The venerated “5-second rule”, which enables youngsters and adults alike to retrieve and then eat a coveted sweet, candy or morsel of food that has been dropped on the floor, provided it is retrieved within 5 seconds of impact, has been suspended by executive order of the Obama administration.
Citing “3 key win/win effects” executive order 1304-01 (dubbed the “Zero-Cost Prosperity Act”) was announced moments ago.…
As I mentioned in Confessions of an Economic Witch Doctor, the analogy of the economy having been in a car accident is the wrong metaphor to describe the predicament we’re in, and that a much more appropriate one is that of the alcoholic. We have become so accustomed to collectively living beyond our means, to consuming without producing, to buy now, pay later that we have become a society addicted to debt.…
Familiar with “Calvinball” ? The game of choice in a comic strip, whose nonsensical and kafka-esque rules now describe global finance more accurately than any other model.
Forget Rule of Law, forget the sanctity of private property and given the Cyprus “bail-in”, forget the concept of “risk free” savings. In the olden days (2012) people used to refer to an endeavor considered to be a fairly safe bet as being “as good as money in the bank”.…
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Confessions of an Economic Witch Doctor
I just read about Jeffries economist Jim Zervos’ note to clients on BI, in which he admonishes the “Austrian economist types” and “perma-bears” for being so gloomy, for likening this current bull market to a “sugar high”. Because in his opinion, the policy handlers (like Bernanke and the central banks) have all of this under control and it’s full steam ahead.…
The more times you hear that a particular turn of events is “unthinkable”, the more likely it is to take place and the SOONER it will take place. The more times you hear a radical change of policy described as “politically impossible” the more likely it is that the change is desirable and the more dire the consequences will be if the change is NOT made.
