Friday, April 24, 2009

Bulldozer in action

Yes, the recovery is here. The bulldozer is here, fueled by the infinite dollar printing machine that is built just to bail out the banks. And what's more important, the banks don't need a bail out and now, our money is just used to destroy shorts like myself so that I will get destroyed by the same crooks twice. Now, that does not sound like the American Dream.

The pristine vision that USA gave everyone around the world is shown clearly here, corrupt and despicable. From arm twisting Bank of America to buy Merrill Lynch to allowing AIG to write down losses 60 billion dollars without failing, most of which goes to other banks like Goldman Sachs.

The wonderful thing is that Obama is still regarded highly and considered the savior by everyone outside USA. What is funny is that the market is buying it, just like the rest of the world. Here is a few points I want to note. I may be wrong, but I don't think I'm illogical. Maybe ranting a bit, but not illogical.
  • Unemployment is high
  • US GDP is consumer driven so far
  • US productivity goes down and hence GDP
  • Banks are not lending as much as before, hence, hurting businesses
  • Banks have a lot of bad loans which might be highly leveraged, which might render them insolvent
  • Small banks are failing every Friday, politically so to reduce the impact on the stock market
  • Small businesses lose their access to a local banking system and facilitate
As noted above, banks and businesses are suffering from the downturn, and since unemployment will not come down for a while, businesses will be affected. With all that, how is the current money printing helping? I don't know, other than propping up the market to attract investors? Isn't having a pristine government even more efficient? How does businesses and hence taxpayers benefit from all these actions? So, everything is good to news people and banks, but why are there still so many people suffering from unemployment? Why are banks happy about? Is it that their shell games in transferring bad assets to the Fed and Treasury a success and the rest of the world can celebrate?

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