06 September 2013

They Be Preverts

Them preverts are taking over the economy. In today's headlines:
09:01 am : [BRIEFING.COM] S&P futures vs fair value: +8.50. Nasdaq futures vs fair value: +13.70. The S&P 500 futures hover near their highs with a gain of 0.6%. Futures jumped to their best levels of pre-market action after participants viewed the disappointing August nonfarm payrolls report as not strong enough to support lowering the pace of asset purchases in the immediate-term.

I wonder how the quants and policy wonks will model such perversion! Welfare queens of Wall Street just can't get by on one house in the Hamptons (yes, the real estate market out on The Island is booming), so they'll pout if Uncle Sugar doesn't keep sending them monthly assistance checks. Today isn't the first time such a headline has appeared, either. Been happening for months. The problem with giving money to those who just turn it over to cheapen their current indebtedness (you can check recent missives) is that the macro effects are de minimis. That was fine with Dubya, since that serves his overt constituency. Not so much for Obambi, since he's been trying desperately to finesse the situation. It will all end badly.

I wonder what Simon Johnson has to say?

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