Economic storm brewing in America

The Daily Telegraph (UK) ^ | 12/7/2006 | Ambrose Evans-Pritchard

[bannie]

We've bastardized capitalism with socialism. That's a problem.

[nmh]

Peelowsee turns my stomach.

I can't believe what the sheeple did in that last election.
STUPID! STUPID! STUPID!

I don't want to think of the damage they WILL DO. With stakes being as high as they are ... we may not recover.

I love my country and HATE seeing it trashing itself.

[lndrvr1972]

But, but I thought that it was Clinton that was the master of the stock market.

[1066AD]

Yes he was knee deep in "Mena" as well, I think he embarrassed his bosses so got transferred back home !

[Reagan is King]

Good, pessimism helps the market go higher. Keep talking Ambrose, my investment accounts are on fire right now!

[JerseyHighlander]

Now while Ambrose Evans-Pritchard is most often writing solid general media articles on finance, when his articles' bullet points coincide with Krugman whilst he's strewing about the gutter, this is a disturbing turn of events.

I just attended a conference in NYC on these very subjects, and the largest companies on the Real Estate side, both residential and commercial, said exactly the same bullet points.

Only point I have to make is that executives who are doing inside stock sales are the most likely class of worker to retire fully by their mid 50's, and as we as a country prepare for their baby boomer retirement as a whole, the top 2% are already retiring, hence the 60:1 inside sales ratio at the moment.

[JasonC]

The thing to understand is just how deeply invested the left is in the idea that capitalism is inherently rotten and another 1930s style great depression is always about to happen, unless socialists take charge and nationalize everything etc.

It has never been true, it is never going to be true, it wasn't even true in the 1930s. But like a dog with a bone, they will never ever give it up. Unemployment is at record lows for a generation, wealth and income are at record highs forever, the economy has run through every predicted crash trigger without more than a murmur, and corporate profits continue to set record after record.

They will still predict doom continually on the off chance that one quarter or two they might be right, then they will scream "see I told you so, give all power to me or we are all gonna die!" and the economy will shrug gently in sovereign contempt and resume its ordinary 3% growth trajectory.

Short of nuclear war, nothing is going to stop the American economy. It will bury this lot like it buried the last ten. It has run roughshod over egregious economic mistakes, ridiculously profligate government spending, world war, civil war, mercantilist fads, super protection and unbridled free trade, tight money, loose money, you name it. And taken us from 3 million poor farmers at the edge of a howling wilderness, to 300 million of the richest hedonist profligates the world has ever seen.

It will continue to do so. And socialists everywhere will remain deeply saddened, bitter, fearful, and wrong.

[LdSentinal]

"Let's get Hillary elected" - by the UK press

[Holicheese]

I can;t believe that she will be able to hide her true self for very long. She is not that bright.
Her real beliefs will come out soon enough, I hope.

[Dog Gone]

Bush's tax cuts get no credit whatsoever from the MSM, although the evidence is undeniable. In November, my 401k increased in net value by an amount of six times my monthly salary.

That's not usual, but it's surely not sign of economic weakness.

[dynachrome]

"Mena, Ark." Secret cocaine flights and all that. Brit tabloid stuff. (on the other hand Christopher Rudde I liked)

[Howlin]

Just so it comes AFTER the Democrats take over.

[lndrvr1972]

You are so right. When there are tax cuts people will spend money its fact.

[prov1813man]

Very well and accurately said. I intend to cut and paste your entire post to share with trading partners.

[JennysCool]

That's a fantastic summation! Well done, sir!

[mkjessup]

I think that the recession will occur on April 17 2007 at 2:12 PM. See, everyone can make stupid predictions like the author of the article.

Indeed! Hear! Hear!

And I'll go you one better, *I* predict that Ambrose Evans-Pritchard will be found passed out in a public loo on May 1, 2007 after a particularly difficult bowel movement causes a loss of consciousness.

Which is a gentlemanly (oh so UK way) of saying that Ambrose Evans-Pritchard is 100 percent full of $h!t! :)

[KevinDavis]

That is true...

[jveritas]

LOL.... good one.

[theBuckwheat]

In this case, socialism or capitalism isn't the issue. With fiat money and a central bank that "increases liquidity", you get a mirage of prosperity, a mirage that later turns into a recession when the non-performing and under-performing investments have to be paid for.

To cure the recession what does the central bank typically do? It lowers interest rates to make it easier and less expensive for business and individuals to borrow. This only leads to more "mal-investment", which later causes a recession, and so on.

[Revolting cat!]

Dude, if that post is part of a speech by a 2008 Presidential Candidate (of either party, but you know well which one would never consider saying it!), he or she takes it, guaranteed! (Wishful freaking thinking!)