Mercury Rising 鳯女

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Archive for November 28th, 2008

Words whose meanings were switched in the cradle

Posted by Charles II on November 28, 2008

“Runaway consumption must now give way to a renewal of saving and investment. That’s the best hope for economic recovery and for America’s longer-term economic prosperity.”Steven Roach, Morgan Stanley

The defining characteristic of America in the 20th century was optimism. That did not arise by chance and it is about to change forever.

The optimism of the past century was based in steadily rising living standards experienced in most areas of the economy. People ate better. They could see a doctor. They were able to buy time-saving conveniences. They were able to afford advanced education. This made people both more productive and confident that the future would be better than the past, if only they did their part by working hard. Such people are ideal entrepreneurs.

But things did not go so well everywhere. Read the rest of this entry »

Posted in big money, economy, health care, stock market | Comments Off on Words whose meanings were switched in the cradle

FTD doesn’t always mean flowers…or delivery

Posted by Charles II on November 28, 2008

Paul Kedrosky over at Infectious Greed has a sign of the times from Helen Avery at Euromoney that should give us pause:

The problem: the settlement system for the US government bond market has broken down.

THE US TREASURY market, the foundation of government and corporate bond markets worldwise is suffereing a crisis of confidence… fails to deliver among the 17 primary dealers in the US treasury market have rocketed to more than $2 trillion over a period of weeks and still lie above $1.2 trillion….

Failures in US treasuries were 8.6% of all treasuries outstanding in the first five months of this year, compared with 1.2% in the first five months of 2007. This has ballooned further over the last three months…more than 20% of daily treasuries trading volume

Be afraid. Effectively these companies are kiting securities to keep their balance sheets looking better than they are. This is truly dangerous territory.

Posted in mortgage crisis, wrong way to go about it | Comments Off on FTD doesn’t always mean flowers…or delivery

Friday Cat Blogging

Posted by MEC on November 28, 2008

“It’s the tryptophan.”

Sleeping Lady Lightfoot

Posted in Friday Cat Blogging, Lady Lightfoot | 4 Comments »

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