Friday, September 19, 2008

Socializing The Risk

Maybe you've noticed, wealth was served because it was going to make all us peons better off, they'd get caviar and we'd get bologna, but we'd eat. Doesn't seem to be working out that way. They'll get caviar and keep it while we give the bologna back. People got rich playing fast and loose with other people's money. The last time the stock market was this widely held with this much up price pressure was the 1929 Crash. The money paid for all these bad mortgages was Joe Schmoe's and the money to buy out all these bad mortgages will be the Schmoes'. Wealth will still be served.

Wait, you say, the wealthy pay more taxes. Shows what you know. First of all, in overall tax bite by percentage of income, nowhere close. The next thing is that you think this money will be paid for in taxes, not a chance, this will be "printed" money and that means the value of your dollar will tank. If you've gotten your money into gold or bonds or foreign currency you'll profit. You haven't. Your money just went into your gas tank or grocery store or house payment.

Oh, there's more. The current credit crunch isn't just keeping people from being able to loan money to AIG, that project your boss was going to take on, it isn't happening, those hours just evaporated - if your job didn't. You know that re-tooling? Nope. You know those re-mods and new homes that bought your utilities - unh uh. Once the risk as been socialized you reckon money will loosen up, why would you think that? The economy sucks and the Fed has to sell a lot of bonds to cover the socialize screw ups and that means bond yields have to be high. Particularly if it looks like there is pressure on the bonds - and what would you think there would be at the size of this mess.

Remember the McPOW and Keating? Remember the S&L bail out? Remember who was running the country? Remember who got rich as hell? Who got killed? Do you remember some big bounce back? Who got richer? Why the hell I'm in the way left classification is historically a mystery. There were real lefties in this country at one time and they were well left of me. In 1967 I'd have been considered slightly left of center.

You want to talk about socializing the risk? Health Care. If you do not understand that the current system puts the burden of health care on ordinary Americans and puts the profit of that burden into the insurer's hands to put into investment banks you're not paying attention. American companies that offer health care are being competitively crushed even as they throw more weight onto the workers. This is the stupidest possible method, guaranteed to screw the little guy to the benefit of the wealthy. Socialized medicine? Gaaaah.


KISS said...

While you define the asinine remedy from Wall street via the Fascist government of Amerika, you fail to speak that both parties are in league with the Bail-Out.
Another reason for becoming an Independent and clamoring for a multi-party system. I'm voting for Kiesling's primary system only because it can bring on a multi-party system more quickly.

Chuck Butcher said...

OK KISS, what exactly would you reccomend? You want Congress to work real hard to see about having another Great Depression? It's going to happen because it HAS to happen. Why we're here AGAIN is another story.

Yes, I think this bail out stinks and it stinks because the fat cat bastards that set it up will walk away rich and the rest of us will get to suffer. I don't FAIL to mention shit, this will be bi-partisan because it has to be and it has to happen. Everybody you know or care about will get screwed to the wall if this thing explodes without this bail out.

That piece of crap from Keisling is just that. It will not create bipartisanship, just the reverse and virtually all analysis says so. The fact that people won't turn out for Primaries isn't changed by it and that is the hole.