There Is No Plan

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Maybe I’m A Debt Ceiling Dumbass…But

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So I just read this and it got me thinking.

Maybe I’m just an economically-challenged idiot, but it seems to Thereisnoplan in all his utter naivite, that the “markets” have spent most of the last 2 years making out like gangbusters while the rest of us just get by if we’re lucky.

And before they doubled their money, they predicted that the housing market was as solid as the triple A mortgage securities they’d all jumped into during the housing boom. We know how well that one went, and yet we still trust the “markets”?

Cut to: we don’t meet the supposed deadline to raise the debt ceiling on August 2, a hitherto technicality, and now the sky is going to fall in, not because America isn’t fundamentally strong, which it is, and not because it’s debt isn’t sustainable because it is, and not because of anything on that day at that hour gets worse, but because the “markets” decide the United States is no longer a good bet.

If that happens, sure, we’re all going straight to hell. America first, followed by Europe and China and Japan and everyone else.  But the people who’ll have to send us there, and suffer the consequences will be – you’ve guessed it – the bond markets, who in their rating agency wisdom that the joint which drives 25% of the world’s GDP is busted no-goodnik that can’t pay its bills.

And what happens then?

Well, them’s what’s in the “markets” with their expensive suits and hand-made shoes lose all their ill-gotten gains of the last two years, as they suck the last shreds of demand out of the world economy by trashing its main generator – here in the good old US of A.

Will they do it?

I dunno, but if I was in the markets with my bespoke shoes and bottles of Cristal at lunchtime, I’d be doing my damnedest to pump up the US economy and keep buying its debt. Because if the Wall Street suits don’t, those bonus checks go bye-bye and it’s 2008 all over again, except way, way, worse.

Now, the “markets” have shown in the past they have all the savvy of a bunch of meerkats on meth, but in the unlikely event that they go a little cold turkey, it’s just possible that maybe, just maybe they’ll be smart enough to jump over the cliff – again.

But then again, they clearly have no plan, so we’re probably fucked for that reason alone. Which is another good reason for the President and Geithner not to whip them into a frenzy by suggesting that a deal has to be done or else.

Like I said, I’m a dunce. Feel free to explain why I’m wrong.


Written by coolrebel

July 9, 2011 at 4:22 pm

Posted in Business BS, Washington

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