originally posted 2008-07-05 12:04:17 -0500. Bumped by Carol. Didn't want to loose this one just yet. A lively and informative discussion on the meltdown, with no bottom in sight as far as I can see. Kudos Cho for the post.
I have been reading Bad Money, the latest book by Kevin Phillips (Phillips, Kevin. Bad Money: Reckless Finance, Failed Politics, and the Global Crisis of American Capitalism. New York, New York: Viking Press, 2008 ISBN 978-0-670-01907-6).
More about the entire book later, specifically about the Government's Plunge Protection Team (or more formally the President's Working Group) and how they rigged the casinos during the Savings and Loan bailout, the 1987 crash, and most recently the subprime August 2007 meltdown. For now, I want to share some quick notes about nine key pages.
The pages occur in “Chapter 3. Bullnomics: Its Favoritism and Fictions” -- the Bingo! Chapter outlining for me the whys and the hows of the deliberate ruining of the tools used to measure of our economic health. The nine pages in question (80 -89) are in the section subtitled “The Consumer Price Index and Statistical Debasement.”
As I have summarized elsewhere, it boils down to simply ….
If you can’t shave the silver coin, put your thumb on the scale.