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To: mishedlo who wrote (111709)	5/18/2010 6:23:17 AM
From: Dan3	13 Recommendations of 115636

Re: But only idiots were on the wrong side of those CDS bets. They can blame themselves more than they can blame Goldman. GS was presenting itself as an experienced professional advisor. Their behavior was like that of a doctor who performed an expensive surgery for early signs of ricketts instead of telling you to take some vitamin C. Your not supposed to have to practice "buyer beware" when asking what treatment your doctor suggests. GS (and Morgan Stanley, and Citi) were pushing dangerous, unnecessary financial "surgeries" on clients and some of those clients experienced financial death.

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To: John Metcalf who wrote (111750)	5/18/2010 7:13:35 AM
From: suanny	3 Recommendations of 115636

Many people,who believe they will maintain their standard of living regardless of what happens to unions,because their skill set has true value and work hard and earn the compensation they get.Unless you are a slave master,the only thing standing between you and slavery is union labor.I believe this to be the case no matter what level of education you posses or position you hold.Unless you have a unique skill set which is needed,or some other way able to hold a gun to the head of whoever has the power,slavery is inevitable.I believe we are going to see evidence this before we ever see added purchasing power to the dollar resulting from the deflation that Mish has correctly predicted.

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To: Lazarus who wrote (111718)	5/18/2010 7:14:41 AM
From: Haim R. Branisteanu	of 115636

Falling euro is a luxury Europe can afford - (but Obama can not - his party control of the congress in the coming election hinges on new jobs - low EUR strong USD = less jobs in the US) By Paul Betts Published: May 17 2010 19:40 \| Last updated: May 17 2010 19:40 The euro is probably still overvalued against the US dollar. For most eurozone exporters the problem is not so much how much lower the euro will go but the risk it could climb back from its current level of $1.23 to $1.30 or more. The Club Med debt crisis and its collateral impact on the European currency has sent equity markets spinning not only in Europe but across the Atlantic, in emerging Asian economies and Japan. There are obvious reasons for this. For the Europeans, a weaker currency may help exporters of goods and services, but it is also a sign of a weak economy. For those attached to the dollar – as well as Japan for that matter – a rising dollar and a strong yen makes their own exporting champions less competitive. On balance, there are more positives than negatives for corporate Europe and its debt-laden governments from a sliding currency. In turn, there are more negatives for its dollar and yen competitors. In the case of governments, the Organisation for Economic Co-operation and Development argues that a 10 per cent fall in the euro translates to 1 per cent additional growth for Europe over a 12-month period – at a relatively modest cost of a little more inflation of about 0.5 per cent to 1 per cent. To achieve parity in the purchasing power of Europeans and their US counterparts, the euro needs to trade at about $1.10, not only according to the OECD but also to the IMF and Eurostat. A lower currency would also help bring down European government debt ratios. Some would argue it could do so more quickly than the implementation of the various austerity packages European governments are planning to reduce their structural deficits. ft.com

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To: NOW who wrote (111745)	5/18/2010 7:31:04 AM
From: Little Joe	of 115636

This is what you wrote: "think you got that backwards: Our financial industry has been corrupted by the mismanagement of our money by the government" I think that the unintended consequence of the various injections of money into the economy, largely by Greenspan (Although current Fed Policy does not seem to have changed)was to create Bad Money, which in turn created large scale misallocation of resource and created a situation where instead of money being invested productively it was invested in non productive get rich quick schemes. The erosion of Moral Hazard by government policies such as government loan guarantees exacerbated the problem tremendously. lj

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