Financial Market Meltdown
Washington, DC, Sep 7th, 2008 -- In the days and weeks ahead we will begin to realize, as if we should not have realized many months ago, that the US economy is falling apart, thanks to the policies of an ultra right wing Administration, and a gutless Democratic Congress. Oh to find a Democrat in Congress with a Backbone!
A handful of people have made hundreds of millions out of fancy footwork and fabricating complex financial deals that defy logic, but make a handful of speculators wealthy beyond their wildest dreams. The Federal Regulators can only sit back and watch, rendered toothless by subsequent corrupt politicians. Never mind Joe Public will take care of the check.
The bailout of Bear Sterns was quietly dumped in the laps of the taxpayers, with the understanding that this was it, and the bailout essential to save the economy. Absolute Rubbish!
It set the precedent to bail out the rich cats and make life even worse for the Middle Class, or as they would be called in other countries, the Working Class.
Washington has known the true extent of the financial mess for many months, and I knew a number of years ago that a crisis was in the making. Any Hedge Fund, or Financial company with Political Intelligence sensors in Washington must have known what was coming.
The unholy alliance between Banks and Builders has created a Mortgage Crisis that is far bigger than anyone first imagined. The American way of throwing people and their possessions onto the curbside because they defaulted on a few payments, outlawed in most countries, further drives the economy into recession and depression. That family have been lost from being productive in the economy. The greedy Bank has an empty property, that will probably be vandalized, and no prospect of getting a future payment from that family they threw out, should work be found.
The Capitalist American Dream is turning into a nightmare for a growing percentage of the population. At some point there will be violence, when hope is lost.
The babbling statements from the Bush Administration about how strong the economy is performing do not compensate for the desperation of the growing number of unemployed and under employed, often without medical coverage.
Over the past two months the possibility of a meltdown in the Financial sector has become more and more likely. It appears that there has been wholesale misinformation and misrepresentation, in other words rampant corruption. I hear again and again there will be massive layoffs in the months ahead, and the figure of 200,000 keeps coming up again and again.
The real calamity is that as Wall Street burns the contenders for Emperor play stupid word games with each other, focusing on Palin as if she was part of a Vaudeville Comedy Act. All whispers around Washington, DC point to deepening recession, and if handled badly maybe a mild Depression not seen since the days of Soup Kitchens. Probably this will not happen as the underlying economy is holding up so far. The question is as major financial companies collapse, and Wall Street expects the Federal Government to bail them out, as in Bear Sterns, how long before the debt load on the taxpayers becomes crippling, and it affects the whole economy.
With the majority of the population looking for some relief from crippling energy prices, millions who are losing their homes seeking a better system, and millions watching jobs disappear overseas how can the US Treasury keep on supporting unregulated speculators and expecting taxpayers to keep footing the bill.
Either way the Financial sector is in a real mess, and ready for a meltdown. Watch the evening news!
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