulson dubbed his rescue package a "bazooka". A smaller armament would have been more apt – a peashooter, perhaps?

None of this remotely justifies Brown's triumphant tone. For one thing, the global financial system remains in very deep waters. The British economy is also a mess – with the blundering errors Brown made as Chancellor coming back to haunt us all." Sunday Telegraph

irwin : ..."Politics may make strange bedfellows, but economic crises make even stranger ones. Gordon Brown, a free trader, now finds that Nicolas Sarkozy, an arch-protectionist, has virtues he had not previously noticed. It seems that they are united by three things. First, they believe, or at least are pretending that they believe, that the current ills originated in the United States. You might remember: these are the same United States whose entrepreneurship Chancellor Brown lauded to all who would listen, before becoming prime minister and slipping easily into the anti-American mode that now dominates his public and private discourse.

Second, Brown and Sarkozy, along with their EU partners, believe that now is the time to put the former hegemon in its place. America, they believe, is paralysed by the lame-duck status of its president. It will, they reason, be forced to go along with any European proposals for what is variously called a “new financial architecture” and a “new world order”. The joy on the faces of EU leaders as they gather for their conferences can be seen in news photos. Never mind that the banking systems of their countries are on the verge of collapse, or that they are headed for a recession deeper and longer than the one the United States will suffer. Now is their chance to do things that the Americans might not like, but can’t stop.

Third, Brown, Sarkozy & Co have always done what President Ronald Reagan accused his own bureaucracy of doing: “If it moves, tax it. If it keeps moving, regulate it. If it stops moving, subsidise it.” Brown, long famous for profligate spending and mindless regulations, now proposes to subsidise homebuying by first-time buyers so that they can catch the falling knife that is the house-price market. And his new-found friends in the EU have never hesitated to increase their tax-funded budgets, and draft regulations at such a rate that even the lobbying firms in Brussels cannot follow all the action....

........For Brown, such a Bretton Woods II would put him in the role played by John Maynard Keynes in 1944, when his biographer Robert Skidelsky reports Keynes “was the Churchill of this [financial] world, and no one could have taken his place”.

That wouldn’t be the first time, and won’t be the last time, the prime minister has likened his role in coping with the financial crisis to Churchill’s role in coping with Hitler." Sunday Times

WEATHER FORECAST

john waples : "Anyone still holding on to hopes that the financial problems have been solved and that we will not have problems in the wider economy is living in cloud cuckoo land. Over the past year we have seen an excess of debt being blown out of the banking system and the same will now happen in the real economy.

Every day I am hearing first hand from small and medium-sized businesses that are getting bullied by banks. As a result, the corporate casualty list, which so far has been contained, is going to grow rapidly. All companies that I speak to have put capital-spending programmes on hold for the next 12 months, staff numbers are being cut and profit forecasts that looked attainable only six months ago are being trimmed back.

From the collapse of Northern Rock to the part nationalisation of HBOS and Royal Bank of Scotland, it took more than a year to recognise the depth of the problems in the financial system. It may take the same length of time for the British economy to sort itself out. The stock market has already priced in a lot of this pain and has singled out those highly indebted companies that are going to struggle to survive. But so far there has been a lag between the rapid fall in UK equities and the corporate news that will inevitably follow.

It is going to be a very demanding time for company bosses, who will have to make tough decisions. Britain will pull through and the government appears keen to prime the system, but anyone who is delaying taking action should think again. This is the time that British business has to show its mettle and, if it does, it will come out the other side in much better shape.

As a newspaper we will endeavour to identify success stories. But I have had too many conversations with too many senior industrialists and other businessmen to ignore the shake-out that is coming." Sunday Times

THE PENSIONS OF THE PUBLIC SECTOR PAID FOR BY THE POOR

petey : jobs is bein lost wot will never be got back by those who will pay the real, lasting, price of browns hubris...while he an his govt. pals bask in the warmth o their Guaranteed, cast iron, index linked and unbelievably generous PUBLIC PAID PENSIONS...

...brown has robbed private pension funds of £5 billion+ per year since deciding that the poor should be hoodwinked into financing the state...while MP's voted themselves better pensions and higher pay!

1998 buget : "However, the most controversial shock and the biggest regular revenue raiser concerned abolition of the tax clawbacks available to pension funds - known as gross funds which receive dividends tax free. When companies pay out dividends they deduct what is called advance corporation tax. The amount is credited to them when they pay ordinary tax and at the same time the gross fund investors claim the ACT levy from Inland Revenue. The loss of this will amount to �4-billion in a full year rising to an estimated �5.4-billion. Brown claimed this loss would be bearable without cutting pension benefits because - thanks to rising markets - most funds had a substantial surplus over their liabilities.

However, the pension industry calls the abolition (which will pare about 0.75% a year off pensions) robbery and short term expediency for raiding people's long term savings. Companies reckon the "top up" required for in-house pension schemes will largely wipe out the cut in corporation tax while the local authorities claim that it will force them to put up property rates sharply." Business Times

peteypension : nah jus compound it up every year since 2008...money taken from our savings to pay for their pensions!

Bagpipe Music

yo!...tin hats innit!...

worra week!..crap!!!... wannit!

PALOOKAVILLE SPORT stardate capitulation day+23

Louis MacNeice : "Their knickers are made of crepe-de-chine, their shoes are made of python,

...Their halls are lined with tiger rugs and their walls with heads of bison...

...the story so far...trust in banks, financials has evaporated...

...panic has set in...an markets have tanked and now...

EVERY DAY IS WHACKDAY...

...is everybody happy?...no we're f*ckin not!

simon : ..."Let there be no doubt about the extent of Gordon Brown’s culpability for the crisis. As Chancellor, he raised huge sums and borrowed yet more in order to build a client state of tame Labour voters on the public payroll – whether as employees or claimants. He pushed Britain to live way beyond its means not merely in this way, but by putting excessive amounts of money into circulation that banks could lend on with cavalier irresponsibility. He then failed properly to regulate those banks...

The debt mountain he created has yet to wreak its full horror on society. He spent so wildly that when things went wrong – not that he ever managed to predict that they would – we were desperately short of funds to make repairs. As a result, taxes will have to go up, and public services may have to endure damaging cuts. Finally, when the time came to clear up the mess, he dithered and brooded while the stock market went into free fall and banks went to the wall."
...telegraph

louis : ..."It's no go the Government grants, it's no go the elections...

...Sit on your arse for fifty years and hang your hat on a pension...

A MAN WITH A PLAN

market ticker : The Genesis Plan ..."While there were a few signs of credit market stress easing (a bit) today, (friday) there were also more anecdotes of things getting much worse. I see nothing to suggest that short-term lending has returned to normal, and until I do, I remain on high alert for the sort of disruptive events that can impact your life in very undesirable ways.

Yes, the market bounced hard today. Twice. Artificial? Maybe. Inside knowledge? More probably. Will whatever the "crackberry network" was buzzing about work? Likely not for more than a few days, but with the market this jittery, it doesn't matter - when the VIX is this high anything that makes people jump causes this sort of reaction - in either direction.

Get on it folks - plaster the media and your elected officials with the fact that we now have hard evidence that this path forward will not only work on a technical basis, but if it is adopted it will clear the credit markets almost immediately, which is the key element of this mess that must be resolved." market ticker

louis : ..."It's no go the merry-go-round, it's no go the rickshaw...

...All we want is a limousine and a ticket for the peepshow...

POETRY OF THE 1930's

john authers : ..."A deeper irony is that there may not have been any need to update the book. Stock market conditions look ever more like the 1930s.

The noughties are much more similar to the 1930s than commonly thought. In morning trading on Friday, the S&P 500’s fall for the decade was almost identical to its fall for the decade on the same date in 1938. The pattern of the two decades is freakishly similar, with a big sell-off followed by a prolonged rally and then a fresh bear market. The key difference is that the sell-off in this decade before the “fools’ rally” began was far less severe than in the 1930s.

This, we can now see, was because cheap credit had inflated a new bubble.

This is what followers of Graham had argued. They said the market during the twin lows of the WorldCom crisis in 2002 and the invasion of Iraq in 2003 was still not cheap. Dividend yields, for example, were still barely half their level of the mid-1990s, before the tech bubble took hold.

But the similarities between the market tops in 1929 and 2000 are compelling. Both saw wildly overvalued stock markets and economies that were still in decent shape.

Measures based on cash, such as dividend yield or cash flow multiples, show that the market is now much cheaper than it was during the false bottom of 2002-03, even if overall indices are still higher.

We are not, therefore, in a new 1929. Our position is more similar to that of the late 1930s. That is not so encouraging: in the decade after October 10 1938, the S&P gained 5 per cent.

But at least we have a clear historical comparison, and a clear guide for how to proceed. Providing you are not using borrowed money, and you can afford to wait a matter of years for Mr Market to thrash out his problems, then Security Analysis is all you need.

Do not try to work out how long the market will take to recover or when it will hit bottom – that task is impossible. Use basic balance sheet methods to work out how much a stock is worth and how much it would be worth if the worst came to the worst. If that calculation leaves you with a margin of safety, then buy it. Don’t let the hand of history gripping your shoulder stop you." FT

paintypension : yo!...right on ...innit!...

...oh yeh!...read a disclaimer at top...none o this is advice...an don blame me if ya f**k up ya pension...

louis : ...The glass is falling hour by hour, the glass will fall for ever...

...But if you break the bloody glass...you won't hold up the weather..."

"Bagpipe Music" by Louis MacNeice 1935

peterthepainter : good..innit!

THE NORTHERN ROCK

yo! domino politix innit!

PALOOKAVILEE SPORT : stardate capitulation day+6

..."gordon BROWN has turned himself into a DOMINO BANK in order to be able to draw upon the new squillion dollar BAILOUT courtesy of ADMIRAL PAULSON the American leader.

...short selling had been threatening to bankrupt his premiership and the whole of the shadow political system but this has, now, been banned by the SEC...

SAFE AS HOUSES

...there is, now, no chance of a challenge for the leadership as, should the domino BROWN fail, then no potential challenger will risk being the next domino to fall...."

petey : paulson bailout vacuum gun gon suck up alla toxic sh*t from a LABOUR ship wreck?

...nah at brown a bank he be protected from a market forces and his stock...
guaranteed by a FED...innit?

nouriel : "By requesting a status change from independent broker dealer to bank holding company, Morgan Stanley and Goldman Sachs have officially spelled the end of Wall Street as we know it. Within six months, all five investment banks – Bear Stearns, Lehman Brothers, Merrill Lynch, Morgan Stanley, and Goldman Sachs – have disappeared or are looking to merge with a commercial bank with a stable deposit base and permanent access to the Federal Reserve’s lender of last resort facilities. The unraveling of the $10 trillion shadow banking system that started with the non-bank mortgage lenders, SIVs and conduits – now with the seizing of major independent broker dealers and money market funds – is in full swing and gathering steam. Highly leveraged hedge funds might indeed be the next in line...."
The unraveling of the Shadow Banking System moves to hedge funds as Schmalpha replaces Alpha