January 22 2009
Inasmuch as I don't have TV and have never actually registered to vote I did hear we have a new president ...
I am reminded of the saying "Don't Pray for the fall of a dictator the next one could be worse" in this case, I think one would have to really have some extraordinary skills to top the DAMAGE and destruction this last president was party to inflicting on this country.
Below are, just off the top of my head, issues that literally seem unfixable over the next several decades or maybe not ever:
There are close to 80 million "Baby-boomers" 365 of which turn 62 every hour. Wall street has destroyed their retirement money at the same time that they even IF they hadn't lost on average 1/2 the money over last few months that took them decades to save/earn for those who even tried (we have a -0- saving rate I read somewhere, so I guess these people were just gonna refi and keep buying whatever they want as the Real Estate would go up forever ?) the -0- interest rate environment would prohibit them from actually retiring any any fashion promised by their "Wall street" advisors who never really figured into their pretty little charts and fake graphs them earning -0- % returns on that nest egg they were to live out their days on when they quit working which now of course cant, but most besides being too old to work may have no choice as their jobs are eliminated - - how many "greeters" does Wall-mart need?
There were somewheres in the neighborhood of 3,000,000 jobs lost last year and if you were to add up ALL the unnecessary jobs that are being created/maintained thru new "bailouts" with tax dollars we can probably never in a 100 or 200 or 300 years pay back in the banking and manufacturing sectors plus the millions of other jobs that will end up disappearing this year not including IF the right thing were done and we were to let the excesses of ALL the leverage in the system work themselves out correctly rather than rewarding fraud and corruption it will turn out to be a VERY unemployed country...
Take General Motors is it really a necessity? they will simply burn thru whatever monies that is given to them anyways like a drug addict goes thru drugs wont they? .... in 2005 they thought a good business model was to borrow tons of money at 8+% and then lend it out at ZERO % and then lose money on everything that they sold - - HOW SMART/DUMB DOES A PERSON HAVE TO BE TO RECOGNIZE THAT THIS ISN'T A VERY GOOD BUSINESS MODEL?
NOW we want to "give" them more money to blow ? why? or what about the $1.5 billion of the banks bail out money that went to bonuses for the executives because they didn't want to lose the "good people"?
WOW !!! If those were the "good people" that ran those banks into the ground (I think I saw Citigroup in the $2 range yesterday = nice play there Warren! I miss the cheerleading from October! he seems quiet now that (though he damned them for decades!) is a full-fledged derivative player now I guess? that GE position looking pretty good too there Warren! AND the losing around 1/2 the money in a few months also makes he seem extra "oracale-ly"!!!) it would be really bad if we only kept the bad ones I guess? or I think maybe give the "bad guys" a shot at it and give the $1.5 billion to something that matters? frankly I would rather just give it to drug addicts and know it at least they had a party/value attached to it ... oh wait!!! didn't AIG have a HUGE party with the bailout money ?- - its hard to keep up with where these tax dollars are spent really... wouldn't be cheaper to just put them all in jail and get rid of the jobs?
The "consumer" doesn't all of NEED most anything being sold in this country from cars to houses they cant and never could afford without the fake money created by Alan Greenspan the country's worst villain in probably all of history, though the Paulson/Goldman Sachs combo (who knew of ALL the problems THEY created and sold out all their Goldman stock at the high TAX-FREE to go into public office and have us use our money to bailout all their screw-up's - - it would be actually funny if so many old people were not going to die poor and hungry) who never earned a penny they didn't steal somehow is putting up a good fight to compete.
I feel its necessary to repeat and THINK about that comment I just accidently wrote:
"Goldman Sachs - - and most of Wall street, from the time the "Glass-stegal act" was repelled - - has NEVER "earned" a dollar they didn't STEAL"
The Federal Reserve which is basically a rigged game is mostly owned by the major banks "Citigroup, J.P. Morgan, Bank of American, and Wells Fargo which were formed in the 1800s - - who started running the brokerage firms in 1999 when "Glass-stegal" act was removed which had been in place to protect the country from what happened in the depression of the 1930s - - have some pretty serious conflicts of interest besides leverage on top of leverage to the point where only 3% of the U.S. money in circulation actually sorta exists (we always hear "the Fed is "printing money", when in fact they don't even go that far... they just make believe its there ... I am being serious, its all just "make believe" the FACT is there isn't even the "paper value" to start a fire with it to add value if one were cold to back 97% of the countries money.... its just a number a computer screen!
The Federal reserve isn't a Government entity and the fact that no one seems too concerned WHERE this "money" that isn't actually created doesn't come from seems surreal to me ... Santa Claus , Easter Bunny, and the Tooth Fairy all appear just as tangible when looking at the "Fed" and Money supply objectively?
Then it becomes much more interesting as they move the "money" around between themselves but only promise to keep around 10% of that fake money in reserve so the fake money gets, from what I can figure, around 10x the fake pretend amount sloshing around aimlessly in bets no one really understands and or could care less about in regards risk cause "they" the Fed just like magic make more, then leverage that 10x over again in new bets and so on ... The REAL risk is one of the trading partners says "Hey I do really want to get paid back for all that crap you guys bought from us and sell at Wall mart" then what to do? good luck to this new president - - he will have his hands full if anyone that hold this debt wants to ever cash some in ?
Andrew Jackson was president back when many of these banks were created and apparently he knew how to read and noticed that society's that used "fake money" like Rome etc. ALL failed at some point, so he said VERY clearly DON'T DO WHAT WE ARE DOING and have been doing.
We can only hope the this new president can also read (I am pretty sure from hearing the last one talk once or twice that he couldn't) and maybe he can fire all these people and let this long old bitter healing process of deleveraging the system begin so that the rest of the 80 million that are NOT "Baby-boomers" will have something of a country left.
I do have one last thought and that is the hoopla around this Bernie Madoff "Ponzi-scheme" should NOT be looked on with such scorn? maybe as his punishment we can have him try and work out the fix on social security? he ran a good deal for 25 years maybe he could work his magic there??? because THAT appears to be a much worse crime than whatever Madoff managed via its all "known" up front that its fake and we can follow where and why the money paid in will never be seen by the payees???