Archive for the ‘The Big Bang’ Category

As the Merry Season Approaches

Robin Hood. Banks rescuing banks. Until government had to rescue banks. And no one asked for a tax increase.

Robin Hood. American troops rescuing Afghanistan. After rescuing Iraq. And no one asked for a tax increase.

Robin Hood. The rich rescuing the poor. It was a great story. At Thanksgiving time. Or at Christmas. Or Hanukkah. Until the rich were extinct. Or in Asia.

“I’ve been forever blowing bubbles. Pretty bubbles in the air. They rise so high…”

When you got older and used your head to make a living. Looking at the fundamentals. Making decisions upon the present day news. About investing. People living in the present. Carpetbaggers, somewhat. For the short-term. Those San Francisco 49ers one hundred sixty years later. Only not doing manual labor.

The movement in the story. In the story of speculators. Gold. Once you had entered the entrance ramp. With concern only about today’s closing prices. Hope, in the story of speculating. Hope for tomorrow, that I made the right decision. The only focus about a hope for the future based upon the disappearing past.

The movement in the story. Looking for exits. And what was happening. Looking for safety, once you had some gold. The movement in the story, in the world with Robin Hood. When it was thought to be okay to steal from the rich. And Robin Hood had his own powerful group of merry men. Sometime enacting the law of the land.

The movement in the story. When you moved around a lot in your life, you did not have a great deal of trust. In your relationships. When your relationships were short-lived. Like in the movement in the stories of the markets. Those quarterly results. With the recent market appreciation of 14 percent since August 27, 2010 when the Federal Reserve Chairman announced QE2. An appreciation driven, the movement upward, by the Federal Reserve, not underlying economic fundamentals. The illusions which come from artificial money moving the market. Cheap money. Newly printed money, as The Fed continues to pump cheap money into the markets. The commodities bubble will continue to grow, as the dollar becomes further depressed.

The movement in the stories. The accelerating speed. Of run-ups. On people. Anything providing evidence of how people would be dealing with loss. The focus on the human dimension of lost savings. And being saved. It was getting more personal. The stories were getting a lot more personal. If you were related to the Irish. As civilized people were buying guns.

There was conflict in a Robin Hood economy, as governments tried to take everything from the rich, to care for the uninsured, the uneducated, the unhealthy, the poor. As voters, if not merry men, could not make up their minds over the question of what ‘economic justice’ exactly was, as they wrestled with the fallout of economic freedom.

So was this what the Y2K problem really was about? In the Year 2010.


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Religion Blogs

Pampers

The focus here is for the most part on the interior department. Mine. Mostly about the drilling for what was within. And the relation to the news. In the real world. And God’s view of all of this. In the beginning. Like somehow with music. Or in writing. Or a lot like with creation. When the invisible becomes visible.

God’s view of all of this now. Was there disbelief? Over the deepwater horizon.

Starting at 2.40 pm (Central Standard Time), almost 1.3 billion shares traded on US markets in a ten-minute span as Mexican-Americans prepared to leave work to celebrate Cinquo de Mayo, as about $16 billion worth of stock changed hands after someone placed an order for one billion shares of Proctor & Gamble — suggesting that genuine trading activity was behind the fall and rally—instead of what was thought to be a one million share order of Proctor & Gamble. And the guy that made the mistake also can have made an incredible profit in the short time the entire market bounced nine percent or more within 24 hours.

I went to bed last night finally appreciating why people are buying gold. With a potential seismic destruction of the trading value of any currency in few days’ time in the future—underscored by this news—I think, with this financial system, the day will come within my life time when paper currency has no value anywhere, when banks holidays are declared, when Arabs quit delivering oil, when vehicles are as valuable for transport as the gas in the tank, and without heating resources, Minnesota homes without fireplaces will be as valuable and sustainable as an ice cube in the dessert. Things sure had changed.

Maybe it was not just the hierarchy within religious denominations that was inert about taking action over the last decade. In a warning to offshore rig operators more than a decade ago, repeated in 2004 and in 2009, through Democratic and Republican administrations, federal regulators warned of the need to install backup systems to control in an emergency blowout preventers, those giant undersea valves used to cut off the flow of oil from oil wells. And those oil rigs were left to regulate themselves.

Power? Unregulated power? Conspiracy theories, anyone? Perhaps a quick way for financing the next election? A system of power without scruples or authentic moral sentiment created to hide true crimes and private lives with those lavish incomes which no human was worthy of. Had the trade come from Citibank? Bailed out Citibank? Or was this just organized disorganization? From East to West. Supported by lobbyists all over state capitals?

Creation. Which also has involved destroying life in one form. Always and everywhere. And replacing life. Confronting the unsettling ways in which God, as we encounter Him in the history text, keeps entering the story. Yesterday over the Consumer Product Safety Commission investigation of Pampers Dry Max Diapers, made by Proctor & Gamble.

Organizing a response to all of this crumbling. To all of the evil. Against those who conspire against the public good for personal gain. In these years as humans.

Drilling for what was within. Organizing with others, in the name of God. To keep the process honest. A process now capable to blow the world up oh so very unexpectedly. Until we all became immigrants again, with various forms of documentation.

Witnessing it all. This process of unexpected destruction. It was more than just a rash of bad news. And now, what replacement for all the unexpected destruction? As the invisible becomes visible. Drilling for what was within. The Department of the Interior. By those interior design major.


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NEW BEGINNINGS

Words. Cut the last paragraph…insert that paragraph in the next chapter. And leave something hanging.

In the beginning. Like somehow in music. Or a lot like in humor. Or in creation. When the invisible becomes visible.

The patterns, like weather patterns. The patterns which represent deep currents developing from ocean temperatures, in global meteorology which work against any effort for stable temperatures everywhere. Wind patterns which reflect something. Like an image. And image to transcend divisions.

What moves people? Anger? Love? The weather patterns, the isobars of love? How did love move people? How did the political forces of the world move people? What moved God?

Words. Describing the relationship which should exist. The self-hatred when re-creating without love. Sensing it in the girl. Then seeing it within me.

The disorganization. Movement. Break-ups. The patterns. To see water fall from the sky, when the ocean was 1,000 miles away. The amazement.

The patterns. In the clouds. In lives. With all of the disorganization. All these words here, making only thunder. Asking what moves people?

What moves people? On the land masses? In the divided land masses. When something ethereal transcended the divisions.

“What do you want to be when you grow up?” All this attention on a young person’s education. For twelve grades, or more. All this focus on words. But when life was not just a memorization process.

Words. Cut the last paragraph…insert it in next chapter. Leave something hanging. Actions. What I have done. The disorganization. In the words. In the plan. And the purpose of the story was? As the world got more complicated, all this disorganization. Thus the conflict.

Would there ever would be organization? In the words? In the isobars?

Wanting to have some power in your life. Some creative power. Some organized power.

Good and evil. Words. All this focus upon words. So that one day a person might act on the disorganization. When something invisible had become all too visible. In a teen-age bedroom. Or in a society.

Words of anger. Words of love? The weather pattern of love? How did love move people? How did the political forces of the world move people? And what moved God?

What was the purpose of the story? Chosen men. On a land mass. Characters with the need. To establish order. On the land mass. The need in the community for a homogeneous view. About good and evil.

One. The need in the community to establish order. With a human head. In a relationship.

The meaning of creation. Despite the conflict, wanting to have union. And wanting to have some power in the significant other’s life. When she desired an authentic relationship. The kind of relationship which should exist. Or the self-hatred when re-creating without love. First sensing it in the girl. Then seeing it within me.

The creation process. Good and evil. Men in a relationship. If they were lucky to have one. Fortunate men. Lazy men. Chosen men. With a woman. And with God.

Coming to grips with creation. Helping with it. In a world with 6.7 billion. Who will you affect, in your relationship? Who will you touch?

There was a new point of view. Out of union.

Because somehow my life was, with the weather patterns, to be a geological force that shapes the earth. In the creation process. In union.

About your greatness. Prove it. In a relationship. And then in the world.

Life in those relationships. Organizing a point of view. Union.

When life, new life, was the language of creation absorbed each day. Slowly evolving. When, or if, God was the inspiration to your focus. The God of Abraham. The God of Isaac. The God of Jacob. An always evolving God. For chosen men. By women. And then Chosen People. In the changing language of humanity, in the new point of view in this story, what was the purpose of the story?

Creation. Which also has involved destroying life in one form. Always and everywhere. And replacing life. Confronting the unsettling ways in which God, as we encounter Him in the actual text in the years when humans entered the story, became engaged to holy men and women in the Torah. A lot like those prophets who have gone before us, who gave us the foundation built, but who seem decidedly ungod-like. Those prophets living in a polytheistic world. And there then were also the unsettling ways in which God appeared to be decidedly unlike God. Especially if you had been an Egyptian, and beset with plagues. Who could believe in the God of the Hebrews then? God waging war on the side of the Israelites. This God, who made everyone, beset with the same conflict of inheritance? Passing on or hoping to pass on, something to the next generation. Or to someone. When people had human rights and liberty. But maybe not lawyers yet.

Words. The symbols clanging. All these symbols clanging and all these words here, making only thunder. The disorganization. In the words. In the plan. In what I forgot to do.

Noises. Words. Looking for attention. Action. What I have done?

C Cut the last paragraph…insert it in next chapter. Leave something hanging.

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On The Day of The Dead

In the world of Chinese Astrology, the Mayan long calendar will come to an end on December 21, 2012. It is a pretty big deal when any 26,000 year astrology cycle (the Precession of the Equinoxes) comes to an end.

The primary purpose of Chinese astrology was fortune telling, with a focus usually on what will happen to people in various stages of their lives, on a particular day or in a certain month or in a certain year. In this case those Chinese astrologers were suggesting a transition period was believed to be coming, a lot larger than the Y2K problem.

The intrigue. Just when I was coming to grips with the intrigue over the transition to Y2K that seemed to involve the age of terror and the conflict of the western world with followers of Mohamed. Now comes the Chinese and the intrigue over the coincidence that the Year of the Dragon and the end of the Mayan calendar fall within the same year. 2012. The real question was whether after the Year of the Dragon, in 2012, whether the world end?

All of us where I lived had come out of schools where the purpose was to teach us how to think, to piece together all the fragments of life until they worked to form a picture, like on the old game show “Concentration,” where you could figure out the puzzle. Somehow the pieces seemed smaller and smaller, and to figure out the big picture was much more difficult and taking this generation more time. And the puzzle was a lot larger than I ever comprehended.

I had never studied ancient Maya. I now come across some internet expert who tells me of these dedicated stargazers. During the 26,000 year astrology cycle (the Precession of the Equinoxes), the Earth moves approximately 2166 times through each of the twelve zodiac signs. I did not ask who was doing the counting. But this expert indicates that it was the belief of the Mayans, the Sumerians, Tibetans, and Egyptians that the coming of a new world begins on December 21, 2012. Large monuments as a warning were left to society that people might prepare for the transition. Their calendar ended on December 21, 2012, if not the world.

The good news was that no documentation, at least from a Chinese astrology perspective, indicates in 2012 the world will end, after the Year of the Dragon. The year of the Dragon is the grand Karmic sign, typically a year of positive developments. Or large disasters. So what does this all mean in the world of astrology? Or to me?

Chinese astrologers believe that a person’s time and place of birth set parameters, boundaries within which a person has more or less freedom. What happens within these boundaries is influenced not only by “free will” but also by external factors such as financial status of the family, the culture, and the local economy. Though not a strict determinist, balance plays a central role in Chinese thought. A Chinese astrologer will address a specific duration of time, or what people should do. A Chinese astrologer does not believe a person’s fate is sealed in stone at the moment of birth.

The struggle from generation to generation of off-spring. With the external and the internal world. To have the courage to write the story for these times. To raise a family in these times. In the quest for a Living God, I was fortunate enough to have had a good tour guide.

Significance. Meaning. The life of a Chinese astrologer as a tour guide was not going to be as easy in 3 years. Those Chinese astrologers who had relied on the Mayan calendar were going to be the ones in transition. Somehow I expected this was not going to be very funny the sooner the date approached.

When we are all in exodus. In exodus, from our origin, trying to recapture a past. To explore what may occur in 2012 – The Year of the Dragon – when “2012 could be a most auspicious year indeed,” states one webmaster.


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Woodstock & Stardust

Woodstock. The musical world was remembering what happened near Woodstock, New York 40 years ago.

I had watched the documentary “Woodstock: Then and Now” last night. And I woke up hearing Van Morrison sing “Have I told you lately that I love you?”

I was in high school 40 years ago. Perhaps I was an idealist at the time, but the world had seemed a lot more equal. Those Woodstock musicians had helped with a sense of vitality to point out a few problems with the world. With the Jimmie Hendrix improvised version of the National Anthem, which had seemed to address a war in Asia, race relations in the United States, or maybe the state of the union between men and women.

There was a lot of soul in the music. The documentary seemed to me to point out in its ending what was missing in the music today, watching kids today try to emulate the past, as they learned to make music. The music today which all looked like a Disney production. To make money.

The vitality of Woodstock: Kids listening to music, shouting “What the hell is wrong with you?” back at their parents. It was the same lyrics they had heard since they had emulated the hairstyle of The Beattles. Educated long-haired kids who had to go back home. Kids who for a longest time had been asked the same question, “What the hell is wrong with you?” Kids who still loved their parents. Despite the world.

I watched the documentary “Woodstock: Then and Now” last night. About songs of protest and songs of love. And I woke up hearing Van Morrison sing “Have I told you lately that I love you?”

Woodstock was all about vitality. About having fun. With little concern for making money. It was about a rain storm that humbled the crowd to equality. It was about a time of innocence. When musical artists were not concerned about impressing the audience as much as each other. Woodstock was about the muse. And about the true meaning of music.

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In the Beginning

Americans owed the celebration of the 4th of July to a printer. That was how important newspapers and the printed word were to this country. The PRINTED word. The Declaration of Independence kept in the National Archives in Washington. The one with the 57 signatures. Composed on July 2nd, with a decision to make the declaration known to the public. After the delegates gave the agreed on statement to a printer, those lamentations to King George, the force of publication of this declaration had carried the July 4th date.

Americans owed the celebration of the 4th of July to a printer. To believe that a nation came into being on a particular day in 1776 is to ignore all that had gone in the past. The past wrongdoing. Conveying a belief of a need to amend wrongdoing, there was this Declaration of Independence signed, sealed but not really delivered. To King George.

Wrongdoing. Conveying a belief. In order to form a more perfect uinon, people came together because of wrongdoing. The United States was all about fairness. “Unalienable” rights. Once upon a time there was such a strong belief in the need to safeguard a unity, about what I called inalienable rights. Just printed.

Peter de Bolla writes today in the L.A. Times about an architecture of belief which had the power to change the world. May it also be remembered that the act of declaration in 1776 that created, founded, and continues to create a nation was based more on the action behind the words. Nowadays the world does not need more words. Rather it needs the resolve that went behind the words of the Declaration of Independence.

“Self-evident” truth. As to those signatures of people who pledged their lives, fortunes and sacred honor, there were added later signatures of men who had not even been in the room on July 2nd. Maybe truth that had not been so apparent to be self-evident that day. New congressional delegates whose signatures were added later, once there was a Congress.

Ah, politicians and the bandwagon affect! Independence Day had never been a declared federal holiday by Congress until 1941.

Peter de Bolla wrote, as the Colonies were at war in 1777, a small and very low-key celebration was mounted, the members of the Continental Congress did decide to note July 4 by not meeting, and everyone went to church.

A toast! To the newscopy just printed. To a free press. By those who searched for the truth. Heroic as any soldier. A toast to those conveying a belief in the ideals of government. The ones which shall not perish from the earth. Facts now presented to be read as “self-evident” truth. And actually purchased by some “of the people,” for fifty cents. A toast! To the ideals of the people, by the people, for the people. A toast to those who pledged their careers, lives, fortunes and sacred honor, with high resolve that the ideals of the nation which have always been here – and that the people under God, shall have a new birth of freedom — and that the ideals of government of the people, by the people, for the people, shall not perish from the earth.

It has never been more difficult on these shores to be a worker in the news business than in 2009. Americans owed this celebration of the 4th of July to a printer, who posted a date of the printing. This holiday was all about what had gone on in one moment in time, two days before.

The Gravity of Money

It was the question of the year. How could home values go up or down so quickly? Where were the rating agencies? These were just opinions? Credit worthy? Fluctuating values. “Systemic risk.”

The changing valuations. The fluctuating currency value. Amidst the change in equity. In my house.

Equity markets. Falling equity in my home. When everyone felt secure with equity. It was as if equity was the purpose of life.

There were commissions involved with security. And commissions involved with exchange. Where had those commissions been?

That Filipino guy the other night. That guy, wanting to have sex. The nightclubs were filled with people like this. Just sex. Without concern with equity in a relationship. Without concern for real love. Without any real gentleness or compassion about a mate.

Slavery. Whether it was the Hebrews in Egypt or Africans sold for a cotton plantation. We were all descendants of slaves. Sex. Slaves to sex. But with choice. The choice beyond just having sex with someone in a relationship. The choice to marry someone. How many times?

How to teach the souls of the young? Teaching that “gentle” part of “gentlemen.” The graciousness. Learning the kind of God to believe in through religious education. And about that sanctity of marriage.

Searching for love. Little had changed from the past. The restlessness amidst all the change. I felt it upon my own college graduation. I wanted to get out of there. And make some money.

Memorial Day. Remembering the past. The great tradition, amidst all this change. And amidst the change, searching for God.

As to those outward signs: you had to be looking. A lot of people passed them by without a clue as to what was going on.

There was the rhythm of work. Lolling us. Investment bankers. Mergers & Acquisitions. Equities.

In partnerships. Keeping behavior in check. With liabilities assumed in partnerships. But behavior was not kept in check with the change to stock companies. There were dangers of greed. “Wall Street is a very dangerous place.” It was worse than polygamy.

Amidst all the change, to keep making money. Once the norm has been relativized, there was no obvious way to declare a way of life beyond the pale. Former Treasury official John Taylor, who had devised the “Taylor Rule” as a formula for rate-setting based on the outlook for inflation and growth, said the Fed’s growing balance sheet is a “systemic risk” because it may be difficult to unwind quickly enough without igniting inflation. Since last September 2008, the Fed’s balance sheet has more than doubled to about $2 trillion as it purchased government and corporate debt to help unfreeze credit markets and support banks’ demand for cash.

“Systemic risk.” Rate-setting. Rating agencies. Searching for value. Communal belief in value.

Communal beliefs were more than just opinions. Communal beliefs in action were more than just opinions.

Was there honesty in this work? At work? In the currency? In the trading? Was there honesty in my words? Or was there a lot of passing of the buck, the way government works.

Was there honesty in my words? In my prayer? Which reflected my actions? Was there any prayer by these people?

Falling valuations. Where was the honesty? Some got lost in the search and gave up.

Values. Opinions? These were just opinions? Or beliefs? Communal beliefs. Community’s norms.

Communal beliefs in action were more than just opinions. As to those outward signs: you had to be looking. A lot of people passed them by without a clue as to what was going on. Relying totally on those rating agencies. Passing the buck.

Searching for love. Searching for shelter. Amidst all the change. Searching for belief.

The Dénouement

It was, as I once heard, the same question as the “What did you plan to do, after the sex?” Was it good or was it evil? What did you plan to do? After you were done praying?

In the heat of polarization of every issues, from population control for others, for birth control for us right here, somewhere along the way what got lost in the discussion, with too much background music, was this issue of the soul. There were not 6 billion people in the world. There were 6 billion souls. Too many people had forgotten it was all about souls. Survival of the fittest applied just to bodies. The physically and economically fit. It was thought that all 6 billion of those souls were gonna survive forever. And somehow long lines were not expected at the courthouse, in the high court as it were, at the time of judgment.

There was a maturity in the girl: “What did you plan to do, after we had sex?” She was the mature one. With that question. That was the female focus on interest rates. Not if they were fluctuating, but why you intended to borrow. From her. In the first place. For the first time. Most guys did not have an answer when they were young.

So how was I gonna pay her back? With interest?

The dream about the length of keeping an aperture on the camera open over night, to get the picture. The dream last night. The question was always about exposure. To God. Mostly in the night. Or with a balance exposure. So others could see. What I had.

What it is you captured? Did you somehow intend to sell the picture? On keeping it for yourself, and loved ones? And how long did I keep that lens open? Focused?

The unstated question in any discussion about birth control, or simply sex or survival, or with any pregnancy was “What did you plan to do? Next?”

Did you live moral lives? Why did you live moral lives? And what exactly was it you intended to say with your life? Through others? In your work? In your play?

A lot like prayer. And the hunger and thirst for holiness, with time. And at the end of life. And that conflict all along the way to the creative process, which always carried an end to the story. How was I gonna pay for all of this? How was I gonna pay her back? How was I gonna pay God back? For all of this? Plus interest?

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Arson

The battle of culture. Executive pay. And China that was now funding this.

At Davos last week, Chinese premier, looking at the system of capitalism, Wen Jiabo lashed out at the ‘blind pursuit of profit’ in some countries in what he called the ‘American financial crisis.’ The view from China was that stocks and bonds were an American system.

Certainly Wen Jiabo could have known of salaries, in lieu of management of companies. His system allegedly did not believe in a class system. ‘There was no effective management of the astronomical salaries of those greedy senior executives.”

Wen Jiabao said that the quality of financial assets must be assured. Max Weber opined 100 years ago that religious movement fostered capitalism. What happened in a secular society? What happened in a society that does not foster religious belief? What happened in the world to religion when money becomes a scarce good? When traditional churches were suffering a drought. The latest Gallup poll on the influence of religion. What would the affect be? That was the social question. On all of us?

One of the most profound lessons to be learnt from the ‘American financial crisis,’ Wen Jiabo commented, was the relaxation of the supervision or ‘even no management at all’ of the financial industry.”

In an arson, fire investigators looked for 3 factors. Motive. Opportunity. Accelerants.

Wen Jiabo seemed to have discovered the affects of moral relativism on Western culture. Money was the motive. Wall Street and its profits were the opportunity. Moral relativism was the accelerant in this current economic fire.

Forgive Us Our Trespasses

  

Cinderella.  Glass slippers.  A poor girl.  It was a story about illusion.  The story was really about wealth and poverty.  And the author in the end ties the illusion into romance.  Marrying well.  Match.com in the fairy tales. 

 

At the time of the New Millennium, John Paul II proposed that debt forgiveness be instituted for 3rd world countries, keeping a custom from an age long ago.  No one one on Wall Street appeared to give this idea serious consideration.  The idea seemed more like a story for young kids.  There seemed to be a fairness missing. 

 

In a piece today, Elizabeth Moyer in Forbes quotes CreditSights, a research firm in New York and London, that so far the U.S. government has put itself on the hook for some $5 trillion in an attempt to arrest a collapse of the financial system.  The estimate includes many of the various solutions cooked up by Paulson and Ben Benake.  “The FDIC, meanwhile, is guaranteeing $1.5 trillion of senior unsecured bank debt.” 

 

In a speech yesterday at the Treasury Department., Henry Paulson said: “I believe we have taken the necessary steps to prevent a broad systemic event. Both at home and around the world, we have already seen signs of improvement.”

 

The environment of leveraged borrowing is over.  It is over for government.  It is over for the home owner.  Bankers, LIBOR rates, big money realize that in a deflation, you need cash to keep going, to keep your business in operation.  In a new era of deflation, you want cash.  To offer low interest rates when low interest rates developed this quagmire is beyond logic and is throwing oil on a fire.  You can no longer create wealth with illusion.   

 

The axis of power at the Treasury Department has included an imposing army of top-of-their-class Goldman Sachs people. From the September 21, 2008 Washington Post was a letter written by Eric D. Hovde, chief executive of Washington-based Hovde Capital.  “Firms such as Goldman Sachs and Lehman not only made billions of dollars packaging and selling these toxic loans, they also wagered with their own capital that the values of these investments would decline, further raising their profits. If any other industries engaged in such knowingly unscrupulous activities, there would be an immediate federal investigation.  Why is Washington so complicit in this intricate and lucrative affair? First, the Fed laid the groundwork for both these asset bubbles by lowering interest rates to historic lows.”

 

The axis of power at the Treasury Department includes a lot of people who must be afraid to tell Henry Paulson “NO!” 

 

In a piece in Fortune in the last week of September 2008, Alan Sloan wrote: “It is apparent to me that Washington’s attempt to bail out banks and brokers will do nothing but add to consumer debt, weaken the US dollar, and literally waste $700+ billion dollars which could have gone to more productive uses. Since the markets blew up in the summer of 2007, Paulson and Bernanke have tried one thing after another to stimulate lending and restore confidence but nothing has worked for more than a brief period.  For the past 14 months Paulson and Bernanke have thrown hundreds of billions of dollars of fed assets into the market, yet lenders still won’t lend.”                                                           

  

According to an October 17, 2008 piece in the New York Times, as he fought for the survival of LehmanBrothers this summer, “the CEO of Lehman Brothers, Richard Fulda, Jr., made a final plea to regulators to turn his investment bank into a bank holding company which would allow it to receive constant access to federal funding.  According to an October 17, 2008 piece in the New York Times, according to a former Lehman executive who requested anonymity because of continuing investigations of the firm’s demise, the president of the Federal Reserve Bank of New York, Timothy Geithner told him no. Its options exhausted, Lehman filed for bankruptcy in mid-September.  A week later, Goldman and Morgan Stanley were designated bank holding companies.” 

 

“That was our idea three months ago, and they wouldn’t let us do it,” said a former senior Lehman executive who requested anonymity because he was not authorized to comment publicly. “But when Goldman got in trouble, they did it right away. No one could believe it.”

 

(http://www.nytimes.com/2008/10/19/business/19gold.html?_r=1&pagewanted=4&referer=sphere_related_content&partner=rssnyt&emc=rss&oref=slogin)

 

 No one could believe that Cinderella had been at that ball.  Eight years ago, no one gave serious consideration to the idea of debt forgiveness.  No one could believe the idea.  I still have a hard time getting a handle on credit swaps, how this was all derived.  I know that Henry Paulson was at the ball when these ideas which were driving valuations down were derived at Goldman Sachs.  Now he was at the printing presses of currency.  I cannot believe all that is happening.  What Eric D. Hovde never quite explained when he said “Firms such as Goldman Sachs and Lehman not only made billions of dollars packaging and selling these toxic loans, they also wagered with their own capital that the values of these investments would decline, further raising their profits.”  The unscrupulous activities involved people and institutions who had contracted for new building with these credits swaps attached like your mortgagee requring you to purchase life insurance on the amount of your loan when you took out a mortgage.  After Lehman Brothers went poof in the night, builders who might cancel a construction project still would have to pay Lehman if they cancelled their project.  

How soon now before money as the medium of exchange would be questioned? 

 

Suddenly debt forgiveness was being talked about for every corporation with a spin doctor and a lobbyist.    In my view, Henry Paulson should have just asked for forgiveness for his mistakes.  “As we forgive those…..”