Games Theory, with it’s “Fuck You Buddy” principle, and understanding human nature, just at it’s base, should have been enough to return with a different Fed result. But no, a housing boom was a good thing, being a way to distracted the people as doom fell and war came, and as the citizens rights were taken away. It was an excellent ploy.
We saw the results here in 2008 as markets dumped, and a fall started. All this began back in the Clinton administration, under Alan Greenspan. The boom was amazing, but look what’s happening now. Also know, what comes around goes around. I’ll explain.
Our bursts was felt everywhere, as market flow is now internationalized. Our home loan establishment and banking industry knew these credit default swaps were total crap. However, with the American origin, and by slipping in just a small amount of top rated loans in those credit swaps, they were able to pass them off.
I see this move in the credit markets was a mirror of what Japan’s banks had done, setting us on a mirror of their path of stagnation. A problem I think we all see, and a situation only exacerbated by the export of jobs, because of offered tax breaks. I love us, (the government) essentially paying to have our jobs taken.
Hilarious, but I digress, lets move on and go back to the EU problem.
I had said in the past Ireland was toast, and they just confirmed that with their vote. Staying in the monetary union will bring future economic crisis to the country, on top of already troubled times.
That said we go back to Greece, and the rise of the right. Greece was an immigration stop for many looking to stay in the EU, for whatever reason. With the downfall of the economy, and added austerity measures there is now a competition for resources. I spoke once in the past about a sort of famine that would come, and the nationalism that would rise. This can now be seen in competition for available soup kitchen meals. (Those posts are mapped as Greece, on my timeline.)
Greece even after bailout is, as I’ve said, destine to leave the EU. I believe this to still be true today, as they can still not maintain their national government, as the majority of the past bailouts keeping going to cover banking debt. This again from our fall out, and their own lowering of interest rates in their lending/credit markets.
This is matched across the EU, adding their own insult to injury. The injury was the manipulation of grading the security of these credit default swaps. We, our banks, lied, here and knowingly. The purchasers were ignorant of what the swaps contained, as those financial instruments were made as complex as possible. The ignorance of the market, was falling for the scam and essentially going on trust, in their understanding of the instruments. The markets went into a frenzy for these products, The thinking here at home was that the houses and properties we purchased would always grow in value. The myth had been perpetuated through the lending advertising campaigns, promoting the American dream of home ownership, good bad or no credit. I mean please.
The trend continued on the coattails of the American boom, in other countries. Our fiats were sealed.
So truth time, as I’ve tried to express before. Greece can’t stay in the EU. Spain won’t be able to stay in the EU. The contagion continues to spread, and will spread more. ECB money printing will continue, as will Federal Reserve. There will be other countries that will need bank bailouts. Those bailouts will lead to stress, on already stressed sovereigns. This stress causing the governments to slowly fail, adding to everyone’s pain, as the social uprising continue.
This is because none of us will willingly take our medicine so we prolong the pain. The pains going to continue too, and come back to America to reinfect our banks with their failing union and our own investments in it.
You either lessen the countries stressing the monetary union, allowing “orderly defaults”, as they exit the monetary union. The other side only sees future uprising, and it spreading to a wider area geographically. Letting them leave allows them the possibility to recover as nations. This is not unheard of, as we have examples of this path being a success.
The other side sees Germany finally breaking the entire Union, and leaving alone in the end. The bitterness because of the time it takes for this to play out, would leave permanent political and social conflict. Vilifying Germany again, but for economic genocide this time around.
When the Financial System is so complex, and completely lacking transparency. When the regular investor isn’t clear on the difference between an investment advisory and a fiduciary, because they try to hide their true nature. When our interest rates are set by the Federal Reserves, or an ECB that knows it’s actions with interest is driving an insane bubble, and they don’t raise rates, but lower them. When they give close to free or free money to large borrowers, so they may gamble against their borrowers betting they will fail. so the bank will make profit anyway, as they watch ordinary citizens fail, even die.
Yes we are pretty much screwed here, in this election season, here in America. Don’t try to fool yourself. When banks don’t work for you and the politicians work for the banks and big business. When there is no limit to a media campaign that allows political influence, one that can be based in half truths innuendo or speculation, there is nothing left for a regular person who loves the country, to stand on.
They say “no taxation without representation”. Well folks you can stop paying because none of you are. Really, no matter your Ideology, you are longer truly represented but our government. They are beholden to others not you. I’ve heard many people use the phrase “wake up”. Well, it’s time to wake up to this reality, and Change It. If you considered yourself and your young family middle class, many of you won’t be for long. If you felt your parents were set up for retirement, that situation has most likely changed changed greatly, over the last 4 years. You’re not being considered by any party, so it’s time to end their party.
Change takes time, even when there are no political obstacles, as there have been in our legislative branch for some time. Be patient, nothing good is going to be easy, and nothing easy will help now. Stay strong America and be watchful,,and critical of the establishment, as that’s our job as citizens, and we’ve not been doing a good job….. No matter the ideology you espouse. I’ve called this election a case of red death or blue death, but you can also look at it as the battle between A Tool and A Fool. And folks, that’s fair and balanced.