That way, at least they won't make out like bandits in the boom part of the boom and bust.

In the long run, we're all dead. John Maynard Keynes

What do we need to do to ensure that we NEVER EVER LISTEN TO THESE PEOPLE AGAIN?

All done under the guise of saving the financial system which has destroyed lives or at the very least, impacted negatively upon the quality of life of 99% of the people who have to live under the system and our future generations which will have to pay for this.

What we have here is a cry for 'Revolution' ? Where is the outcry besides the words written in columns, blogs and the media propaganda which protects these criminals. Are there not any laws in the US which will invalidate what these criminals have done to bail out their fellow criminals?

Unbelievable and momentous. The irony is the only laws which they have passed to supposedly protect us from 'terrorists' are actually providing protection for themselves.

Now, that government guarantee is exactly what American investors demanded and got to bail out the Long Term Credit Bank of Japan and they reaped huge profits through no ingenuity on their part, but simply at the Japanese taxpayers expense. These people think they can still squeeze some juice (and that they are smart).

I will become a patissier, God willing.

What do we need to do to ensure that we NEVER EVER LISTEN TO THESE PEOPLE AGAIN?

A better title for this diary, Jerome, might have been:

Homage to Milton Friedman

Dead people can still talk.

Small gains in wealth or market position allows for predation which then makes the winning firm bigger. The bigger firm then can buy political influence which then creates the legal framework for them to grow even larger.

This feedback system continues until it implodes, when there is much hand wringing, some modest reforms and the cycle starts again.

The only way to break this cycle is to eliminate capitalism and replace it with something new. Something which is not based upon the continual striving for growth, something which is not based upon exploiting natural resources and something which is does not reward greed.

I have no idea what this new system would be, socialism and communism have also been shown to suffer from fatal flaws of their own.

What I have found is that every time I bring this up I get blasted by libertarians who can't see beyond their cramped views of personal liberty and dislike of "government".

My most recent rant on the subject on this site:
http://www.eurotrib.com/story/2008/8/7/124216/5548

I really would like to hear some ideas on what new social structures might look like, but it seems it is easier to tear down ideas than come up with new ones...

Policies not Politics
---- Daily Landscape

Oil rose more than $5 to above $100 on Friday on expectations a comprehensive United States government plan would help battered financial markets.

Washington launched several multi-billion-dollar programs to guarantee holdings in money-market mutual funds and curb short-selling while developing a more sweeping plan to mop up toxic mortgage debt, sending global markets higher.

News of the plan helped push up United States crude to a session high of $103.64 a barrel, and by 9:45 a.m. New York time, it was trading $4.91 a barrel higher at $102.79. Prices were recovering from a seven-month low of $90.51 a barrel on Wednesday.

London Brent crude gained $4.65 to trade at $99.84.

"I think oil is up because there is more confidence in the financial markets. There is a feeling that the crisis is bottoming out and some may see it as a good time to buy," said Gerard Rigby, an independent energy consultant based in Sydney.

Hey Feds, thanks a lot.

At the center of the potential plan is a mechanism that would take bad assets off the balance sheets of financial companies, said people familiar with the matter, a device that echoes similar moves taken in past financial crises.

What do we need to do to ensure that we NEVER EVER LISTEN TO THESE PEOPLE AGAIN?

It's become quite clear that the financial classes will not change until they themselves, the Owners seen as individual humans, can remember sitting on the sidewalk, begging for food and beer or oxycontin.

This cycle has to complete itself to bring about appropriate codes of conduct for industry.

Troubled Asset Relief Program?! WTF?!

The U.S. Treasury plans to use as much as $50 billion from the country's Exchange Stabilization Fund to temporarily protect investors from losses on money- market mutual funds.

"$50B" so-called Exchange Stabilization Fund is referred to an AP story as a "Depression-era fun." Now US haz research hook, doubtless a provision of the Emergency Banking Act. NB - FDR order the RFC to act as treasury agent in gold trading, devaluing USD virtually overnight.

The Treasury will insure for a year holdings of publicly offered money-market [mutual?!] funds that pay a fee to participate in the program. Retail and institutional funds are eligible, the department said today in a statement.

This is FDIC fiduciary "mission-creep" in real-time. Mutual fund investments are not insured according to USC because those funds are not saving (account holder assets). FRB acts, Congress reacts -- AUMF tactic executed in new arena. Congress, especial DP caucus, will "fall" for double-down authorization. Why? Barack Obama's Hamiltonian coat tails.

"Create Automatic Workplace Pensions
Currently, 75 million working Americans --roughly half the workforce-- lack employer-based retirement plans. Only half of female workers have access to an employer-based retirement plan, and only 39 percent participate in those plans. Even when workers are given the option of joining employer-base plans, many do not take up the option because it requires considerable work to research plans and investment portfolios, and enroll in the plan. Barack Obama's retirement security plan will automatically enroll workers in a workplace pension plan. Under his plan, employers who do not currently offer a retirement plan, will be required to enroll their employees in a direct-deposit IRA [investment retirement account] account that is compatible to existing direct-deposit payroll systems. Employees may opt-out, by signing a written waiver. Experts estimate that this program will increase the savings participation rate for low- and middle-income workers from its current 15 percent level to around 80 percent.

"Expand Retirement Savings Incentives for Working Families
Women are less likely than men to have significant income from pensions and other savings at retirement. Barack Obama will ensure savings incentives are fair to all workers by creating a generous savings match for low and middle-income Americans. Obama will expand the existing Savers Credit to matchh 50 percent of the first $1,000 [$500] for families that earn under $75,000, and he will make the tax credit refundable. To help ensure that this proposal actually strengthens retirement investments, the savings match will be automatically deposited into designated personal accounts by using the account information listed on IRS tax filings. Coupled with the automatic workplace pension plan, this proposal will stimulate tens of millions of new Americans to invest for retirement. Over 80 percent of the savings incentives will go to new savers, and 75 percent of people eligible for the incentives wo are expected to participate in the new program do not currently save."

"Blueprint for America's Working Women and Families

Obama expects to win in Nov, assuring the "democratization" of capital risked with finance managers --defined contributions rather than defined benefits, rather than real wage growth. And even if he doesn't win, McCain is committed to keeping the capital market primed with trusts' funds.

The one-percenters we call representatives are sick.


Diversity is the key to economic and political evolution.

My hope is Obama gets elected, the economy and financial systems gets worse and he jettisons the idiot advisors who put us here in the first place and keeps his own counsel and gets advisors who have as their first priority 'social justice'. He has had to thread the needle in order to get this far with keeping his cards close to his chest. Lets see if he turns into a great President if elected or another hack like Clinton who talked himself into his first priority, which was to be reelected.

If Obama is able to have 60 Dem Senators or somewhere close to it; he will be able to pass real campaign and lobbyist reform and may be able to pass a real living minimum wage. Combined with a universal healthcare program and 2 or 3 Supreme Court Justices will make a real difference to Americans for generations. But first he has to get elected-then the shite really has to hit the fan economically in order for him to radically change the way the US thinks. Social Justice may be a priority as everything in his background points to it. Or he is just another compromised pol like Clinton was immediately after he was elected. He was visited by Greenspan who said balancing the budget was the first priority which negated all of Clinton's campaign proposed progressive policies. Greenspan's advice was backed up by Lloyd Benson, the designated Sec of the Treasury and Robert Rubin, then Benson's asst Sec of Treasury who is advising Obama. Lets see what happens but I am optimistic that out of misery will come radical programs.