What Could Possibly Go Wrong

Detlev Schlichter: Global economic policy now firmly in the hands of money cranks

"During the early honeymoon between ‘Abenomics’ and financial reality, the idea of printing yourself to prosperity is likely to have imitators, with the UK being a prime candidate. In terms of total indebtedness, the UK is the one industrialized country that can compete with Japan, meaning it is in the same supersized debt-pickle. Over at Threadneedle Street, the Deputy Governor of the Bank of England, Paul Tucker, openly fantasized about negative interest rates recently, outgoing Governor Mervyn King voted for more QE (overruled), and Governor-elect Mark Carney promises to be, well, – flexible. Bottom line: desperation is spreading. Watch this place!" Continue reading →

Continue ReadingDetlev Schlichter: Global economic policy now firmly in the hands of money cranks

Subprime ABS Securitizations Are Back As Absolute Worst Of The Credit Bubble Returns

"The $604 million issue from consumer lender Springleaf Financial, the former American General Finance, will bundle together about $662 million of loans secured by assets such as cars, boats, furniture and jewelry into ABS, according to a term sheet. Some loans have no collateral. Personal loans haven't been a part of the mainstream ABS market since securitizations from Conseco Finance Corp. in the late 1990s, according to Michael Dean, co-head of Fitch Ratings' ABS group. That market dried up as the recession hit and, under the weight of bad subprime loans, Conseco filed for bankruptcy in 2002." Continue reading →

Continue ReadingSubprime ABS Securitizations Are Back As Absolute Worst Of The Credit Bubble Returns

Home Prices in Washington, D.C. Hit Record High

"A lot of the money Fed chairman Ben Bernanke is printing is finding its way back to the crony government-private sector operatives in Washington D.C. The median price of a home in the District reached its highest point in history last month, according to the latest data from RealEstate Business Intelligence. D.C.’s median sale price soared to $460,000 from $405,000 in March 2012, an increase of 13.6 percent year over year." Continue reading →

Continue ReadingHome Prices in Washington, D.C. Hit Record High

Boston Dynamics’ Terminator-like ‘PETMAN’ robot tests chemical suits

"Defense contractor Boston Dynamics has new video of its Terminator-like 'PETMAN' robot standing, walking, posing and… wearing a chemical protection suit, for some reason. The project is funded in part by the Defense Department’s Chemical and Biological Defense program, CNet reported Monday. Despite the apparent usefulness in testing chemical suits in potentially hazardous conditions, it’s likely not the PETMAN’s only objective. All seeming motility aside, this thing is downright creepy to watch in action." Continue reading →

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Obama Administration Wants to Subsidize Banks to Make More Dodgy Loans

"The Obama Administration is proposing to once again put the economy at risk by subsidizing banks to give mortgages to people with poor credit. Even though we’re still dealing with the economic and fiscal damage caused by the last episode of government housing subsidies! Brings to mind the famous saying from George Santayana that, 'Those who cannot remember the past are condemned to repeat it.' But what’s especially amazing – and distressing – about this latest scheme is that 'the past' was only a couple of years ago." Continue reading →

Continue ReadingObama Administration Wants to Subsidize Banks to Make More Dodgy Loans

Economists Suggest The Federal Reserve Pump Money Directly Into Americans’ Bank Accounts

"Ben Bernanke himself famously argued years ago that a central bank should never run out of tools for fighting deflation and depression because, as a last resort, it could always drop cash out of helicopters. That would be fun to watch, obviously, but mailing checks would be a lot simpler. And even though it sounds a little insane, it becomes a more and more compelling idea the more you think about it." Continue reading →

Continue ReadingEconomists Suggest The Federal Reserve Pump Money Directly Into Americans’ Bank Accounts

Smart Drones

"IF you find the use of remotely piloted warrior drones troubling, imagine that the decision to kill a suspected enemy is not made by an operator in a distant control room, but by the machine itself. Imagine that an aerial robot studies the landscape below, recognizes hostile activity, calculates that there is minimal risk of collateral damage, and then, with no human in the loop, pulls the trigger. Welcome to the future of warfare. While Americans are debating the president’s power to order assassination by drone, powerful momentum — scientific, military and commercial — is propelling us toward the day when we cede the same lethal authority to software." Continue reading →

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Britain pushing to provide weapons to Syrian rebels

"Britain, apparently backed by a handful of European Union allies, is fighting to lift an EU arms embargo barring the supply of weapons to the Syrian rebel coalition battling President Bashar al-Assad. Britain and France had seen the March 1 deadline as an opportunity to respond to requests for weaponry by the opposition. But France appears to have cooled, leaving Britain facing opposition from Germany, Sweden and even the EU’s foreign affairs chief Catherine Ashton, a British baroness who represents London on the European Commission." Continue reading →

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Defense Secretary Panetta admits the Pentagon and Clinton supported arming Syrian rebels

"Defense Secretary Leon Panetta on Thursday admitted for the first time that the Pentagon had backed proposals to arm the Syrian opposition battling to oust President Bashar al-Assad. The idea was first floated by former secretary of state Hillary Clinton, who met privately with David Petraeus, then CIA chief, in the summer of 2012 as the fighting raged in Syria. They proposed vetting rebel groups and training fighters in a plan which they presented to the White House, according to the New York Times, citing administration officials." Continue reading →

Continue ReadingDefense Secretary Panetta admits the Pentagon and Clinton supported arming Syrian rebels