Tag Archives: economy

Politics and Economy

10 Oct

Politics and the economy are in the forefront of everyones mind these days. The two words have also become fairy inter-twined. Gone are the good old days where the President’s morality was more important than a President’s intelligence.

Probably the market is capitulating as I write this. Hopefully, we are near the bottom. The Fed has done more after the problem started then it ever did before the problem began. Greenspan had called the housing bubble a froth in 2005. I came across an article by Mike Whitney (http://www.counterpunch.org/whitney08172005.html) in 2005 that speaks very lucidly about the potential of the disaster.

Much has been said and written about this disaster. For the next fifty years this meltdown will be discussed by notable management schools like Harvard, Yale and the like. Hindsight will identify the problem and discuss measures not to allow it to happen again.

We are living in a time of historic happenings. Neither your name nor mine will make the history books but we are the common people that history will talk about. We are the common people who lost our homes, lost our savings, lost our lives as we knew it. The words meltdown, bailout, derivatives, credit default swaps will all be the jargons used to describe the event. Movies will be made, there will be documentaries, personal videos on you tube, thousands of blogs like this one will be written.

This is a new beginning. A different world. A new financial system. We are just getting into the new reality. We will learn and adapt very quickly and this will be a distant memory. The elections will be over. There will be a new President. The spin will start and we will all glide along into the beginnings of a new bubble. Be smart everybody. Don’t get fooled this time around.

Does anyone know what to do?

17 Sep

The Senate Majority Leader, Harry Reid, confirmed my suspicions today by saying “No one knows what to do”. There is plenty of blame to go around for today’s mess that we find ourselves in. The Administration, the Senate and the Congress all are equally to blame for letting the situation go so totally out of hand.

The unregulated financial institutions have created a house of cards that is tumbling today at the tax payer expense. The men behind the flawed decisions go home with a golden parachute and it is the ordinary employee who struggles to balance his budget paying for it. And somehow the trickle down economics is sold to us repeatedly.

We have ourselves to blame too. When loans were easy to get we borrowed indiscriminately hoping to make a quick buck on capital appreciation. We forgot the all important “Live within your means” adage.

The past few weeks we have seen major institutions being taken over by the government or “nationalized”. This is a tax on the common man to bail out major corporations (and the individuals behind them). It is the tax payer money that is being spent on irresponsible judgements of a few powerful individuals more intent on lining their pockets.

Now the law makers and Mr. Greenspan tell us it is once in a century phenomenon and they don’t know what to do.  We know what to do. Establish accountability. A free economy can remain free only when individuals and institutions remain accountable for their actions.

We don’t need a big government but we do need a smart one. We don’t need empty rhetoric, we need action. We don’t need politicians telling they will “fix Washington”, we need someone who can make Washington proud. Vote wisely and make USA proud in the coming election. God bless America!