Kudlow's Lament: "Where Are The Animal Spirits?" in [Market-Ticker]

Posted 2012-07-05 20:12
by Karl Denninger
in Editorial

Kudlow's Lament: "Where Are The Animal Spirits?"

Larry, you damn well ought to know better by now.

This evening Kudlow lamented the lack of "animal spirits" and asked about the 80s and 90s where we had "dynamic" economic developments, asking why we had none today.

It's not that hard to figure out if you read any of the economic news.

Yes, "crushing regulations" are part of it. But only part.

See, it's not the regulations per-se that are the problem. If everyone in the economy has to live under the same regulatory burdens, then the price (to everyone) and the disadvantages (to everyone) are the same.

No, it's much simpler, really.

It is that we have refused to stop the looting and start prosecuting.

Just look at the last few years:

LIBOR being manipulated by banks. Some people won, others lost from this. But the banks were winners -- and "who cares" who the losers were? Who's gone to jail for that? Nobody.
Countrywide's influence peddling, which we knew about years ago, now finally is good for a report. So what? Mozilo didn't get charged and he didn't even pay (much of) his own fine! Who got screwed? Everyone else; the banksters were able to blow a huge housing bubble, which then collapsed, and all those businesses that were on the wrong end of it got crushed -- in both directions.
Jefferson County, Alabama. I know I bang on that drum a lot, but I should bang on it more than I do. Why? Because thousands upon thousands of businesses, large and small, got butt*****d and still are being abused today as a consequence. How, you ask? Simple -- the county residents' sewer bills quadrupled. Where do you think that money comes from? It comes straight out of the butt of the businesses in the area when the local consumer can no longer spend the money in their stores!
The medical industry's practice of differential billing and cross-border restrictions (that basically force America to pay for the development of every new drug and device) is just as bad if not worse. This has driven cost increases of roughly 10% and often more annually for the last 30 years. How can you be "optimistic" about the economic future for your company when your health care expenses are set to double every 7 years? You've already seen four such doublings since the early 1980s -- how many more can you absorb before your business goes out of business?

There are dozens -- literally -- of additional examples from just the last few years.

In the end what this all comes down is that the government has refused to STOP THE LOOTING AND START PROSECUTING, and until that happens there is no reason on God's Green Earth why any CEO or CFO should be "optimistic" about the future -- unless he's running one of the companies that is getting away with the looting, of course.

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User Info	Kudlow's Lament: "Where Are The Animal Spirits?" in forum [Market-Ticker]
Mo Posts: 12158 Incept: 2007-06-26 Pa.	Not to mention the only age group doing ok is over 65. ---------- Welcome to Pottersville 2012-07-05 20:17:17 Permalink
Rd Posts: 470 Incept: 2008-02-27 Long Island, NY	Kudlow should know that his "80s and 90s of "dynamic" economic" were on borrowed money - unfortunately it's time to pay for all those years of waste, fraud and miss-allocation of capital. 2012-07-05 20:18:37 Permalink
Dashingdwl Posts: 9760 Incept: 2007-06-26 los angeles	Yep, corruption AND the fact that borrowed money doesn't provide the economic stimulus it used to. ---------- When you are hard and disciplined, you can be principled. People fear you because they have no leverage against you. It's the truest form of Liberty. 2012-07-05 20:21:44 Permalink
Drb Posts: 195 Incept: 2011-01-02 TX	May be I am wrong on this, but it seems that these days it is much more profitable for a large business to lobby government than to invest money in R&D and come up with new products. Lobbying is simple - pay $ to politicians and receive payoff (gov pays for your drugs and gives them to population, for example). R&D on the other hand is unpredictable, may result in losses and requires actual work. 2012-07-05 20:24:41 Permalink
Randy123 Posts: 5785 Incept: 2008-09-24 Earth Online	C'mon Larry, corn is up 30% in the last few weeks! You mean you can't eat animal spirits? ---------- China is the Enemy. Wake Up. New Normal. Same As The Old Awful. 2012-07-05 20:26:40 Permalink
Ocdan Posts: 42 Incept: 2011-10-12 Orange County, Ca	Who is this Kudlow of which you all speak? Oh yeah, now I remember. They guys who spouts off about "free market" capitalism. UNLESS OF COURSE, HE THINKS A BAILOUT IS NEEDED!!!! OR SOME SUCH STIMULUS. TALK ABOUT A FREAKIN' HYPOCRITE!!!!! He is prime example 1A of hypocrisy. KD, I appreciate that you are the watchdog, but I gave up on Kntblow years ago. The lying, pandering, cheating, outright cheerleading did me in. This guy is just hotair that too many listen to! Thank you, KD, for watching. I just can't anymore. 2012-07-05 20:39:07 Permalink*
Mayorquimby Posts: 13909 Incept: 2008-09-18 The Archaic Past	Oh screw you Larry. If you wanna go lever up, by all means... ---------- They who wish to hurt you, work within the law. - Morrissey Gold is theft. 2012-07-05 20:50:04 Permalink
Tesla Posts: 15541 Incept: 2008-04-03 State of Disbelief	Gotta disagree on the regulatory aspect. When you have to hire a person or service to remain in compliance with every stupid tax change, zoning regulation, township ordnance, regulatory agency bull***, possibility of being sued by anyone if they even think you've broken some obscure law, etc etc, you have little time to conduct real business. Anyone in small business today is one lawsuit or adverse regulatory ruling away from bankruptcy. ---------- "Even a dog knows the difference between being stumbled over and being kicked." -Justice Oliver Wendell Holmes "Neither the wisest Constitution nor the wisest laws will secure the liberty and happiness of a people whose manners are universally corrupt." -Samuel Adams 2012-07-05 21:03:27 Permalink*
Andysvw Posts: 1738 Incept: 2010-06-26 Tujunga Ca Online	Judges are the key. This must be said. Judges are as responsible as any other group. How our courts are run is how our country is run. Either we get equal justice or none at all. If its not equal its not really justice. What ever excuse anyone has for any other choice is self serving. STOP THE LOOTING BY PROSECUTING !!! Because that is the only way. You are not gonna get them to stop by asking then start lockin them up. No they will only stop when they are actually getting arrested. Not a minute before.FACT! 2012-07-05 21:05:11 Permalink
Etz Posts: 13890 Incept: 2007-06-26 LA	***** promoter of FRAUD now wonders why everyone else took their ball and went home. ** him and his ilk. ---------- Legal chicanery and beneficent darkness are the banker's stoutest allies - F.Pecora. 2012-07-05 21:13:51 Permalink
Goforbroke Posts: 5346 Incept: 2007-11-30 Just call me 'Comrade'	Quote: corn is up 30% in the last few weeks! And looking around me, with virtually zero yield for the 2012 season (at least here in Ohio), it's going to go up a lot more. And livestock, too. ---------- We have met the enemy and it is us. -- Pogo 2012-07-05 21:27:53 Permalink
Genesis Posts: 130746 Incept: 2007-06-26	Yep. In my ~5,000 miles across the nation the last few weeks the corn looks like ***. "Knee high by the 4th of July" eh? Nope. ---------- I don't care if it makes sense -- only if it makes money. -- Me* Bank (n): See scam, fraud and theft. *Eat a bankster -- they're low-carb.* *What part of "shall not be infringed" was unclear?* 2012-07-05 21:28:39 Permalink
Randy123 Posts: 5785 Incept: 2008-09-24 Earth Online	Good times ahead, goforbroke...unless you like to eat. ---------- China is the Enemy. Wake Up. New Normal. Same As The Old Awful. 2012-07-05 21:29:05 Permalink
Dashingdwl Posts: 9760 Incept: 2007-06-26 los angeles	Kudlow gets his animal spirits from cocaine. ---------- When you are hard and disciplined, you can be principled. People fear you because they have no leverage against you. It's the truest form of Liberty. 2012-07-05 21:36:54 Permalink
Jstanley01 Posts: 8182 Incept: 2008-07-30 San Antonio, Texas	---------- You can't cheat an honest man. ~P.T. Barnum 2012-07-05 21:42:53 Permalink
Infidel Posts: 5463 Incept: 2007-08-27 between here and there	Animal Spirits are alive and well, Government sponsored wolf packs are running wild and devouring everything in their path and **** you Larry you coke blowing pinkie ring wearing knob gobbler. ---------- "DON'T BELIEVE THEM, DON'T FEAR THEM, DON'T ASK ANYTHING OF THEM." -ALEXANDER SOLZHENITSYN. 2012-07-05 21:43:25 Permalink
Xqqme Posts: 626 Incept: 2009-01-09 Ohio	There is no reward left in responding to 'Animal Spirits'. You're gonna get eaten alive! Do the math. 2012-07-05 21:49:03 Permalink
Noodleman Posts: 2391 Incept: 2008-11-01	If I recall correctly Free-Market Larry seems to love government interference when bailouts are on the table but deplores any vigilant regulation that would keep the bankster wolves honest. Just another cable mouthpiece for the oligarchs. Another fair-weathered capitalist who makes up the rules as he goes along. I stopped watching his show a year ago. Afterwards I always felt compelled to take half-hour showers to wash off the slime. ---------- "Ammunition beats persuasion when you are looking for freedom." Will Rogers, 4 Nov 1879 - 15 Aug 1935 2012-07-05 22:06:07 Permalink
Trades50 Posts: 4215 Incept: 2007-10-30 Land of Tax and Spend	The animal spirits have been replaced by program trading. ---------- When the people fear the government, there is tyranny. When the government fears the people, there is liberty. - Thomas Jefferson 2012-07-05 22:12:32 Permalink
Bertdilbert Posts: 2661 Incept: 2008-12-22 CA	Quote: Because thousands upon thousands of businesses, large and small, got butt****d and still are being abused today as a consequence. How, you ask? Simple -- the county residents' sewer bills quadrupled. Where do you think that money comes from? It comes straight out of the butt of the businesses in the area when the local consumer can no longer spend the money in their stores! Ah Karl, now we are getting somewhere! What do you think happens when a bank comes into a community and makes loans and raised the allowable debt to income ratios? That money leaves the area and the local businesses get starved! Different practice, same outcome. There is only so much pie and if the bankers take too big of a bite, it can only come from the pockets of local businesses. This is why I said before, raising the debt to income ratios was the same as having a sniper come into your community and killing your customers. ---------- Dear Euroland: Relax, Germany has a plan for your money! Political Capital Defined: We are out of money but will tax our citizens for whatever it takes to "SAVE" the Euro. 2012-07-05 22:13:21 Permalink*
Blurtman Posts: 563 Incept: 2009-01-24 Banned	Kudlow is an entertainer. ---------- I have a reading comprehension problem and the owner banned me for repeatedly displaying it after being warned. 2012-07-05 22:23:15 Permalink
Bertdilbert Posts: 2661 Incept: 2008-12-22 CA	Yeah my buddy is a farmer and he said that this year he had the earliest budding of ears on his corn but now no rain and when he mowed his acreages of back yard last week it was a dust cloud. So get your Doritos, cereal, pop corn whatever now and a deep freeze cause you probably don't want to see meat prices later either. ---------- Dear Euroland: Relax, Germany has a plan for your money! Political Capital Defined: We are out of money but will tax our citizens for whatever it takes to "SAVE" the Euro. 2012-07-05 22:24:13 Permalink
Christiangustafson Posts: 4140 Incept: 2007-06-27 Helping Hand Acceptance Corporation Banned	We all know why Larry misses the 80s. Eight ball! ---------- It is therefore, on opinion only that government is founded... -- Hume 2012-07-05 22:30:49 Permalink
Trades50 Posts: 4215 Incept: 2007-10-30 Land of Tax and Spend	Quote: This evening Kudlow lamented the lack of "animal spirits" and asked about the 80s and 90s Larry Kudlow misses cocaine? http://gawker.com/5469601/larry-kudlow-c.... Larry Kudlow, Cokehead A 1995 New York Magazine story goes deep into Kudlow's history of substance abuse. He was addicted to cocaine for much of the 1980s and 90s, when he was a successful banker and economist and pundit. ---------- When the people fear the government, there is tyranny. When the government fears the people, there is liberty. - Thomas Jefferson 2012-07-05 23:13:41 Permalink

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