ONCE-UPON-A-TIME IN THE EAST

yo!...bad day at black rock...innit!

PALOOKAVILLE FINANCIAL
capitulation day
+122...


...in palookaville everybody goes to meet the train...

...so you can understand our dismay when we are met there by four horsemen...

...three of em are wearin long dusters...


...the fourth is roy rogers...


...the american engine has failed to decouple from the eastern train...

...an now it looks like they all goin over the cliff together...

...the stuffed shirts have caused all tomorrows spending to be spent yesterday...

...an now china is full of dollars an we are full of sh*t...


ALL TOMORROWS PARTIES


...roy says that the west is finished and in particular...

...that the pound is sunk, the oil all gone an a banks in debt...


...sell evva british thang ya got boys...fill yo boots wi oil an gold...

...this sukka goin dahn...innit!...


AN IT'S AN EARLY BATH FOR STERLING


...the pound has taken an early bath...

...and everyone is laughing they bollox off...

...but the guys in the dusters is waitin fo the train...

...they have blown the bridge...

...and the great eastern is goin over...


...seems like they chinese was balancin on a wooden cross in a spaghetti eastern...

...dude with the wicked smile was playin a harmonica...

...only it was a double cross...



THE GHOST OF ELECTRICITY

Lights go out across Britain as recession hits home

Electricity demand falls as economy slows at fastest rate since 1980

China Powers Down..."The global recession has meant a big decline in demand for iron and steel. That has meant sharp decreases in electricity demand from China’s metal producers, which have been leading the country’s demand for increased electricity production.For November, the Chinese government expects total power generation to fall by 7 percent compared to November 2007. That drop follows a 4 percent decline in October. This will mark the first time in recent history that China’s power demand has fallen for two consecutive months. Falling power demand mirrors a decline in exports. In November, China’s exports fell by 2.2 percent compared to November 2007. That’s the biggest year-over-year slide in exports since April 1999. Foreign investment is also falling. According to the latest Chinese government statistics, foreign direct investment fell by 36.5 percent in November, when compared to the year-earlier period."


THE DOLLAR YOU GET YOU DESERVE


...in china they know a thing or two about dollars...

...they have all of the real ones in a box under the bed...

...peraps they know a way to enhance their value...

...maybe then sell a few...


IN THE WHITE ROOM...WITH BLACK CURTAINS


...here in palookaville the train is late...

...come to think of it...

...so is the ship...

BLOG ONNA HOT TIN ROOF

yo!...cop fo this...


PALOOKAVILLE FINANCIAL stardate : capitulation day+103


liam : ..."The UK - like most Western economies - is in a grave situation. Our money markets are frozen, denying vital liquidity to millions of credit-worthy firms. Unless the inter-bank market reboots, then even hastily revised 2009 Western growth forecasts - down from 2-3pc a year ago to a 1-2pc contraction now - could turn out to be too optimistic. We face the very real danger of chronic unemployment across the so-called "advanced economies" and widespread social unrest.

Yet the Keynesian bail-out solution, accepted as "essential" by practically every mainstream commentator, will do nothing to unfreeze our credit markets. It's even more dangerous than the disease it's supposed to cure.

Panicked politicians have now closed their ears to reason and are ripping up the rules. And as the bail-out continues, and the investment banks channel public funds to senior executives, the vested interests that caused this crisis are adding insult to injury.

With failure and incompetence thus rewarded, huge damage is being done to the very fabric of Western market-driven commerce. That could spark a damaging populist backlash, recreating the economic dark ages of heavy regulation and state diktat, crushing the entrepreneurial spirit that has long driven human progress." Sunday Telegraph

irwin : ..."The federal government is determined to shore up almost any firm that claims to be too big or “too interconnected to fail”, and to rebuild the nation’s infrastructure, broadly defined. Skittish consumers are borrowing and spending less, but government spending will more than make up for this. The wall of money stashed in low-paying Treasury IOUs will sooner or later wash back into shares and corporate bonds. The $500 billion that Bernanke will use to buy up mortgage-backed securities cannot but help to loosen that part of the credit market, just as the bailout of General Motors’ credit arm, GMAC, will make it easier for less credit-worthy consumers to buy cars with no down-payment and no interest charges. Moves such as that might be recreating the excess credit culture that brought us to this pass, but better that than a prolonged recession — so believe politicians for whom the 2010 elections are just around the corner, and Bernanke, whose claim to academic fame is his study of the causes of the Great Depression.

It will be surprising indeed if all of these moves don’t put the economy on the path to recovery by the end of the year. And on the path to a round of inflation that Larry Summers, tipped to occupy the Fed chairman’s seat, and other Obama advisers feel they can pinch off by quickly draining excess liquidity from the economy by raising interest rates and — you guessed it — taxes. Holders of dollars hope these economist-paragons are not prisoners of their adoring press; otherwise, the dollar will race the pound to the bottom of the currency heap." Sunday Times

from the big picture : ..."Readers often ask me about Richard Russell’s (Dow Theory Letters) viewpoint on the stock market. Here is his latest take on matters: “It occurs to me that this is a good time to remember my old friend Marty Zweig’s classic warnings: ‘Don’t fight the tape, don’t fight the Fed’. Well, if you are bearish on 2009, you are indeed fighting the Fed and probably the tape. Why do I say that? Because the Bernanke Fed is going all out in its effort to turn the US economy around. Bernanke says the Fed will do whatever it takes to halt the current trend to deflation and to bring back prosperity and mild inflation to the US.

mish : ..."Bernanke Correctly Judged Nothing

Bernanke considers himself an expert on the great depression and on the Japanese deflation as well. Trying to act quickly, Bernanke has come out blazing with 8 new policy tools, including the TALF, TARP, PDCF, ABCPMMMF, CPFF, TAF, and MMIFF to go on top of Open Market Operations, Discount Rate setting, and setting reserve requirements.

The result so far is deflation. The result in Japan was deflation.

There is only one way to defeat deflation and that is to not let the conditions that foster it to build up in the first place. What caused this deflationary bust is the credit boom that preceded it. What caused the great depression was the credit boom that preceded it. Hoover's policies and FDR's policies made the great depression worse.

Bernanke's policies are going to make this depression worse. Yes, I used the word depression. It may not be as big as the great depression, but the word "recession" does not do justice to what we are in and what is coming down the pike." mish


painty : jus a few thoughts from out there...

...oh...yeah! an this from marc faber...nod ta big picture...

PREZZA PAULSONs PERFECT PLAN

stardate : capitulation day+4

BBC : US banks make shock status switch

"The last two major investment banks in the US have changed their status to become bank holding companies, allowing them to take deposits from investors.

The move - part of a huge restructuring effort on Wall Street - will also give them access to Federal Reserve support."

Bloomberg : Dollar May Get `Crushed' as Traders Weigh Up Bailout

Treasury Secretary Henry Paulson's plan to end the rout in U.S. financial markets may derail the dollar's three-month rally as investors weigh the costs of the rescue.

The combination of spending $700 billion on soured mortgage-related assets and providing $400 billion to guarantee money-market mutual funds will boost U.S. borrowing as much as $1 trillion, according to Barclays Capital interest-rate strategist Michael Pond in New York. While the rescue may restore investor confidence to battered financial markets, traders will again focus on the twin budget and current-account deficits and negative real U.S. interest rates.

``As we get to the other side of this, the dollar will get crushed,'' said John Taylor, chairman of New York-based International Foreign Exchange Concepts Inc., the world's biggest currency hedge-fund firm, which manages about $15 billion...."

Bloomberg : Commodities Bottom as Speculators Vanish After Slump

"The worst may be over for commodities after the steepest rout since at least 1956 drove out speculators and the U.S. government unveiled a plan to end the worst credit-market seizure since the Great Depression.

The Standard & Poor's GSCI Index of commodities had the biggest three-day gain in 18 years, surging 8.4 percent through Sept. 19, the day U.S. Treasury Secretary Henry Paulson said the government will spend ``hundreds of billions'' to cleanse banks of mortgage-related assets. Crude oil rose 6.8 percent that day, while wheat and copper gained 3.6 percent...."

petey : will a falling dollar cause rising oil and commodities prices?

will this help the alleged recession?

new pigs inna trough man!

gold goin mad innit!...capitulation day postponed...innit!....fat lady gotta sock inner mouth........ fo nah...innit...!

p.s. don fo get a disclaimer atta top o a page...(don blame me fo doin stupid things..)