Wall Street, DC

For the past coupla a few years I have been writing and thinking a lot about money and economics. Before then I used to always write about foreign policy, I don’t know why, for my professional expertise, or any of my Undergraduate, master of doctorate degrees are in the area of either foreign policy or economics. Moreover, nor am I a conspiracy theorist. I guess you can say I just like puzzles and problem solving and more importantly freely thinking for myself.

I have been consistent and even accurate in my analysis and evaluation with respect to the US government and the so-called representation of an economy it fosters. I have also been consistent in pointing out that there is no difference really between the political beasts we call Washington, DC and the financial varmints we label Wall Street. And for me there is no better example than the Crooks who operate at the top levels of Goldman Sachs. The way I have figured since the 1960, the folks who run and formulate Washington’s economic policy are the same folk who make fist full of loot for their own personal interest. Starting with the chief Thief in charge – Robert Rubin. Now Rubin was forced to resign from CitiGroup as its Chairman earlier this year for his messed performance. It was profitable for him seeing he left with more than 100 million in his pocket. However, he got his start with Goldman Sachs in the mid 1960s where he eventually became co-chairman in 1990. He was only around for a few years for afterwards he became Assistant to the President for economic policy and eventually US Treasury secretary in 1995.

Then there was Stephen Friedman who served as Chairman from 90 to 94 and as the director from 2005 to date. However in between he was the Chairman of the New York Federal Reserve from 2008-2009. Also there is Adam Storch (VP from 2004-2009 for GS) who now serves as the managing executive of the Security and exchange – as if we expect folks to police themselves. Henry Paulson was Chairman CEO of Goldman Sachs until he resigned to become US Treasury secretary in 2006 until 2009.

It also works the other way around. Michael Paese was deputy staff director on the House Financial services committee from 2007-2008 before becoming Director for Government Affairs for GS which he serves as today. Robert Zoellick was US trade representative from 2001-2005 as well as deputy secretary of state from 2005-06 before putting in work as a managing director at GS from 2006-2007.

This is just an example for I can say the same about Citigroup and others. In fact Geithner was VERY close to executives of Citigroup, ( Robert E. Rubin). Now all I am saying is that it is difficult for me to see how folks who created this problem while working both on Wall Street and In the Halls of Washington Politics can solve the problem. Moreover, I think it really show what the problem is. One of importance is revealed incessant incompetence. If most of us messed up dollars on our jobs at scales way less than what Rubin did at Citigroup – we would be fir4d and likely not be employed again. But not these folks. They are head of the game. And we Americans don’t get it, nor does Obama or any of them other politicians regardless of political affiliation. I don’t know about yawl, but I don’t trust nor love them Wall Street, DC hoes. I mean I do not see a difference between the two: Wall Street or DC, do or can you?

money in the bank?

I have often wondered if it was in the best interest of America for our President or any President to bite off or do more than they can chew. I say this not to point fingers but rather because I feel as if we have not really addressed the seriousness of our current economic conundrum. Last year I made a prediction that about 100 more banks would fail this year, so fare more than 80 have and there are four more months left until 2010. This past Friday, two banks and one thrift failed. These included Bradford Bank of Baltimore, Main Street Bank of Forest Lake, Minn. and Affinity Bank of Ventura, Calif. Just the week before four banks failed including ebank of Atlanta, First Coweta Bank of Newnan, Ga., CapitalSouth Bank of Birmingham, Ala. Guaranty Bank of Austin, Texas (which the FDIC sold all of the bank's retail deposits to the main U.S. subsidiary of Banco Bilbao Vizcaya Argentaria).

This is somewhat unsettling, especially given all this spending of a so-called stimulus that only seems to get allocated in New York on Wall Street as well as the suggestion that over the next 2 years maybe an additional 1000 banking institutions are anticipated to fail. The issue for me is that it appears that none of the Bear Stearns folk like Sumner, or the current Fed Chairman are interested in Main Street as much as they say. It is obvious giving loot to New York Banks ain’t helping anyone since most failed banks tend to be smaller and private, which makes things even worse for small business owners such as me.

It makes me think that the current administration, the Federal Reserve and the FDIC are all in this together to stump out small business and engender the death of we the people for big corporations and the K street lobby. The Federal Insurance Deposit Corporation recently just implemented new restrictions on private equity firms that are trying to purchase failed institutions. It may be a little to late since they no longer have the funds available in insure all of the account holders in America and because they have allowed the over zealous and aggressive practices to occur unmitigated with respect to buying failed institutions.

What I can see is that even with all this, things will only get worse and that the FDIC and Federal Reserve are still not ready, prepared or able to deal with the impending wave of bank failures to come. Not to mention that they still aint figured out what to do with the billions of dollars of troubled assets it has stuck some where on its books. Plus the fact that its pockets have been depleted with reports of the $52.8 billion it had on hand last year has been reduced to about $13 billion.

The future of our economic system is only getting bleaker unlike what is reported in our media. The market is artificially inflated with the help of crooks the likes of Lawrence Summers, Robert Rubin and Ben Shalom Bernanke will be the death of America and main street and Obama cant even see it coming, but I know they do for the got money in the bank and will be sitting pretty living high off the hog as the rest of us suffer. Maybe this is why they are pushing for control of the internet, so folk like me cant spread the word they way things did in Iran during their recent election - just a guess.

No end in sight

I feel bad for the next President with respect to our current economic prospective. I know I wrote and said this last year back in January of 2008, but the problem today from then, albeit just 12 months ago is five fold. Back then, we didn’t have a bailout for Wall Street banks which all them dumb azz senators (including Obama) signed off on and passed under the auspices that it would “fix our economic woes” - a bailout that gave these financial institutions approximately 50% of the United States GDP, without any strings attached or requirements supposedly to “free up credit markets.”

From his eloquent statements, I was under the opinion that Mr. Obama would not support the “reckless spending” that was reflective of the last 8 years – but his actions indicate otherwise. Obama talks about reigning in spending but his policies after reading are just as, if not even more reckless. Although I say this, I am inclined to give the President-Elect the benefit of the doubt. But things are drastic and not just from last January, but even more than when he was elected in November.

America's largest aluminum maker, the Pittsburg-based Alcoa, said it will cut 13 to 15,000 jobs. Makes me wonder what other raw materials companies will follow suit? Add to that the recent announcement that Airplane maker Boeing Co. plans to cut about 4,500 jobs; the announcement earlier this week that the drugstore chain Walgreens Co., will cut 1,000 jobs; data-storage company EMC Corp. (Boston) said it will cut 2,400 jobs; Logitech International (makes computer peripherals) and has offices in Fremont, California, expects to let go about 3,500 employees; and managed care provider Cigna Corp. announced it will be laying off 1,100 employees. Add to the aforementioned that Schlumberger Ltd. (oilfield services) plans to cut 1,000 jobs in North America and the rumor that Microsoft will reduce its workforce by 17% (15,000 workers), there seems to be no sight in end. Not to mention that down in these parts Georgia-Pacific may reduce its total workforce by some 25%.

I just hope that his desire to be seen as a moderate or centrist doesn’t reduce his ability to give us folks what we need for economic prosperity. The nation's unemployment rate got to 7.2 percent in December, and based on Labor Department's report, it is only going to get worse for President-elect Barack Obama. My concern is both pragmatic and rhetorical. His focus for Congress to "act boldly and act now," will just be a short-term fix and will not do ANYTHING to end the recession – it will be a while before this is over. Not to mention that his approach on taxes in contradict his own objectives (providing more discretionary income for middle-class families). Because if such was his desire, he would see that middle-class tax cuts amount to more loot than planned taxes for folks making more than $250,000 annually. All I am saying is that true, we need to take urgent and significant measure to deal with the economy, but they need to be reasoned and pragmatic. Taxing folks over 250k will only in my logic, make them move loot overseas to safe havens. If they were allowed to keep more of their loot, they would most likely save more, invest more, making more loot available for lending and more jobs. I don’t know where he got this advice from, I hope not Robert Rubin, who just resigned from being the head of CitiGroup ($20 Billion in losses last year). Whatever the case, things are bad, robberies are increasing and I am sure homeless shelters are becoming over-crowed nationwide. But then again, what do I know, its all speculation on my half. God Speed Mr. Obama, God speed.