Financing the War

It started with the shafting of the Chrysler and GM bondholders, moved onto "Pay Czars", "permitoriums" and continues apace with the Boeing/South Carolina sandbagging and now this. The kindest thing you can say about these are that they are undesirable injections of cronyism into the American capitalist system, but you would be sugar-coating to the point of getting it wrong. These are offensive maneuvers in an ongoing war on business (which was predicted along with its consequences).

I told you that American Business had buyer's remorse. CEO after CEO has essentially confirmed this. I told you capital would flee. I told you companies would hoard cash. I told you that hiring, if any, would be in temporary workers. And, the end result, I also told you, would be to get used to 10%+ unemployment. The only way out, the only way to restore economic health, i said, would be fight back and win. I said, Obama would not buckle and stand down. Victory is the only option. Finally, after long last, it seems that many others have come to this dire conclusion. Check out this stunning graph. These are heavy hitters playing to win - most all are making large one-way bets. The last time around these guys bet on the likely winning horse, but hedged bets. This time around there is very little hedging, the nature of the problem is too severe and the stakes are too high - American business and the US economy can't weather the prospect of Obama through 2016 - thus the shift is drastic. I told you that campaign fundraising would be very easy for pro-business candidates.