20081008

Mr. Manners pointed out to me bright and early yesterday morning that I'd soy sauce on both boobs of my jacket. Great. So I spent the day with my jacket pulled across myself, straight jacket style, all day at work. Fanfuckingtastic.

The financial world continues it's implosion with great abandon. While we've been THE SKY IS FALLING THE SKY IS FALLING the rest of the world has been quietly addressing their own issues (Germany arranging bank loans for it's second largest mortgage lender, the U.K. bailing out a bank or two, Ireland, Spain, several banks in Asia, Austraila, etc.). The world is not (as much as the rest of you would like to pretend) entirely immune from financial woes. And not, I think, because you are dependent upon the dollar. Those countries were also known for nuttily inflated property values as well (c'mon...a 950 square foot toilet in Paris is not worth one million euros....and I don't give a shit, if you'll pardon the pun, if it IS in Paris!). So something of this sort was bound to happen eventually.

The question remains....how bad will this become?

Will we all lose our jobs? Will there be rampant unemployment? I don't mean seventies style unemployment, with gas lines, increases in welfare, food stamps, and public assistance....and it isn't like Atlanta itself isn't already eerily facing signs of some of the same fiscal woes it faced then. I remember being a child when Atlanta couldn't pay some of it's bills, and the city would turn off alternating lights on the highway to save money. Or gas lines...remember gas lines? Georgia is going to be short on revenue (if we are closing state parks, we don't have any money).

A small part of me (let's call this the doomsday scenario) wonders if when this all shakes out there will continue to be a middle class. We are, after all, a class that only came to be with the spawning of the industrial age - the birth of the machine gave rise to the concept of leisure time. Without leisure time, there is no middle class - we all become laborers. If white collar jobs become incredibly scarce because regulation becomes very restrictive in banking, investing, insurance, mortgages and healthcare (some of the primary employers in the United States), where will the jobs then be found for these displaced workers? Will Americans become global workers or will they remain here?

If they remain here, will we be plunged into economic chaos (where oranges for Christmas are once again a treat?)?

I don't have much confidence in the people we have elected to be our leaders. I do not have any confidence in the traders and investors who so much as fart and drop my 401K's value by 25% in a given second. I have even less faith in those purportedly highly educated, highly paid pundits, analysts and talking heads that provide the voice of America today. I think they've gotten it all wrong as they attempt to steer us through the darkness.

But history is what makes fools of us all.

4 comments:

Anonymous said...

Two points I would like to make. First, you make it seem as if this crisis is nobody's fault. It is the direct result of Republican party policy. Wall St was enabled by a climate of greed generated by Bush, Cheney, McCain et al.
Secondly, if we are the middle class, who in society is the lower working class?

Eliza Doolittle said...

It is not a republican problem, or a democrat problem: it is a problem of the Federal Reserve and a lack of regulation, neither entity is controlled by either party nor are they actually controlled by the government (the reserve certainly isn't). The specific programs that brought about the collapse of the economy: the boom in the housing market, the development of the credit default market, the constant push for growth and irrational returns on the part of shareholders and investors who all care for nothing but profits and immediate ROI, consumers who falsify paperwork, the fact that companies are not required by law to disclose executive salaries when they file their disclosures with the SEC (if this were law, we would not see such large salaries paid to CEO's because shareholder outcry would be....large). It's not one THING, or one PERSON, or one PARTY. It's a series of errors running back two entire decades that have culminated into this error. And as you well know, it didn't just happen here. Many other countries are having the same problem with real estate, investing and banking.

I mean: how can you have a trillion dollar market in credit default swaps. What is a credit default swap? How in the fuck can you have a trillion dollar market in something that does not physically exist?

Anonymous said...

I have a book for you to read in which the author tells a tell of the new america. This is a place where people change because technology changes. The title is World Made By Hand by James Howard Kunstler. In this book he tells just what happens when the making of money, by having money to invest, ends. Yes, the middle class will change and return to it's original meaning. People who make goods and perform servicies will be paid a living wage. A wage that they will use to support their families and even get ahead of their neighbors.(if they work hard and smart.)This will be the New World after the credit default ends if we are lucky and wise. Good nite and God Bless Mom

Anonymous said...

mrm,

How liberal of you...

Moron...