I’ve said it before , but it needs saying again, quit blaming the collapse of the housing bubble on the the citizens who bought the houses.   Put the blame (there’s enough to go around) where it belongs .  Mike Whitney lays it out in detail here.  Sheila Bair in testimony The Fed knew exactly what it was doing when it lowered interest rates to near zero , at the same time signaled to the banks that they were not going to police the mortgages they gave under the laws that existed at the time.  The Banksters knew a good thing when they saw it and since they had no intention of holding the mortgages they decided there were no rules on lending (old economics doesn’t apply) .  You apply , YOU GOT THE LOAN, no job (no problem) no income (no problem) no credit (no problem) , living on cat food (no problem).  Is you body temperature above 83 degrees , sign here.

The idea all along was to role these loans (some good and some very bad) into a packet to be sold as investments, but first you have to have your package rated  (get your mind out of the dirt) the rating companies played along with the game and applied their AAA stamp to these pieces of junk, which made them hot sought after deals by the whole world.  But wait the hot shots are not done yet.   You can picture them sitting around the lunch table with their gold plates and goblets asking a simple question (notice how these simple questions end up most of the time as bombs) we know the packages we just sold are junk how can we profit from that knowledge.  I know, a bright young lad (coulda been a lass) jumped up and said let’s design and buy a derivative package betting these packages would fail. ( a sure bet) .  They didn’t stop there though and bought derivatives on derivatives knowing all along they had a sure thing.  All the rules went out the window, most of these rules had been in place since the Great Depression and had kept these Wolves at bay for 80 years (fits nicely into the cycle theory)  now they were on the loose unrestricted by those Stinking Rules.  Were on a Free Market roll get outta our way.  So there you have it the set up for failure.

Into this mess good ole John Q. Public strolls being told by all the Powers that be , that now he can afford all those things he has wanted for years but couldn’t qualify for.  What the banks knew all along was this simple fact detailed in this link by Budget 360 , Ole John Q couldn’t afford all this stuff but he doesn’t know it because the find print was so small he couldn’t read it (most of us don’t) and the game was on.  Not only were the houses he bought not affordable to him when the magic rules were applied later (1, 2, 5 years later) but the house inflated by 10, 15 or 20% per year and he was encouraged to get an equity loan and spend the equity into a new SUV a new boat, or a nice cruise to Europe.  He did exactly that (some say he should have know better) but face up to it , he could afford his monthly payments so what’s the big deal.  It was a” Hot Time in the Old Town Tonight” for a few years.  THEN THE SHIT HIT THE FAN!

The set up for what happening  now has been going on for 30 years, since dear ole Ronnie Regan rode the Free Market Pony into town , and with his Con man talent planted that incorrect theory deep in out brains.  So we didn’t scream very loud when they started shipping our jobs overseas (they told us how great it would be) we would be able to go to work in a white shirt and tie at higher wages.  They were half right, the wages didn’t happen , we got a white shirt and tie, but they didn’t say it would say Kentucky Fried of the front. The average family during the last 30 years has lost ground wage wise , both husband and wife are working , and together make a little more than 60% of what a  husband use to make.  The destruction of manufacturing jobs was not enough for the big boys, they set out on a pogrom of building Walmart stores in every town America running the Mom and Pops out of business.  Sold to us by “Man it’s cheap, quit bitching”.   Then they were on to outsourcing our high tech jobs, (after they suckered us into a Zillion dollars worth of student loans) to train for these jobs which they now shipped overseas.  But wait, they are not done yet, now they are shipping back room jobs out of the country too.  So we are left with damn few good paying jobs, nurses, teachers, government employees and a very few more.  We are left with low paying no future jobs clerking, burger flipping, cashiers, laborers .  When truck drivers and customer service reps are classified as high paying jobs then you should get the scope of the problem.

It was no secret to those who cared to look, that NAFTA, GATT, WTO were passed it put American on a  Race to the Bottom economically.  Sure enough , look around you, the direction we are going is not up.


This story claims there are 5 reasons for the passivity of Americans in response to this crisis.


You’ll have to read this piece to see if you agree with the points above.  I have and and I don’t buy #1 or #5.

The major crisis in morality and ethics that I see has mostly occurred at the highest levels of government and corporate figures.  We all know what these breaches of trust are so I won’t name them again here.  Down in the trenches I don’t buy that we are less moral or less ethical than in past history.  The failing listed are not what I would site as moral or ethical failures at our level.  The failings as I see are bigger than any mentioned, high on my list of moral failures is the lack of  outrage on finding out the lies that took us to war, the justification of torture, the violation of numerous treaties, complete disregard of the Geneva Convention , the huge financial crimes committed by the FED the Banks, and the Treasury . There are many, many more crimes too numerous to mention.   The use of religion by the right wing to create huge divisions in the country on supposedly moral and ethical grounds has prevented us from moving forward on many fronts.  While the same ole topics rule the conversation God ,Gays, Abortion, Guns (know as GAGG).

The drugging of America is focused non recreational drugs but on drugs used to treat various forms of brain chemistry that are the causes of depression, bi polar and other chemistry problems the society has.  Are they used more often (than when ) I might ask.  They have not been around all that long and have done millions a lot of good.  The interesting thing is if you really didn’t need them and were just mis diagnosed no damage is done, so what’s the problem.  Recreational drug use , depending on what you want count is up, but a lot of what they are talking about is pot and it’s pretty well proven to be not much of a problem.  A lot of the rest of the world doesn’t list some of these drugs as a problem , they just legalize them, or administer them making them not a social problem.  The sighting of anti depressant as a drug problem  just clouds the picture.


THE DYING OF THE AMERICAN DREAM:  I would label as the Deliberate Destruction of the American Dream by a bunch of Free Market Radicals out for personal profit with complete disregard for the workers of America.  So far the 22% unemployed and god knows how many underemployed of downsized to mere existence have remained pretty passive, probably based on the hope that things will bounce back to the past.  When they realize that dream is dead ????

THE FAMILY CRISIS.   When both parents have to work to survive that leaves little time for the leisure time of the past (I can remember when the projected big problem was we would have too much leisure time) Well they sure took care of that.  The women who until the 70’s were homemakers, mothers, care givers now still try to do all that and work too.  Is it any wonder that intimacy between the spouses has fallen to very low levels. Where a headache  or I’m too tired was an excuse , now it’s a fact, and the man thinks thank God. I’m too tired too.  Then there’s the kids.  In days of old they would come home from school to a smiling mom, who would ask them how was their day while offering a glass of chocolate mild and fresh baked cookies, who made sure they did their homework, changed into play clothes and ate a good dinner.  Now they might not get home till after 6 or 7 , spend the in between hours at a baby sitter or day care or maybe some kind of lesson if their lucky.  Home by seven, four hours of homework, a delicious TV dinner and if their really lucky maybe an hour surfing on the net.  Then there’s the weekend , Mom and Dad now do the household chores, shop for groceries, take the kids to their organized leagues, or to music lessons or other form of completely organized events.  If this evaluation of a normal week is any where near close you can see there is hardly any time dedicated to individual enjoyment, it’s go , go , go. and then more go.

ISOLATION:  The car, where we live, TV and work make this a normal way of life.  When you leave home in the morning , drive to work, work, drive home, the only interaction with people you have is at work (hell that’s 8 hours a day)  the rest of the day is spent in the car going to and from work.  Gee now you lucky dog,  your home, you address the everyday chores of family living, cook dinner, wash clothes, supervise the kids homework, and now it’s fun time you flip on the TV ,,,, AND FIND OUT YOUR JOB HAS BEEN OUTSOURCED.



Explore posts in the same categories: *&%$#@%^^ (A VERY BAD WORD), CHECKBOOK ECONOMICS, deception, MORAL COMPASS, NIGHTMARE, SUCH A DEAL


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