The President is touting the economy.. Says its 'safer'..
Well what else do you expect - to hear Obama admit he's inept?
Posts like this are admittedly quite frustrating to write because even with the large circulation of loyal readers we've accrued after three years, we are not CNN, Fox News or Associated Press..
And these people.. the vast majority.. will not be exposed to any sincere or objective reporting of how bad things are allowing them a feeling of naive contentment that frankly is offensive to whomever takes the time to educate others..
Today's focus won't be on how bad the US economy is.. We'll save stats like retail sales last month only rose 0.2% while another 512,000 unemployed quit looking for work for another time..
Before we begin, we must make this point very clear so you know our frame of mind and we suppose for our own therapy:
We think both George W Bush and Barack Obama are both Terrible and their Presidencies have been abject failures! In fact we see Obama economically as 'Black Bush'.
If you disagree.. If you try defending one over another, that is your right but please accept the fact you are simply looking through your personal political prism; i.e. you're biased.
Yes.. a gift; an opportunity to change the system in a positive i.e. more fair and ecumenical way and to address this structurally inequitable have/have not society..
So we're going to state what should have happened particularly in the first 6 months after the collapse and explain why we'd all have been better..
It originally failed to pass but after intense political arm twisting and the Big Boys purposely causing an 1400 pt market drop over two days to scare the common peons, the financial Elite won...
Now if TARP had to go through (which it didntt), there should have been a paper trail who who received what. There intentionally was not one.
That Bleeping bastard former Treasury Secretary under Bush (and former Goldman Sachs CEO) Hank Paulson intentionally set TARP up to be a gift to banks, not a loan..
And there was no recording of who got what.. so no one could be legally responsible to ever repay it...
We also bailed out foreign banks throughout Europe and Asia using US taxpayer money.. this was done through both the US Treasury and the Fed. Bernanke also bailed out US and foreign multi-national corporations
On September 15, 2008 the Dow was at 11,143. It would drop down to a low of 6,626 six month later in early March 2009 before QE 1 began...
So that was a slow steady drop of 4500 points or there abouts..
Did the country perish? No
Was there panic and civil disobedience on the streets? No
If the economy was truly in free-fall, the market would have dropped 4500 points in a month.. or a week. The President would have had to shut down the market as a 'holiday' until the panic among the populace calmed.
None of this happened.
And today the Dow is at 15,505 as of this writing.
And the richest 10% own 90% of all stocks..
It has artificially grown by 4,400 pts compared to 5yrs ago today; grown by 8,800 pts since QE 1 began
It took over 200 years for the market to reach 1,000 -- Now the Fed can manipulate things so the market rises nearly 9,000 points in 54 months.
And the real economy is collapsing..
People don't realize what the Fed creates and spends becomes debt which taxpayers are on the hook for..
The market should have been allowed to drop to a True bottom point where real capitalism kicks in, and people naturally buy cheap stocks (rather than be sold a lie for 5 months that they couldn't get any cheaper)
Just so hard to express a complicated concept then leave it isolated without explaining how Bush, Obama, Paulson, Bernanke and the rest of that scum have hurt this economy worse and let a golden opportunity to re-start slip (intentionally) through their fingers...
But we can't write endlessly... So here's some brevity..
Glass-Steagall legislation should have also been bought back into law allowing a separation between normal banking and risky ventures so if they caused a plummet, the normal banking apparatus wouldn't have been affected..
* Institute a policy where no individual under 21 can get a loan for any amount from a lending institution without a co-signer who is legally on the hook for the debt. This is specifically to deter student loan borrowing (currently 1 out of every 3 default)
AIG itself should have collapsed. Its called capitalism-- you sink or swim on your own
* In fact no one should have been bailed out except the individual: The total US consumer debt is approximately $2.2 Trillion.. that's everything from car loans and mortgages to credit cards and student loans.
If the government wanted to, it could have paid everyone's debts to zero while recapitalizing the banks for that amount. Instead banks were funded and people still expected to pay on the debts like the serfs they are seen as...
*Institute a law that if a person owes a mortgage, loan, etc to company A and its bought up by company B or is forced to close its doors, the person has such debts wiped off the books and does not owe anymore.
This will discourage future mergers and aquisitions like when Countrywide mortgages was bought out by Bank of America or JP Morgan merged with Chase
If you are a company with 500+ workers nationally then all temps are paid exactly what regular workers are including benefits... And a "part time" worker is someone who works less than 20 hours. Corporations can not escape Obamacare by reducing worker hours to 35 or 29...
* The income tax rate for the top 1% should have risen to 70% (same as during Eisenhower's Administration) with stock market dividend tax at 55% for all stock profits over $100k annually
Consequently, all workers earning below $30k, pay zero income taxes.
2008 was a golden opportunity to dramatically change the system
It was tossed away..
One can only Hope and Pray for another crash.. one that will provoke needed changes and perhaps this time with a populace who willingly wishes to educate themselves