Kyle Bass: Zero Lower Bound=ZIRP

Absolutely brilliant stuff here from hedge fund guru Kyle Bass.   Very few people on Wall St tell the truth so you need to pay attention when CNBC gives these folks an opportunity to speak.

My Take:

Kyle uses simple math to explain how we are artificially financing this Ponzi scheme using zero interest rates.  None of this is sustainable but the robots on Wall St don’t seem to care.

And why would they?  They only hold stocks for 11 seconds at a time.  They could care less what happens next year, next month, or even tomorrow.   They are laughing all the way to the bank by the following day.   

I am amazed this charade has lasted this long.  So far, Ben Bernanke has been able to hide our ridiculous balance sheet by purchasing his own treasuries in order to finance the nations expenditures.

The absurdity of such thinking is really beyond belief when you think about it logically.  

Think about it:  How can a nation finance itself?  Can you finance yourself when you are 30k in credit card debt?  For a time the answer surprisingly is Yes!  How?  By getting another credit card and taking on more debt.

Eventually we all know how this plays out for us when we borrow Peter to pay Paul:  BANKRUPTCY anyone?

Why is it any different for our government?  The answer is it’s not.  They can however delay the day of reckoning for a much longer period of time.   This is what we are witnessing today. 

Don’t kid yourself though folks.  Our day of reckoning is coming.  It’s not “different this time”.  They tried to tell us that during the tech and housing booms and how did that all work out?

We were much smarter before we started blowing bubbles in the mid nineties:

Ben would have been laughed out of the room 20 years ago if he had tried to offer up this proposal as a solution to the nation’s fiscal crisis.  We laughed and criticized Japan for attempting the same thing back then.

Ben’s lucky he wasn’t a central banker back then because he could have every well ended up in prison.  We threw bankers in jail back then following the housing bubble in the late ’80′s/Early 1990′s.

Today we bail them out instead of prosecuting them.  When the economy turned around following our massive bailouts, we then allowed the same group of crooks to pay themselves billions of dollars in bonuses instead of forcing them to pay back the losses that caused the crisis in the first place.  

Why we ever allowed any of this to happen is beyond me.  I never thought this nation would ever become so blinded by greed and money.  Boy was I wrong.  Money talks in America. 

Today we say “fuck off” to capitalism instead of embracing it.  The rich are allowed to lie, cheat, and steal themselves into prosperity at the expense of the taxpayers.

All I can say is one day the bankers will get theirs.  Karma is a bitch and it ALWAYS comes back and bites you in the behind.

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