Ok here we are on another Monday Morning with Thousands of foreclosures going on daily coast to coast and we are bailing out another one of the big banks with cash and insurance way beyond the bailout provisions layed out in the $700Billion program. If you have been keeping count on your scorecard we have now crossed the $3 TRILLION dollar bailout figure between the treasury, FCIC and the Federal Reserve cash reserves. Where is Ripley and “Believe it or Not” Now I have been preaching (yes I admit it) that the market need liquidity and it needed it fast. Certainly the actions 3 weeks ago with the approval of the Bail Out package validated my claims. Yet I wan to suggest that the money thus far has not been used to help Main Street as I had hoped as a matter of fact it appears that it has done little to date but to make investors whole and far to many of them are tied to the King George and his friends and family. May I suggest you look at this article last week and think about he close ties that the Bush family has had with the Saudi Royal Family.
Prince Alwaleed Bin Talal, the embattled bank’s largest individual shareholder, is raising his stake back to 5%. But stock continues to plunge.
Who was allowed to fly out of the US airport and Air Space when US air was closed to Flights on 9-11 oops yes the Saudi’s who is Osama Bin Laden’s family right again Saudi’s.
Now I do not think the Bush family is linked to the Kennedy assassination and conspiracy is just not my cup of tea. Still the level of frustration with the manner in which this administration has put a flame thrower to our economy and run the debt up on you and I is simply beyond belief. We all need to think about who is actually going to pay back the money Henry Paulson and Ben Bernanke are throwing around to their board room friends and Bush family allies. Our children and our Grandchildren are going to be working harder then we ever imagined just to dig out of this hole. They will have to struggle to achieve home ownership and for a growing segment of the population they will not have the resources to pay for a college education. Loans will dry up costs will escalate and wages will continue to stagnate. We also face the grim reality that Unemployment is going to climb ever higher and is likely to reach the double digits in the coming months as we brace for a retail collapse the likes of which we have not seen in 50+ years. The effects of another major sector hit to our economy could be devastating and with this sector as with the continuing financial meltdown (yes it is continuing) we will see collateral damage transfer to every sector as the lack of consumption reduces dollars in the system and more businesses large and small struggle and collapse under the weight of uncollected debt and lack of business.
While we are watching and collectively holding our breath hoping the system somehow gets back on track and the real pain does not touch us directly we are seeing the true in ability of our government work. Last week we had 3 CEO’s similar to the CEO of Citigroup come to Washington to ask for a bail out now granted these Silver spoon boy wonders (not a women in the crowd) showed up on their corporate jets and made a visual mockery of the plea yet as the largest employers in the US and with product manufactures on almost every corner reliant on their orders to remain afloat we rejected them and have conditioned them on presenting a plan to reform first. This action although may have been prudent on the surface has greatly undermined the ability of the middle class to have any sense of confidence in the future and their own jobs which again starts a new cycle of cuts in the family home to become leaner to survive which now extends further to our Consumer driven economy in yet another shock wave. We now see up to 3 million employees across American whom’s jobs and wages have further pressure placed on them. These are the very families who are going to supply the children and grandchildren who will spend their lifetime paying back the cost of the last 6 months alone somehow this should send shock waves through all of us and wake you up to the harsh reality that unless you have billions invested you have little or no power over those things that effect your life and the life of your family. Certainly a cold slap in the face to start off our Thanksgiving week and to ponder as we head into the stores on Black Friday!
Still there is one more startling event taking place that I would hope you would think about and remember, under the guidance of lord Henry Paulson we have seen that the bailout has been directed to the 9 Largest banks in the US and only last week were a few of the larger regional banks given access to some of the money. This as much as any of the events thus far has me greatly alarmed and it is my belief now with the events with Citibank as the final straw that the Bush administration is on the verge of the greatest political coup in modern times. Here is what I mean if they continue to spread the wealth in such a limited way they effectively are creating a tighter monopoly on banking and money in this country. A small group of professionals will control fiscal policy and likely implement policies that will control the distribution of wealth in this country even more tightly then ever before. Think about it instead of talking to your local banker who lives in your community or even your state you will go hat in hand to the 90 story tower in New York to see if they think you qualify for a loan for a home, school, new car, start a business all under the justification that they are the gate keepers to prevent you from attaining to much.
This crisis was driven by greed and a lack of good social moral principles, where sub prime loans were used to increase commissions and profits until they turned toxic when resets occurred and borrowers who even when they signed the contracts had no hope of affording were still rushed in to signing on the dotted line. In Citibank’s current situation is the huge default rate currently running through the credit card industry of which they are the top dogs. Yet they have no problem jacking up fees and interest to look like a modern day Loan Shark operation ala the Winter Hill Mob charging Interest rates that put repayment of principles into the next CENTURY. I find the shear possibility of this occurring truly frightening and certainly a possibility. Remember the History Lesson of the Teddy Roosevelt days of Monopoly busting the lessons of the dangers of monopolies and the concentration of wealth with out competition well George may wind up with the last laugh on all of us.
All of Massachusetts Congressional delegation is now off for the Holidays and many will be seen through out the district. Maybe it is time they heard from Main Street again, I think they need to hear it now I don’t think we can wait for January 20 and our new President Barack Obama left unchecked George and Henry have to much time to play their games and create a system that could take decades to undo and their drive to create a permanent underclass could wind up being a reality.
As Usual Just my Opinions