I am a “Daily Show” junkie. I also watch Cramer’s “Mad Money” every now and then. Cramer and Jon Stewart have been going at each for about a week now and it had to end with one or the other appearing on a show together. This happened last night. For such a blowhard, Cramer got his head handed to him by Stewart. I rather enjoyed the beating Cramer took – for a comedian, Stewart had some un-funny and very serious things to say about the game that our financial system has become.
March 14, 2009 at 3:13 pm
While I enjoy watching Cramer every night, one must remember the show is primarily entertainment. The financial networks exist to promote their advertisers financial and investment products. Who would expect them to warn about the credit bubble or coming Washington national debt collapse which will destroy much of the remaining private wealth in America today or what this will do to the dollar, the stock market, bonds, gold or the real estate market?
China is now worried about their dangerous over investment in US Treasury obligations. Washington ’s long-term choice is either repudiation or monetization. For monetization to be effective, the depreciation in the dollar would have to be substantial and this in turn would dramatically raise prices of imports for American consumers which would mean a tremendous drop in foreign imports. Debt monetization would cause more disruption to exporting nations than selective repudiation of Treasury debt.
The Campaign to Cancel the Washington National Debt By 12/22/2013 Constitutional Amendment is starting now in the U.S. See: http://www.facebook.com/group.php?gid=67594690498&ref=ts
Thanks,
Ron with 30 plus years in the investment business and banking industry.
March 14, 2009 at 10:49 pm
Are you actually seeking, through a constitutional amendment, cancellation or repudiation of contracts and representations made by the US that underlie the national debt? Why would anyone ever again rely on any debt instruments issued or backed by the US government? It’s just a basic question but you seem to have thought about this a lot and will likely have an answer.
March 15, 2009 at 10:35 am
I don’t see repudiation as a viable alternative. The budget and, by extension, the economy will need to be very carefully managed in order for us to even have a prayer of paying the debt down.
Mr. Obama ran on “change”. Let us all hope that he meant it. He’s got to stop letting the Hill write all of his budgetary legislation. Perhaps he let the omnibus bill through as a way to pick up enough leverage to get things moving down the road but, in so doing, he’s frittering away the confidence that most Americans seem to have in him.
March 16, 2009 at 11:06 am
“Don’t play poker with someone named Slim, don’t buy a Rolex from
an out of breath stranger, and don’t take financial advice from
someone who screams at you.”
George Will