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UncleKev

********. The Economy Is Not Growing

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Denninger is not a man to mince words ....

http://market-ticker.denninger.net/

The Litany of Lies has once again appeared from a government agency:
"While challenges remain, evidence is building that the U.S. economy is starting to grow again," said FDIC Chairman Sheila Bair.

********. The economy is not growing; capacity utilization is not expanding, hours worked have no durable upward trend, job loss is continuing and consumer spending and borrowing are both contracting. This is a flat lie.

i

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Alan Greenspan disagreed in 2003 that "The FDIC was created specifically for times such as these." Indeed, it was his opinion that The FDIC in many ways CREATED times such as these!

The benefits of deposit insurance, as significant as they are, have not come without a cost. The very process that has ended deposit runs has made insured depositors largely indifferent to the risks taken by their depository institutions, just as it did with depositors in the 1980s with regard to insolvent, risky thrift institutions. The result has been a weakening of the market discipline that insured depositors would otherwise have imposed on institutions. Relieved of that discipline, depositories naturally feel less cautious about taking on more risk than they would otherwise assume. No other type of private financial institution is able to attract funds from the public without regard to the risks it takes with its creditors' resources. This incentive to take excessive risks at the expense of the insurer, and potentially the taxpayer, is the so-called moral hazard problem of deposit insurance.

Interesting Greenspan comment.

It appears that to get ahead you have to be comfortable using doublethink. Greenspan played the game, but was clearly aware it was flawed but did nothing to try and alter policy for long term sustainability.

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Guest KingCharles1st

TwoJags is another politician who always speaks his mind- does that make him good too- or is he an isolated case? :rolleyes:

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Interesting Greenspan comment.

It appears that to get ahead you have to be comfortable using doublethink. Greenspan played the game, but was clearly aware it was flawed but did nothing to try and alter policy for long term sustainability.

He's been watching Gordon tell the World that he was bothered about controls for a decade.

Still no changes in Britain. To anything.

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Interesting Greenspan comment.

It appears that to get ahead you have to be comfortable using doublethink. Greenspan played the game, but was clearly aware it was flawed but did nothing to try and alter policy for long term sustainability.

the FDIC would work just fine is ALL Bank company Officers went to Jail if their assets were overstated in the books following an FDIC seizure.

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the FDIC would work just fine is ALL Bank company Officers went to Jail if their assets were overstated in the books following an FDIC seizure.

You appear to forget that the world wouldn't function without bankers, and jailing people may start to affect the bottom line for the masters of the universe.

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