Some days you just have to feel sorry for
our invertebrate President. Some folks just don't live right, they
dig a gold mine and it falls in on their head. Mr. What's his name
ran a flawless Presidential campaign and from day one he's become
the leader of the gang that couldn't shoot straight. You just can't
get good corporate help in this country anymore.
That would appear to be the problem, policies chosen at the whims and desires of corporate America. Cash for Clunkers could have more accurately been called, Easy Money for Executives or perhaps Wheels for Wealthy or even Clobber the Consumer. Flash back to the days when GM and Chrysler were on their backs and gas was pushing $4.00 per gallon. GM and Chrysler had cash problems and counted on returning leased vehicles to aid their bottom line. Only, the tens of thousands of returning vehicles were Denali's and Escalade's, big SUV's and Mini Vans lease-purchased during the halcyon days of easy credit and cheap gas.
Vehicles with zero appeal in the face of rising fuel cost. Their retail value plummeted; GM and Chrysler car lots were filled with vehicles too low on fuel economy, too low on consumer appeal and with too high of a sticker price. What's a hard working corporate toady to do? The cash for clunkers program deducted tens of thousands of used cars from the resale market. It offered tax rebates for the wealthy to purchase new vehicles, two thirds of which were Asian made and artificially manipulated the price of used cars.
For GM and Chrysler it was a great deal. For the wealthy it was a great deal! For Asian car makers it was Christmas but for the bulk of the economically depressed population it was a disaster. My son who bought and sold these used cars at auction saw price increases of fifty percent in a down retail market. His business suffered, consumers suffered and two billion tax dollars were shipped to Asia.
There were plenty of warning signs when the invertebrate's "green initiative" included $17 million to develop more efficient oil drilling bits. These are the type of things which happen when you lay out a corporate feast they all have a boardinghouse reach. Take the invertebrate's Housing and Economic Recovery act of 2008. Its stated purpose was to stimulate the Real Estate market and to stabilize homes prices and for a few months it worked.
Only, it failed to address the root causes of the depression in the Real Estate market. That those falling home prices were created by the home foreclosure crisis, without addressing that problem it was pointless to offer $8,000 in tax credits for first time buyers. It did however give those affluent enough to purchase a new home with a place to park their new car. $12.8 billion spent to prop up the Real Estate market for a few months but ironically since the tax credit has ended home prices have continued to slide leaving those first time home buyers living in property worth well less than $8,000 or more than what they paid for it and so the net result was of the program was zero.
The invertebrate was stuck between a rock and a banking place. Under the Bush TARP bailout plan, the banks were able to present their bad mortgage loans to the Federal Reserve and the Fed would give the mortgage holder credit for the full amount of their loss. If they show an $80,000 loss on a mortgage loan they are credited with $80,000 if they show a $100,000 loss on the property they are credited with a $100,000 in new money. Hence the expression, your loss is our gain! Each bad mortgage loan increases the paper loss that the bank shows and exacerbates the mortgage crisis but to the banks its win, win! The more home prices fall the more the banks are reimbursed.
Two more banks failures this week bringing the total to twenty five bank failures this year coupled with over five hundred bank failures last year. The economy is on the mend they swear! Each failed banks losses are covered by the FDIC which then sells the carcass to a big bank at a loss. Big banks win, small banks disappear, end of story. No reason to explain to the American public why the small banks are still failing is there? Never mind, go back to sleep, did you see American Idol last night?
Under the invertebrate's leadership large banks bordering on monopolies will completely take over the home mortgage industry. The Democrats in Congress (Dodd-Frank) oversaw the dismantling of government assistance in the home mortgage market eliminating corporate banking's only competitor. They effectively threw in with Mr. Potter to crush the Bailey Brothers.
But then the roof falls in, the oil platform explodes and the invertebrate goes into the public relations mode. BP hires out of work fisherman to do radio spots to be played on corporate radio stations telling the public how wonderful the handling of the problem has been by the oil company. The invertebrate parrots along, government scientist's claim everything is OK in the Gulf. Eat up America! The sooner the Federal government says the seafood is safe, the sooner BP is off the hook! Bad pun, sorry. It does show however the contortions to which the invertebrate's administration will go to assist its oily benefactors. The Gulf? The Environment? The Economy? The people that live along the Gulf and earn their living from it? The what?
As the crisis in Libya began to deepen the administration of the invertebrate sent an aircraft carrier and talked up a no fly zone. Then when Gaddifi's forces struck back and began to push the rebels back the administration began to change its tune. No longer in a hurry to provide air cover for the rebels, waffling perhaps? If only that were the reason it would be excusable but this has even a darker purpose.
During the Second World War as Soviet forces advanced on Warsaw patriotic resistance movements were encouraged to rise up and strike the Nazis. Then suddenly as the Democratic Freedom fighters fought for their country in the streets of Warsaw the Soviet offensive stopped. The Western allies were denied the right to use Soviet airfields that would have been necessary to refuel aircraft carrying weapons for the freedom fighters.
The freedom fighters were slaughtered and then and only then did the Soviet offensive begin again. The Soviet's preferred that there not be a strong patriotic Polish leadership as it made matters easier for the Soviets in a post war era. So in this case the US would rather see thousands more die for the same purpose. It makes it so much easier to strike a good deal when the rebels are pushed back to the brink of annihilation. As the great Sachmo sings, "And I think to myself, what a wonderful world!"
But the invertebrate just don't live right, he opens the Gulf to deep water oil drilling and almost immediately an oil platform blows up. He proposes eight billion dollars in government support for two new nuclear power plants in Georgia and events at the Fukushima Nuclear complex turn ugly in Japan. In the American press it's called a possible meltdown and the evacuation is called precautionary. In the foreign press it is called a partial meltdown admitting that iodine tablets are being passed out to the population. The American press calls flooding the reactors with seawater and boric acid as prudent and the foreign press calls it last ditch. At the Chernobyl reactor they didn't have seawater and used concrete and boric acid to encase the crippled reactor.
Ah, but we must go easy, those were GE reactors and so the invertebrate at first says nothing. Then the invertebrate tells the Wall Street Journal that it is full speed ahead on America's nuclear program. In Germany, Angela Merkel's decision to not decommission reactors is questioned. In India Prime Minister Singh's administration has been weakened over his commitment to nuclear power and even in China there is a new and questioning attitude. Yet, this is the Corporate States of America, where oil companies are left in charge of the clean up. Where Exxon is still being sued in Alaska and the injured have yet to be made whole. Where an invertebrate corporate President stands behind the nuclear industry in the face of yet another catastrophic accident.
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