Consumer Economy Will Lead to Big Woes According to Comstock Partners

We don't believe that the U.S. massive stimulus programs and money printing can solve a problem of excess debt generation that resulted from greed and living way beyond our means. If this were the answer Argentina would be one of the most prosperous countries in the world.

Comstock Partners Latest article is titled, Deleveraging the U.S. Economy.

I should note Comstock seems to validate what midtowng wrote about the stock market rally being for suckers.

This seems to us to be a "mini bubble" of stocks reacting to an abundance of "money printing" by governments all over the world since stocks are rising worldwide

So, this is what we get by focusing in on a consumer economy instead of a production one, two lost decades.

What was that about the recession being over instead of focusing in on all of the reforms, from regulatory reform to trade agreements to taxes?

src: Comstock Reports, click to enlarge

it took $1.50 of debt to generate $1 of GDP in the 1960s, $1.70 to generate $1 of GDP in the '70s, $2.90 in the '80s, $3.20 in the '90s, and an unbelievable $5.40 of debt to generate $1 of GDP in the latest decade.

This really is astounding and what strikes fear in this writer is how the United States policy seems intent on continuing a debt driven, consumer economy instead of making the reforms and structural changes so needed.

Just today Obama claimed they will not renegotiate NAFTA due to the recession. That's like saying one cannot fix the broken damn because there is a flood.

Please view Comstock's charted data (in PDF) by following the link.

Big hat tip to Naked Capitalism.

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I just read this good article in Salon.

Can Obama be deprogrammed?

It talks about how he has fallen capture to the cult of neoliberalism. Actually, not just him. - Financial Information for the Rest of Us.

he is one of the programmers

I don't get why people think Obama is somehow captured by others and programmed. He is one of the programmers.

Seriously, look at his background, he's straight from Harvard and then went to the University of Chicago....

This is a neoliberal (read corporate generated thought speak) hub....

So he has been immersed with these sorts of Corpocrats most of his adult life.

It reminds me of Bush, people thought he was some Texas working class guy when in fact he was a Yale/Harvard MBA super elite, ruling families product.

The bigger point is

regardless if is the programmer/programmed/not programmed nothing will change while this neoliberal economic ideology has so much influence in Washington.

The question is how do we discredit this terribly flawed ideology? - Financial Information for the Rest of Us.

keep writing

and then frankly, don't jump on some candidate in some bizarre feeding frenzy during the primaries and claim he has policy positions and a voting record that does not exist.

I'm sorry but the elections in general were like that...
if someone doesn't have a good voting record, very obvious DLC connections, lobbyist connections...and is putting out corporate written policy agendas...

pretending that candidate is somehow a Populist and anyone who says differently is just some troll who needs to be attacked and repressed....

I mean what a waste....that Obamamania machine in the primaries was just unbelievable...
imagine what would have happened if they demanded actual policy positions to match the enthusiasm.


(there was no viable Progressive/Populist candidate during the primaries, I will note, although Clinton in position statements and votes was slightly better than Obama in this regard, from an economics view point).

but, hey, that's why we're all econ, all of the time, get the focus on actual policy, legislation, economic statistics...

I mean the day we had a well crafted bill, that actually was based on real statistics, data...say on trade...

and it actually got that day would be a miracle...

That's what i see, even on the Stimulus, it was simply not well seems getting any bill based on expert analysis, real statistics, with a set of objectives
instead of loaded up with some corporate lobbyists' latest wet dream....

is impossible.

Never been programmed?

I'd have to take issue with the fundamental premise of Lind's article (disclaimer: never been a Lind fan). I can give a bunch of reasons why Prez Obama has never been a true believer to begin with:

Diana Farrell (McKinsey Global Institute, Goldman Sachs), Laura Tyson (Morgan Stanley, NAFTA), Henry Kissinger (no need to for explanation here), Roger Altman (Blackstone Group), Robert Hormats (PetroChina, Goldman Sachs), Richard Holbrooke (Perseus), Robert Rubin, Summers, Geithner, Rahm Emanuel (Wassterstein Perella), and on and on and on.