“Or, there will not be much lending to the US — which needs one helluva lot of it to get itself out of the economic miasma in which it now finds itself deeply embedded”

the three winters in a row end time may come
when the suffering world turns

on the imperial dollar

and cries “no mas “

but it ain't gonna be this time 'round laff

not by a long shot

Posted by js paine at 12:28 PM

bark
makes a good point

the tp applications of circuit braking

and a relatively loose credit flow

might not avoid a long dull adjustment

and maybe in

a near net-less high wire

anti solidarity

type economy

like we go here under

the red white and blue

also a very

cruel adjustment

bw and ohers

marking a portfolio of untraded
securities to spot market

is hardly a call back

to long run reality

in times

when markets are most perverse

th notion there exists a “true and real” value
even a relative value of securities

is pure pata-physics

read say … joe stig

on the circles within circles

the fun house values

morph like magic

and that's endemic to un regged rigged up hi fi markets

what is solid is the rationing of credit
the ration rate

rationing criteria etc

tp is a moss backed union maid
but he's not wrong about

the folly

in wishing 

the present wide open and wild markets

might speak their firece…truth

to our still unchastened corporate powers

recall samson
uncle ought not to play samson here

my take away

corporate capitalism has just revealed its systemic …limitations

its irrationality

our mission as agents of world history

sublate sublate sublate
and with audacity

playing by the rules of markets
is to condemn ourselves to

more cycles of madness and folly

ending in despair and ruination

for us as weebles
like uly's crew in the cave

it means more ravages more roasting spits

for us as weebles

to live under corporate hegemony

is to exist

as a dinner serving



ie

a member of one or another cyclop's

feast herd

—————————
“… nobody knows how to value financial assets.”

exactly correct

“…a liquidity problem if the values are high enough
and a solvency problem otherwise”

smart lines that imply …creative accounting
plus cock eyed “trust”

are broken

by an arbitrary act of final creditors

at least

in a set up like ours today

in amerika

any nasty balance sheet
can be trumped by …top down inside credit

how about if….
enough arbitrary

administrations of liquidity

always leads to long run solvency

an endless line of credit
immortalizes any mortal outfit

even the most bollocking

uncle lays his hands apon them …

and 
t'is a cure if not of all

at least of high dimension

…
“They can't restart the madness all over again with impunity”

really ??
what's your time frame ???

basic clio units are 50 years

by my hunch
one clio unit oughta exceed

enough time for a wall street hyde rampage atavism to erupt

….and then some

hari i wish i shared your sense of resiliency
“surely bounce back “

in what time frame ??

.2 clio units ??
ie

one siege of troy unit

lots of time
for needless lost time

meyhem and misery

…
rusty

is right

“to cure an economic and regulatory problem with accounting”
is impossible

after all…

how much cash/credit
does the accounting department have anyway ????

even in the best of market times
accurate notional market pricings

are problematic

to assume the arms lengthening approach
thru casting a shadow of the real prices

like plato's cave wall

on a balance sheet

like it's plato's cave wall…

yikes

from the open market cometh noise and toonery
not a just price ideal

and doubly so

whilst

that open market is groping around in panic…

yes using a market based guestimation
might very well yield

a better more socially easible

balance sheet of acounting notions

then say

the pure black ink fictions

of a pack of inside grifters

but accuracy??
a guide to social action

by societies deputies ???

the market has lost its head

so
i think not

a truer value here
if such a notion has validity at all

is imposed

by the course of credit rations

thought necessary to revive the buggar

not mad house reflections of mob crazed transactions

——-

more to the point

its values that drive margin calls etc

the whole biz wi
about reg mandated

buffering up

the cold regulator's command

to add equity bub

your loses are showing

needs a time out for now

trying to add equity
in a time of chaos ???

let these rescued organizations

—-thru their assigned

public supervisors—-

—once they have a proper
fed credit flow iv

slipped into their cash stream—

move with all deliberate speed

——and even as they continue to turn
the daily credit wheels

of the real economy —-

to calmly count off
their own particular

collection of golden and rotten eggs

————
bruce

“Oh, please. Spare me. Obviously, Wall St. is chock full of people, who value financial assets “correctly” all day long.”

you don't know the relative value

of the dollars in your wallet

to buy a fried egg in shanghai next year

and that's just a humble product
not a synthetic asset

if values flux within system wide shocks and cycles

then spot prices ought not to dictate

solvency questions

i agree
its the private and the social in conflict here

but

the spontaneous systemic response
of an open market

to a Mellonic house cleaning

—even one based on true values and administered

with a batman like swift and informal justice ——

can't prevent

us here in the ass hole innocent job class

from a decade of needless misery

at the moment
are we

prisoners of the system's model of itself

or for once as in every cycle

are we now prisoners

of the actual system itself

a system with an inherent
sluggish clumsy

capacity to adjust itself

after a serious protracted episode

of its own

relative value self mal-formation

…
bruce

the question of what firms must

commence to liquidate

can't be effectively determined under

and even more so

can't be  justly executed

not

under present conditions

sure the balance sheet guestimate can get closer
to accurate and fair

then the looters own magic numbers

but social credit here

and no social credit there

at least as it unfolds in crisis times

must have an element

of unconditional gullability

at this point
lets postpone the st petter act

lets catch and crush the plutonic beasts

only after we've restabilized

the real global..global..global

economy

don't be blinded

to your on best interests

by your own righteous indignation

i write here as a reformer not a revolutionary

Posted by js paine at 09:31 PM

“Money supply inflation + debt = pain. Ask the Roman Empire”
drift wood catch of the day

how much asset inflation
can dance on the head

of the real products economy ????

——————————————
long run

“CPI deflation is the optimum state for long term growth”

that is all technical progress should immediately movetoward consumer surplus
minimize the rent sumps

but dear soul
the rent sump builders control the economy

if we don't manage effective demand

ie feed the sumps

and thus validate the sumps

the sumpholders

will throw us out of our jobs and …our homes

despite a visionary aspect
i can admire

you

are after the full ally is in

just a vicious pangloss

basement model train set
open the market throttle

freeze the money stock

type gulliverian engineers

need to be shrunk to h/o/scale

and tied to their own toy railroad tracks

…
“During the entire quarter century from 1927 to 1954, interest rates were frequently “negative” and were in no way correlated with high inflation”

thank you ndd
for serving up

a healthy plate of dignified data

…
“a substantial widening of credit spreads”

and recall
rates are but poor proxy players

to the real deal

the change in value

of the vast network of credit flows

so dolefully doled out

by our hi fi dukes

——-
harry truman

is alleged to have suggested

banks

—-left to their own mr potterish devices ——

in hard times

lend only to those

who don't need the cash

long run:

“Lower prices means more demand for a greater quantity of useful products”

what dear soul are u holding constant here

” Look at virtually any supply/demand chart. Endless inflation just creates demand for bubbles, not useful products that Americans make “

i spell and type in gibberish
but you seem to think in gibberish

Posted by js paine at 09:24 PM