Wednesday, August 25, 2010

Bad Eggs, Bad Mortgages,Bad Oil & Bad Government

When I was in the US Army 45 years ago, the NCOs told me that there were two things you did not mess with. The two things were a soldier's pay and his food.

With the recall of billions of eggs, where do we go? Over a hundred years ago the Federal Government passed a law creating the Food & Drug Administration, and yet, over a hundred years later the FDA is ineffective insofar as a government agency to protect the food supply of this nation.

Liar loans and bad mortgages are synonymous. Now the housing market is in the tank. Interest rates are low and no one is buying, and as a result the economy is hurting because of all those items that go into a home are not being purchased. The securitization of mortgages was once a fantastic tool to finance the housing industry in the USA, but because of liar loans and bogus triple-A mortgage-backed bonds, the market had a meltdown and now it has dried up.

We continue to import huge quantities of oil from outside the United States, and while oil is priced in US dollars, the drain on our financial resources as a nation has been felt during this recession. But what about the oil drilling disaster in the gulf and the 11 lives that were lost, a few years ago in Houston lives lost in a refinery fire, and over 20 years ago the big spill in Alaska? Where is the enforcement of regulations to protect the environment and oil workers' lives?

And finally, where is our federal government? Bought and paid for by corporate America to permit corporations to cut corners when it comes to the environment and the lives of ordinary Americans. Can we be surprised that so many people are upset, angry, discouraged and numb.

The Level Playing Field is out there. The problem, as I see it, is that the Level Playing Field has been thrown out the window. What will it take to bring the Level Playing Field back inside? Fines do not seem to stop the abuses. Perhaps we should take a closer look at stoning those that have such a disregard for the health and well being of our people and our country.

Stay tuned.

LEVEL PLAYING FIELD OUT THE WINDOW by F.D. Zigler, acrylic on paper envelope.


winslow said...

When we talk about our system of "freedoms"; in actual practice this means the freedom to exploit others. I don't know if a jail term would stop this but it would certianly slow it down.
Here is one personal example: I had invested in Wachovia Bank for several years. Every company report I read stated the bank was doing well. The CEO stated on media interviews that the bank was doing well. Three weeks after his last interview, the stock virtually collapsed and was almost worthless and the company was taken over by Wells Fargo. The CEO left with millions. The CEO was never charged, never went to jail, never had to pay back any money. WHAT IS WRONG WITH OUR SYSTEM?

moneythoughts said...

Winslow, I have a very similar story about another bank that I owned quite a bit of stock. No one went to jail here either or was even charged with a crime. The CEO made off with millions and left the shareholders holding a bag of shit.