Wednesday, December 9, 2009

Reanimating the corpse

The markets rallied late today on a weakening USD. With the Dollar down 1.2% measured against gold that would mean for each trillion the big banks have invested against the USD in foreign markets they made $12,000,000,000 (12 billion) today. That’s assuming they can cash out before everybody else, but since they are the "market makers" they do have the inside track on that.

Meanwhile back in the "real" world; US home owners lost 500 billion of their personal wealth this year. Still we did better than last year when we collectively lost $3.6 trillion. Of course that $4.1 trillion wasn’t real money since it was just a market bubble created by the big banks to create a basis for their 1000 trillion dollar credit derivative trade.

If your house is worth less than you paid for it, you might not think of it as "pretend" money. When the Wall Street bankers use that money to buy another yacht or a personal jet it is real money, but not for you, just keep making the payments. By the way they say you are paid to much and will have to take another pay cut.
Some good news for a change, maybe. The lowering of the Medicare age could be a real boon for the economy if it isn’t sabotaged somehow. The 55 to 65 group that this affects are the people at the top of the food chain. These are the people who could make real change if they are no longer shackled to their corporate masters by their company health care plan.

This could produce a real resurgence of small business that has been suppressed since Reagan made health care a for profit business in the eighties. Coincidentally President Obama has just come out with a long list of incentives, loans and tax breaks for small business.

To make this work Obama will need to order AG Holder to open the crypt and reanimate the corpse of the DOJ antitrust division. Is there a new lightning rod on the roof of the RFK building? No new laws would be needed to get started. Everything from the Sherman Antitrust law to Packers and Stockyards Act to an assortment of laws against leveraged buy outs and other corporate predators have been ignored by every President since 1980. Millions of jobs would be created and this is why the Republicans are loathe to allow health care reform besides the bribes from the insurance companies.

Once set in motion the Republicans will be hard pressed to oppose this but they will anyway. Already only 22 percent of voters will identify themselves as Republicans, openly opposing people who want to start a small business since their 401k is gone to hell could put Republicans in single digits. We can hope, yes we can.