Stacy Summary: This is the special Alan Greenspan bubble addition in which Max takes out several props and we talk about the scandals of financial crisis “show trials” in America; Citigroup alleges they could not possibly have predicted the collapse of a very obvious housing bubble; and former Fed Chairman, Alan Greenspan, tells the show trial commissioners that the financial world is far too complex for mere mortals. In the second half of the show, Max talks to economist Dean Baker about Citigroup’s alleged profits
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@Snoot. http://www.zerohedge.com/article/imf-prepares-global-cataclysm-expands-backup-rescue-facility-half-trillion-contribution-glob
The British start to see “TOB”
http://www.youtube.com/watch?v=G3lPTK_Ru9E
Mike
Dean Baker raises the all-important question of organizing a political force to oppose Wall Street; too bad Max didn’t pursue this line.
Citigroup actually tried to blame their losses on decisions made by external ‘consultants’ ( during the recent hearing)…i think they managed to get a scape goat..so that they could use the classic statement ‘it wasnt me’.
Here’s a guy who got it right over 90% of the time.
http://www.youtube.com/watch?v=ob1rYlCpOnM
Greenspan is an assasin. Who this bastard murder ? The USA and the Ameircan middle class. You are rigth. These people worship death.
So in sum you just have to be a bankster, lauch a complicated financial product and voilà ! The perfect crime. No prison. No blood. No guns. A perfect criminal organization. The FED must really be seen as a crime syndicate. It is.
Digital Economy Bill.
http://www.youtube.com/watch?v=ezxe3idN5pU
An interesting watch.
New article from Robert Schoon available here:
http://www.drschoon.com/articles%5CProfessorFeketeAndTheArmageddonSignal.pdf
“These are exceptional times and while we are helpless to prevent what is about to happen, so, too, are bankers and politicians. They have brought this state of affairs upon themselves and for this we should be grateful—for without their demise we would be enslaved forever.”
The Iranians are right. USA is really Grand Satan they say it is. It is when you tnink about the FED.
@Robbie robertson. saw your old strat on stage in stratford ontario
@robbie robertson. garth pickett has it. nice strat.
@Mike/Liverpool – thanks for that link! The site looks interesting: http://www.ubovvered.com/ Going to contact them to see if they want to be interviewed.
@ronron
Rescue facility or substitution account? I read that the sdr totals would need to equal around 3T to replace dollar liquidity.
Remember: the IMF doesn’t have to say, ‘mother may I’.
lololololololol
Truth – O – meter
@ Stacy
You slap Max when he types F* word here but lololololol Truth O meter on air is Fine
lololololololol
ROFL
Hic
Slavery is next in the USA.
@ ronron
don’t get to exited, just read the article, man.
Creating an IMF substitution account would help solve dollar problem
December 10, 2007
“…early adoption of a substitution account would minimise the risks of adjustment of the present imbalances and the inevitable structural shift to a bipolar monetary system based on the euro as well as the dollar.”
Fred Bergsten, Director of the Peterson Institute for International Economics
http://www.imf.org/external/np/exr/key/diff.htm
“The dollar-based monetary system is no longer adequate for a larger and more integrated world economy,” it said. “Prominent developing economies are increasingly demanding to be included in any multilateral dialogue that aims to shape the new economic order.”–Jim O’Neill, chief economist at Goldman Sachs Group Inc.
http://www.businessweek.com/news/2010-03-18/yuan-poised-to-become-reserve-currency-goldman-s-o-neill-says.html
@Robbie robertson. i was in bearsville working for grossman when you guys were recording stagefright. i’m dorcas tills little brother. reading it now. thanks.
The demise won’t be for the international sovereign banks operating the sdr/index reserve, robbie. It will be for the common man whose access to liquidity/capital is finite.
@ ronron
Thanks, man. I’m back to my Indie Roots now, feels much more centered.
Not global currency: global reserve asset (perhaps with yuan included before convertiblity this December?):
“ Stability of reserves. The crisis has also cast a spotlight on the tension between the high demand for reserves by emerging market economies and, on the other hand, dependence on the stability of just a few suppliers of reserve assets. While strengthening both crisis prevention and response should help alleviate the perceived need for reserve accumulation, there may be a role for the Fund in promoting systemically preferable approaches, including the use of a global reserve asset…
22. Implications for the size of the Fund. The envisaged role of Fund lending in maintaining international stability obviously is key to the overall size of Fund resources and its structure (quotas versus borrowed resources). As discussed in the forthcoming paper The Size of the Fund, under the current mandate and lending facilities, a scenario broadly
centered on a doubling of quotas would ensure that quota resources are adequate in most circumstances, taking the total size of usable Fund resources, including via the NAB, to almost US$1 trillion. If the next time around some of the more expansive instruments discussed above need to be used, the Fund’s lending capacity would need to be larger…
23. Issues. The build-up of international reserves as a buffer against shocks is widely expected to resume as the crisis fades and to some extent already has. While such accumulation can be costly for surplus and reserve-issuing countries alike, there are three underlying problems. First, there are concerns about the availability of international liquidity in times of crisis, prompting a precautionary reserve buildup, especially when heavy capital inflows threaten to overwhelm emerging markets. Second, there is no automatic adjustment of current account imbalances, neither surplus countries nor reserve-issuing deficit countries facing pressure to adjust. Third, the concentration of reserves in US dollars reflects the absence of close substitutes as a global store of value and anchor for asset and price stability.
The Fund’s overarching responsibility to promote the effective operation of the international monetary system requires that it seek solutions to the above problems.”
http://www.imf.org/external/np/pp/eng/2010/012210a.pdf
Now do ya Peeps understand who tees lunatics tink tey are meaning desedents wise an why all tis nonsence is takin place
@robbie robertson. thanks for the read.
or do I hafta spell it out all over again
@robbie robertson. have been a fan forever. thanks for the music. stick around.
The fund is basically monopolizing global liquidity for its favored members using the financial crisis and reserve imbalance as a reason. The new economic order will feature this favored liquidity as the major source of liquid movement of capital in global trade. The common man will not see access to the profit nor the management of global trade capital profit/investment. Keynesian economics will ensure the tight allocation of capital within the system of governance.
We have more to worry about than Goldman Sachs. Why did the press utilize the acronyms provided by O’Neill: piigs and bric? One wonders why terms provided by the Goldman Sachs’ head would go viral.
“The lady doth protest too much, methinks.”
http://www.enotes.com/shakespeare-quotes/lady-doth-protest-too-much-methinks
@robbie robertson. is the bear cafe and dinis still operating.
Always wondered what you meant by ‘market fundamentalism’.
Great show.
Max – “@##^$%*^*(^&)&*$&#& they money laundering,
But what Else ya got ”
lolololololol
Stacy I don’t know how you keep yer composure
Hic
@ Ronron
Yep, both are still up. Don’t come too much around tough, I stopped travelin, more in a sort of cocooning state nowadays.
got wound with the robbie appearance. great show max and stacy.
@robbie robertson. do you remember Lindel. (janis’s best friend) i dated her and wonder about her.
You can call me Jaime, Ronron. Did you meant Jenny Lindell?
@Jaime. i should have known better. oh well you brought back pleasant memories. why use robbies name?
Get ready for a real shocker!! this is like a divorced relationship therapist, an drunk alcoholic telling alcohol is bad (fill in your own jokes here) etc. etc. : Breaking news A BANKER IN A MORAL CRISIS OMFG! is there still hope for humanity? http://www.huffingtonpost.com/2010/04/13/the-fourteen-banker-anony_n_534820.html
(excellent episode; don’t expect a government worker to tell the (whole) truth)
*at least dean baker works in a think tank… working with the government… Well we all know what comes from most think tanks (iraq/afghanistan etc.)… Would you try to work with bernanke and other criminal cronies or would you indict them?…
What do you think these bastard bankers are doing in Afghanistan and Irak ? Like I said. It’s about G.O.D. Guns Oi and Drugsl. USA is a rogue state runned by bums, by tramps. USA is the real axis of Evil.
@Jaime. doh. it is you. cool. i called her lindel. i was 17. 58 now. small jewish girl. lotta fun. what about vinni, albert grossmans right hand man. is the barn still a studio. sorry for all the questions.
And Nato. What was the number last of opium trade in the world ? 500 billions. We get the picture about Citigroup. Has Citogroup offices in Bagdad and Kaboul ?
Guns for oil. Oil for guns. Drugs for oil. Drugs for guns. Guns for drugs. Oil for Drugs. Oil for guns. GOD loves you. In GOD we trust. You have to see the USA as big fat mafia murderous nazi don.
@ Marc Authier
Citibank has its Banks here we are close enough to Afganistan
http://www.thedailyshow.com/watch/tue-january-26-2010/elizabeth-warren
http://www.thedailyshow.com/watch/wed-april-15-2009/elizabeth-warren-pt–1
I know much more tan tis Chick and she’s suppose to be in charge of Elizabeth Warren, the chair of the Congressional Oversight Panel for the Trouble Assets Relief Program
She from freakin Harward; Professor and all
I spent 5,000 Dollars on my whole eductaion right from 1st grade to completing freakin Engineering ; And I know more tan her ROFL
lololololololol
Hic
Gotta love socialisim
http://www.timesonline.co.uk/tol/news/politics/article7095572.ece
Its money laundering to a new scale.
The financial crisis started in 2000, actually, but did not have severe, unrelenting effects until the BKX began its decline in 2007.
In any context you would be required to adjust for inflation since that time or for however long a period that you are calculating for. (the world has never seen such inflation in such a coordinated fashion)
http://dshort.com/charts/N225-SP500-deflation-series.html?N225-SP500-overlay-real-peaks
The CAUSE of the financial crisis was not extended low interest rates, but short term rates being higher than long term rates for more than a year both in year 2000 and in year 2007. So with the corporate yields being the inverse, this would be borrowing short and lending long.
The CAUSE of BUBBLE and subsequent rolling financial disaster, was financial legerdemain. The cause of the CRASH was a widening of credit spreads.
There is no salient difference between the former world financial crises in 1875, 1929, and 2007 and the long depressions afterward, (unless quantitative easing has some effect this time) since the financial instruments that are are the heart of the collapse are all hugely leveraged bets on interest rates, in a declining interest rate environment.
Policy rates are about double the treasury bill rate and are required to be lowered again. These are set by the market and not by policy wonks.
@Jaime. i lived in the piano house with andy cap. hahaha.
Keep up the cannonading . Get the Bastards!!
@Mother Earth
GM viruses offer hope of future where energy is unlimited
http://www.independent.co.uk/news/science/gm-viruses-offer-hope-of-future-where-energy-is-unlimited-1943008.html
7,500 due for alternate climate conference in Bolivia
http://www.independent.co.uk/environment/7500-due-for-alternate-climate-conference-in-bolivia-1943169.html
“A team of investigative journalists from the group ProPublica looked into the inside story of one company that made hundreds of millions of dollars for itself while worsening the financial crisis for the rest of us.” http://www.thisamericanlife.org/
ringo and the vatican. http://edition.cnn.com/2010/SHOWBIZ/04/12/ringo.starr.vatican.beatles/index.html?eref=edition
bananas anyone? http://www.washingtonsblog.com/2010/04/banana-republic-with-no-bananas.html
Is it slim pickin’s or something? Why is Keiser talking to Dean Baker who a total Gatekeeper. He works in DC. Anybody who lives or works in DC or Northern VA is too close to the problem to see the forrest for the trees. All the money in DC in Northern VA is Gov’t backed White Man’s welfare. You know, that good welfare nobody ever asks you about and you’re not emarrased to abuse.
Go look up the debates this ass-wipe Baker had with schiff. Baker is another one of these shit talking, play-both-sides-to-the-middle crooks selling a “tell all’ book after the fact.
When it comes to people telling the truth about finance, there is a very small crowd.
Indeed beware of false prophets declaring false profits. Synogoge of Satan.
Mad Max.
You are SO funny. And Stacy is the perfect, elegant foil.
Good show guys. I’ve followed Dean Baker intermittently over the past year or so and also see him as one of the good (read: honest) guys. On starting a movement to counter the banksters . . . it’s pretty hard to do so when prettymuch the totality of the corporate media has decided to cheerlead for Wall St.–either directly like CNBC or indirectly, by covering only stock market gains and spin about the “recovery.” We’ve got Dylan Ratigan, but aside from him, nobody else in the media is giving it to the people straight.
@Max and Stacy
Awesome show… I love the “truth-o-meter” but you are far too kind. I would use a curling iron
@Mep:
The origin and authority of voice is the underlying quality deemed originality. I find it odd that you forward a parrot as a symbol of either authority or origin: Dylan Rat-again speaks for this group:
http://www.group30.org/news.htm
http://www.facebook.com/note.php?note_id=200626788678
http://www.ritholtz.com/blog/2009/02/statement-of-paul-a-volcker-joint-economic-committee/
What’s next?
Vat.
http://washingtonindependent.com/82035/with-vat-tax-on-the-table-progressives-sound-alarm
http://online.wsj.com/article/SB10001424052702303720604575170320672253834.html?mod=WSJ_Opinion_AboveLEFTTop
Good rage! The second time! Sphincter illumination will free the world!
yup, up the arselight….
…down the Illumin-arse-te
The Deluxe Truth-O-Meter incorporates a subwoofer to really get a grip on that bassline.
Here is one for you Ben
http://www.youtube.com/watch?v=Ll3uipTO-4A (O Jays)
no fighting now Lloyd, here is one for you too
http://www.youtube.com/watch?v=6A2QkgMvTtM&feature=PlayList&p=3364B417A9D4C655&playnext_from=PL&index=5 (Temptations)
Max is fully righteous but others fail to see the magnitude of all the horror, the horror http://www.youtube.com/watch?v=xGTe1vF679U
Why Lloyd Blankfein would’nt hurt a fly… http://www.youtube.com/watch?v=-B0ad62tlAQ
Tax policy can prevent bubbles
No one has come to grips with the underlying cause of bubbles. No amount of regulation will cure an ill when the underlying causes are not addressed. It appears that tax policy is the only solution to keep bubbles from forming. Here’s the question I was asking back in 2008 that I still think is a good question that needs answering.
“How does inequality affect stability? Post a reply
12/25/2008 1:55:49 PM
I would like to see some comments from economists on how the inequality of wealth and income between the capital and consumption sectors affects economic stability. It seems to me that over the last several decades wealth and income has become concentrated in the capital sector while the consuming sector has required debt to sustain its consumption. When the world is awash in investment capital and investors can’t find productive places to invest, they drift toward riskier investments and look for ways to sustain their diminishing returns through the use of leverage and derivatives that expand the money supply and hide risk. This leads to bubbles of fictitious wealth of one kind or another as the price of assets are bid up artificially. These bubbles ultimately burst and the economy freezes up as investors and consumers lose trust in the system. I see no way to avoid such instability unless government is willing to step in and rebalance the wealth and income in the capital investment and consuming sectors through adjustments in the way these sectors are taxed. It doesn’t seem to make any sense to reduce taxes on capital gains when money is piling up in the capital sector, while the consuming sector is using debt to sustain its consumption. At such times it would seem more reasonable to increase capital gains taxes and reduce taxes on the middle class, which make up the largest portion of the consuming sector. Do current economic models account for this wealth distribution effect? The federal reserve is an institution of the capital sector and it has control of monetary policy. Does this lead to wealth and income accumulation in the capital sector at the expense of the consuming sector? GDP growth seems to be the main goal of this institution, while it is a poor measure of the well being of the greater society. It seems to me that government should have more control to prevent bubbles from developing.”
If the banks got bailed out, tax it back from them over the long haul and make the taxpayers whole. If there is too much capital chasing to few real investment opportunities, raise the capital gains tax and reduce consumption taxes. The government has a big role to play in maintaining economic stability. It shouldn’t be put in the hands of an organization like the Fed which is run by bankers.
Delighted I’m sure.
http://www.allbusiness.com/trade-development/economic-development/5121441-1.html
Stacy! Stacy! Lookin’ good, babe. Lookin’ good. Enough of lettin’ Max take all the sartorial spendor!
Baker: cool, calm, collected dude. Can’t shake him up. He’s Max-proof. But he don’t think the markets are rigged. Really! Defensive stance of the professional “economist”. Like, if the markets are all rigged.. we don’ need no steenkin’ economists, do we. Like, they more or less invented this fucking disaster.. them and the banker scum that own they asses, the ho’s.
haha. you watch. i predict dean baker being charged with improper future trading.
The markets are NOT rigged, also, war is peace and freedom is slavery.
Listen to CNBC or one of those FedGovGood Orwellian stations try to explain every single market movement with dubious bullshit: “Dow Stays Above 11,000 in Choppy Trade After Alcoa Earns; Intel on Deck”
Um, what real INVESTOR would buy sell buy sell buy sell buy sell all their holdings every time the fucking wind changes direction?
I think the stock market should be open one day per month. Fuck the speculators.
Wall Street is the New General Store.
Exactly what happen to Native Americans when the government pushed out west.
Towns would pop up and the Natives now beaten and living in squalor worked dirty, unsafe and menial jobs at very low wages – there were no laws to protect them, they often faced hard times collecting their wages or even fighting wage disputes. They were at the whim of the boss.
Usually in these small hamlets there was only one store in the town to buy food and sundries – no longer able to hunt, live off the land or practice their culture Natives were forced to buy food on credit in order to survive; low wages, high priced goods, fees for the credit. These conditions put the population into endless debt. Indentured-slavery.
The US government dragged it’s feet on these practices by private businesses for decades, economically destroying generations of Native Americans and their culture.
This is EXACTLY what is happening to the poor and middle class in America now.
Wall Street is the New General Store.
Burn it down!
He’s right Max, we need a popular organisation as a counterweight to Wall St.
Where would you find a leader for an organisation like that?
Hey Max, you need some regular cardiovascular exercise, it’s good for the nervous system. You need to stay healthy, bro.
Hey everyone, the Ron Paul “crackpots” are about to get Rand Paul into the generals, where he will kick ass, because then he can reveal his libertarian beliefs, run to the center, and win in a landslide! It’s a win for good old America! Yee ha!
Real market headlines would go like:
“Lloyd Blankfein tries to impress a hooker by showing her he can make the market move up and down with a keystroke!”
or
“CIA moves market in order to finance secret activities in South America!”
BTW, you can click my name to learn about Ron Paul’s son, who we’re about to put in the SENATE. Oh, and BTW, he’s a libertarian! We fooled everyone!! And he hates the Federal Reserve like a junkyard dog hates a rusty old radiator!
AHAHAHHAHA
Max is right. Finance is simple. That is the biggest secret of the International Banking elite wit its headquarter in The City of London.
Religion and the monetary system is almost the same phenomena based on believe on something that does just exist as an idea.
Churches and banks are big and beautiful houses full of nothing else but air and furnitures.
I’m just amazed it’s gotten as far as it has with nothing being done about it. Before it would have been a shady deal in a car park somewhere but the scale and arrogance if it is the only thing that’s been to big to fail. If this kinda of thing was happening in Australia everyone of these people would be swinging by their necks from a tree someplace, the plebdom would get SERIOUSLY vicious and the whole country would collapse in anarchy. I mean, if the reserve even consider increasing intrest rates by a fraction of a percent they TRIPLE the security detail for our politicians.
Market MANIPULATION!!!. Now why would anyone want to manipulate a market? Oh, thats right, there is money involved.
what Dean Baker concluded with Ralph Nader has been saying for years
.001% transaction fee on speculators would raise $500B – they could have bailed themselves out.
2008 – On the Passage of the Bailout Bill
http://www.youtube.com/watch#!v=y6duaeQLkYA
issues on the record
http://www.youtube.com/user/votenader08#grid/user/4B6F6E30F054CA82
how about an interview with the guy who’s been right all along?
“Truth-’Lluminator”
I want a truth meter! Will it be available on the Keiser Infomercial?
@Jesse @Casper – thanks, thanks and thanks!
@Jay Walker – um, somehow I don’t think it will be available through an informercial; at least not til Christmas . . .
Max and Stacy,
I have a theory that Alan Greenspan secretly sees himself as a real life Francisco D’Anconia for three reasons.
1. Ron Paul’s Greenspan story:
In the 1960s, I was studying and reading Austrian economics and I received the Objectivist newsletter that Ayn Rand put out. Alan Greenspan had a piece in the newsletter and it was a delightful article – it said all the things I believed in. One day, we had a personal meeting with Greenspan just to get our pictures taken and chat for a few minutes, and we knew that was coming up. So I dug out my original copy, and I took that with me, so when we were getting ready to get our picture, I flipped it open to his article and said, “Do you remember this?” and he said he did. Then I asked him to autograph it, so he got out his pen and he was signing it, and I said, “Do you want to write a disclaimer on this article?” He said, “No, I wouldn’t do that. I just read this recently and I fully support everything I wrote.”
2. Ayn Rand stood beside him at his 1974 swearing-in as Chair of the Council of Economic Advisers. Is that something she would really support?
3. Nathaniel Branden speaks of Greenspan, age 28, questioning his own existence. Do you think Lloyd Blankfein or Jamie Dimon questioned their existence when they were 28 or ever?
I think Alan Greenspan secretly enjoyed wrecking the whole financial system and even hastened it. But it is just a theory
@stacy, Christmas is fine. Maybe another stimulus will be done by then. Goldnut Sachs will have received their bonuses too. Perfect opportunity to buy one.
Good work Max. i always enjoy your show. You don’t buy into their stuff, correctly debunk the bs straight on with and a wonderful sense of humor and justifiable outrage.
Greenspan has a sense of humour in joining the 70% right, 30% wrong club. This was Mao’s idea of Stalin. This is also the official chinese evaluation of Mao (70% right, 30% wrong). Good company, there!
gallows humour ! LOVE THE SHOW.
Good show enjoyed the truthometre, also enjoyed the guest although you Max appeared a bit flustered, what was that about, mind you ye did pull yerself toghether by the end.
WTF dean bake says goldman doesnt manipulate. He either doesnt know jack about economics or he is biting his tongue to keep his job, Either way it annoys me. I wish max would have called him out more on it.