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The Economy

Discussion in 'Sports and News' started by TigerVols, May 14, 2020.

  1. tapintoamerica

    tapintoamerica Well-Known Member

    No. We were just fine under President Trump until the libruhl media invented the Kung Flu just to hurt God's chosen leader of Amurrica. The 120,000 crisis actors are all still alive and collecting royalty checks from that damned libruhl union the Screen Actors Guild.
    Baron Scicluna, garrow and SFIND like this.
  2. The Big Ragu

    The Big Ragu Moderator Staff Member

    The Fed did bank stress tests, and came back yesterday and told them they can't do stock buybacks for the next quarter (none of them have been -- voluntarily), froze their dividends for the next quarter (dividends are one of the only things that make bank's businesses investable), and is going to force them to cap future dividends at some formula the Fed has created related to their most recent earnings.

    I usually find this clown (his name is Tim Seymour) ridiculous, but even he can't deny the pink elephant in the middle of the room anymore. And he said what everyone should be acknowledging. Capitalism is dead.

    The banks have been completely hamstrung as businesses (to the extent that they earn from traditional banking) because the Fed has suppressed interest rates so much, for so long, that the net interest margins they need to make money in their business don't exist.

    Then the Fed steps in to prop them up because of the mess the Fed created in the first place.

    And now the Fed is just telling the owners of those banks what they have to do with money the bank earns.

    What a fucking shitshow. We all suffer because of this. Jay Powell (or Ben Bernanke or Janet Yellen) should not be setting price controls over everything, and distorting our lending markets (which has created a massive, unavoidable credit crisis) and micromanaging everything. To the extent the prosperity they tell everyone they are engineering actually benefits anyone, it's very wealthy people, who are made richer at the expense of anyone who would have been saving (which is what is necessary for real investment -- not a phony debt-fueled binge that allocates money really poorly, which negates the thing that capitalism actually does well, which is letting capital find its way to the most productive places, which in turn creates innovation and raises our standard of living).

    I have no clue how we let it get to this, but we are a nation of idiots, and most people are so checked out about what this monster of an unaccountable organization does, and how it is the main culprit behind the misery so many people have been feeling for the last 10, 15, 20 years.
    Last edited: Jun 26, 2020
  3. The Big Ragu

    The Big Ragu Moderator Staff Member

    Series of tweets from the last hour.

    That last tweet doesn't get into the fact that they are not limiting themselves anymore to having nationalized just the treasury and agency debt markets -- which had spillover effects to all of the debt markets. It's crazy that they are outright monetizing trillions of dollars of government debt and we are pretending like there is no consequence for it. But now? They are now buying corporate debt, including fallen angels / junk bonds, to make sure that nothing can fail. We are in the middle of an economic crisis, due to the pandemic. ... and companies that had way overleveraged themselves already because of the Fed's stupidity and were not performing before the pandemic, are borrowing like we are in the middle of a huge economic boom. It's backward. Junk bond issuance -- when debt levels are already at crazy levels -- is going bonkers right now.

    US high-yield bond market eyes record June as Fed-fueled debt issuance rolls on

    We have created a survival of the unfittest economy and we have sold out years of the future for the debt binge propping it all up.

    Why would anyone think that is going to create long-term prosperity, a rising standard of living, jobs for people in the long run? It's insanity.
    TigerVols likes this.
  4. Baron Scicluna

    Baron Scicluna Well-Known Member

    And SAG is funded by Soros!
  5. Noholesinone

    Noholesinone Member

    Airline execs are going to the WH today and you can be certain that shortly after they leave, more bailout money will be headed their way. Otherwise they're going to furlough tens of thousands on Oct. 1, the day after their no-layoff promise expires after their first stimulus grants were handed out months ago, and we know DJT doesn't want those headlines a month before the election.
  6. The Big Ragu

    The Big Ragu Moderator Staff Member

    He doesn't have the power to just hand out money like he's reaching into his piggy bank. Congress has to do it. Will be interesting how it gets resolved. The Democrats in the house will have no problem spending another trillion dollars or more like it's money we have lying around in the couch cushions. But they are not passing anything, let alone anything that benefits the orange windbag, without loading it up with the pork they prefer. Some of the old-line Republicans in the Senate are starting to grumble again about fiscal responsibility, so there is that too, but they are so full of shit and with so few principles that it's hard to handicap how much of a budget hole they will be willing to go along with and for which winners / losers.
  7. Neutral Corner

    Neutral Corner Well-Known Member

    Depends on what stocks they own. Or just bought.
    TigerVols likes this.
  8. Noholesinone

    Noholesinone Member

    Someone in Congress is concerned about throwing money around like there's no tomorrow? Now that is funny!
  9. wicked

    wicked Well-Known Member

    Has Trump spent the entirety of that insanely large slush fund yet? The one that Congress says it has oversight on and the administration says "GFY!" It'd be easy for him to steer $10 billion the airlines' way.
  10. Twirling Time

    Twirling Time Well-Known Member

    With Twitchy holding the football, there’s no guarantee there’ll be a tomorrow.
  11. garrow

    garrow Well-Known Member


    Pigskin, thin skin
    Blood rack, barbed wire
    Politicians' funeral pyre
    Protestors hit with flash bang fire
    Twenty first century schizoid man
    Death seed blind man's greed
    Poets starving, children bleed
    Nothing he's got he really needs
    Twenty first century schizoid man
  12. Twirling Time

    Twirling Time Well-Known Member

    One for every occasion!
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