Weekend Mega Posts: A Nation of Whiners and John Hancock

Since I last left the building, a few things have happened:

A Nation of Congressional Idiots, Sir.

Former Texas Senator Phil Gramm called us a “Nation of Whiners.” I wonder why, sir. I wonder why a man who has been a key ingredient in the mixing bowl of economic disasters, from Enron’s rise and fall [wife tied to that mess] to a lobbyist in the subprime arena at banking giant UBS would be so utterly contemptuous as to say, “we are a nation of whiners.” Yes, we complain. About 4,100+ troops dead on a battlefield of disgraceful miscalculation and subterfuge. We complain about the billions in taxpayer’s money spent funding that war of idiocy and ideology. We complain that our infrastructure, schools and healthcare are much less that ideal, unless you make a significant salary, get bennys and can spend your off time dabbling in the stock market, that’s off 20% from it’s highs.

That you are complicit in this whole economic malaise might not be so troubling if it were not the fact, now, you are implicitly blaming us, the victims of this mess. That our nation is in the early-middle, not the end, of this current fallout, one triggered by idiot politicians, like you, that dropped the regulatory ball, former federal reserve Alan Greenspan’s ultra-low interest rates in the wake of 9/11 which gave way to a train of abuses in offering loans to under (and unqualified) applicants and this whacked idea that you can spend thrift in a time of war, lower taxes and just not hurt us economically. (Value of the U.S. Dollar anyone???) But you, sir, are a twit. Leading a septuagenarian’s campaign to nowheresville. Hocking us and hocking America right down the drain. Sure, your well-educated, well-to-do and wealthy-to-no end golf buddies and fav 5 additions are tickled pink-o to be at the trough of these ‘fast money’ ideas. To just forget the details of how to build a logical and trustworthy financial system is Bad Money policy.

Read up here on the debt, economy and a train of abuses...

Meanwhile, we are back to the future. You remember 1987? Bailing out savings and loans? I was 15 – and understood that wasn’t something to be happy about. But the seeds of that fiasco were sown in a multitude of policy gaffs – like now, Dr. Phil Gramm.

If you do read Bad Money by Kevin Phillips (I read the first 150 pages), you will get (from reviews):

• In the last 30 years, financial services have grown from 11% of GDP to 21%, and manufacturing has declined from 25% to 13%.
• in the last 20 years public and private debt has quadrupeled to $43 trillion.
• Cognizance of our problems has been somewhat covered up with revisions to the CPI (understating costs of home ownership) and unemployment measures (not counting those who gave up and quit looking). Thus, the 2-4%/year CPI increase 2005-2007 would have been 5-7%/year, and unemployment would have been 8%.
• OPEC has reduced its foreign-currency reserves held in dollars from 75% to 62.5%, and Iraq and Venezuela began selling oil in euros and yen (admittedly for political purposes, at least at first). Meanwhile, the U.S. has antagonized major oil producers (Iran, Russia, Venezuela), and effectively dismantled Iraq - raising the risk of nations being unwilling or unable to supply the U.S. as supplies grow tighter
• That securitized debts or CDOs (collaterilized debt obligations) were sold and resold throughout the global financial system and no longer did anyone know how to measure their value or their risk. Add to this the fact, that homeowners were using the rising equity of their homes as atms and pumping another $4 trillion into the economy.  Also add to the mix $700 billion annual trade deficit that indicates that much more consumption over production.

These are but a few of my favorite highlights, Dr. Phil.

That over the past 30 years, America, has been sold like a slave in the common market. We aren’t stupid or ignorant. Unfortunately, those in power stay in power because the spine needed to stop their abuses is not readily present. That our will is shattered because you forgot that this is America.

Many here won’t get rich, or have multiple homes or send their kids to some private brainwashing school, but instead will be working 50 hours a week for 50 years of their lives and might get a death bed at the nursing home. It will be their American Dream because they hope for more, and sometimes, might have received it.

 But That’s the problem.

If only John Hancock could see us now.