The article accompanying the picture was wondering why we have wasted so much treasure to "fix" the banks and not the mortgage foreclosure chaos. Good question. Clearly the picture struck a nerve. Wednesday, February 24, 2010
Eviction
The article accompanying the picture was wondering why we have wasted so much treasure to "fix" the banks and not the mortgage foreclosure chaos. Good question. Clearly the picture struck a nerve. Volcker Rule
I guess I was wrong. The grief looks set to continue, as those same bankers are now saying they don't like the Volcker Rule, it is too restrictive and they bitch about Depression Era Big Government regulations and so forth. The funny thing is that thus rule comes from the Grand Old Man of Federal Reserve caution, Paul Volcker, not any one of President Obama's inner circle of Goldman Sachs alums who give him their financial advice. What a sorry bunch of Marxists these people are. Dear Leader continues to insist we give the store away to the bankers because they will save us from ourselves. Even as the complaints flow in that ordinary people are walking away from failed housing investments as though that is some moral failing. The social contract has been broken by the banks, not the homeowners, in my opinion.
My aggravation at this situation has got some backing, unwittingly from Elizabeth Warren, the academic truth teller who has been quoted thusly:
"The problems could not be more obvious, and quite frankly, the solutions are just about that obvious, but we just can't seem to get the two together...The reason that we are not changing things right now is because the banks have lobbyists in Washington in numbers I have never seen...People who just want to advocate for American families, people who want some changes to level the playing field do not have that kind of lobbying power. And so what we are really watching here is a David and Goliath story."
The most frustrating thing about this ongoing and worsening economic death spiral is that solutions seem obvious, implementation seems simple enough. Yet we can never seem to quite get there, which would give weight to the explanation that lobbyists are blocking our path here as in health care reform. There is an absence of morality in all upper echelons, in business and industry most especially and for a citizen like me to suggest that there should be a moral component to financial decision making sounds extremely quaint indeed. That's how far into this morass we find ourselves. It no longer matters to our rulers that people are going hungry, that people are unemployed, that people have no access to health care. It may matter to President Obama but clearly he is as much governed by Goldman Sachs as we are in our misery.
Perhaps I am jumping the gun but I do wish there was an alternative, not just to Democrats, Republicans, Libertarians, Greens but to the Tea Partiers too. For though they peddle freedom as their watchword their social attitudes are anything but free unless you are white straight and Christian. If there is a revolution in the air it bodes nothing any good to those of us that want the freedom to be immigrants, gay and literate. It seems we are sidelined, those of us that prefer our politics with a touch of humanity and old fashioned decency. We face a future as serfs of the corporate profit machines or at the hands of proto-fascist Republicans in a minor key who want to lead us through revolution to a brave new world that I am pretty sure is not where I want to spend my golden years. even if my golden years are looking pretty brass-colored about now. Bloody hell I must be felling moody tonight. Someone tell me I'm wrong.
Jack Flats
Tuesday, February 23, 2010
Posse Comitatus
If you want a glimpse of the near future of America, look no further than Samson, Alabama.
Last March, Michael McLendon, a disgruntled worker from Pilgrim's Pride, a chicken processing company, went on a killing rampage that left 11 people dead. While a horrible tragedy in itself, the event was marked by something more unusual - federal Army troops from nearby Fort Rucker were brought into Samson and other surrounding areas to patrol the streets. This fact was largely ignored by the major media.
The reason why the troops were manning traffic stops in the small Alabama town, in clear violation of the Posse Comitatus Act, was because the local sheriff asked for support from the military. The reason he couldn't handle the situation? Budget cuts in police enforcement.
What has this got to do with Michael McLendon and Pilgrim's Pride? In 2006, the giant chicken processor teamed up with Wall Street and borrowed hundreds of billions of dollars to acquire a rival company. To pay for the buyout, and the executive bonuses that came with it, it cut the wages of its workers. Soon after it found it couldn't pay for the debt and declared bankruptcy. This led to massive layoffs and devastation of the tax base of the community.
So who put together the deal that bankrupted Pilgrim's Pride? Lehman Brothers and Merrill Lynch. The Merrill banker who made the deal was recently hired by JP Morgan Chase. JP Morgan was behind the financial derivatives that has bankrupted Jefferson County, Alabama over a sewer project.
Because of the financial disaster regarding the sewer project, sewer charges were raised to more than double the national average. Poor, working residents are being forced to chose between water and heat. Cuts in the sheriff's office are so severe that plans are being made to call in the National Guard for any breakout in civil order.
If this sounds suspiciously like the scenario of a 3rd world nation in Latin America, it only means that you are paying attention.
"For if leisure and security were enjoyed by all alike, the great mass of human beings who are normally stupefied by poverty would become literate and would learn to think for themselves; and when once they had done this, they would sooner or later realize that the privileged minority had no function, and they would sweep it away. In the long run, a hierarchical society was only possible on a basis of poverty and ignorance."
— George Orwell