There is so much happening in the world.
First, everybody is being bailed out who is a parasite. Wall Street thiefs, who bring nothing whatsoever to the economy except sleight of hand and outright thievery, get trillions. No oversight, no restrictions - just straight gift from us, the taxpayers, to you, the people who caused the greatest financial crisis of the world since the Great Depression.
There is much hand wringing about the paltry 17 billion short term loans that the automakers receive. Much oversight, tough restrictions, and demonization of both American manufacturing and organized labor.
All according to plan, as spoken by the prophetess' Naomi Klein's Shock Doctrine
What we are seeing is simply a transfer of wealth from the American middle class to the richest 1% elite. For generations to come.
What we are seeing is the brainwashed masses in USA, holding to the idea that the free market is a cure all for everything and that the government regulators should get out of everything (please google: americangoy libertarians, to get my views on the religion of Libertarianism).
What we are seeing is the changing paradigm in American consciousness, that hard work is for suckers and that people with big money somehow deserve it more than a middle class guy who was working for a living 30 years of his life.
What we see, just to put an absolute emphasis on what is going on, is the bailing out of hedge funds using our tax money, with no regulation nor oversight.
nakedcapitalism.com: The Fed Has Become a Prime Broker, Will Lend to Hedge Funds Under Consumer Loan Program
Quick definition of a hedge fund.
A hedge fund is...
It is a private club to which very rich investors and organizations are invited to invest their money in. The understanding is that the people who run this fund are so smart that they will make you money (as smart as Mr. Madoff, the NASDAQ founder, at least).
Because they are for rich people to make money, there is no oversight nor regulation of this.
These hedge funds have been the bane, the destroyer of the stock market, as they invested (pumped) big billions into a company stock, with the unwashed masses following the "smart" money, and then presto-chango the hedge funds pulls the money out, leaving normal day traders and normal investors with huge losses, and the company destroyed.
And now these guys... are getting bailed out also.
One comment on the naked capitalism gets it (author - mmckinl):
"Did I read a different article than all the other posters?
This is an OUTRAGE !
Auto companies have to go begging, states and cities need loans AND THE HEDGE FUNDS GET LOANS! THAT IS WHAT THE POST SAID WASN'T IT ? THE FED TO LOAN TO HEDGE FUNDS ? ARE WE REFUNDING REDEMPTIONS ? ARE WE FUNDING RISKY F-ING BETS WITH OUR MONEY ?
THIS IS BULL SHIT !
Thank you for your reporting Yves. The New York Times should run this on the front page ... Sunday Edition !"
2nd comment: by an Anonymous:
" I predicted this.
When Paulson first started making the rounds on TV selling the bailouts, he was asked point blank if hedge funds would be excluded and he completely ducked the question. Citizens helping an enterprise like this is beyond the pale. No wonder they released it on a Friday before a holiday."
Another comment: Michael Fiorillo,
"so we're all Marxists now"
If so, then Marxists of a very odd sectarian bent: immiserating the working and middle classes in order to subsidize the collective delusions, parasitism and predation of finance capital.
"From most according to their abilities, to a few according to their greed.""
So, the elite get all the help they ask for, American manufacturing and labor gets heavily regulated, short term loans (a few measly billion as opposed to trillions given to Wall Street shysters, remember?), and now...
Now, lets see if Naomi Klein is right.
Hell, lets see if Karl Marx is right.
Now comes the assault on unions, on organized labor, on manufacturing, on all the small people who actually work for a living (the sucker class in America).
The money is found for war and occupation of Iraq - trillions. Money is found giving Wall Street elite trillions. Money is found for giving rich people their money back who lost it in hedge funds, even though a hedge fund is unregulated and has no insurance whatsoever.
But money for American manufacturing, for Social Security - well, we ain't got no money for that.
And the joys of globalization, of the world uniting.
Globalization was supposed to raise the standard of living of people in 3rd world countries, but somehow the wages in the 1st world industrial countries go down (looking at inflation) yet the 3rd world is still a shithole, with no environmental, safety laws, where the bosses are known to rape their employees with no consequences.
Beat that, American workers.
Our competition is with Germany, France, frankly the European Union, in manufacturing.
And we will always lose.
Because our product is inferior?
Because the companies in every other country in the world do not have to worry about providing health care plans to their employees. Because in every other country in the world it is the duty of the government to do that.
So, all things being equal, the USA's manufacturing will always lose to the European Union, because of that.
As for competing with China, Indonesia, etc - forget about it.
How can an American worker compete with a Chinese one, who is working in a gulag - in a prison complex?
Globalization - ain't it great?
Finally, lets explain recent financial events in a very easy to understand language.
USA is not a world power in the manufacturing sector.
Incidentally, manufacturing is still (despite computers, software development, Microsoft, Google and all the other high tech non-manufacturing sectors of the economy) the most important part of the world economy.
Real, tangible stuff is important.
Production is still king - whether cars, tanks, or pencils.
USA is over 2/3 service economy.
That means that we are a country who is a nation of barbers, waitresses, clerks and middle management.
All of which are meant to support the manufacturing, which are less important than manufacturing, which frankly, if push came to shove, a nation can do without.
So the people in charge of this nation, looked around, analyzed and figured out that they needed something to give a boost to USA's economy.
Because you cannot, cannot, run a country's economy with no production whatsoever and base this economy on waitresses, clerks and barbers.
So the one sector which they hit upon was housing.
A house built is a complicated financial process.
A house needs furniture.
Needs plasma TV's, DVD's.
Needs a carpet, or a wood floor.
And, most importantly, needs a loan from a bank.
Because all of our economy, all of this dog and pony show, this circus, is run on loans, from banks to us.
There was a point reached when everyone who wanted a house and could afford it, did get it.
And then a strange thing happened.
President 'W' Bush became a communist.
The goal is, everybody who wants to own a home has got a shot at doing so. The problem is we have what we call a homeownership gap in America. Three-quarters of Anglos own their homes, and yet less than 50 percent of African Americans and Hispanics own homes. That ownership gap signals that something might be wrong in the land of plenty. And we need to do something about it.
This is crucial, as the propaganda specialists on TV and radio will try to blame the democrats and, more importantly, the minorities for having the gall to get these loans.
Not so - this was always the business plan, the plan, for this nation's economy.
Reread what bush has said: "The goal is, everybody who wants to own a home has got a shot at doing so."
Not everybody who can afford it.
No - every-fucking-body needs to get a house NOW.
That is not a conservative policy.
That is not even a socialist policy in the Scandinavian countries.
That is a pure communist policy.
Because the economy of America needed an engine, something that will make the money flow, something that will get the people to get loans, and the process to continue.
Cars were already saturated, with car makers making roughly 50% more cars than needed and financial incentives stretched out.
So - housing was to become the engine of the economy.
And it worked - and how!
House prices rose to dramatic levels, because everybody was getting loans.
No job? Small wage? No problem - move from your cozy, safe apartment which you can afford to rent into a huge house (which you cannot afford).
Oh, and now feel free to take out a loan using your (unpaid) house as a collateral.
Now, two things.
First, the big hedge funds managers (those with billions of dollars) hedged this housing bubble by investing, really pumping, money into a 2nd bubble.
Guess what it is? Of course - oil!
Oil prices, like housing prices, reached dramatic levels in very short period, with talking heads on TV explaining that it was all due to China and India using more, plus of course the environmentalist idiots were placated that "oh my gawd, we are hitting peak oil time!".
So both left wing (snort!) and right wing in America were given their explanations re: price of oil.
Of course, the truth was there for anyone with half a brain to see it (google: americangoy oil price)
It was pure and simple speculation, with hedge funds pumping money into oil commodities to pump up the price of oil.
And it worked - and how!
Now, the point was reached in which every deadbeat, every bum off the street already secured a loan and bought a house.
The economy sputtered, coughed, wheezed, and went all to hell.
And the 2nd bubble?
Noticed the price of gasoline lately?
That's right - the oil bubble, like the housing bubble, is also over.
Rich people hedged one bubble on another and now both are history.
So what is the result of both these artificial bubbles going "pfffffft"?
The 1% have to make their money back.
One final note.
Because of the war in Iraq, and now the theft of our money (bailout), the government is more and more in debt. To be less in debt, it would behoove the government to make the dollar worthless (as in worth less and less) so that our debt to China, Japan, Europe, while growing in the number of dollars, in reality will shrink.
That is why the FED and our ruling class has no problem with printing so much more money for bailouts, loans etc etc.
They want the dollar to be worthless (google: americangoy dollar or americangoy monopoly money).
You have been warned.