Ideas of the Day: No Company is Too Small to Fail

Mish

Here's an interesting collection of ideas as expressed on Twitter today.

No Company is Too Small to Fail 

Pending Mortgage Applications Might Not Be What They Seem

About Half the US Population is Jobless

Silent Minority Accumulating Physical Gold

Simple Reason There Will Not Be a V-Shaped Recovery

The Fed CARES

Fed Especially Likes Automakers and Technology

Reflections on Fed Leverage

Muni Buying - Illinois is Special

Starbucks Bails on Facebook Ads

It Takes a While for Deaths to Show Up in Stats

No Escape for Gold Shorts 

For discussion of gold shorts, please see More Gold Hype: No Escape for Shorts

12 Ideas From 7 People 

  • Danielle DiMartino Booth
  • Jim Bianco
  • Lance Roberts
  • John Hussman
  • Gold Telegraph
  • Lisa Abramowicz
  • Me

Moral Hazard on Steroids

DiMartino Booth get the idea of the day award: No Company is Too Small to Fail. 

In context, she means, No Company is Too Small for the Fed to Bail.

There is no price discovery as a result. Instead, we have moral hazard on steroids.

Mish

Comments (18)
No. 1-8
William Janes
William Janes

When have you not been bullish on Gold?

Bam_Man
Bam_Man

The Fed has become a rogue institution and is now a clear and present danger to the vast majority of people in this country.

numike
numike

Oh Fiddley Dee everything is just sugar move on: Dow surges thanks to Boeing and strong home sales

RonJ
RonJ

Zero Hedge: "41% Of Business Closures On Yelp Have Permanently Closed As V-Shaped Recovery Implodes"

ZH mentioned just a while ago that Cirque Du Soleil filed for bankruptcy.

Tony Bennett
Tony Bennett

"DiMartino Booth get the idea of the day award: No Company is Too Small to Fail."

...

Hogwash.

Just another poor soul who believes the hype of omnipotent Federal Reserve. Federal Reserve a lot of bark and some bark. Got to run so just consider this.

Current balance sheet of Federal Reserve just north of $7 trillion (actually shrank past 2 weeks). Domestic stock market value ~ $35 trillion. Total debt all sectors US ~ $77 trillion. I'm a believer that FR balance sheet will easily balloon at least to $10 trillion to $15 trillion. But that is far cry from $110+ trillion needed to "buy it all". At SOME point losses will prevail. And holders of similar garbage will have the "uh oh" moment when they realize FR will not come to their rescue.

As Tim Geithner said last go re all the Treasury (and Federal Reserve) machinations were just "to foam the runway" for the crash landing.

FromBrussels
FromBrussels

What about Chesapeake, Hertz, JCPenney.....to name just a few rather big ones???

Webej
Webej

"Consumers must work in order to Produce first"

Seems like a non-brainer, until you realize half the population not working actually does not reduce the availability of production goods noticeably.

"They get paid for that work"

Well yes, but not in the sense that your work generates the means to survive ... a huge number of those that work are supplementing the avenues they resort to to put a roof over their heads and food on the table.


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