海角大神

Strange creatures鈥�strange events鈥�strange thoughts鈥� Zombieland is getting weird.

We are expected to believe six impossible things before breakfast, and another half dozen before lunch.

鈥溾��the current rebound in the economy is a statistical mirage,鈥� writes David Rosenberg. It is 鈥渙rchestrated by record amounts of monetary and fiscal stimulus that are simply unsustainable and actually risk precipitating a very unstable financial and economic backdrop in coming years.鈥�

But investors and voters seem willing to believe anything. Why else would anyone lend the feds money鈥�or back their 2,400-page health care 鈥榬eform鈥� bill?

We鈥檙e expected to believe that the same feds who couldn鈥檛 see the subprime fastball coming鈥�

鈥�and who struck out completely when they started to get overleveraged curve balls coming their way (they thought derivatives made the system more stable!)鈥�

鈥�have now hit a home run, with the bases loaded.

Yes, we鈥檙e expected to believe that the bad news bears 鈥� Bernanke, Summers, Geithner et al 鈥� have now won the World Series鈥�by not only preventing a depression鈥�but putting the economy back on track for growth and prosperity.

And now the feds are going to improve the whole system of health care, too. And we鈥檙e expected to believe that the $1 trillion program will not cost us a cent鈥�and that the deficit will actually go down鈥�that insurance companies will charge less鈥�that doctors and nurses will work harder鈥�that cripples will walk鈥�that the blind will see鈥�and that even teenagers with acne will suddenly have peachy-perfect skin.

We鈥檙e also expected to believe the Greek鈥檚 debt problems have gone away (thanks to a deal cut with the Germans)鈥�and that America鈥檚 debt problems never even existed.

Why else would so many people lend the US so much money at such low interest rates?

Yes, dear reader, the crisis of 鈥�07-鈥�09 gave us a fright. But it鈥檚 all behind us now. How do we know? We just read the paper!

鈥淩ecord volume of junk bonds sold,鈥� says a news headline.

That鈥檚 pretty curious in itself. It means that investors think nothing can go wrong. If they thought something might go wrong, they wouldn鈥檛 want to buy junk bonds. 鈥機ause they鈥檙e the first to go south when trouble comes.

What are they thinking? What can go wrong? Everything鈥� Everyone should be battening down the hatches and locking up the firearms.

Instead, they鈥檙e opening up the liquor cabinet and putting on the music. Consumer spending is up for the 5th month in a row.

Hey wait a minute. Why are consumers spending? Unemployment is still up around 10% officially. Unofficially, it鈥檚 much higher.

So how is it possible for people without jobs to increase spending? Strange, don鈥檛 you think?

And what鈥檚 this?

鈥淧ersonal income drops across the country,鈥� reports The Wall Street Journal.

This is becoming curiouser and curiouser鈥�.

Unemployed people whose incomes are falling are nevertheless spending more money. What are they spending?

Tax refunds!

Yes, it鈥檚 refund season. And a lot of people are asking for refunds. People who lost their jobs, for example.

Yes, it鈥檚 the feds to the rescue again. They鈥檙e sending back money to the taxpayers who earned it. We have no quarrel with that. And it certainly gives some air to the folks who are trapped underwater in their sinking ships. But that oxygen was earmarked for other spending. And so now the feds have to borrow more.

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