Elliot Spitzer Again....Truth to Power; Listen to this Guy...
What if the most reasonable voice out there on the financial crisis was a discredited, fallen, former prosecutor and governor, who now, having been through the depths of what happens when you turn over too many rocks in this game, can actually speak about it without looking over his shoulder? We know his horrible secret already, and that's the beauty of having him as a voice now. Watch this entire thing because you need to know this. I would venture to say that if we had leaders who were as smart as this guy and who were exorcising their demons with high class call girls rather than say...um...torturing people, maybe we'd be in better shape. I'm sorry for all of us women who were promised fidelity forever and the perfect cotton candy skies (as Sammy Seder used to say about the World of Your Imagination,) but maybe these high power guys should be assigned a hooker of their own, just to keep it all in the lines...y'know? I'm just sayin'...I'm not dismissing his expertise because he did it with a fancy hooker...OK? At least she was fancy and seemingly didn't have diseases; I guess we all draw our own lines.
You didn't hear it from me, but this guy is coming back:
and for those of you who wanted to hear him speak on the horrible scandal, for which he was not charged with any criminal wrongdoing...far be it for me to deprive you of this part:
If we are supposed to focus on the shiny hookers and blow aspect of this guy,then maybe we need to step back from what the media want us to think about and think that he knows so much about this that might actually help us, and what is it that they don't want us to know?
Elliot Spitzer is back and hes talking. The thought of this, no doubt, brings a small shiver to the boardrooms of some of the perps walking around trying to figure out how to hide the money this week. Today Edward Liddy testified that there have been death threats made to or about executives who received bonuses, so no names will be put on the record, but these anonymous players must know that the jig is up in the land of easy-money. Isn't what to do a no-brainer for these great Americans?
Spitzer may be as "disgraced" as any anonymous sex loving Republican loser, but America is known for its great second acts, and we may be witnessing the curtain rising on Spitzer's. Today in Slate Elliot Spitzer has a short op-ed that speaks volumes about what is going on, and indirectly, if you follow the money, what happened to him. Plainly stated, Spitzer brings the AIG Ponzi Scheme one step closer to the revered establishment when he explains how the bailout money was funneled straight into the top players, with Goldman Sachs being the name that comes up again and again. These top players already got bailout money, and Goldman is looking at zero losses at this point, while regular Americans are being asked to make concessions or just plain losing everything. here are the biggest financial entities in the world, making billions on what appears to have been nothing but air traded back and forth, and having gutted the American people they are walking away with 100% return to their stockholders. In return AIG seems to think that its appropriate to pay themselves bonuses with the leftover funds. This leaves AIG still a wobbly shell with no plan of how to go forward, and the threat of the collapse of all of the world's financial markets still up in the air. So, what was all that bailout money for? Apparently to make sure that no one at Goldman or the other few top firms in the hand-out-line lost anything!
The relationship between AIG and Goldman goes back long enough that one would think that Goldman would know, having bought so much of this "insurance" or whatever it was, whether the "products" were ...er...real or feasible at all. Indeed, Goldman and AIG almost merged a few years ago, but Spitzer notes that the unknown black hole of AIG's business practices were probably what prevented it. Still, that didn't stop the incestuous dealings; it almost makes one think that this whole thing was a setup.
This is country that Spitzer is familiar with; he has been a terrible liability to entities that, under the Bush administration, were allowed to literally gut the country and its citizens. All of this seems to have been part of the Bush Administration's own Ponzi Scheme, which figured that the illusion of an ownership society, terrified of the "terraism" and steeped in the me, me, me, culture would look the other way while they finished clearing out the vault. Beyond that, it's clear that the media hyped housing bubble encouraged the house flip mentality and the idea that anyone could be rich. The idea of the lottery dropping on our own heads made us more protective of the rich, because we might one day be one....or look, we could be one with no money down, if we could just balance that on this, and flip that house!!
Every week came a new offer from our bank or credit card to just put the enclosed check into the bank for a $50,000 loan, unsecured and with a low APR!! Who would know that those same banks would go out of their way to cause a day or week default by changing the cycle or stopping refusing cards that went over-limit, in order to charge fees and raise the rates. Who could know that the fine print on all those little fliers talking about privacy rights and how they are selling all of our information, also said that by-the-way the interest rate is now 25% and the minimum payment has tripled! Default on that and likely AIG has sold insurance to your lending institution that should repay them for making the bad loan in the first place....no money down mortgages? No problem....its the same story. This is the ownership society and we all need to own alot of stuff. It is... what did he say?...uniquely American!
Spitzer was questioning this back in February 2008 when he wrote his Valentine to predatory lenders in the Washington Post. He detailed that Attorneys General across the country had entered into litigation in an attempt to protect the people of their states from predatory lending. The response from the federal government was astounding!
What did the Bush administration do in response? Did it reverse course and decide to take action to halt this burgeoning scourge? As Americans are now painfully aware, with hundreds of thousands of homeowners facing foreclosure and our markets reeling, the answer is a resounding no.
Not only did the Bush administration do nothing to protect consumers, it embarked on an aggressive and unprecedented campaign to prevent states from protecting their residents from the very problems to which the federal government was turning a blind eye.
snip
In 2003, during the height of the predatory lending crisis, the OCC invoked a clause from the 1863 National Bank Act to issue formal opinions preempting all state predatory lending laws, thereby rendering them inoperative. The OCC also promulgated new rules that prevented states from enforcing any of their own consumer protection laws against national banks. The federal government's actions were so egregious and so unprecedented that all 50 state attorneys general, and all 50 state banking superintendents, actively fought the new rules.
But the unanimous opposition of the 50 states did not deter, or even slow, the Bush administration in its goal of protecting the banks. In fact, when my office opened an investigation of possible discrimination in mortgage lending by a number of banks, the OCC filed a federal lawsuit to stop the investigation.
Now, they will say that they fought the consumer protection laws to actually protect the consumers and assure that they could get credit in the future. But actually, Americans could get credit; just credit that they were able to handle and could, by reasonable standards, pay back. This was just more of the same in hindsight. Looking back that all that the Bush administration has done, the beginnings of this disaster looks almost quaint, and not like an institutionalized foray into the dirty underside of criminal activity. There were quotas passed by the government as to who got the loans and the focus was on certain populations who would be helped into homeownership even if they couldn't maintain the credit. It was treated as some sort of fulfillment of the American Dream for people to own something, but really had more to do with the insurance on the loans than the people involved. The American dream is dead, as we well know, but what it was, way back then, was that people could afford to own a house and put their kids in college!
AIG sold insurance to the biggest entities in the financial world to cover the proliferation of bad loans. This insurance became so common that it was impossible that the lions of finance didn't somehow have an inkling that something was wrong. Didn't Goldman and the rest of these huge firms know something about the stability of an impossible business plan? Hadn't Goldman gone over everything in their bid to merge? And what of the government and their mandating of certain loans that were bound to go bad. There were people involved in these things, and its not like regular people understand the ins and outs of the financial industry. They rely on brokers to explain it to them. But these brokers were being forced to see a certain product to an unqualified population. How could they? Why would they? Those are questions for another time.
Spitzer has been fighting these guys and asking questions all along. Coincidentally, right after the WSJ editorial appeared on Valentine's Day 2008, Spitzer was caught up in what was an extremely unusual sting. So unusual is an investigation like this that it seems almost like it was a set-up; and considering where it all came from and how it all came down, it might well have been.
It seems that Spitzer's bank was investigating expenses under the auspices of the newer Homeland Security laws of the Bush administration. Greg Palast wrote about this compellingly, and in light of how the whole thing is shaking out now, and what Spitzer said back then about this financial mess and what he tried to DO about it, Palast had a pretty good early grasp on what had gone down. So now, with Spitzer poking his head up from the underground of "healing his family," at this most compelling of moments, its probably worthwhile for Americans to screw their heads on straight and forget the details of the hooker, and look at what Spitzer was working on when he was taken down. We might all find ourselves wanting to thank the egotistical crime fighter who cant keep it in his pants.
I am no apologist for breaking the law, and usually its the highest and mightiest that fall the hardest. But when the mainstream is showing us the shiny object, we must resist the temptation to succumb to our base natures and try to see the bigger picture. There was never a real case against Elliot Spitzer, and no charges were filed. The release of embarrassing personal information was at the discretion of the Bush Administration's Justice Department.
Why was this information released? It wasn't that he was a crusader against such crimes, because many who have been caught were exactly the same and their information has been kept quiet. It wasn't that the press is all so great in their investigative journalism, either...because we know they're loathe to get off their asses if they can just read a talking point; as is evidenced by the reportage on this case.
Not all crimes lead to federal bust or even public exposure. It’s up to something called “prosecutorial discretion.”
Funny thing, this ‘discretion.’ For example, Senator David Vitter, Republican of Louisiana, paid Washington DC prostitutes to put him in diapers (ewww!), yet the Senator was not exposed by the US prosecutors busting the pimp-ring that pampered him. Naming and shaming and ruining Spitzer – rarely done in these cases - was made at the ‘discretion’ of Bush’s Justice Department.
Or maybe we should say, 'indiscretion.'
Bush's Justice Department. Its clear to me that all things being equal, this was at the very least, not a transsexual streetwalker a la Hugh Grant, and it was all very ho-hum and quiet. So, whatever the problem that leads to this sort of behavior, I don't want to know about it...its personal, so just walk on by...nothing to see here.
Welcome back Elliot Spitzer. I hope we hear more from you very soon...your voice is needed in this matter.
Our good friend Richard Blair of the All Spin Zone is traveling today to AIG headquarters in NYC to make some noise (look for the guy in the leather jacket with the sign that says GIVE IT BACK MR LIDDY!! If you're around there go and find him!...and Richard, text if you need to get bailed out! Security is tight in the big city! He's not the only one, apparently....It seems that protests are popping up all over the place, and they seemingly stem mostly from guys like Richard who have just had enough and who want to jump into the thick of things in this drunken town.
The new Tea Party movement is gaining momentum, and as the bailouts come down with little reasonable explanation or accountability, the turnouts are growing. If this was the thing that was gonna get people into the streets then so be it. I always thought that it would be tent cities and people dying in the streets, which is likely not so far off. We witnessed Hurricane Katrina and were so numbed that we just watched in horror and maybe sent money. Some went there immediately, but not enough in light of what was going on and the government's non-response. It had to be something that effected us all; and here we are. The thing is that this is all so blatant and corrupt that its almost unbelievable!
Ive been struggling to understand the details of the AIG thing, and its all so illogical that I cant quite believe that the government has given them anything. Why are we bailing them out? I'm hearing alot of this hold-your-nose-and-bear-it talk because its necessary for the world economy...? When it becomes clear that bonuses are being paid out at the same rate as before, and that its business as usual. Are we bailing them out so that they can just continue on with what they were doing that got us into this mess? How are they going to go forward? and what gives them the idea that they don't have to answer to us?
I'm working on this, and I hope that I don't end up with some novella length post about the ins and outs of this nonsense, because it seems that we really have little more to do than to take to the streets; and it occurs to me that people will be spurred to action by short bursts of east to understand facts about this rather than a long lament.
I have doubts about America moving forward without investigating what happened during the past 8 years and addressing it strongly through the laws of the land. I've long thought Bush and Cheney should have been impeached; pretty much from the start, and at least by now that some special prosecutor should be looking at what happened. The toothlessness of Nancy Pelosi, Harry Reid, and the rest of them, was and is maddening with that old line about moving forward and not dwelling in the past; we wouldn't want to appear like we're dwelling on...er...laws, the constitution, or anything like that....it seems like they all swing between feeling some helplessness about being able to actually get the support they need to investigate fully, and the old forget-the-past-and-move-on line. I guess that with the media the way it is, we always stand the chance of being looked at as dwelling on something that's over and done with; now what are we gonna do?
Well, get with the program or get outta the way; these days I'm all about the blame, the ounce of flesh and rehashing the past, who pays and who slips past, who ends up in jail, at the Hague, or crudely hung while dirty Americans in bars pump their fists in the air. This is about creating a record so that future generations, hell the generation growing up now, see that no one is above the law and that America doesn't operate this way. Blindly moving forward just to create space between us and the crimes serves no one in the long run. It does maintain the status quo, which is more comfortable for alot of people, but isn't that what got us into this in the first place? The questions once asked in high school and college level civics and government classes have all fallen by the wayside in an educational system that is barely able to teach the 3 R's, and without the knowledge of how things are supposed to work, people expect less from their elected officials. Punishing those who break the law is less about a pound of flesh and more about preventing a repeat by looking hard at who we've become and who we want to be; how far have we strayed from the founder's ideals of who we might become. You don't get to erase the past 8 years....ignoring the past is guaranteeing that we will repeat it.
The news of interrogation tapes from Guantanamo being destroyed during the Bush years is no real surprise to me, but news of existing evidence being destroyed by the last vestiges of the CIA is troubling, to say the least. More scary are the newly released Bush memos detailing that what was supposedly the insane ramblings of conspiracy theorists were not so far from the truth. If Bush and Co. had their way, America could easily have been turned into a police state in which the president could order a lockdown of all citizens at any time, and a suspension of our rights. This is dangerous stuff, and if they ever were trying to deny that innocent people were seized and renditioned to other countries, held and tortured, well, these memos are the groundwork by which all Americans could lose any semblance of due process or privacy. The government would only have to decide that the country was in some sort of danger. It could happen in committees where top officials hold up vials of white powders and show tubes and maps...oh, wait a minute, that already happened.
This material is a smoking gun, and its not like its the only smoking gun out there...the Bush administration boldly went about their business above the law because they really believed that they were above the law. The question is, can a country of laws continue on any reasonable path towards healing if we skip over these criminals and the evidence right in front of us? Shouldn't we at least be afforded a special prosecutor to just go over things a little? The shredders are whirring somewhere in the bowels of the gulags where shit went down....what are we going to do about it? Why hasn't Obama put this all in a state of investigation, frozen so that no more evidence could be destroyed? Where are the special prosecutors?
I'm waiting to see what the Obama line on this is gonna be, and I'm not all so positive about it. And so far he seems to be distancing himself from what the law folks are doing, which is neither here nor there. He did make the memos public without much fanfare, and it seems like any real lawbreaking will be responded to with an actual investigation rather than a pardon, but, I'm not sold. As much as I like his populist way of coming to the American people and laying it out on the table that we have a choice of who we want to be. This is a choice that we have to make and stand behind before our doors are kicked in and our treaties are canceled at our leader's discretion.
I love to see Obama speak, and its refreshing not to have to spit at the TV or run to turn down the sound of the voice of that sneering madman, but I can already feel the malaise of the thousands of people out of work or working 3 jobs and barely making it, just coalescing. It seems like we're in good hands and we're all so busy, so why not just let them try to handle it as best they can?
Regardless of how selfish we want to be in keeping more money in our own accounts, it must be clear that what the Bushies had in the works was the actual dismantling of our system in the guise of a tax break or a stim check. I've lost all faith in any politician actually standing by an idea as big as prosecuting an ex-President and an ex-Vice-President, but in my hopes and dreams I envision a world where a leader is bold enough to just say fuck it and throw politics to the winds to do whats right. Those sorts of leaders usually go down in history, but they don't necessarily have long lived careers (or lives for that matter.) There is a tremendous fear in the government that if we start prosecuting wrong doers, we may be knocking on alot of doors; but isn't it time?
This past weekend I turned on Sunday's This Week with George Snuffleupagus, and saw that no less than Karl Rove was on the panel. There he was sitting at the round table, spouting his beliefs and ideas, as if hes not a criminal and as if George and every other idiot there hasn't been masquerading as a news person at one time or another, or at least as a public servant. How does it work that this guy gets his great American second act before he even responds to the subpoena? How can news people sit on a round table with him as if nothing is wrong? Who are they inviting next, Bernie Madoff?
Even Arianna could not believe her eyes, and thank god in a way, for the netroots and all of my politically astute friends out there, because when this whole thing began, back in the dark days of Bush's first term, I felt so crazy and lost and alone. But with the gelling of the force there, I knew that as much as I was shaking my head and saying no-no, so were thousands across the country opening their laptops to begin the day..."today I saw a living nightmare commenting on my president's bailout package, as if he has anything to say to us ever again!" As Arianna said, this is no way to keep your viewers at a time when TV is on the way o-u-t.
Just because Rove has a certain amount of expertise in advertising and the old bait and switch, does not mean that he should be given a platform. He sat at the right hand of someone who may be one of the worst criminals in history. Why is he being elevated like this? I guess that its because the punditocracy seems to want to normalize him and therefore lessen their own guilt, as well as keep their bridges to the bad guys because it's likely they will be in power again at some point...I don't know anymore; none of it makes any sense.
So, he gets to sit there all nice and social and give commentary on Obama's strategies? There is something wrong with that picture and I'd prefer to not have him on the screen when I turn on the TV on a bleary Sunday morning. They've had their say and they actually lost big time on the merits of whats happened. So its safe to say that the old Rovian terrorizing of the masses, until they cant think straight or look at evidence, is over. I have no interest in his ideas...not at all.
Time Magazine isn't my favorite read. I tend to shy away from those weekly rags that encapsulate what they think you need to know of the news. They do, however, have something interesting online from time to time, and I caught something this week that I found so interesting that I had to...um...borrow a copy from the gym so I could read it in hard copy. Its the Faith Healing issue, and it has, by the way, a great little piece on how boomers are taking over FaceBook...kick ass!! (And if I hadn't un-friended my niece I would send that link to her, because she seems to think that the thing belongs to the college aged kids with no spending power....as if anyone has any anymore.) But, the piece that got me was about The 25 People to Blame for the Economic Mess We're In., and its lineup of the expected suspects, most of whom I won't go into here because you can follow the link over there if you're really interested in what Time thinks, (and I'm ultimately not).... its the attitude that gets me.
At Time they see fit to barely scratch the surface of the problem, and present it as a faux lineup, with heads crudely pasted on fake bodies or some such silly photoshop. There is Bush and a whole mess of movers and shakers that we may or may not know. And smack dab in the middle is YOU, the American Consumer; come on now, take your medicine! You got yourself into this and now that you cant get yourself out of it you're gonna complain and ask to be bailed out? Wait a minute!
I'm going to try to explain what I've had circling for days only to gel today in light of old Karl sitting there, and I'm gonna do it without slanting things towards my own socialist tendencies and without letting the American consumer off the hook:
Americans are bombarded with advertisements that imply that the American Dream is just a credit card away. We are offered cards upon checkout at every store from Target to Tiffany's, and promised 15% off our purchase that day if we sign up. Most of us have many of these cards, not realizing that they are mostly owned by a few big banks (aka Chase usually...Chase owns just about everything these days.) We've been fed a line and promised certain things that are explained in small print, too small to read, and we've signed up gladly because next week's paycheck will surely come and we'll surely pay that off. Of course the interest rate is 21% or more, and if we don't get the entire balance paid that month, or within the designated period, the 15% we saved is only an offset of that for the first month. Everything is like that these days; nothing is simple as things were even 20 years ago when I was putting things on layaway and not picking up the merchandise until I had paid it off!
The get-it-now, need-it-now culture has sprouted out of nowhere, but it couldn't have happened if the banking industry hadn't become more and more reliant on the consumer credit part of their business. It used to be hard to get a credit card, and then suddenly every kid was getting offers and you didn't have to have an income or a credit record. You can shake your finger at the people who signed up for mortgages they couldn't afford and didn't understand, and people who lost track of the money needed to support those plastic cards, but not without noting that deregulation has allowed for the biggest advertising schemes in history to dupe us all into believing that we could have it all! And more, that ALL was not good enough. If you had the house you needed the bigger house....if you had the bigger house you needed to win the lottery. The American Dream has become more, more, more; and I'm sorry, but that little secure job and comfy life on the cul-du-sac just wont cut it. That's because we are AMERICA! Look comrade, at a point, you gotta decide whats the norm, and if what you aspire to, like the rest of us, is winning the lottery, well, chances are stronger that you'll get hit by lightening. So maybe its time to set out some basic norms, so that we aren't struggling to achieve what has been presented to us and what is unachievable.
All of American life has become predatory...how many of us can really make it on just our incomes without relying on credit from time to time, or all the time? Its not just that credit is an integral part of the capitalistic landscape, its that our culture has turned on itself and somehow we find ourselves in a situation where it matters little if the purchaser/borrower loses everything, so long as the predatory bank is bailed out.
Now, that predatory bank that I owe a certain amount to on a card has been sending out fliers. I often find some blowing down the street and they sit unread in garbage cans. Those fliers, it turns out, say that the cycle is being made smaller and the minimum payment is being raised. At that point, if like me, you have automatic payments set up from the bank and you're not checking all the time, you're screwed! The deal is this, you get called on the day you're late, and as you're saying that your payment isn't due till next week and rifling through the stack of bills, they offer you a deal to pay on the phone for a small fee of $14.95....then, since you're late, they charge $39 as a late fee. Oh, and that thing they used to do when you went over your limit where your card was denied? Most of 'em don't do that anymore; instead they allow you to go over your limit and then they charge you an overlimit fee!...oh, and by the way, in the other little flier with tiny letters that you may or may not have gotten in your junk mail there was mention of how they were lowering your limit....so chances are you don't know that a card that had $1000 on it actually now has half that! And one more thing, your card holder bank has just bought all the little banks and they now own all your store cards...and they've reported you to the credit bureau and in response to all of this your limits are raised, your minimum payment is raised, your credit is lowered and you cant get a consolidating loan to try to make sense of this because your score was lowered for any one of 3 or 4 reasons which range from just silly to insane! Welcome to my world!
Of course, the whole thing is stupid and we shoulda known, but how many of us are able to read the fine print legalese and fight the brainwashing....the brainwashing...yes, I said it! Besides that and more important is that many of us have been putting groceries and medical bills on these cards...forget about if there is an emergency and a huge hospital bill. So, I take responsibility for my own credit, and Ive never paid late until they started to change the date regularly, but obviously Ive only paid a day or few late and I always paid much more than the minimum! Who stops them from from doing whatever they want? You know, you can refuse these changes but then they are gonna shut down all of your cards and call in the loans...and remember, they own all the little cards too! This is all AFTER we, the tax payers, bailed them out!...now they want more! You know what? why not let them fail to hell and see what happens? Credit may be the cornerstone of business from the newspaper stand on the corner to the biggest banks, but there is no reason not to bail out the businesses that have a need to be guaranteed to their vendors or whatever. It sure would be cheaper, wouldn't it?
Meanwhile, back to my Sunday morning hate fest, and seething by now, Ive got to ask: Who is the king of brainwashing and deregulation? Karl Rove! The same Karl Rove who now gets to sit on a panel on Sunday morning and discuss Obama's bail-out stimulus plan! The same lying cheating neocon who so firmly believes in that odd somehow bigger "less government," privatization, and deregulation of everything, until the financial dealings of this country are more like the wild west than a civilized society. That's the same Rove who masterminded the terra threat and the go shopping to support your country lines. There has not been a time when Rove wasn't sitting at the right hand of the president, and therefore he doesn't deserve a place on the roundtable until hes cleared, even if its a kangaroo court set up just to smooth the transition. He has refused to answer a subpoena on many occasions, and now hes saying he will but there are always rules and things that cant be asked in the interest of national security. Well, I'm not feeling very secure, are you?
I'm also not so happy to note that he does not appear in Time's lineup of who to blame....how about looking at him as being criminally culpable in the government's disinformation campaign, causing the disassembly of how we had previously handled money in this country? Is it legal to lie and propagandize until there is little left of this house of cards? And is this someone who should be advising us on the quick progress of Obama, who is at least doing something; something that Rove didn't suggest that his buddies in the oval office do in the last few years.
This whole thing and who is to blame is really not so hard to figure out; just follow the money, pundit chairs and book deals. If the game was to loot the country and then hand the war and ruined economy over the the democrats, and then float that its Obama's problem and try to even tie it to Clinton, as if Bush had nothing to do with any of this, well then Rove is a fucking genius! The catch is that 80% of Americans believe that Obama inherited these problems from Bush, so its apparently gonna take a little more than what Rove has been trying to dish in the talking points, along with disgusting flunky "party leader" Limbaugh. So, maybe Americans are wising up and maybe, just maybe, we're sick to death of being lied to.
So, who is to blame? it seems to me that every damned bit of this economic crisis can be traced back to that day that Reagan was standing at a podium saying that large corporations don't need the government to police them! They don't need regulation; they can regulate themselves, by god!!I remember staring in disbelief at the man basically carrying out what had been planned for a long time, and what was the beginning of the end of the American Dream.
Government involvement or disinvolvement in how money has been handled in this country brings me to a very interesting piece on 60 Minutes last Sunday night. It seems that one Harry Markopolos figured out that Bernie Madoff was a fraud and he told the SEC quite a few times over many years, and they didn't investigate properly. It was quite straight forward actually, and the hedge funds in Greenwich that were making money hand over fist by putting client's money into Madoff's fund, should have realized something was amiss. Its impossible for a fund to not ebb and flow with the market, and its impossible that no one noticed that something was wrong. What seems clear is that those who were able to pull a profit from Madoff, kept raking it in in an impossible scenario that was as intoxicating as it was a ticking time bomb. Any money person could see the few things that Markopolos found, and the SEC should have looked. Madoff's neice had married an ex SEC man, and he was heard to say that he had ties with the officials. There are huge conflicts of interest in every area of this, and beyond that Madoff is such a sociopath that he is unable to even feel the pain of the not so rich people who thought they were secure only to end up having to go and work menial jobs to live day to day, its clear that lax enforcement puts a big piece of the blame on the government that we fund to police these things. New York Magazine has a great article on Madoff as The Monster Mensch, which is telling in its dissection of the making of someone so removed from what he has become, and one who clearly is a sociopath. But what interested me was the depiction of Madoff as an climber, an outsider, who upon achieving the dream and being in a position to hold court with some of the most influential people in the world of finance, still was the scrappy boy from the streets. He retained a sort of anger at the people for whom he had made fortunes, and felt "ennobled" that he had worked his way up and enabled these people to have such fine lives. Maybe the resentment was a necessary first step in the break from ethical reality, in that things would go south or had already gone south, and so a bit of anger and resentment made it all the easier to fabricate his detailed statements and lie so convincingly, while acting like he cared for his clients and employees so much. As an outsider, he created an exclusive club that people were so happy to be in that they didnt question. It reminds me of Stevie Rubell standing at the velvet ropes of Studio 54, a little balding guy who never really fit in, controlling who would get in and who wouldnt; always there was that underbelly of resentment for people not of whatever the code was for that night....the shoes wrong, the chains wrong, the party mix wrong....and regardless of the law breaking that went on inside, once you were in, you werent gonna rock the boat.
Madoff is in the lineup of Time's 25 people to blame for the financial crisis, you see, along with Chris Cox, who was the Chief of the SEC, and who didn't investigate the allegations of wrongdoing in the Madoff case. Even as Cox claims to have lacked the authority to do much, as if his hands were tied by deregulation, he still didn't stand up and blow the whistle....There were reports of wrongdoing all over the place, not just in Madoff's case, but the SEC lacked authority to investigate? It seems to me that a few people were blowing whistles and the masters of the universe who were running these supposed "regulatory" agencies lacked the balls rather than the authority. It seems that the concern over and over these days is in one's own career and future rather than ethics and logical decision making.
The money in many of these cases has disappeared, but yesterday the paper noted that Switzerland holds some 147,000 American accounts where money has been stashed tax free. Of those they will only divulge a few in current hearings amongst a particular 52,000. How can that be ethical? You know what? UBS is one of the biggest businesses in my town, having gotten huge tax breaks to build its headquarters here, and I dont see why they should be given such a huge footprint in the US if they are harboring the money of tax cheats and criminals. It has to do with Swiss law not allowing Swiss employees of the banks to implicate themselves in crimes, but shouldnt foreign companies operating in the US have to follow our laws and not be screwing us over offshore? I say shut them out of America until they pony up the names of all of the cheats. I think we might see many familiar names on those accounts, and we might recover some of the missing Madoff money as well. Oh, and those big financial operations that make Stamford the second largest trading floor in the country; operating on tax breaks meant to bring jobs to the area. Those operations are laying off thousands of people in little bursts. So, what are we getting and who is protecting our citizens?
This country is rife with really sick people. It seems that no sooner have the laws been softened than the movers and shakers begin some descent into a convenient madness that is really just a form of what happens when the Freudian id loses its social restraints. I have long marveled at the human brain's ability to twist situations to a point where it makes perfect sense to resent and blame the victim as you steal them blind. The unfettered id is not a good thing, but it is a pretty transparent thing, just like the accounts that cant possibly make the return they are making. It is the thing that we, as human animals, have been working against, towards a more ordered and kinder society. It is the animal urge to fight for resources as if they were limited in this forum where the people in question have more than any group could ever need. Either we just admit that we migrate and kill each other for resources, or we try to keep up this facade of the good churchgoing populace...the seedy underside is always there no matter what part of history you look at. The common thread is always that we strive to be better and to end violence and unfair tactics that leave part of the population out in the cold in a way that is well removed from the Darwinism of yesterday, before the decks were stacked against certain groups from the getgo.
And who are the leaders in the unfettered department; the inability to understand your effect on others, and to see how big of a footprint you have, or the air that you suck out of a room? The most ill of them all? Rush Limbaugh is claiming that prize proudly as he opens another button on his shirt because its s-e-x-y! In the following clip Janeane Garafalo and Keith Olbermann discuss the incredible pathos there, and what is great is that its just so clear that Limbaugh is a lonely, ugly, guy who is out of the loop, abhorrent, self loathing, and so even in the middle of adoring fans, he finds a way to hate, and a way to soak up the bucks; while also furthering the cause that allows him to profit off of the misfortune of our country. Rush just serves as an example of the the other half that I have struggled to understand for so many years. Its the Rovian hook and lie, the hate in their eyes that gives permission to all of the writhing ids, barely held in check out there, to go for it. Its a devilish wink and nod that lets the underbelly of our society know that its OK to take what your instinct tells you are resources, and not to feel much empathy for anyone. The fascinating thing is that with these Bush neocons, the KKK hood is off. They boldly display themsleves so that their employers will know where to send the checks. hate sells in this culture...and maybe it would be about time to ask ourselves why? Let them throw back the freedom of speech argument at us all they want. At some point we have to stop trying to be so politically correct and call a spade a spade.
Christian religions are based on the all-men-are-born-bad model, which seems to allow for alot of straying and repenting, with forgiveness by the ultimate authority a given bonus, even for the worst crimes. Darwinists see the prehensile tail and layers of pre-reptilian brain telling the human man to survive and to excel, and whats so wrong with that? Its understandable and it allows for a certain acceptance of the crimes committed in the service of resources and land. Its a hard cruel world out there in the animal kingdom, and as much as you can dress up a chimp or the human race for that matter, eventually their instincts take over. Its very hard to tell a billionaire that he has enough money, because its not about money anymore; its about pounding your chest and peeing on the edges of your territory.
Fundamentalist religion seems to be about one angle or another that allows a group to be exclusive of those who might otherwise be welcomed as a brother; meantime denying the survival of the fittest and espousing the survival of the one that follows the convenient word....and of course if you stray there is the forgiveness as well....but the whole thing seems to end in a fiery pit anyway, with a heaven goal, so all bets are off. Strange that so many of the other 50% have embraced the fringe of the fundamentalist creed.
The deregulated government and waning culture seems to ultimately free the barely contained id usually contained by the weak vessels of theory proven wrong, to wreak havoc on those who might trust in the logical and empathetic order of things. You would thinkthat in absence of some superego, a social structure might come forward to keep this all in line so that no one gets hurt. Where is the superego or even a little regulation? When did it become OK and even just part of business to state that you screwed people over but it was lawful? If the conflict of interest is between the patient in the hospital and the shareholders....when does it stop? when you've denied care because your first responsibility is to the business dealings of the shareholders? The answer is that it doesn't stop, and it may signal the end of the cycle of pure unfettered capitalism...which might mean a sharp turn back with a new administration or possibly that a tipping point has been reached and the whole thing is gonna come crashing down.
We live in whats left of the shell of a country looking over the fallout of the last 8 years, while those who are not served whatsoever by espousing the neocon ideas of yesterday, continue on in what is the cognitive dissonance of the conscious colliding with whats gone on, or just plain old-fashioned denial. Its sick and it appears sick, even to regular old conservatives looking at what has become of their party. I dont want to play games anymore; I'm tired. There is no status quo in this ever changing landscape of the spotty history of our country. There is only us deciding who we want to be and shutting down the bad influences out there. Bad begets bad, and anger begets hate and blame.... Short of using our laws, damn the torpedos, we return to the gutter that we barely have emerged from.
Frank Rich Scratches the Surface of America's Denial Crisis
Whats it gonna take to open the eyes of Americans in denial?
Frank Rich scratches that surface, in his Sunday Op-ed, What We Don't Know Will Hurt Us, and all that's clear is that its all unclear.
No one knows, of course, but a bigger question may be whether we really want to know. One of the most persistent cultural tics of the early 21st century is Americans’ reluctance to absorb, let alone prepare for, bad news. We are plugged into more information sources than anyone could have imagined even 15 years ago. The cruel ambush of 9/11 supposedly “changed everything,” slapping us back to reality. Yet we are constantly shocked, shocked by the foreseeable. Obama’s toughest political problem may not be coping with the increasingly marginalized G.O.P. but with an America-in-denial that must hear warning signs repeatedly, for months and sometimes years, before believing the wolf is actually at the door.
Its starting to sound to me like Americans are slowly backing towards the real rude awakening, and no matter how many years of warnings there have been, the evidence laid out on the table in the hard light of day, and our crushing need, need, need to hold on to the dreams and possibilities; the American Dream, with all of its boring stability, yet promise of how things could change with one lottery ticket or game show win, the reality of the situation is so bad that even considering the alternative of a normal life of making ends meet causes many to cling hopelessly to the chance rather than live in the reality. Its not the safety from the terra that we really want, its our 15 minutes of fame! That's because we're special! I don't know if we know what we want, really. With all that information out there, it seems that we have become more provincial in our tastes than ever. Maybe the menu is too big.
Rich talks about our "cultural pattern of denial," as if it just came about on its own and wasn't born of a system that purely and clearly doesn't work. Yeah, I'm talking about capitalism; the unregulated brand. American Dream Capitalism can only flourish, and then temporarily, in a world where credit companies go hand in hand with advertisers, hand in hand with retailers, paying less and less to workers, who then need more credit to fulfill what the advertisers tell them to want. The media claims that they are just giving the American people what they want, but I don't think that its possible to know what you want with no clear idea of whats out there, relatively, in a world full of differences and possibilities. Its all a big manipulation for which each generation will blame the one before it, but clearly, we have a skewed world view anyway, so infighting isn't going to help. The truth may be that the sham of the American Dream is that its not really enough because we are so spoiled that even if we don't personally need that fame, we need to watch others gaining and losing it on our large screen TV.
The fear that we are traipsing down the path to socialism is very real to many for whom capitalism has done little. Why is that? We are, in fact, a semi-socialist country with what little that really works here being part of that redistribution thing that is so hated. Most people knee jerk about keeping the money they earn and yet pay private insurance companies a premium level premium only to have to do battle when push comes to shove, and live at the mercy of which doctor takes which.
I'm not against everyone making a fair or comfortable living, but its clear to me that if regulation stopped the money up top from all traveling upwards, like we used to have a rule of thumb to put a certain amount of profits back into the business, and then pay back into the workers, community, society, and the infrastructure, maybe we all would be a little safer and happier.
The problem is really more of a sociological phenomenon in which rather than being angry at the rich, we direct our anger towards the poor for taking up our resources with their neediness. The truth of this is far from whats disseminated and somehow billions more in corporate welfare is OK, but feeding children is not. Its taken so many, many years of this manipulation for the tables to finally turn. It's taken home movies of gold fixtures and multi million dollar birthday parties, empty accounts where hedge funds were supposed to be, and no bid contracts, carried out by crony companies with ties to the government, (to put it mildly;)...companies that carried out their duties so negligently as to feed tainted water bottles to our soldiers fighting their war of profit, build buildings in which pipes burst and shit dripped from ceilings, and that managed to lose truckloads of cash...truckloads...all of this with evidence in front of the American face. Evidence like videos, documents, drawings, and testimony, and all anyone had to do was to dangle the carrot or the threat of losing the carrot that you don't really own, and we went right back in line.
My big disappointment in the past 8 years has been less the crooks that would steal their own country blind and walk away able to sleep at night, because there are some bad people and absolute power corrupts, etc... but that half the American people went along with it because of some shiny, shiny, and a vial of white powder, to lazy to do the research or even open their eyes.
Its probably not that all of those people are bad, but more a sort of cognitive dissonance, where what is accepted societal behavior becomes corrupted by what is the line from the propaganda team, and the actions following go so against what one stands for that the opposition of the two creates a mental vacuum. It becomes a matter of accepting the unacceptable behavior or admission that one has played a part in something that is criminal or wrong. The wrong becomes the new truth and the person clings to it as if it was the gospel truth because the alternative of having been so wrong and acted on it is too much.
Americans are not raised to look at their reality under the light, lest we become dissatisfied with our position in the order of things, so we cling tighter to the truth that we have come to believe, based in fear or denial, and the slightest possibility of joining the monied classes and the belief that they should be able to keep what they have earned. Every successful American CEO has stood on the shoulders of this entire society to get where he or she is, and a society that allows success even one tiny bit as big as many of them have achieved, deserves a kickback into society's pot; not a tax loophole and an offshore account to try to keep the money that they have earned. The regular American, as well as the poor American is expected to kick back in, but its accepted that the loopholes for the rich exist because they somehow deserve them. This is the group that has benefited the most from the Bush years and their tax cuts. Now some of those guys actually sunk their businesses, took bailout money from taxpayers, and managed to give themselves their huge bonuses at the end of last year. What are we supposed to do with that? Let them get away and we've reinforced the helplessness of law abiding citizens everywhere. Rock the boat too much and the corporate influenced government ceases to move forward. So, yes Obama is up against it, and he may be the one we need right now in that, as much as he skirts around the truth in the interest of not overwhelming the undereducated masses and offending the cronys, he will state the truth, and he will do what has to be done. I believe that because I have to. I believe that because there is nothing else, except that the specter of families with babies on the street and on the soup line may not hit home until that family is your neighbor...or you...and until the post apocalyptic country starts to look too much like a Mad Max scene that even the Reaganomics of the 80's couldn't fully carry out in NYC. That NYC was where I stepped over the AIDS ravaged homeless and the broken glass of car windows every day for years, shouting at a deaf government, and it was heartbreaking. This is much worse, but we no longer have a government with its fingers in its ears and humming.
How bad does it have to get before we take action? It has to come right to the front door and maybe inside the house! Its gotta take a camera into the Willowbrook asylum and drop a microphone down the well so that we can hear the stuck baby wailing. Its beyond 9-11, obviously and way past Katrina....Being out of work may the the thing that creates time for Americans to reassess whats been happening and to get back to basics.
The same people who very gravely told me in the past 2 presidential elections "I'm not sure if your guy can keep us safe," have to realize that this is not something that any individual can figure out, but rather a broad policy of base belief that got us into or is gonna get us out of the current can o' worms; that base belief should probably start with at least following the constitution and laws, and then turn to how our neighbors are treated. If we give up our base beliefs out of fear, then we have nothing.
Rather, what I was seeing in those frightened voters was the wielding of the power of the vote in the direction of the possibility of winning the lotto and joining the Halliburton class, or remembering some Pearl Harbor memory of America as the Hero, in the right, which was just laughable in its gravity and sincerity, considering what was going on in the world and how we were acting. The same people who wouldn't know a Thief from a Socialist if they hit them in the bank account, thought that they were influencing the halls of power with their belief in a Bush or a McCain or a Palin as a way to stay safe and right; because if the simplistic neocon view of things could keep us safe, then any working stiff espousing at the local bar could make it big, and there is a certain leveling in that bluster, as much as its totally nonsensical.
Americans may need to be slowly led into the harsh reality of what lies ahead. But hopefully it will be done before its too late in a world of tipping points. We may see Obama nationalize the banks and we may see a "socialist" turn to how things are done in this country. The alternative has been tried and it doesn't work, so get ready for something new and maybe even a little familiar. If its not dawning on the other half by now, then it may never. That doest stop the necessity of moving forward before things get worse.
If in light of the bailouts already put out there, the executives at the huge corporations and banks cant see the path ahead, then they have to go; and not with their golden parachutes either! If the credit companies are only using the bailouts and reorganization to put the screws to their customers rather than stop offering up new credit at every turn and make a sane way to get out of debt, then they will go too, and along the way they will see many more Americans in straight default, rather than honestly trying to pay their debt down.
The real point of this illustrated lesson for the American people and the world is that the dream that you were promised is earned, not promised, and you were bamboozled into a position where you can't earn, beg, borrow, or steal it anymore...its dead! and no matter what anyone says, you cant get anything for free. If the credit industry had to fold and stop offering credit to individuals, how would we live? well, we'd learn. If that effected the world economy horribly and the CEO couldn't get the corporate jet he wanted this year along with his 20 million dollar bonus, well, we would go on and dig out. What we are seeing may be the collapse of unregulated capitalism, and surely, if America doesn't hold those responsible accountable right up to the top, then we are doomed to repeat our mistakes over and over. Laws are no good if they are only for the rabble, especially if everyone right up to the president and his VP get away with murder.
Industry in this country may be based at this point on the vinyl to CD, CD to MP3 player model, just as the digitization of the television signal, (our airwaves,) serves to force new equipment onto Americans credit cards at a time when people just don't have the money to pay that debt back. But at some point, the camel's back breaks; especially when the paying jobs to make that new equipment are long gone to other countries that have entered their own cycle of Americanized mistakes.
So I look forward to hearing a little hard truth. As I said, frank Rich barely scratched the surface of the problem here. Its a problem of growing up and getting with a reality based model, and having the government carry that out in regulating how much these companies can lie to us and entice us to get in too deep, while they stab us in the back, and blame us for being negligent for not reading the print so fine as to serve the smaller denizens of the doll house world. I'd like to see simple terms in normal layman's print, and I'd like to see the country get back on a track that is livable and from which we can recover to a sensible level of realistic living where everyone has a chance and the worker is once again valued as much as the CEO. c/p Brilliant at Breakfast
