Their biggest talent: Ignoring the reality around them.

Watch: “Hey AMC, look at that new BMW SUV with surround sound and GPS navigation!”

See, they took their eyes right off of Wall Street and the Fed ripping them off.

I shall refer to Alan Greenspan as “Crazy Chester” courtesy of Robbie Robertson of The Band and the great parody video:

“Take a Load Off Fannie”:
http://www.youtube.com/watch?v=712kRqri2No

Will the American middle class snap?

AMC has not eaten a big enough sh*t sandwich yet…

1. Wait for the next big round of prime foreclosure thanks to U6 unemployment…

Remember U3 discards those who run out of unemployment insurance as marginally attached then does not count them as unemployed by U3.

Well bankers don’t discard your mortgage payment because you are marginally attached, they foreclose.

From the brain at Calculated Risk:

“Philly Fed State Coincident Indicators: Widespread Recession”

http://www.calculatedriskblog.com/2009/06/philly-fed-state-coincident-indicators.html

2. Increasing home values for the middle class translated into consumption to make up for wages that peaked in relative terms in the early 1970s…

In other words you middle class yups are paid in inflated “Crazy Chester” dollars and/or Helicopter Ben Bucks and have not been paying to attention to the decline in real wages as usual…

From the brain at Calculated Risk again:

“The Housing Wealth Effect?”

http://www.calculatedriskblog.com/search?updated-max=2009-06-24T08%3A25%3A00-04%3A00

” Here we go again on this hotly debated topic: How much do changes in house prices impact consumption?”

“[W]e estimate that the average homeowner extracts 25 to 30 cents for every dollar increase in home equity.”
“[T]hese findings lend support to the view that home equity-based borrowing is used for consumption.”

Falling home equity and underwater boomers makes for a continued collapse in consumer spending.

3. The massive Alt-A resets starting 2010 that Turbo Timmie’s stress test period seemed to be designed to end before this wave wackes his banking pals on Wall Street:

From the brain at Dr. Housing Bubble:

” The Truth about Option ARMs, Pick-a-Pay Mortgages, and Alt-A Loans:

Looking at Wells Fargo, Bank of America, and JP Morgan. We are in the Eye of the $469 Billion Toxic Mortgage Hurricane and Silence is not Golden.”

http://www.doctorhousingbubble.com/the-truth-about-option-arms-pick-a-pay-mortgages-and-alt-a-loans-looking-at-wells-fargo-bank-of-america-and-jp-morgan-we-are-in-the-eye-of-the-469-billion-toxic-mortgage-hurricane-and-silence/

Complete with charts for this wonderful foreclosure tsunami statistics.

“Let me be abundantly clear. We still have a Pay Option ARM and Alt-A mortgage problem. This will hit in full force in 2010 and we are already seeing many mortgage holders having trouble with actual recasts brought on by negative amortization. Yet there is a crew of people saying that Alt-A mortgage products will not bring any trouble because of the low interest rate environment. ”

So as our hero the AMC runs into more foreclosures, prime, alt-a and option arm in 2010, rising unemployment, no wage growth and increasing numbers with negative equity.

The life style our baby boom heroes may finally wake up to a grim reality when their last sip of “Obama Kool-Aid” runs out.

They will come to the grim realization that the only ones who got change they can believe in were Fat Larry Summers and Stevie “the Rat” Ratner and a host of Rubinites and Goldman worms on Wall Street.

America’s smartest, most socially conscious generation, just ask them they will tell you (haven’t baby boomers been telling us this for the last 40 years?), may be staring face to face with the scorched earth this generation left behind them for so many others in this society and in fact in most of the world.

In an ironic twist, it may have been their own greed and lack of regard for the collective good for society that pushed baby boomer’s self interest for their 401k values above all else financing Wall Street with the cheap capital for the looting of the US economy.

They ignored Congress $3 trillion looting, whoops I mean borrowing of Social Security trust fund surpluses since the Alzheimer Puppet Reagan, they ignored massive health care deficiencies for the general public so long as the economy “grew” along with their 401k’s so the baby boomers and the AMC “got” theirs.

In the most ironic twist of all, the generation that screamed protested, burned and bombed property all across the nation in the 60s when it was they who were being drafted for cannon fodder in Vietnam, sat silent and were oblivious as this current generation was sent off for empire’s war in Iraq.

The AMC and in particular the baby boomers did not even notice war existed in Iraq as long as home prices and 401k’s were on the rise… why rock the boat. What was good for war profiteering corporations on Wall Street was good for the AMC and the baby boomers. The greatest protest generation of all time sold out the youngsters today for home equity.

They turned blinded eyes toward Clinton’s gang of Rubinites, head Rube Robert “What Me Worry” Rubin, Fat Larry et al stripping regulation for self interest of the privileged.

The privileged… of which until last September the baby boomers and the AMC thought they… wink, wink were a part.

Spooky.How can US savings growth reduce dependence on China? The only possiblity is for .gov to steal the savings. They’re going to steal the money!!! (I do jump to conclusions, but…) here’s the story, what do you think?
http://www.bloomberg.com/apps/news?pid=20601109&sid=aome1_t5Z5y8

Why do I feel like I live in Argentina pre-2002?

Because we don’t want to keep pushing the rock up the hill for the damned bankers and hope to understand how to use the rocks to better our worlds. WE might have to resort to throwing them, but it seems so juvenile.
Here is an interesting theory about civilization rise and fall from Vico Giambattista:

“Vico and the Descending Age of Heroes
I was reading about the political philosopher Vico earlier tonight. He had a fascinating theory about the ages of civilization; namely that we have three ages: The Divine (in which authority is derived from God), the Age of Heroes (in which the living embodiment of idealized figures have the authority), and the Age of Man (in which the citizens as a whole possess authority). You don’t cycle through these stages, but instead societies rise and fall. Really, instead of the three stages that are commonly referred to, there are six: The Divine Age*, Divine Ascending, Heroes** Ascending, The Age of Man Ascending, The Age of Man Descending, and Heroes Descending.”
http://thenewpamphleteers.blogspot.com/2009/04/vico-and-descending-age-of-heroes.html
You are right about we Americans being deceived. It was the age of heroes: Vico Giambattista’s view:
“This New Science or metaphysic, studying the common nature of nations in the light of divine providence, discovers the origins of divine and human institutions among the gentile nations, and thereby establishes a system of he natural law of the gentes, which proceeds with the greatest equality and constancy through the three ages which the Egyptians handed down to us as the three periods through which the world has passed up to their time. These are (1) The age of the gods, in which the gentiles believed they lived under divine governments, and everything was commanded them by auspices and oracles, which are the oldest institutions in profane history. (2) The age of the heroes, in which they reigned everywhere in aristocratic commonwealths, on account of a certain superiority of nature which they held themselves to have over the plebs. (3) The age of men, in which all men recognized themselves as equal in human nature, and therefore there were established first the popular commonwealths and then the monarchies, both of which are forms of human government.”
http://www.historyguide.org/intellect/new_science.html

Interesting that the next age is one of commonwealths, then monarchies in Vico’s reasoning. Fema calls US zone a commonwealth on their site.

Got this last “flag waving” from some Russian guy who lived through all this shit allready. It’s just I can’t stand the idea of living in this Truman show.

It was nostalgia, like “Heh, gang, it’s been good to know you.” US is seceding sovereignity over trade to the IMF, but it’s a trap. Goodbye Bretton Woods 2, hello NWO hegemony big time.

What could Bernanke say? “I am not a crook” was already used once.

The bank reserves issue is a big deal, but I’d argue that the total amount of wealth destruction could swallow planet earth.

I only hear hollow propaganda phrases from Bernanke nothing what could look like substantial knowledge. Example;

Dear Sheople,

We’ve gone through some very difficult times together (I jus recieved billions of bonusses and you got notin) but we can assure you that whit all our knowledge and expertise we’ve managed to avoid the worst and we ask you to stay calm (so we can loot more) and we asure you that our expertise will lead you back into prosparity again (not). There seems to be a misunderstanding about the intrepetation of inflation which isn’t a problem at all if we take the most prudent steps to avoid this. (I can’t stop the global meltdown and inflation but I can’t say that).

You see, I’ve said completely notin!