Divergent Reality

The way I see it, there are only two explanations for the incredible divergence we've seen in recent years. Either 1) the payroll data or sentiment readings are highly suspect (as to which is more likely, I would note that only the former is compiled by the U.S. government); or, 2) the quality of the jobs that many people have nowadays is significantly less than it was before the recession "ended."

On a separate note, sentiment isn't exactly great among those who should be enthralled by the relentless, Fed-driven rise in stock and other financial asset prices.

"Wealthy Investors Are More Worried About Economy Than One Year Ago"

The prolonged economic downturn has become the top worry for most wealthy investors, according to new research report released Tuesday by Chicago-based financial research firm The Spectrem Group.

An estimated 80 percent of millionaire investors surveyed cited the sluggish first-quarter economy [Editor's note: Wait, what? I thought Treasury Secretary Timothy Geithner said the economy is getting stronger?] as a concern compared with 70 percent in the same period in 2011. Similarly, an estimated 81 percent of mass affluent investors with net worths between $100,000 and $1 million were concerned about this year's first-quarter economic performance compared with 74 percent last year.

Comments

[Working my way up to you babe!]

Well, with the poor ground to dust and the middle class eviscerated, the wealthy should be worried, as the predator class has them marked as NEXT! It's called the food chain and they're part of it.

[Tom]

When you gut the American manufacturing base there aren't very many places to "invest in" that will yield a substantial profit (from lending them "your" money). These parasites and the corporations that use them are both going to find themselves on the wrong end of this as it all collapses. When people don't make enough money to live on they don't buy things - even necessities suffer!

Millionaires and billionaires need to be harvested, culled, made to go extinct so that the rest of us can at least live another day.

[Jack Hudson]

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[Poof...it's magic]

Details Of The $291 Trillion In Derivatives To Which American Taxpayers Are Exposed

The entire US GDP is less than $15 trillion each year. The gross notional amount of derivatives issued in the USA is more than $291 trillion. Does that sound like a lot? Apologists for derivatives dealers don't like it when we talk about derivatives in terms of the notional totals. Large numbers, like these, discussed publicly, frighten too many people. According to the apologists, gross "notional" is misleading, because it does not include "hedges," offsets and the limits on interest rate risk.

In fact, the total amount of derivatives cannot be accurately presented in any other form but gross notional obligations. The risk to society cannot be judged in any other way. That's why the FDIC, US Comptroller of the Currency and the Bank for International Settlement (BIS) all use gross notional.

http://seekingalpha.com/article/503761-details-of-the-291-trillion-in-derivatives-to-which-american-taxpayers-are-exposed

Don't panic the lobbyists will save us...
Regulators to Ease a Rule on Derivatives Dealers

Some watchdog groups, however, fear that regulators are carving out a significant loophole that will open the door to problems. The exemption, the culmination of wrangling among the regulators and a yearlong lobbying blitz, would excuse firms from having to post additional capital and file reports.

http://dealbook.nytimes.com/2012/04/17/regulators-to-ease-a-rule-on-derivatives-dealers/

[Some "members" are more worthy than other members?]

Why the Global Banking System Is a Scam

America is a great country. As with any business, its success is based on the balance of its assets against its liabilities. Its assets are a plentiful supply of natural resources; land & minerals, plus 300 million specimens of the most creative creature on planet Earth.

These assets are hindered by one main liability, a ruling class who imported a monetary system of theirs from Europe a while ago. It is a non-free market system which is enough of a hindrance to negate all the positives of any country in time.

Boiling of the Frog

Now things got interesting. Since not enough currency is in existence to cover all the debt owed to the lender, then the assets, real things or “real wealth,” are now owed to the lenders. The problem with this is that if the lenders acted upon this fact the populations of the developed world would quickly realise that they are all in fact broke, as all property would get consumed by the Banksters as repayment, leading no doubt to a world-wide revolt against the secret overlords of this system. So, instead of this, things have been manoeuvred to allow a more gradual slow “boiling of the frog,” or austerity programs coupled with placing ex-Goldman Sachs employees into key government positions across the western world.

Greenspan Detected a ‘Flaw’

Simply put, due to the fact that only the principal is borrowed into existence, not the interest, the result is never-ending debt allowing that the real wealth of miners, farmers, builders, engineers, fisherman and any other positive endeavour to be taken for free by those in “the club” via theft or fraud.

http://www.rickackerman.com/2012/04/why-the-global-banking-system-is-a-scam/?

[The wealthy worried?...nah]

Visualizing Aubrey McClendon "Rehypothecation" Scheme... And The China Trail

Aubrey McClendon is no amateur when it comes to shady personal transactions involving his company, nat gas giant Chesapeake: Back in October 2008, just after the financial crisis erupted, he was forced to sell more than 31 million Chesapeake shares for $569 million to cover margin calls generated from buying CHK stock just prior on margin. The company’s stock fell nearly 40 percent the week of McClendon’s share sales. McClendon issued an apology but the company’s credibility with many shareholders suffered significantly. It looks lie the story is repeating itself, only this time the margined security is not company stock, but company loans.

http://www.zerohedge.com/news/visualizing-aubrey-mcclendon-rehyptohecation-scheme-and-china-trail?

Billionaire Eskenazis Risk Default As Argentina Takes YPF

Argentina’s billionaire Eskenazi family risks default on more than $2 billion of debt after the government seized control of oil company YPF SA (YPFD) and said dividends would probably be reinvested in the company.

The family’s Petersen Group, which has 25 percent of YPF, owes Spanish partner Repsol YPF SA (YPF) 1.45 billion euros ($1.9 billion) after it bought a stake in YPF, the Madrid-based company said April 16. The Eskenazis counted on YPF dividend payments of as much as 90 percent of profit to repay Repsol and about $680 million of loans with banks including Citigroup Inc. (C)
http://www.bloomberg.com/news/2012-04-17/billionaire-eskenazis-confront-repsol-debt-after-ypf-seizure-1-.html

[It's a matter of trust..or mostly, the lack of it!]

Thinking People are Dangerous to the "Elite" of the World

People that have the time, freedom, and ability to think are dangerous to the governments of the world. Most of the governments and corporations of the world are blocking forces to both technological progress and also societal progress. Why aren't people allowed to change. People that are debt slaves, that are making life and death choices between food housing and medicine are not dangerous; they are surfs who are controlled. Another financial guy, Don Harrold, realizes that the finance has become much less relevant. Integrity, and not accepting lies, will determine if we continue as a species or if we suffer an economic life-support survival based dirt nap. It may take the plane hitting the cliff for people getting the idea that reform must occur.. Has this occurred with Fukushima or are a few people among the majority aware. Who will make it who will not? The future is more uncertain now than it has been in the history of the world.

http://youtu.be/_JJO62HXL1Q

[When do parasites quit?]

Crony Capitalism And The Expansive Central State

The self-regulation mechanisms are supposed to act as a hedge against a runaway parasitic State.

We can properly understand the State as a concentration of risk and gain: its extraordinary powers of coercion render it a great risk to the membership, even as its protective shield of liberty offers the freedom to pursue individual happiness and self-fulfillment.

Since the State is a concentrator of both wealth and power, it also concentrates the risk that ontologically accompanies concentrated power and wealth: with such great power, the abuse, repression, exploitation and predation which the State could unleash on its citizenry are fearsome.

This concentration of wealth and power makes the State the primary attractor in the economy for those seeking to increase their private gain. What better way to enforce a monopoly than to persuade the State to limit your competition? What better way to lower the risk of enterprise than to persuade the State to grant its own contracts to your company? What better way to amass a fortune than to harness the coercive powers of the State to your own self-interest?

There is a great irony in this concentration of power in the State: the power is concentrated to protect the citizenry from predation and exploitation, but that concentration becomes an irresistible attractor for all those seeking to increase their private gain via monopoly, cartels, collusion, fraud and other forms of predation.

http://www.zerohedge.com/news/guest-post-crony-capitalism-and-expansive-central-state?

[roger]

Random thoughts.
The success of any nation is measured by it's exports versus imports,at presents the deficit is 46 billion.Technological progress is vigorously promoted by corporations, it eliminates labor cost, the 300 million + in this country are all (except Indians) product of immigration,like the wild life on the African plain,human migration is constant and unstoppable.In order to secure cheap energy and strategic materials,the US is engaged in perpetual wars,so no we are not self sufficient.
We are smart and creative,but we still had to bring Nazi scientist to this country in order to stay one step ahead....humm Einstein did not belong to the cowboy culture.

[Why is Everyone on MSM always so happy!]

MF Chief Jackass Calls for Taxpayer-Funded Bank Recapitalisations to Avoid Painful Deleveraging; Mish Says Fire the Parasites and Disband the IMF

Supposedly this will get banks to lend. How can it? Taxpayers have seen prices rise, wages fall, and taxes go up, all of which leaves them in a much worse position to borrow and spend.

Who exactly do these jackasses represent?

The answer is obvious. The IMF is not setup to help countries or taxpayers, it was created to rob countries, rob taxpayers, and generally wreak havoc in times of trouble just so the wealthy class can be bailed out again, and again, and again, whenever the banks and bondholders get in trouble by taking on excessive risk.

http://globaleconomicanalysis.blogspot.com/2012/04/imf-chief-jackass-calls-for-taxpayer.html

[roger]

Mish Says Fire the Parasites and Disband the IMF,even do I agree with that statement,I say how in simple terms some people see this world .for
Mish if you don't see it his way,you are either a fool,a socialist fool or a jackass. Posing behind a laptop with a pair of eye glasses on you nose...an intellectual makes you not.The proposition that a "free market
free of government meddling will regulate itself is total nonsense.Wealth creates power,those who are successful in acquiring it will need total power in order to survive the jungle they have created.That's what this crisis is all about.
In all fairness his blog does dish out some good everyday info on financial happenings.