Pervasive Political Rot Ensures Economic Death Spiral

Thursday, September 2, 2010
By Paul Martin

By: Rick Ackerman
Thursday, 2 September 2010

[Alan Geik, whose razor-edged essays on our sordid political culture have gained him a loyal following at popular web sites, has been a lifelong student of frauds and scams, and so writing about this Era of Bailouts comes naturally to him. In the essay below (which contains some great links that we would encourage you to follow, including a video punch line at the end), he explains not only why the global financial crisis is not going away any time soon, but why it is likely to get much worse before it gets better. To bolster his conclusions, Alan draws a bead on some of the bigger-than-life buffoons and greedy political hacks who have helped to amuse and entertain us even as they have unwittingly contributed to the collapse of the global economy. An egregious example of the breed is Fed. Governor Mishkin, who in 2006, with amazingly bad timing and lack of prescience, presented a paper entitled “Iceland’s Financial Stability.” There are also some piquant notes on the recent misdoings of a world-class buffoon who needs no introduction, Sen. Christopher Dodd. Enjoy! RA]

Beginning with this somewhat worn animated video, Worst Slide Story, will hopefully lend a light, amused tone to my few observations about the iCorrosion of the Empire. Also, a bit of light comedy might lessen the appearance that this is just another frustrated Financial Collapse to Come rant. I have written several articles outlining the two major Wall Street conceived scams of the 1980s; the Latin American Debt Crisis and the S&L bailout. Back then lobbyists gave Congress hooks on which to support massive Wall Street loans to Latin American dictators (“we need to help third world economic development”) and also, to their own S&L campaign contributors (“we need to support small business.”)

Of course all of the loans disappeared, and the banks claimed they had inadequate cash reserves, and, furthermore, if they didn’t get immediate government assistance (it’s always needed immediately!) they would fail and of course, “the economy would crash.” (The lobbyists didn’t invent this deceit just for the current money grab; they had worked it both times in the 80s.) Ironically, Fidel Castro and the conservative National Review were The Odd Couple among the few observers who consistently exposed the charade underlying those financial “crisis.”

The Rest…HERE

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