Friday, March 29, 2013

Out of sight and out of mind…the pretense of WINNING

How interesting it is that what we don’t see, don’t hear and are not reminded of seems to not matter. Fukushima, Libya, Egypt, Iraq, Syria, FED balance sheet (hedge fund), Greece, Ireland, Portugal, Belgium, Luxembourg, Slovenia, Hungary, Bolivia, Citibank, JP Morgan, Goldman Sachs, Central Banks, IMF, Water, Plastic, Obesity, Unemployment…

That’s a list for sure, but one that politicians and bureaucrats have attempted with serious conviction to obfuscate. We hear nothing really after spending 7 trillion in IRAQ and leaving the country in a bigger state of upheaval than before we started. We hear nothing about Libya, so, yes - “it must be fine”. We hear nothing about Egypt, so there is a beautiful blossoming American approved democracy budding there and the Arab Spring is yielding flowers and fruits for everyone. Fukushima’s half-life is over 300,000 years, yet its now safe to eat fish from the oceans, move back to the provinces and play on the streets after just a few years. JP Morgan, though recently in the news, is now all fine just because we made certain that we nipped their indiscretions in the bud and talked them down in a public hearing - now its back to business as usual for regulators and JPM - faulty accounting, books and marks and all. Nothing to worry about there.

The FED is the only asset buyer in history that can buy Hotel Debt, Mortgages, US bonds and other bonds (and most likely Equities in their unnamed and unmarked accounts) and NEVER lose money…though they are clearly teaching JPM required mismarking and book making skills…but since it seems like it essentially adds up - why even think about it - the FED will hold till maturity even if that means S&P500 shares bought at 1560 take 40 years to mature - skipping over any price drops…Citibank, Goldman Sachs (among others) can now pay dividends and do share buybacks…nothing to worry about because everything has to be fine for them to be allowed to do such a thing. Greece, where’s that? Scuttlebut has it that, as arranged by Angela Merkel and EU, Greece was taken over by Cyprus…Greece is now just fine and Cyprus will be fine too if we all can only stop thinking about it for a little while. Just get the yields down on bonds from Italy, Greece, Ireland, Portugal, Spain and no one will be able to even find those countries on a map. Unemployment, dropping like a rock thanks to the FED mandate to lower the size of the national workforce rather than to increase the number of jobs. Nothing to worry about - not even worth a newspaper mention. Libya, was a much better place to live apparently than nearly any European country and probably the US too…however, now thanks to our NATO (I mean American) little intervention we need’nt worry about it - everything is just fine…realize that decending into chaos is no issue unless it makes the news…we did our job spending billions to bring the relative instability and calm there and call it stabilization, democracy and order. Capitalism and Freemarkets why do we have to worry about those if intervention and Central Banking work just fine to replace individuals and markets.

Right now the headlines, political rhetoric are absent the real issues and the realities are absent the politicians, news or awareness. Everything is FINE…the S&P 500 is 1570! and its Easter!
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