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NOTE: I was originally going to sequel last week’s political blog with a solution. This week’s financial meltdown has put that on hold.
This week an icon of rock music died of cancer. Richard Wright the keyboardist, singer and songwriter from the sixties group Pink Floyd, a musical group that created the incredible album “Dark Side of the Moon” that stood at #1 for over 15 years on the pop charts; an album that probably ranks as one the all-time works of that era that still today stays as relevant and politically strong as when it was released in 1974.
I bring this up not as a eulogy, but as an introduction to the nation’s and world’s financial near-collapse and the things we take for granted that someday we lose without the ability to “fix” or avoid.
The illusion of control is control for most and they are secure with it. We look to our governments to become mommy and daddy, to make the big bad boogie men go away. We do not have a clue as to how fragile economies are, much like our lives on this planet. We hand over control and trust politicians to guide us through life, even though politicians are the most untrustable creatures on the face of the earth. The divisiveness of modern politics is so emotional and cruel that their campaigns focus on fear to drive you-the cattle-to herd to where they want you to go. A cattle prod of fear and emotion is the best weapon ever devised as logic always takes a back seat to that ignorance and wrong-headed decisions made under the influence of fear.
We have allowed this “republic” to become far beyond the “military-industrial complex” of the Eisenhower age. We are now a quasi-Fascist/industry-socialist/forcibly religious prisoners of our own fear. The meltdown of the financial systems stems from the repeal of the Glass-Steagal Act with the Gramm-Leach-Bliley Act and the loosening and eliminating of regulation at a time when computer trading and incredible computer speed allowed derivatives and exotic financial instruments to seek and plunder pennies on dollars for millions per day.
It gets worse. The current fiasco is not just Freddie and Fannie; it is the massive amount of CDO’s or mortgage-backed securities that were a derivative invented by Goldman Saks whose CEO at the time was Hank Paulson. This is squarely what is causing the meltdown. It is the lack of being able to price these CDO’s that has caused the run on the investment banks that bought billions of dollars of them. It is the deregulation (again Greenspan) that allowed these financial instruments that were based on ‘home values never going down’ that is the root cause. Paul Volcker, the previous Fed Chairman warned of this deregulation at that time but no one listened. Those CDO’s are now illiquid and the ‘shorts’ have gone after those investment banks that hold these securities to make massive amounts of money while they bring these institutions down. I warned of this many months ago. This is not just about donkeys and elephants.
CDO’s should have never been allowed to be created. Remember Greenspan’s 1% interest rate meant investment banks needed more return on their money. Goldman’s CDO’s allowed the high returns that made them millions until the builders jacked up prices (my wife worked for one and they raised a house that cost 275,000 to 500,000 and then to 750,000 as the rates went lower) and then when FUBAR Greenspan made a speech to Congress (I heard it at with my own ears at the time) telling everyone to buy into a 3-Year ARM, then 6 months later began to raise rates, the obvious happened. People had bought too much house at too little interest. Speculative investors bought in to the ‘home values never going down’ myth and expected big dollars in flipping…….but I will tell you this much; I know of many families out in the street right now because they have lost jobs the same time as their mortgage rates doubled. It is a crisis, and it’s not about minorities, these are middle class heart of America people that are homeless, broke, or moving into apartments because they lost their house. You may not have sympathy for them, but for the grace of God there walks us all.
Mommy and Daddy are gone and we are left with who to blame. Look in the mirror. We let it happen, we allowed these greedy imaginative thieves to plunder us on the high seas of finance. Bailout? For who? For the banks, not you. That would be socialism. We are a nation of suffering a terminal emotional dysfunctional illusion. Rallying around a flag proclaiming to be the best at everything, to be God’s chosen country is the last gasp of holding on by our fingernails. This is far from over for the American Public. The ramifications will be long-lasting and damaging for ‘Main Street.’
There is hope, but we will probably be much too afraid to take the chances. If I could ‘short’ American attention span, I’d be a trillioniare…….Now you see how easy it can be done, if there was a market for it.
The sun will rise tomorrow, but the world will change with or without you. Control is an illusion we hold close …but as the storm hits…….
“I got mine Jack keep your hands off my stack……………………………but if you ask them for a rise it’s no surprise they’re giving none away, away, away, away”
In my recollection, there has never been such a slew of misinformation (more than likely due to the ease of accessibility to misinform by the internet) in a Presidential election than this one. I’ve must have sent out over 150 Snopes.com corrections of the same 2 items in less than 2 months. Smearing is at an all time high, now. And why is that? We have a black candidate, we have a religious female on the other side and really the other two don’t matter. Does that make sense? Yes it does, if you look at what America really is and not what “it could be.” Republicans have dominated the political halls for the majority of the last 200 years in both Congress and the Chief Executive posts. I have heard hysterics from people with ethnicities of Russian, European, Irish, English, and that are now, whether rightfully or not as I don’t agree with it, classified as Caucasian, in regards to a black president. (I love one particular man who in anger claims he’s Ukrainian not Russian and on top of that he is the biggest bigot and emailer of bogus information, and gets personal and nasty when he’s painted in a corner. The irony is he and his family may end up in a Manzanar-like prison if we get into a war with Russia.) I am trying to keep this blog non-partisan for a reason, but for the subject that it explores, it is difficult as there is only one black candidate and those who hate him will accuse me of one-way opinion and those who are for him will accuse me of not backing him. I can’t win so I don’t care. Here’s the issue- Issues are not the issue-fear of Democrats, fear of the world ending, fear of a black uprising is all I hear. I heard the same crap with Kerry, Gore, Clinton, Johnson, Kennedy, and every Democratic nominee there ever was. I’m tired of it but it is to be expected when you understand the roots of the good old US of A.
The Mayflower Pilgrims were religious outcasts from England. They were considered overzealous and “too religious” for England’s Protestant rulers. Imagine that-too zealous! Predominantly white settlers followed and formed present day New England, New York and adjacent areas.
The Dutch traders made slavery a lucrative business for the English, Spanish, and French pioneer settlers particularly of the South by purchasing prisoners of warring African tribes and selling them free labor for the cotton and tobacco fields. (The beginning of outsourcing for Europe) We fought a revolutionary war with England first helped by the French, and then 100 years later, the more devastating Civil War (or War Between the States) that to this day brands an imprint of discrimination that remains to this day in our Southern states, but not exclusively. That war’s main impetus was to end slavery and merge the states into a Union. Those roots run deep and as one knows, a paper being signed isn’t going to eradicate hate and disdain.
We are a country with a heritage of misfits, religious fanatics, psychotics, murderers, and our real founding of this country is based on mass genocide of the Native American. So what else would one expect with a heritage like that? Make no mistake; the majority of the emotion of this election is a black man becoming a leader of one of the most racist countries in the world. Now, there are those who say, “No I’m a Republican, I vote for conservative Republicans.” So then, why are you voting for a “Maverick” that wants to change the last eight years of conservatism at its finest? If the Republican candidate was black, do you really think they would win? I don’t. I think it would be a Democratic landslide if the ticket was lily white.
Obama anticipated this as he is a very smart human being, and registered over 11 million new voters, mostly young and unprejudiced. It may or may not be enough. Regardless, the “Great Divide” in this country is no longer the Rocky Mountains; it is the philosophical and racial differences that show the Civil War was never over. It goes on in the minds of those who have, and those who have not, and those who have forgotten where they’ve come from and point fingers and talk about “free markets” and induce fear veiled by attacks on those “Democrats” but really mean, “The Sheriff is a Nig…” to quote the movie “Blazing Saddles.” I’m tired of the shit flinging. Stick to the issues and leave the fantasy for MILF’s for Desperate Housewives. VP’s do practically nothing, so it’s supposed to be McCain vs Obama, the top of the ticket and if you have to precede everything you say with “I’ve always been honest” or “I am true patriot” then you’re lying according to the latest research on human nature so let’s get on with it and discuss issues.
Next Blog-I have a solution for all of this.