Wednesday, May 13, 2009

Financial Views from the Blogosphere

Main Stream Media is clearly in decline, newspapers failing, people becoming inured to the endless drone of cheerleading CNBC.

Like many others, I have turned to an eclectic group of blogs for a clearer financial view of the world (in addition to keeping an eye on some MSM). There are of course thousands, but I’ve seemed to settle on a few that continue to provide thoughtful, frequently contrarian views. Some are also good aggregators of links to other relevant sites or information, so further views are no further than one click away. I haven’t listed these on the face page of my blog, but I note them here:

I’ve written about my “blogger friend,” Mark, over at Fund My Mutual Fund before. One of his most recent postings is particularly interesting as it addresses my greatest concern about this recovery: the notion that we can borrow ourselves into prosperity while employment continues to wither on the vine. After all, the present financial crisis began with excessive leverage and that was in a time when the unemployment rate was nowhere near the “reported” 8.9% (and still growing).

He describes a government sanctioned scheme to “pull forward” new home buyers, those with little ability to provide a down payment and with low FICO scores. I know how this works in some corporations when towards the end of the year revenue can be accelerated and expenses can be deferred with “hope” that the following year it can be reversed. And it does seem that “hope” is the future antidote for the latest government sponsored scheme as it is hard to see a rational plan. So, Mark, you had me with your first sentence: “I've become numb a long time ago ... but seeing these programs and ‘solutions’ one after the other is simply.... I don't have words.”