Wednesday, October 14, 2015

Anybody Else See a Pattern Here?

While the media are all focused on the Kabuki Theater of presidential politics slowly but surely the nations economy is progressively tipping over the edge. For the past two weeks almost every day has seen the announcement that some Wall Street multi-billion dollar hedge fund or exchage traded fund is either shutting down of halting operations and liquidating its remaining assets. In every case the cause has been inadaquate cash reserves to cover losses from the recent downturn in the market.

While everyone ignores these signs of fragility, volatility  and illiquidity in the market another shoe dropped today when the state of Illinois announced that it was suspending pension fund payments. The state comptroller stated thet November payments would not be made and December's would be "delayed", stating that "For all intents and purposes we are out of money." First it was lottery winners who were getting tbe hose from the Illinois state government, then the schools were going to be shut down early and now pensioners are getting a deep proctological exam because the Democrat controlled legislature in Springfield refuses to make serious and needed cuts to the state budget and the Republican governor refuses to sign any bubget that doesn't.

The outstanding question is of course who in their right minds would loan already bankrupt Illinois even more money?

So Obama's adopted home town rapidly descends into deadly tribal warfare and Hillary's entire home state slides into bankruptcy.  Thanks Democrats! Let's just have the fed print up another couple of trillion dollars and bail out everybody!!

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