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Senate Passes the Bailout Bill After All

by ThePete 6:00 am 2008-10-02

You knew they were going to do it.

If you read this blog you know I knew they were going to do it.

Forget that the Federal Reserve already sunk $630 billion into our economy. I was shocked when I saw a Twitter post from thePuck Tuesday that the Fed had decided to move on its own. Earlier in the day, I saw another socnetizen in my circle microblog something like “what difference does $70 billion make? Apparently a lot.”

He was referring to the $70 billion less the Fed was borrowing from other central banks.

While I was shocked, it wasn’t shocked because the Fed went ahead and did it. I was shocked because the Federal Reserve is usually pretty low key. They speak in riddles and hide in the shadows. Don’t believe me? Check out FederalReserveEducation.org and see how long it takes for your ADD to kick in. These guys do not want us to know what they’re up to, or else we already would.

So, the idea that these guys would make a move like this and draw all sorts of attention to them, is very surprising. Why should they not want to draw attention to themselves?

Simple, they’re the real power in our country. But I’m digressing. This post is about the USG passing a bailout bill anyway.

This is what baffles me. How can the media not cover this in any serious way? Did a single person on TV or in print ask the question of anyone in congress: “WHY do we need the bailout now??”

Yet, yesterday, a bailout bill passed the Senate.

The good news is that now the House needs to vote on it. Hopefully, they will say no.

The idea of bailing the water out of the sinking ship that is the American economy pisses me off.

A bailout is stealing money from our future pockets and putting it in the hands of the rich. Hell, it’s stealing from our pockets now, too. All that money ($630 + $700 billion= $1.33 TRILLION) will drive the value of the dollar straight down. Of course, if you’re disgustingly rich, you’ll hardly feel it.

That’s what this ultimately comes down to. The fucking rich and their rich pals in government.

This is no democracy. Its a corporatocracy. It’s the feudal system all over again.

We all work for corporations/feuds that kiss the ass of the king/George. The king/George keeps the military working for the good of the corporations/feuds keep the peasants (us) in line.

Man, it sounds so extreme, but with the shrinking middle class and the ever-present corporation, I feel like the metaphor fits.

UPDATE: My original post-title was “USG Passes Bailout After All” I realized that was inaccurate so I changed it.

The Great "Evil" (Socialism) Hits Wall Street

by ThePete 11:45 am 2008-09-22

utterli-imageIt’s the end of an era on Wall Street, according to that screencap from CNN.com, it’s the end of the era of the Wall Street investment banks. According to the article that the headline links to (here: http://money.cnn.com/…/index.htm ) the government is taking over the last investment banks, Goldman Sachs and Morgan Stanley. This is a move that: "allows Goldman and Morgan to scoop up retail banks and to streamline their borrowing from the Federal Reserve. The shift also is aimed at removing them as targets of nervous investors and customers, who brought down their former rivals Bear Stearns, Lehman Brothers and Merrill Lynch this year."

So, basically, this was done to strengthen these huge banks and to stop them from crumbling under the pressure of the other banks crumbling. If these banks did crumble we’d have a bigger economic meltdown.

At least, that’s how I understand it.

HOWEVER, the cry of "socialism!" is a common thing in our country. Obama’s been called a socialist, anyone who wants to see free health care for everyone has been called a socialist and now I’m calling the USG socialist since so many seem to think the government doling out money is socialism.

This puts the USG in the same category as the Soviet Union and the Nazis (apparently). They were all considered socialists–and thanks to that, we know that socialism IS EVIL.

OK, the real irony here is that socialism is NOT evil. It’s the people who practice it that can either be corrupt or not. When you ignore hundreds of thousands of homeless and jobless people in our cities, that’s OK. But when you ignore the plight of our crumbling banking system that’s just wrong.

Amtrak? The airlines? Banks? They’re all corporations and all have been bailed out by the government–by our tax dollars.

The people who cry out against socialism think it’s fine when corporations need help, but not individuals.

When individuals need financial help it’s because they didn’t work hard enough or they’re lazy or druggies or hippies.

When Wall Street needs help, no one really talks about why they need help, they just get that help.

Sure, the news and pundits explain that "these banks are too big, they can’t be allowed to fail" but what does that really mean?

It means that the individual is not important. Only the system matters.

That doesn’t just sound like socialism, that sounds like <em>communism</em>.

What it all sounds like to me is hypocrisy.
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Can We All Agree that Any Extreme is Bad?

by ThePete 9:00 am 2008-09-20

This is just a quick post because the thought occurred to me while considering the blatant hypocrisy of the Federal Reserve and the USG bailing out/taking over banks.

See, we need banks in order for our monetary system to function. Without them we’d all be carrying too much cash or we’d make our homes a magnet for home robberies. Banks also allow for a much smoother and faster (believe it or not) transfer of money from one person or corporation to another.

Sure, they also allow for quite a bit of money laundering (read: crime) but there’s essentially no modern tool of society that can’t be repurposed for corruption and greed. The point is, we need the banks.

So, the USG and The Federal Reserve effectively nationalizes a bunch of them. Now the Fed is not really part of the government–the USG pretends to oversee it but really, the Fed chairmen over the years have been so good at obfuscation that I blame no politician for not wanting to exert force over these guys. Of course, I DO blame politicians for not doing it despite not wanting to–but I’m getting off-topic.

OK, so here the USG/Fed are, taking over banks–essentially owning said banks. So, now our tax dollars (and any investments in the Fed) make each of us (and investors in the Fed) partial owners of these banks. You know what this looks like, right?

Communism.

Or even Socialism.

Or both!

So, isn’t this completely hypocritical of a government whose excuse for not nationalizing health care is that government-run health care would be too much like socialism?

Doesn’t this make the government completely full of shit when it gives us any reasons for anything (especially after losing all credibility in stating facts about “enemy” countries)?

Let’s also consider how nationalized health care benefits would help hundreds of thousands of people–possibly millions of people–who don’t have health care insurance (like yours truly).

Yes, banks are important, too.

But which is more important to prop up?

1) America’s financial health
2) Americans’ actual health

I say both. Instead, we worry about “isms” and assume that they’re all bad except for the one the rich folks practice: Capitalism.

The catch is, that we can see that no regulation on banks has gotten themselves into this predicament. Our economy is failing and some people are calling for even LESS regulation. It’s unchecked greed that caused this problem.

Surely, as with complete socialism, you can see that complete capitalism is also dangerous. Leaving everything to the “free market” means greed and power can rule all things.

Only a just set of regulations can keep the power-brokers from abusing their power.

This is especially obvious when you consider that sometimes socialism is OK. The USG/Fed and the rich folks of America are happy to see the banks be bailed out. Meanwhile, I would like to see health care be free for all Americans.

So, once you realize that in some cases socialism is OK, why do so many people insist that we stick to one “ism”? Surely, ANY extreme is bad–so why not regulate socialism AND capitalism and any other “ism” that will help America and the American people be stronger?

Why is Muslim extremism bad and Christian extremism not?

Why was Soviet extremism bad and American extremism not?

Why is Socialism bad, except when it helps the rich?

How can you say your way is better or best and assume that other folks who say the same thing about their own way are wrong?

What if you’re both right and in some ways bits of all ways just might be the best way of all?

Bush’s Keen Eyes Notice Economy Getting Worse

by ThePete 6:10 pm 2008-02-03

Source for the above screen cap: http://www.bloomberg.com/apps/news

I meant to post about this a couple days ago when I first saw it. It’s like Bush is paying attention to our failing economy in time-release caplet-form.

Seriously, everyone’s talking about it already–some of us have been talking about it for years.

I don’t think all the jobs in the world added will help when the US government borrows $1 trillion for wars. That kind of borrowing causes some major inflation–as in, it drives the value of the USD down. I don’t see how giving more people low-valued dollars will help things.

So, now, with talk of the Fed dropping interest rates by another half-percent, one wonders if they’re not just making it worse–especially since they’ve already dropped rates a startling 1.25% in the past couple weeks and that hasn’t helped.

I think it might be time for America to stop spending money abroad, both in the form of wars and other expenditures, as well (like foreign aid to countries, sadly).

I think our economy is spread way too thin to continue to support itself. If some new solutions are tried I see things getting worse before they get better.

Of course, I’m just a guy with a blog. What do I know?

I’m just glad we have the eagle-eyes of our beloved leader, George W. Bush, on the job!
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Fed Moves Again to Save US Economy

by ThePete 9:18 pm 2008-01-30

I screencapped the above from: http://news.bbc.co.uk/…218055.stm

What’s the significance of this?

Rather huge, actually. It was one thing to drop interest rates by 3/4 of a point ten days ago–that was dramatic and was the biggest drop in something like ten years. However, combine it with this new drop by another half makes an interest rate drop of 1.25% which is a truly massive drop.

I might be paranoid, but this sure seems like a huge warning bell to me. When the richest/biggest bank on the planet (the Federal Reserve) lowers interest rates at all, it’s a sign they’re concerned. When they drop them by more than a percentage point that represents millions (billions?) lost in interest payments.

When any bank is willing to sacrifice that kind of cash, it probably isn’t a good sign.

Just my 2 yen, of course. Please let me know if I’m wrong.

I really, really, want to be wrong…

EDIT: Haaaay–Utterz cut off the first 15 seconds of my audio! I even re-recorded it and both times when I loaded the page the first fifteen seconds were missing. :(

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Fed Cuts Rates, Averts Some Bad

by ThePete 9:42 am 2008-01-22

Yesterday I posted about how there was going to be a blood bath today when the US financial markets opened. Well, as you can see by the screencap of an AP.org article at Yahoo News (get it here: http://biz.yahoo.com/…rates.html ) there wasn’t quite the blood bath that I was expecting thanks to fast action by the Federal Reserve. They slashed interest rates dramatically–and I mean dramatically. Generally, they drop or raise in increments of a quarter or a half. Three-quarters is (in my observations) rare and, I would therefore assume, pretty serious.

The good news: lower interest rates means more loans taken so more money can be spent, in theory, strengthening the economy (buying shows confidence in the economy).

The bad news: more money in the system means the money that already exists is worth even less.

So, in the end, to this uneducated eye, it seems to be a short term fix to avert a major disaster. However, the over all weakness in the US economy is still there and, by my estimation, will become worse, though not as quickly as would have happened today without the Fed’s move.

In my (again, uneducated) opinion, the only thing that will really strengthen our economy in a good way (a way that makes our money worth more) is if we slow down all this globalism stuff. Stop outsourcing every job and stop the execs from making all that money. Redistribute the wealth a bit (just a bit!) so us poor folks can stop taking loans every time we need to buy a washing machine or a car or when we start a business (you know, to create jobs).

At least, that’s my theory. ^_^
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