Perspectives On TARP Repayment
" Yippee! Someone other than Tyler or myself get it. This whole thing is being orchestrated by Summers - BB & T3 are just set piece players being moved around the board (Barry is just the dumb flunky that looks good reading a 'prompter). To tease out the facts, first identify the primary objective from 3 months ago: banks needed to be (re)capitalized. Green shoots propaganda (via control of state run media), threats of QE/inflation, direct Fed purchases, TARP funds funneled through favored BDs, etc, were all tactics to drive equities higher to achieve this objective. Short-term problem solved. (Rising commodity prices are just collateral damage to be addressed during the next phase of the operation.)
Now back to the original problem at hand: how to finance the government's spending objectives directed both at core economic recovery and new initiatives like cap & trade and health care? They need lower interest rates, right? It would be extremely easy to have BB withdraw liquidity or get the brain-fried coke-head out in front of the cameras to spook both the equities & commodities markets in order to drive global capital back to the safety of treasuries & (pseudo guaranteed) agencies/MBS ... just in time for a series of major new issuances.
All Summers has to do is have the inarticulate dunce or one of his lieutenants hint that perhaps the stress test assumptions were too liberal, or that unemployment is higher & the economy is weaker than stats initially indicated, or that the situation in Pak, or between Israel v Iran is rapidly deteriorating (huge blast outside a Peshawar hotel or DPRK may launch another missile). Presto chango - global capital comes running home to papa where it is safe & sound.
The problem with most of the financial blogs is that they are run by former software/financial engineers, so they tend to take everything they hear/read as the literal facts. Only ZH seems to understand there's a lot more complexity than what regular folks see on the visible plane. Here's a word to the wise: when in doubt, bet on the direction the fascist state is taking. "
No comments:
Post a Comment