Bailout Failure

This started as a comment to another comment. It has grown into something more. So I will do my first new post in over a month.

I think I was not understood about the bailouts. It was likely me being obscure, and maybe a tad trite, that caused that misunderstanding. I didn't say let them fail. I alluded to that we should take them over and undo the too big to fail part. For the bailouts it has gotten to the point where it is pretty much just paying bonuses. Of the largest banks/financial institutions that received bailout money (and stroke of the pen multi-billion dollar tax breaks in the past year), the vast majority of those paid out more in executive bonuses than what they made in profit. Billions of dollar that they didn't make went into their top Executives pockets. Where did it come from? The US Govt. by way of the Fed printing money.

The Fed, whose current printing policy, is a single word. Infinite. That is the amount of money that the Fed is willing to produce to bailout FUTURE risky investment practices of the largest banks is... infinite. And the banks aren't doing risk management any different now than they were before they created a worldwide crisis that almost plunged the entire world into a global economic depression.

Now I do understand that there was and to an extent still is 10s if not 100s of dollars in fake assets called derivatives floating out there... and it was and maybe still is this ethereal financial game of hot potato. However the bailout money that was supposed to go to fix that hasn't. We still very much have the same problem. The banking answer however is to take real property and (getting to be almost fake) government money to bolster what is actual assets. Only by doing that they are devaluing everything that they touch. Fact of the matter is that if we had thrown money at the S&L crisis and hope the industry would fix itself then we would be in a depression today. In fact the S&L crisis and deregulation is what led us here in the first place because of the creation of derivatives to stop the financial collapse then. When they were created the creator warned that they needed to be heavily regulated which the paraphrased response was, 'The market will take care of itself and the people who will trade in derivatives will understand the complexities and do so responsibly. How did that work out? We are still in danger of massive collapse no matter what the Politicians espouse.

A we have massively failed with bailouts. Yes the system is slightly more stable. But at what cost? Well let us take just one of the money pits. AIG. Now they have received multiple times the amount we first gasped at when Hank Paulson held a gun to our head. AIG first started with saying they needed $75 billion not to fail, we gave them $86 billion to start, as of last month they had received at least $182 Billion of US Govt. money (not including tax breaks) and Geitner was working to get them more. Ok you can shake your head at the sad state of affairs. But there is a punchline, which side you want to believe is your choice.

Days before Geitner gave AIG everything they wanted and more, when we were into AIG for no money at all, the CEO of C.V. Starr (yes, Hank Greenberg) had a deep understand and said that AIG was not insolvent but simply had liquidity issues. He was of the opinion that the bridge loan would wipe out assets detrimentally and the Federal Govt. needn't get involved because AIG had $20b in assets they could use and there was investors that would invest $30b to make AIG liquid and get them past the temporary issues they were having. That is $50 billion and none of it our money. C.V. Starr, 12% stock holder of AIG and major share holder wasn't allowed in the room when Geitner made the deal with AIG. I guess C.V. Starr's solution didn't involve robbing our great nation so they didn't want to hear from them. Now AIG is devalued and they suck at the government corporate welfare tit in exclusion to fixing their issues.

What a different day this would be if the flood gates were not opened.

Now what is the solution? Well part of it is regulation pre-Reagan days and more to deal with the new financial world. I know the current thieves say that will bring the financial system to ruin. Well the CEO's and major players that made the strongest economic force the world has ever seen say regulation is what is needed. So the whom is right? The people that built the economy or those that think 'greed, for lack of a better term, is good' and destroyed the strongest economy the world has ever know? I think if you want to fix something you talk to a builder not a destroyer.

Also you break them up. Chase, BOA, Wells (Norwest owning the Wells Fargo name), Citi, and conspirators have actually managed to get bigger, yet still manage to fall out of the largest world banks at the same time. Break off 49 state bank (North Dakota already has a state bank) and put walls between their investment banking and the money we deposit with them. A dozen massive banks could easily be several hundred different companies and should be. Yes, their are many that say that breaking up corporations raise prices and make us less competitive as a nation. Really? Corporations always tend to stifle in the name of expediency, and small business tends to push innovation.

And for those that remember, AT&T forecast massive rate hikes declining technological advancement, and deteriorating infrastructure if their monopoly were to be broken up. How did that work? Infrastructure vastly improved with some help from regulation on the state level, technological advancement blew up, and frankly if I called how I do now under the AT&T monopoly I would see $500+ phone bills a month instead of the $100 total I do now.

Well that is where I am coming from. The only change in banking that has helped us is if we deposit money in one branch it doesn't take 4 days to make to the other branch anymore. Everything else has gotten worse in my opinion. To big to fail equals too big to exist. The revolution starts now.

What do you think?

Ok I went further than I expected...

Believe it or not I had hoped when I wrote about politics that I would take a more intellectual approach. I have heard people talk about the politics of politics without exposing much of their own political alignment. My reasoning was that there are imperative rights and wrongs that transcend partisanship.

However the annoyance of the Partisan Warriors derailed me almost straight out of the gate. So since I have started down the road I might as well expose my positions on the politics of the day.

First there are emotional, hot button issues that aren't real issues. Those are not politics or really issues. At least not ones that politics or political operatives have any right exploiting. If it has something to do with legislating what consenting adults do in the bedroom or some issue that inflames the passions but an elected official have little or no authority to effect... then it is simply a hot button issue. Hot button issues addle the brain and distract from looking at the content of ones character. I don't fight over them. I don't bash my head into a wall just to watch the wall bleed either. So don't expect me to bite of popular hot button issues. They aren't what the real world is about.

Second the Wars. Do them right and completely or don't them at all. The currents wars we (the United States of America) are being done wrong. People say that wars in tribal nations are impossible to win. That isn't true and as Americans should know that. However this isn't the way you win a war against tribal peoples. The way you do it is in our own history. You kill and relocate all the tribal peoples while you colonize the lands. Anything short of that in Afghanistan is a waste of time and resources. Iraq is lost. Not because of our armed forces but because of bad policies that saw the oil wells working in under a year and (last I checked)five or more years to turn the lights and water back on. Lots of people have a lots to answer for.

US Armed Services. We are treating them horribly and in that sense I am ashamed of our country. We are destroying our nations security by long engagements, stop lose policies, underfunding them while paying mercenaries top dollar to undermining our troops efforts. It is disgraceful that we are faking a withdrawl from Iraq while paying more to move more Blackwater Soldiers of Fortune at better wages and no clear rules of engagement to give our great nation more than just a black eye. Most empires fall when they resort to hiring Mercenaries to fight their wars... especially when they have the best troops in the world at their disposal and are simply stretching them to far.

Bailout. Like I said I am an economical conservative. Bailing out the banks and not investing anything that will bring a tangible asset to the nation because they are Too Big To Fail is complete and utter tripe. If there are abuses in a company or industry that is that big to threaten our very existence we need to do what we would to any threat to our nation. Take it over and restrict it to the point where it is impossible to hurt us again. In terms most people can understand, if it were an aggressive nation that even in some remote way threatening our national security, we would have special and secret operations crawling all over their country to figure out what they were about and their weaknesses. We would then mobilize our troops, bomb them into near submission until they were softened and disorganized enough land the ground troops to swiftly neutralize the threat.

It is the same with the too big to fail banks along with everything else that adversely effects us. We need to carpet bomb the banks, there are not innocents so we won't worry about the inhabitants. We need to nationalize or simply audit the fed (same as making it disappear with a magic wand), break up the 2 failing car companies, get rid of Nafta and apply tariffs that are at least on the same order as those countries that enjoy putting massive tariffs on our goods while they import with impunity to our nation. Let us make China and Japan at least work to permanently topple us as the world's premiere economy. If we are the greatest nation in the world let's get it all back and start being that great nation.

Healthcare. Which is not the same as health insurance, though the insurance companies would have you believe that. There is no reason that health insurance should be 16% of our GDP. Prohibitive cost for health insurance make us an unhealthy nation and an unhealthy nation is not a productive one. This is another thing that ends empires.

This is all I have stomach for at the moment. More later.

Partisan Warriors

For those that drink to deeply from the koolaid, believe everything that is shoveled to them and espouse definitive generalized statements just because of a D or R that is associated a persons name. Grow a pair and learn to think critically.

If you have a singular news source and especially if it is a talk show host (radio, TV, print, and internet) then start getting other sources. For example World News Network. News from all over the world, from all sorts of different backgrounds and political alignment. Because where you get information is not nearly as important as the accuracy of that information. Your political talking points distributors and those that make masses amounts of money pedaling fear and hate is not the best sources of news. In fact no matter how accurate a personality (radio, TV, print, and internet) they don't usually source their comments, and if they do, it can simply be their take on what that source is saying. Or in some examples the source is simply another personalities opinion... this is of course more rampant at Fox News than anywhere else.

As a progressive liberal, whom is also a bottom line fiscal conservative, let me tell you I have listened to too many personalities that are President Obama apologist as well. Then I have heard those that simply regurgitate what they have heard on radio or TV, and not source any of it. I have been guilty of that with numbers myself... even after I read them the number that I heard will trump the number that I read. Titillation is king I guess.

However there are to many that don't even try. The Left side is LESS prone to do this than the Right. The Left personalities frames things in a different fashion than the Right personalities, whom just tells you what to think. The main apologist in my sphere are Ed Schultz, Randi Rhodes, and Mario Solis-Marich. The right wing talkers here that tow party line and fear monger are to numerous to mention. The point is that blind loyalty to someone else's view point is lazy and stupid for the sake of being lazy and stupidly uninformed.

Yes I know that staying informed takes work. But if you are going to have a strong opinion know why you have it. Read and source your belief system by at least reading bills and how certain political figures have voted and ask those leaders to explain their reasoning.

Why this rampage through the lazy leading the dumb, or lazier? Well It has always been a pet peeve. But more to the point I was reading the local news on one of the local TV channel sites about Governor Ritter deciding not to run for a second term. Of course like all sites now there was a comment area that for some weird reason my browser takes me to on that site before the story (that irks me too) low and behold the first thing I read is about how Ritter and the Democrats are ruining the country and making it safe for terrorist. And I am thinking, "Oh for the love of Pete!" I read on and the argument tends to rage between Big D Democrats, Big R Republicans, Big C Conservatives, and Big L Liberals that spew generalization after generalization all regurgitated from talking points from political talk personalities. Not an original idea amongst them and almost nothing to do with Governor Ritter's service. I say almost nothing because I didn't read it all and saw nothing that directly pertained to Governor Ritter. Almost completely about slurs.

'Tis the Season to be FRANTIC!!!!!!

As I rest between shopping ventures with my "Chasing" play list (complete play list on the bottom of the page) pumping from my computer to my home speakers and enveloping the room and washing clean of the hustle and bustle of my shopping day. Strangely Queensryche seems to wash me clean and reinvigorate me as I write this.

But has it always been this way? You know in the annuals of fanatic American Christmas. Please remember that it is more the Germany Immigrant influence on our society that makes Christmas a bigger deal than it was at our founding. Remember one of the most decisive victors that the Colonist had over the British was on Christmas because they didn't really celebrate Christmas in the grand fashion that the German Mercenaries did.

Quick note to the Pentagon and involved U.S. politicians; those that do not heed the lessons of history are deemed to repeat it. No major Empire or Empirical Power (though I am loath to the idea that is exactly what we have become) has ever been able to maintain an Empire or win a war through the use of mercenaries. Rome came the closest with forced inscription and moving the unit too far way from home. That however would never work in today's world. No one is fooled when there is a 15% draw down in Iraq of U.S. armed forced to be replaced with a 30% build up of "contractors" which is merely a gentle euphemism for mercenaries or "Soldiers of Fortune". The United States of America is better than that and has to be better than that. If those in office don't realize this soon you will all be replaced. Rant done for now.

--------------------

Ok my friend came over as I was writing. I had to wrap it up and go out shopping again. I didn't get back until after midnight and I still have shopping to do. I almost want to cry. Honestly I hurt all over. The muscles I use when raising kids are not the same ones I use for marathon shopping apparently. Or maybe more to the point, I'm way out of shape. Sadly I admit that I have not used my Wii Fit, nor have I done any workout for a few weeks. I have plenty of excuses... all of them bad and none of them really hold water. I know what I need to do and I allow myself make excuses why I am not going to do it. It effects my overall health and well being. I know and I need to get on what I need to do.

However back on subject it is the next morning and I am hurting mentally and physically and I am not yet done. You know one of these days when I know I have marathon shopping to do I think I might just do it en femme. Just get a nice outfit together, put on some heels, makeup, and stockings, then go to it. Maybe even manage some time at a salon for a break. Mentally it might be a boon to be out of the closet. Physically I think my back would hurt less (because heels force me to stand straighter) though my butt might hurt more, I think my calves my be in the same shape they are now (I think most stockings and hose actually aides in circulation).

However there is always the bigot, danger, and gawk factors. Which is why I am still mostly closeted. But one day I have to be brave right? A big Charlie Brown...

*SIGH*

At any rate back on subject. It seems that the Holidays are too much anymore. It used to be more fun to holiday shop (I am being inclusive with Halloween, Thanksgiving, birthdays, Easter, and Christmas), and now it is seriously like work. Maybe that is because I am concerned about more than just the two of us and there is five of us. It is likely at least part of it... but still... how do you carry forward when it gets to be so hard?

Sorry that I rambled, ranted, carried on, carried over, and likely made you want to hari kari. I am scatterbrained, so it seems the posting will be.

Thoughts, opinions, generalized take on any and/or all subjects contained within?

The Government doesn't work! Does it?

I started this post as a political discussion about health insurance reform, and to a smaller degree health care reform. I was starting to rant about not understanding how people don't get that such a large portion of our economy going to health insurance is not a good thing. I was going to visit Executive compensation and point to overall problems with corporations in America and abroad. As I( was doing this I was answering things I have heard people say time and again and almost immediately the voice of a friend and a very smart woman rang in my head.

"I'm against health care reform," she proclaimed when I broached the subject, "because the government doesn't work. It never does anything right." I was about to fly into the discussion armed with statistics, actual numbers, and percentages. But alias it wasn't to be, because she was running on an errand that I can completed only a few minutes before and our schedules both revolve around our respective children. And in a way I'm glad that I didn't get the chance.

Because the next day, on our way to school, listening to David Sirota get into it with a conservative caller about the facts of health insurance cost public vs. private. The caller kept yelling "Government never does anything right!" And I'm driving, talking to radio as Dave tries to get through to the caller that just repeats "Government never does anything right!" until he is disconnected for screaming repetitively. And as Dave wraps up why medicare is the government doing something right I can't help but say, 'Come on Dave! The perfect example is the simplest one. The roads are the best example of the government doing something right. Then later while waiting for my oldest to get out of school I was listening to Thom Hartmann, and texting friends & family, some professional talking head implied that the goverment didn't work in relationship to regulating something or other. That is when it all crystalized for me.

Does any one really believe that the Government does work? Look at the roads. I will grant you some states and some municipalities do it better than others. Then look at them work in concert with the Interstate system. Our roads is a modern miracle. Look internally. Most Americans use publicly provided utilities. Does the water come on? Does the sewage system take it away and clean it? How about the electric and gas? TV anyone? Though I agree somethings need better regulation in those concerns look at it. It works. It does it well. No matter which way you do it. Cable, satellite, over the air. Look at phone service, mobile and home. Hospitals, emergency services, educational institution, et. al. These things do not work for all despite the government, they work for all because of the government.

Believe it or not most of the modern conveniences that you take for granted as a basic right, was only going to be reserved for the few. It is the government that forces company to serve the public good, not companies doing it from their over flowing heart. It is due to government oversight regulation that our country became great. Robber Baron's just drain our resources, use up international good will, and attempt to enslave everyone. Just look at the nations that don't protect their people. Think of all those places without running water or education for anyone but the ultra rich. Think about how your life and that of your children would change.

So next time you think about saying it, or hear someone else say, "The government screws everything up!" Think about the road...