Dear Reader,
It seems to me that the best thing that could come of the proposed “bailout” would be the vast devaluing of the dollar’s effect on the US balance of trade. To expect the “bailout” to be any more effective than the “bailout” of Morgan Sterns is folly. It will enrich a few people. Empower the Elite to a new level. And insure that the problem will grow.
NPR reported on Morning Edition that as much as 2% of the riskiest loans are in default. Those loans are spread over the entire collateralized loan instruments all over Wall Street. That doesn’t seem on the face of it to be such a problem only 2% of a small percent of the total loans. Especially since they are spread out. We must keep in mind that price is only a factor of opinion.
The value we place on anything is due entirely to opinion. If we see something as rare we value it highly. Gold for example. Yet gold has little intrinsic value, (industrial not withstanding for purposes of our discussion), yet it has great value. Water on the other hand has great intrinsic value. We must imbibe it several times a day else we die. Our very life depends on it. Yet it is cheap. The answer is in it’s perceived rarity. Were potable water rare it would be more valued than gold. Both examples rest on our opinion. We all know that opinion is as much based on emotion as on reason.
Market opinion has turned violently against any financial instrument that even may have the tinyest exposure to the sub prime market. Emotion has run wild. Cold cash will not quench emotional reactions. Cash only serves to prove the emotional, group think. As such, it will only add fuel to the fire. A fire that was intentionally set.
This is a political year. It is undeniable that an economic downturn would benefit one party over the other.
There are many powerful actors on both sides. These actors try to serve the interests of their respective parties. With no real consequences for their actions they move with virtual impunity. Only when the searchlight of public opinion is on them are they held to any standard at all. So it is with this arrogance these people have engineered this fiasco.
As I have stated long before now in my blogs and in the International Capitalist Party BBS the “unbiased” media has been talking down the economy for years. An economy that until this year has been growing at an unprecedented rate in recent US history. With the growth of the Chinese economy and subsequent rise in demand for commodities, linked with the real estate bubble bursting, actors had the chance to push the economy into what they thought would be a minor recession. Affect the election, make some money on the upturn, and get away with it again. The spark has turned into a conflagration however…
How do we find out if this is true or simply the raving of a lunatic. Well I am probably a lunatic… but, lets open our minds to the possibility.
We cannot rely on the consequent, the financial meltdown, it may have come about by some other means and begs the question. We must look at the antecedent, the conspiracy theory. It is undeniable that there are people of great wealth and power, power even to do just as I have iterated. It is also undeniable that some of these people have political positions that put them into one camp or another. Further they have historically never been held to task for anything. The question comes down to, are those people who have the power and the political motivation so utterly bereft of any concius that they would in fact put into action such a plan? We can then reason that if the motivation was sufficient, and the moral character deficient, such a plan would almost certainly be put into action.
So… what do you think? Are they morally deficient enough?
