06/27/07
The name of this early Tool song came to mind today, because it summed up my reaction to the page-one story in the Wall Street Journal (sorry, it's behind their subscription wall) about how Wall Street got its fingers into the mortgage market, creating the subprime meltdown, the Bear Stearns debacle, etc.
It's good reading, but it breaks no new ground. All of this could have been reported months ago, probably years ago, and perhaps public awareness might have helped stave off the worst effects. But the worthless financial media doesn't bother reporting things like this until the excrement hits the cooling device. And of course, even this article doesn't get into the root cause — the Fed's ceaseless expansion of the money supply.
And to think I had qualms about Rupert Murdoch taking over the Wall Street Journal. Won't make a dime's bit of difference.
Dave Gonigam
Treading a fine line between contrarian thinking and conspiracy theory, Dave Gonigam explores the nexus of finance, politics, and the media for Agora Financial's 5 Minute Forecast. He joined kindred spirits at Agora Financial in 2007 after a 20-year career as an Emmy award-winning writer, producer, and manager in local TV newsrooms nationwide.
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I have posted a piece on my blog about monetary inflation vs price inflation in the UK. Can you direct me to similar sources of information in the US?
If the monetarists are correct, where has all this extra inflation gone, exactly? Can anyone supply a long-term graph of US M3/ UK M4 against CPI/RPI, house prices and compound interest on deposit accounts?
Thanks for the hit pieces on the WSJ. I too agree that the only change if Murdoch takes them over is the op/ed slant on China. Interesting that a bunch of gas bags that blow hot air about free markets want a clause in the sale of the company that their jobs are safe. Talk about rent seeking.
Keep up the good work.