Robbing the middle classes benefited the well heeled owners and stock holders. When they could not spend their income, they invested the excess in various schemes not all of them on the up and up. I liked particularly the dot com bubble that valued a company on the volume of losses it could incur.
The stock market bubble was less imaginative. The companies cooked the annual reports to boost profits and to exaggerate future profit potentials. Although painfully out-of-date, it gained the fat cat income tax deductions and more contributions from illiterate [or corrupt] fund managers.
When the regulators allowed speculation on future oil production, prices went through the roof. The cost of oil is five cents per gallon to produce it and another seven cents to distribute it. In most OPEC locales the price at the pump is between twelve and thirty cents per gallon. In gangster states Russia [$1.00] and USA [$1.33] it is higher.
The bursting housing bubble won't cease to heighten the suffering until 2012. There are at least $2 trillions in toxic mortgages due to reset much higher interest rates through 2012, which will cause about 70% of households to default.
Even though the financial sector got $350 in bailouts, virtually none of this funding went to ease the consumer and business credit crunch. Retail sales established record lows and unemployment soars. While they received direct funds of a few paltry $billions, GM closed construction of its major electric car [Volt] plant.
My Chauffer Knows the Price of Gasoline
During the auto bail out discussions, the participants struck me as millionaires talking to millionaires. I tried to think of the last time the Congress had done anything for ordinary people. I came up empty.
Nobody in power listens to us chronic complainers.
Why do we bother to compose e-mails and blogs? I suppose misery loves company.
The retarded Obama team has finally learned the problem is on the demand side. They anticipate an initial outlay of $850 billions [they dare not exceed $1 trillion] for public spending. They plan to hit the ground running with ready-to-fly state and local projects. They will follow this with infrastructure investments such as roads, schools, bridges and tunnels etc. They forget the length of the required environmental impact studies and the tedious courtroom battles involved. Including Republican obstructionism, only the lawyers will reap immediate benefits along the bridge to nowhere. Who said the states and localities could develop worthwhile projects? The $850 billions are a drop in the bucket.
The Chinese government is responding much more vigorously to its recession. It has the option of shooting corrupt officials and businessmen. Moreover, they fear a revolt from the workers. After all, the people live in the Workers' Paradise.
In America 45% live mortgage free. We could ease matters for the others. If a renter or mortgagee loses his home to foreclosure, he immediately assumes ownership.
We could dismantle the IRS and abolish the personal income tax. This would constitute a first boost to consumer spending.
We should cease artificially propping up the dollar. The result will be to increase our exports and to lower our imports.
The US Navy could clear the oceans of pirates and slave traders.