Deere & Company: Canary in the Austerity Coal Mine [View article]
Markos, your statement "... Yes, our entitlement programs are out of control, and yes our democratic demigods have reached the limit of sane spending. But no, now is not the time to implement austerity...." is incomplete without telling us when is the time to implement fiscal and monetary sanity and return to a semblance of sound money, budget balance, and bearable deficits? Next year ? 2012 ? 2013? The excuse that "now is not the time" will be always with us.
IMHO, the time was several years ago, and we have procrastinated ever since, and the longer we procrastinate, the deeper we dig ourselves into the hole. This vicious spiral must end, and the sooner the better, because this is how great nations have bankrupted themselves into oblivion throughout history.
The Europeans have shown wisdom and courage to take the bulls by the horn before it is too late, we need to do the same.
Preview from Europe: Pigs Scare the Market Bulls [View article]
"..... there does appear to be some underlying resilience to the recent rally, presumably helped by the positive earnings surprises ...."
et tu Mole ? I cannot fathom the notion that when revenues are down 20-40%, and earnings down by 40-80%, we should rejoice because of the "positive surprise" that they are "higher than expected". I imagine that those who did the "expecting" were being clever, hoping all will celebrate and drink the kool-aid.
AIG Suddenly Takes the Full Disclosure Route [View article]
Interesting how bonuses paid from taxpayers' money are defended on the basis of being contractual.
Firstly, employment contracts are voided by bankruptcy. Although AIG, ML, C, BAC, and other WS rescued institutions are not technically bankrupt, the only reason they did not file for bankruptcy is government stepping in to prop them with taxpayers' money. Claiming that they should be allowed to pay bonuses because their bankruptcy has been avoided (or delayed) by massive use of public funds is disengenious, to say the least.
Secondly, congress just passed a law that allows judges to modify legally binding contracts (aka mortgages). So, it should be possible to pass a similar law allowing judges to retroactively modify, or even recoup, egregious bonuses paid by entities which had to be bailed out by government intervention.
Deere & Company: Canary in the Austerity Coal Mine [View article]
IMHO, the time was several years ago, and we have procrastinated ever since, and the longer we procrastinate, the deeper we dig ourselves into the hole. This vicious spiral must end, and the sooner the better, because this is how great nations have bankrupted themselves into oblivion throughout history.
The Europeans have shown wisdom and courage to take the bulls by the horn before it is too late, we need to do the same.
Preview from Europe: Pigs Scare the Market Bulls [View article]
et tu Mole ? I cannot fathom the notion that when revenues are down 20-40%, and earnings down by 40-80%, we should rejoice because of the "positive surprise" that they are "higher than expected". I imagine that those who did the "expecting" were being clever, hoping all will celebrate and drink the kool-aid.
Preview from Europe: Market Back on the Defensive [View article]
I'd suggest that this sort of operation will continue on a massive scale in various ways, some transparent and others concealed.
AIG Suddenly Takes the Full Disclosure Route [View article]
Firstly, employment contracts are voided by bankruptcy. Although AIG, ML, C, BAC, and other WS rescued institutions are not technically bankrupt, the only reason they did not file for bankruptcy is government stepping in to prop them with taxpayers' money. Claiming that they should be allowed to pay bonuses because their bankruptcy has been avoided (or delayed) by massive use of public funds is disengenious, to say the least.
Secondly, congress just passed a law that allows judges to modify legally binding contracts (aka mortgages). So, it should be possible to pass a similar law allowing judges to retroactively modify, or even recoup, egregious bonuses paid by entities which had to be bailed out by government intervention.