It’s not unusual for me to begin a post critical of America, or specifically the current administration. This time is no different, but my ire is especially torqued for explosion.
The economy. The bail outs. The foreclosures. And now, the extortion by the Bernanke and Paulsin. Disgusted, frightened, and livid are the words I’d use to describe not only my typical anti-gov. sentiment, but also the feelings of most, evenly-tempered Americans. Popjack has a very illuminating post and NPR link on this very topic. Check it out here.
Clearly, as a socialist, I have no theoretical problem with government involvement in business. Think of it as lazy fair. I want stability and security from my country and therefore think it’s important to have a strong, centralized economy. This, however, runs in direct opposition to our free market ideology, and what’s worse is that Republican and like-minded conservatives, who cringe at any mention of socialized programs, are not only responsible for the current economic crisis, but are demanding, blackmailing actually, redress through socialist means.
By assuring a recession (as if we weren’t already in one) if Congress fails to pass the $700b bailout bill, Paulson and Bernanke are extorting America. They are well aware of the power their words carry and are now using that to remedy the bad business practices they put into place themselves with unregulated, unguaranteed and unsupervised loans, subprime interest rates and the mind-numbingly complex securities fiasco that chops, slices, dices and splinters our investments (that’s right, me and you, our pensions, 401K’s and retirement portfolios) into minute portions, spread throughout the globe. Much of the securities industry can’t even be bailed out or fixed because it’s impossible to regulate internationally backed banks.
To add insult to injury, this gruesome twosome wants the fix-it money with no questions asked, and no Congressional revisions to the bill. Democrats who have added other measures to the bill (salary caps of $400k to CEO’s being bailed out, “help” for those in foreclosure, and a larger controlling stake in the rescued companies) have been villianized by the corporate media, in headlines like “Dems turn 3-page bailout plan into 40-page document”. As if signing away $700b comes with less paperwork than my out-of-network doctor visit.
My reaction is predictable. I’m outraged that, as Popjack said, failure is rewarded for the rich. But for the first time, I’m also afraid. I’m afraid of what this downward spiraling economy means to me, homeowning, job security and retirement savings. I still don’t know what’s ahead for all of us.
The two bright, small but bright, lights on the horizon are Warren Buffet and the November election. Buffet, in my opinion, can do no wrong as both a trusted investor and a philanthropist who, unlike his wealthy peers, thinks about the rest of us. And the election, if it goes in our favor (to answer my question from the previous post, yes, I’m voting for Obama) will have, I predict, a very favorable influence on international markets, American consumer confidence, and will stabilize Wall Street.
Until then, I’m keeping my assets in gold, namely my four fake teeth.