Monday, June 15, 2009

wholesale theft or business acumen?

The stock market took a big turn down today as did commodity prices except gasoline which continues to be driven up by "investors". In any other society these people would be called "criminals" and be dealt with, here they are lauded for their business acumen and we just continue to pay.

The realization that things aren’t really getting better is starting to sink in as credit card default rates continue to climb and predictions on the number of foreclosures continue to worsen. Even Walmart’s stock price has taken a hit as analysts predict declining sales and there are warnings that Bank of America is taking huge loan losses.

Bond prices continue to drive up mortgage interest rates and interest rates in general would probably soar except for the Federal Reserve continuing to print money like there is no tomorrow and maybe they’re right. If you have some gold bars squirreled away among your canned goods, they are continuing to go up in price.
So far the Obama Adm. has only proposed modest reforms like rules on debt securitization. The banning of the practice would be real reform. The complete dismantling of the financial services "industry" would be the only real solution but this would make paupers out of most of the rich and powerful in this country. They have long ago abandoned any pretense of investing in anything that actually produces real wealth.

There are exceptions to this rule on the extreme right that have vast private equity holdings in the few remaining American industries. These are the same people who fund the right-wing think tanks and also invest in things like the company of killers formally know as Blackwater. This subset of fascists also fund the Christian extremist groups. Watch your back.