Dr. Paulson’s Bailout Prescription
By Barry Ritholtz - January 6th, 2009, 4:30PM
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Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data, ability to repeat discredited memes, and lack of respect for scientific knowledge. Also, be sure to create straw men and argue against things I have neither said nor even implied. Any irrelevancies you can mention will also be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.
January 6th, 2009 at 4:34 pm
Refills?
January 6th, 2009 at 4:35 pm
More anti government intervention here by Marc Faber. You’ve probably seen the interview already, but its a great one in case you haven’t….http://www.pragcap.com/
He lays out a pretty practical argument against all forms of intervention. Enjoy. It’s one of his best interviews in a while.
January 6th, 2009 at 4:38 pm
I needed that laugh. I think I laughed even harder at Dead Hobo.
January 6th, 2009 at 4:47 pm
@ dead hobo:
You won’t even need a prescription to get a refill on these meds. They’ll start falling from the sky pretty soon.
January 6th, 2009 at 5:20 pm
I thought the instructions were a bit lacking, shouldn’t there be something about applying as suppositories, “once every ninety days until the patient either recovers or you can’t stand the smell of the rotting corpse”?
Luckily $700B is likely to get a bit cheaper as the generics are introduced. It will still be $700B, but they’ll be made in China, and the more they make the smaller the dollars will become.
January 6th, 2009 at 5:29 pm
“Here… here take these, Man…”
“OK…”
“Wait a sec, don’t take those…”
“What are you talking about I just took them?!”
“Oh wooowww… Are you busy for like a week?”
January 6th, 2009 at 5:50 pm
Market Update:
29th straight trading day QQQQ volume at or below 100 day MA
NYSE Bulls has risen 53% in 3 months, almost double the fastest rise (28% in 3 months) since at least 2003.
10 and 21 day MA on put/call hovering at almost 3 year lows
January 6th, 2009 at 5:57 pm
Well, we said companies would begin the real layoffs after the Christmas holiday…I am sure most all of you have seen this already.
http://finance.yahoo.com/news/Alcoa-to-cut-13-pct-of-global-apf-13984440.html
Alcoa to cut 13 pct of work force.
January 6th, 2009 at 6:05 pm
Is DEAD HOBO really CINEFOZ?
January 6th, 2009 at 6:29 pm
Dr. Paulson’s Bailout Prescription… no longer.
It’s Obama’s now.
And he’s probably not going to talk about it until after he gets his $750T.
January 6th, 2009 at 6:33 pm
How can you stabilize home prices, when companies the size of Alcoa are dumping 13% of their workforce? The only question you have as an employee, is am I next.
January 6th, 2009 at 6:44 pm
S.B. @ 5:50
There also appears to be a divergence (since late November) between the price of QQQQ, and the associated “on balance volume” parameter.
January 6th, 2009 at 6:57 pm
@DL:
Sure…because volume is pathetic when the market rises, strong when it tanks…this is the sign of weak internals and distribution of stock to the sheeple.
January 6th, 2009 at 7:01 pm
“If your asset prices grow uncontrollably for 4 or more years, see a central banker.”
January 6th, 2009 at 7:03 pm
Kudlow: Normally I don’t care about deficits…but now I might
Translation: When a Republican is in the White House, I don’t care about deficits and believe in Goldilocks…now that a Democrat is there, deficits matter and Goldilocks was arrested in a prostitution ring.
January 6th, 2009 at 7:04 pm
Kudlow: And my lapdog Bowyer is on message too.
January 6th, 2009 at 7:05 pm
“I’m afraid Dr. Paulson picked up the preparation that must be administered rectally.”
January 6th, 2009 at 7:11 pm
overdose?
January 6th, 2009 at 7:22 pm
The people losing their jobs this year will be lucky to be able to get a prescription for anything. That’s what we need, a good old fashioned plague will bring down unemployment in no time.
Meanwhile CNBC spin is just incredible. Kudlow is crowing about the markets being up today in spite of the Alcoa news. The f##king Alcoa news didn’t come out until after close. Amazing.
January 6th, 2009 at 7:25 pm
The Treasury’s sale of $8 billion in inflation-indexed notes at auction today drew the most demand in nine years, suggesting investors are concerned that inflation may accelerate along with government spending.
Somebody smells an inflation spike in the pipeline.
They are massively WRONG.
Paulson is gone in a couple of weeks. He did his part to help his buddies and hurt his enemies. He leaves office having preserved the status quo. The asset pyramid these pigs sit on is still intact even if the size is smaller; the pecking order hasn’t changed. Consequently things will get worse because the assholes are still in charge.
One thing that is improving is buying power of debtless individuals who are low in net worth. They weren’t leveradged to the moon like their rich counterparts were (are?). Until these many, many influential, rich individuals unwind their debts, inflation will not apear. So the Paulsons and Bernakies can print to the moon for now. That’s their “whatever”. When and IF that money escapes the greedy hands of the elite and gets to the average person, then you will have heavy duty inflation.
You see, the elite are in a quandary. They stole everything of value from 99% of the populace. They own the land, the police, the courts and anything else that counts. Their new “gilded age” hasn’t produced all the spoils of the previous one because of the law of diminishing returns. They are the ones who have most to lose now while the poor stiff is just saying, “what else is new?”. When you’ve got nothing to lose, you’ve got nothing to fear. Have a nice day, rich folks.
January 6th, 2009 at 7:28 pm
Like any medicine, symptoms for its continued use should be detailed. Taking taxpayer money should induce lending. NOT!
January 6th, 2009 at 8:08 pm
Side effect: could be habit forming.
January 6th, 2009 at 8:57 pm
Lars39 @ 8:08
Good one.
January 6th, 2009 at 11:59 pm
Hard at work for ACME Inc., I happened to glance at my favored indicators this afternoon and caught a whiff of something that smelled like…collapse. Then somebody turned on an exhaust fan. Very mysterious, that.
While I am more uncertain than ever, I disagree with those that are trying to overlay the 29-32 collapse timeframe over 07-10. Govt intervention delayed the initial decline…for a year. It follows that there will be no significant pause ’til the next leg down. Unless Bernanke’s face saving program opts to wreck the currency in lieu of more immediate deflation. He cannot possibly be unaware of the associated risks. But this is an empire: perhaps arrogance will trump intelligence, yet again.
January 7th, 2009 at 1:11 am
Barry,
Marin Feldstein and Joesph Stiglitz were on Charlie Rose last night during the first half of the show. You should get a copy and veiw. Striking in there pessimissum. Two very, very pessimistic world class economist.
They pain a very bleak picture!!
Defiantly worth a watch!!!
Jim Green
~~~
BR: I check Charlie Rose every week — the videos show up 3-5 days after the show — I should have those posted by the weekend . . .
January 7th, 2009 at 1:40 am
Very true.
January 7th, 2009 at 7:54 am
I laughed. Thanks. The next frame in the series (this is the best soap opera going) should be the doc giving the first jar of meds to his friends and substituting powder. Caption would have the doc saying something about the benefits of the placebo effect.
January 7th, 2009 at 8:46 am
Expensive “sugar pills ” .
January 7th, 2009 at 9:52 am
Further Directions:
Take Rectally!