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Monday, April 19, 2010

Just Thinking Out Loud

Prediction:  This volcano in Iceland is taking a huge financial toll on the airlines.  In the coming weeks, we're going to hear how many of them are going to be forced out of business unless...... wait........ they get a bailout from the government.

We'll be fed the justification for saving the industry - again - and the Administration will add another notch to their belt, indicating another nationalized industry.

I heard a radio report of medicine becoming scarce in some areas of Europe as a result of the eruption, but I can't find anything on the Internet.  I found this, though -
“We don’t understand how interconnected we are until you can’t do it any more,” he said.

A breakdown in air cargo shipments into the largest cities in Europe, including London, Paris and Berlin, left supermarkets warning of looming shortages of fresh produce. The groundings meant fruit from Africa and South America was rotting in crates in their countries of origin.
"Interconnected" is code for, "dependent upon".  This is a great example why individuals need to become more independent or regionalized, instead of globalized.  Buy from and support local farms, dairies and supply chains, so if the earth decides to "misbehave" again, you're not left high-and-dry.

Let's see:  After taking a couple of weeks off to bask in the glow of their Universal Health Care win, the administration re-energized their Grow The Government plans to increase control over the banking sector.  They THEN file a big lawsuit against Goldman Sachs.  Coincidence?  Sure.

It's not emphasized in most of the articles, but no one will end up in jail over thisIt's a civil suit, not a criminal one.
Goldman Sachs has vowed to fight allegations filed in a civil suit Friday by the Securities and Exchange Commission that it created fraudulent securities tied to a hedge fund's bet on a housing collapse.

Pay the fine and (maybe) get a stern look from the judge.  I'm sure it will scare the snot out of these guys.

I haven't seen any lawsuits against the government for gutting the Glass-Steagall act, THEN "strengthening" the Community Reinvestment Act to encourage banks to make loans to people who couldn't afford to pay them back, THEN telling Freddie Mac and Fannie Mae to guarantee these crappy loans, thus making them eligible to be bundled into investment-grade securities.

I'm not holding my breath.

Why isn't today a National Holiday?  The first battles were fought on this date in 1775 at Lexington and Concord against an oppressive, gun-grabbing government.  Well, the government was trying to grab the guns.  Didn't work out too well for them.

Maybe that's why it isn't a holiday.  They wouldn't want to remind the common-folk about the power they possess.

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Andrea said...

Bailouts indeed. It just never ends, does it?

The big to-do in our area is 2 major energy suppliers trying to recoop money for repairs they made following Hurricane Ike. I'm pretty sure they got money from the government (as Ohio was declared a disaster area) but now they're trying to stick the customers for $31 million. I say, Hurricane Ike was an act of God, so maybe they should line up and take it up with Him. I'm sure He'd be terribly amused.

Chief Instructor said...

Andrea, LOL! Sadly, since they'd come away empty-handed, they get to come after you. Such a deal, if you're them!

Michael said...

The G&S lawsuit was filed by the SEC which doesn't have the authority to file criminal lawsuits. However, anything the SEC finds over the course of the lawsuit could be used by the DOJ in a criminal suit. Don't hold your breath while waiting to see anyone at G&S or John Paulson in a perp. walk.

Chief Instructor said...

Michael, Goldman owns our financial system. The DOJ won't do squat to upset their applecart. "Historic fines" will be paid - amounting to a fart in a hurricane when compared to their earnings - and it will all be done with.