LK’s “AM 970 The Apple” PodKast-The 10/31/11 Show

LK’s got what’s been variously described as a character flaw, a gift, a pathology, a knack, or simply a compulsion, which is to incessantly and possibly productively connect dots that lead him to be something of an early warning system, which both benefits those around him AND drives them crazy, and maybe can be helpful to you.

Tonight he turned his gaze to OWS, which he compares to a TV channel programed by random hackers (WOWS), how Greece is not just Europe’s, but our very own canary in a coal mine, as well gambling in Florida with what he posits as the hush hush approval of the Mega-Church types.

Not to mention the guy who firebombed the Taco Bell because his chalupa didn’t haven’t enough meat, the Tobin Tax, and aspirin negating the need for any additional health care whatsoever.

Enjoy.

Here are the links:

Part 1:

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Part 2:

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It’s better to take over insolvent banks than try to prop them up

Kannon Fodder: Opposing views – It’s better to take over insolvent banks than try to prop them up.

The Kannon Team can’t wait for the big guy to weigh in on this Op-Ed piece in the U.S.A. Today by Robert Kuttner, author of Obama’s Challenge: America’s Economic Crisis and the Power of a Transformative Presidency

He writes:

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Sober Conclusions

After reading a good part of the Wall Street Journal and the NY Times, and absorbing the words of respected elders and pundits du jour, I’m thinking that the best and the brightest at the Treasury/Fed have made the initial major moves they felt were necessary to keep the financial system from imploding.

However, I’m not reassured that they have the deftness to make the relief hold long term. I also think there’s a good chance that they’ve created or exacerbated other problems that are lurking and growing closer.

The powers that be are clearly flying by the seats of their pants in uncharted territory.
President Paulson is the most powerful man in the world now.

There is reason to be scared, so if these proposed solutions have simply changed the nature of your uneasiness, I believe that your sanity and judgement are intact.

Financial Exchange

Earlier today (Sunday) I had the following exchange with a friend in high places on Wall Street.  Let’s call him Jesse.

LK: Are the Federal Reserve and Federal government mandated to prop up the financial markets?  I think the X factor we were talking about last week, that’s made getting a handle on market movement nearly impossible, is the transition of a relatively free market economy into a murky swamp with little visibility, due to abuses of the system.  If the leverage (30 times assets on hand in some cases) that’s having trouble being unwound wasn’t illegal, it certainly wasn’t prudent or responsible by any measure.  The pigs should get slaughtered.

It’s unfortunate in the extreme that the mid and lower level employees of the reckless firms, as well as John and Jane Q. Public that hold stock in them, have to suffer.  Wish there was a way to surgically remove the gluttons and separate them from their assets.

Jesse: We’re witnessing the peril of extreme capitalism (aka greed by the few who control the companies) .  We all bought into the system because even the 2 bit real estate broker enjoyed his 6 percent commish triggered by financially engineered (no money down) mortgages and a high velocity of transactions.  I don’t know how it plays out.

LK: The real estate agent at the bottom of the food chain was like the street junkie or nickel bag dealer being enabled by the Medellin Cartel.  We agree that the greed ran up and down the ladder.  Now the ladder tips and everyone falls.

On a whole lot of innocent bystanders.

note: Jesse’s more than a real smart guy.  His admission of not knowing the outcome is a reflection of his wisdom.  The gurus who have been strutting their stuff in the financial media making grandiose predictions, in the hopes of being the broken clock that’s right twice a day, are the court jesters.

Econo-Quickie: Deep Denial and Its Solution

In rough, round numbers, the U.S. consumes around 20 million barrels of oil/day. Just released data indicates that crude oil inventories increased by 3 million gallons. A bit more than a sixth of a day’s worth. And the equity markets, desperately looking for a positive data point, grab this one and run with it.

We’re going to get what we deserve. An economy that looks a lot like the rest of the scorched earth that Dubya will leave behind. The Emperor will eventually be seen to have no clothes.

If Obama’s elected, he’d be wise to trot out his supporter Paul Volcker to explain to the nation that there’s some pain to be gone through while the excesses are wrung from the system. Volcker can refer to his success in the ’80s in which he, as Chairman of the Federal Reserve, inflicted relatively short term pain on the nation (around 5 years worth) in order to have it followed by long term (20 years) prosperity.

This may well make Obama the best one term president in American history.

Full disclosure: I have nothing to disclose at the moment (although that could change at any time), as I’ve found it less painful to step aside when I have no clue, than to freeze like a deer in the oncoming headlights.