Reading between the lines…

By Team

Word is that there is a pretty good chance that TPTB will be able to keep the wheels on through November but that the underlying ‘structural defects’ that lead to the ‘structural dysfunctions’ of 2007/2008 timeframe have become more worrisome. 

Case in point. Did you know that a ‘very high percentage’ of the home sales over the past year have been done with the buyer ‘using’ the tax credit as a down payment. 

Flippers are a tenacious lot. 

Are you aware of the ARM resets uptick in 2010? Cash for Crack Houses … don’t laugh … it juiced car sales just in time but lets see the crater in September-December. And if the government demos the house, it eliminates the back log. The Toll Bros will be rollin’ in the dough. 

Of course, Krugman and various other neo-Keynesian wonks see the end game … their calls for a ‘second, bigger stimulus’ will become more frenetic and increasingly loud. When you have but one tool in the tool box … you need something to blame when it fails. 

Did you know that under classical Keynesian theory, the economic condition known as ‘stagflation‘ (simultaneous high unemployment and high inflation is impossible, not improbable but impossible). You should read some of the mental gyrations that classical Keynesians go through to explain that one … well they can’t. So neo-Keynesian theory was born. 

Hee, hee, hee. 

The Paradox of Thrift my aunt fanny! 

If you can’t keep the promise, change the promise … remember that and the fact that 2007/2008 was not an event but the beginning of an era. 

And before I lay my head down to sleep, 
I have many miles to tread and promises to keep. 

Oh, before I forget, appearances not withstanding, I am not disgusted with the state of affairs. Mildly amused is more like it. :-) 

Off budgeteering, be careful out there, their are accountants on the loose!