
Ok, folks. I seriously need to rant here. I am about to lose my damn mind. I gotta tell you, i'm not a financial genius. I'm not an economist. I'm not a stock broker. I'm simply your average Joe. A tax payer. An American. An honest American, making an honest living. But if there is one thing i'm not... it's stupid. I'm not an idiot. So now that we have that covered, let's get to the point.
The bailout bill failed yesterday. FAIL. Now, don't get me started on the partisan politics that goes hand in hand with this one. That's another blog post. What I want to talk about is the bailout itself. I have spent my free time doing nothing but following news, reading blogs, scrutinizing news articles, and paying attention to the market. I have listened to the partisan politics involved. I have watched interviews with the presidential candidates. I have watched Paulson and Bernanke closely. I have paid attention to all the press releases from speaker Nancy Pelosi. I have seen some of the smartest economists and financial advisors like Suze Orman discuss the importance of the bailout bill. And I gotta tell you, if I had hair I would pull it all out.
Listen up people. And listen good. We are all feeling the pain. For those who say main street isn't feeling the pain "YET" (the whole impending doom scenario.. god get off it.) we already are. Every American who has ANY IRA with investments in stocks has seen their portfolio turn disastrous. This is particularly scary for folks close to retirement. And the pain is just beginning. We all get that. Those who DO NOT support the bill are FULLY AWARE of the fallout that will occur. But you have stupid ass media monkeys pointing fingers at tax payers (like me) who don't have a clue in the slightest what will happen if the bailout fails. Oh yeah?
So they scream pain and suffering after the bill failed in the House of Representatives because the stock market took a -777 point hit. This was calculated to be an aggregate 1.2 trillion dollars lost in the market. However, not the worst PERCENTAGE drop we have seen in history, it was still rather painful. Especially on our retirement portfolios. And they use this to say, "Ha! See!!! Not only does Wallstreet need this bailout.. ALL of us do!" OH yeah smart guy? That's why TODAY, as I am typing this, Wallstreet is in the middle of a deadcat bounce 400 point rally. The MARKET is CORRECTING ITSELF! Yes, it's painful... but smart people who GET IT (like Ron Paul) have stated this is HOW the market should correct itself. It's called.
LIQUIDATION!
Overvalued assets on the markets were sold off at a loss and left for scraps. So what happens? The market rallies over these "scraps" and they gobble them up at "fair" prices. This is a small example of what is needed to happen to straighten out the cratered mess on Wallstreet. You CANNOT pump 1 trillion dollars BACK in to a market, and expect the entire world to sustain itself around price fixing. Why in the hell can't you people get your brains around this? You know what happens when you price fix? You implode. This was a big problem back in 1929 when the stock market cratered then. And when your financial system craters, the banks stop lending, and you go in to a recession and in the case of the 30's, a depression. Are we going to see that today?
NO! Even without a BAILOUT you wont see a depression like we back in the 30's. The economy is very different today. It's global. The whole world feels it. But there is a lot more money floating around, and it's all because of trade. Despite what some folks say, trade isn't going to completely stop. Even in the aftermath of a complete implosion of our financial system. It's going to be rough yes. Credit is hard to come by. Buying a house is going to be nearly impossible. Getting any kind of loan is going to be impossible. But this needs to happen. Seriously, think about this for a second...
Everybody... EVERYBODY admits the system was corrupt and over valued. We all (WE ALL) road the super financial bubble. Our stock portfolios showed it. And it's absolutely amazing to me that every single "financial genius" out there will say the system was REALLY in bad shape, and then SUPPORT the bailout bill by injecting money in to the market to make it as close as possible to the way it was before? Bailout or no bailout, there will be suffering. That's just the harsh truth to all of this. More people will lose their homes. More people will lose their retirement. More people will lose their jobs. It's unavoidable. So let's stop with pointing fingers, and figure out how to soften the blow on the people who are effected... main street. Your tax payers.
This is what happens when your financial system controls the economy folks. The federal reserve act was unconstitutional, and now we are seeing the effect that our founding fathers warned us about:
“I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.” -
Thomas Jefferson,
Letter to the Secretary of the Treasury Albert Gallatin (1802)Comments? Anyone? Did ANYBODY pay attention?!?! Private Banks DO control the issuing of our currency. It's called the Federal Reserve. Passed in 1913 while most of congress were out for a the holidays. And the Federal Reserve is far from anything Federal. It's a lie. It's a trick. We all got ninja'd. Furthermore, during war times, we were tricked in to paying taxes to get through it. Which in itself, is unconstitutional. The government is larger than it was ever intended to be.
The fact that Bernanke argued with Ron Paul by quoting the constitution and stating "The authority for Congress to
coin money and to
regulate the value
thereof found in Article 1 Section 8 of the US Constitution" made me blurt nothing but obscenities for an hour. First and foremost, congress is not solely responsible for controlling our currency. They BORROW money from the "not so" federal reserve on INTEREST. This is what our founding fathers warned us about. And what the constitution suggest is the authority to COIN money and to regulate the value thereof. COINS. Not an arbitray value in a fiat based economy. Our monetary policy is complete shit, and all it does is contribute to the mess on wall street. Which leads me to my next point,
Inflation. Come on folks. Even before this financial mess started, we were already watching the value of the dollar plummet to it's lowest levels in history. Do any of you remember that? What do you think happens when you suddenly inject 1 trillion more (out of thin air) in to the economy? Are you honestly going to stand there and tell me that the value of the dollar wont drop even more? So not only are american tax payers required to flip the 700 billion (which i'm sure will somehow end up over a trillion) bailout bill in taxes, BUT WITH INTEREST, we will also feel the pain from salaries (if you're lucky enough to have) staying at the same level during a recession, while the devalued dollar inflates the markets even more. It's a 1, 2, 3 punch in the face for middle-class Americans.
You are going to feel the pain regardless. Bailout bill. Golden parachutes. Corrupt or stupid CEO's getting rewarded for it with 20 million dollar severance packages. And every single middle class american is agreeing to a bailout bill to what...??? I'll tell you,
You are stuffing money in to the pockets of those who run businesses. You are trying to stuff money back in to stocks to fix retirement. You are bailing out a company who didn't give a shit about you when you were about to lose your home and couldn't pay your bills. While at the same time, devaluing the dollar, paying it back with interest all the while, the entire market is inflated.
Every fiat money system in history has collapsed. Every single one of them. It's just a matter of time. We are all on the road to a complete economical collapse. Many people have warned us. But people just don't pay attention. People don't use common sense.
Apparently senior lecturers at Harvard agree with me. Though not directly, at least I know my logic isn't entirely flawed. Just pay attention and ask yourself some of these important questions. Really...
Is the bailout plan really a good idea?
I guess i'll ask my unborn son when he's a taxpayer.