Deleveraging, Defrauding, and Deflation
Oil Prices continuing its free fall.......
Retailers are gearing up to offer massive discounts this weekend to lure last-minute shoppers and try to salvage a so-far disastrous holiday season.......
Marc Dreier had four dazzling homes on two coasts, drove an Aston Martin and sailed a 123-foot yacht. The law firm he owned displayed artwork worth at least $30 million. And he gave many of its 250 attorneys huge guaranteed compensation, no matter how much business they generated. His colleagues couldn't figure out how he afforded it all.
Mr. Dreier has since admitted to others that he sold bogus promissory notes, federal authorities say. They allege, in criminal and civil complaints and testimony in federal court in New York, that the Harvard-educated attorney bilked clients and investors of $380 million in a fraud that entailed impersonation of businessmen, faked documents and ruses staged at the hijacked conference rooms of unsuspecting companies.
The above from the WSJ. Imagine even the lawyers are cheating their clients??? And hedgefunds nonetheless. Say it isn't so. If you can't trust your money manager, nor you attorney.......who can you trust???? You may want to call your spouse:) How do we know anything we read anymore is trustworthy?
It appears the entire system is beginning to unraval. Demon insightfully pointed out that CA is about to run out of money. The auto companies are out of money. Consumers are out of money.
Cities are out of money. Businesses are out of money. How does a system function when most are running out of money?????
So let me get this right.....somehow crashing prices is inflationary???? To be fair, most people on caps characterize inflation as price inflation as commonly used. The issue is whether one can have monetary inflation and price deflation.......we may be about to learn you can........just becuase it has never happend before doesn't mean it can't happen now........which concludes lesson lll of Alstrynomics.