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Thursday, January 10

Recession in the US 'has arrived' -- AND -- Citigroup, Merrill in Talks for Foreign Capital -WSJ

I'm catching up on my e-mails this morning.

Peter sent me that first headline from the BBC on Tuesday: Recession in the US 'has arrived' -- The feared recession in the US economy has already arrived, according to a report from Merrill Lynch:

But NBER (National Bureau of Economic Research) president Martin Feldstein denied Merrill's claims.

"I think we're not in a recession now," he told CNBC.
(and I'm not NOT licking toads!! said martin...)

"But I think there is a serious risk that it could get worse and we could see an actual downturn," he added.

Merrill said that the current consensus view on Wall Street that there is a good chance of avoiding a recession is "in denial".

It also objected to the use of euphemistic terms for the state of the economy.

"To say that the backdrop is 'recession like' is akin to an obstetrician telling a woman that she is 'sort of pregnant'," the report said.

I just read the second headline when I got up:

Citigroup, Merrill in Talks for Foreign Capital -WSJ

Both are in discussions to receive more capital from investors, primarily foreign governments, The Wall Street Journal reported on Thursday.

Citigroup could get as much as $10 billion, likely all from foreign governments, while Merrill is expected to get $3 billion to $4 billion, much of it from a Middle Eastern government investment fund, the report said.


So Peter -- what do you think? I think we've got our warning here -- watch the mutual fund activity today in the "foreign investment vehicles". I haven't paid attention to anything for a while now, maybe all the activity is over by now -- probably -- you know how that works.

Well, socialist that I am, I think now it's safe to say:


"Capitalism’s contradictory impulses have begun bumping into each other. It’s happening in the ongoing national debate on immigration and it happened in the recent Dubai Ports World controversy. Profits remain the system’s lifeblood so the ruling class craves an immigrant guest worker program and the United Arab Emirates’ petrodollars but the rabid anti-immigrant and anti-Arab sentiment coursing through U.S. society blocked that path to greater riches. The situation is worsening though. No matter the potential backlash now, desperate crumbling financial pillars of the system like Citicorp and Morgan Stanley are happily accepting the sovereign wealth funds of Abu Dhabi, Singapore and China."


I agree with this comment on the article:

"I’m not enamored of an all embracing socialism. Business is essentially racketeering and small business should continue to have a right to steal. The best thing about socialisms is it cuts the supply line to the biggest crooks. You’ll never get rid of the little ones."

I do find my beliefs are very much in line with Naomi Klein's:

Lost Worlds: Is Another World Possible?

and Nicole over at C&L:FRIEDMAN. POLICIES. DO. NOT. WORK. PERIOD. His version of ‘free market economics’ STIFLES democracy. They create an oligarchy that is the opposite of democracy.

Oh SOMEbody STOP me!!

I really need to learn how to stay on track and focus on one idea at a time here. They all seem related though. Oh Peter, I gotta get ready for work -- BIG DAY TODAY!! The new girl starts -- Yeah! I'm back to Temping!!

I was intending to start another post addressed to our very own, private "MASTER OF ECONOMICS" DARK WRAITH, before his semester gets going. I really need one more FINAL lesson on Socialism vs. Capitalism.

Well anyway - - I don't know about y'all, but I have no problem taking care of my own garbage if ya know what I mean.


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