The Pottery Barn Program
It's very simple. Colin Powell made a reference to it. Essentially, you break it, you bought it, and it referred to Iraq after we obliterated the regime of Saddam Hussein. Now, eventually, the Iraqis murdered Saddam Hussein, but we had nothing to do with that. I don't condone the murder of Saadam Hussein, but I don't condemn it either. I'm just saying we had nothing to do with that, if you know what I mean.
Interestingly, however, we have a new similar program. It works a whole lot differently, but it sure sounds similar. You break it, we buy it! This is for corporations too big to fail. It happened throughout the financial industry and, well, selectively, we bought a few of those, and the insurance industry, which was formerly unrelated to the financial industry as closely as it had becoem of late, and now GM and Chrysler.
My question to the reader? What should we call this? The Burning Barn program? The Horses-haveLeft-the-Barn,-but-ain't-this-a-Neat-Stable-WE-just-Bought Program? I know there's soemthing witty to be said about this new progam. Whaddya think?
The great treasury raid of '09.
June 3, 2009 5:36 PM | Reply | Permalink
Seems to be more than one program operating.
Here's an interesting twist: You know the Fed is lending money on corporate paper, supposedly to ease liquidity. Something over $2T has been loaned out over the past two years at very low rates.
Now, assuming that all the money gets paid back, who did that program hurt?
How much benefit did the borrowers of the $2T get, and what interest rate(s) did they pay? Has the Fed been competing with (replacing) private sector lenders who have largely left the market (thus causing the liquidity crunch in the first place)?
The Fed is very secretive about the details.
The interest on $2T over one year would be $20B per percent. What's with that?
June 4, 2009 2:10 AM | Reply | Permalink
With all the secrets, who really knows? The question is, if the private funds left the US market, where did it go? Chindia? Yeah, all those GOP patriots declaring we need to be loyal are taking their fortunes to Chindia where they pay wages so low that even though they had to ship whatever half way around the world, we could not make it less costly here. But they are cutting off their noses to spite their face. The market here has evaporated along with the jobs they took away from the US.
June 4, 2009 3:09 AM | Reply | Permalink
The end of oil will kill that sort of globalization, with the Internet, hopefully, maintaining the positive aspects. I think it is all Monopoly money now and the world's "elite" all operate under the same shared delusion that only has consequences for those of us further down the ladder.
June 4, 2009 7:54 AM | Reply | Permalink
Jason has a real face? Ohmigod!!! And I thought TR was reincarnated!
You know, the only thing that allows the elite to remain is that they are organized and they all share the same delusion. One day, and it is starting to happen, some nations WILL say, "That American money, it's just paper!" Then the elite will be in a world of hurt. We all will. When we put a note that the money is backed by the USA, and then display no evidence that we do back up our claims, our money is devalued just as is our reputation.
This financial scandal has done more to deteriorate our image in the world then anything. The problem is that the elites are blind to their role in the collapse. First, because they think it's "those" people who were dishonest and lended to low risk borrowers, and second, because they are not now, nor ever have been, team players able to understand the concept that if they do the right thing, it creates a fertile envirnment for trade, rather then having to waste time and energy deciding if their potential partners are honest. The "cure", if you will, is regulations and respecting those regulations. The GOP boasts regarding their disrespect for regulation and the system collapsed. More intelligent minds saw this coming.
June 4, 2009 12:02 PM | Reply | Permalink
I figured it was about time to take the mask off. Not sure why I didn't change that well before now, but was kind of digging the TR smile that was still somehow aggressive.
As to your larger point, I agree that one of these days everyone will wake up to the scam, but I don't really think it will have anything to do with money. I think the one thing globalization did was tie all the elite together in a huge, world-wide suicide pack. One of them going down will take the whole thing down.
What I see in coming decades is a resurgence in civic participation and a more global trend toward shared prosperity. That or extinction. Either way, we live in interesting times! I actually think that is more of a blessing than a curse. Adversity breeds innovation and innovation just may save the human race before we kill ourselves for good this time.
June 4, 2009 12:38 PM | Reply | Permalink
Yeah, gotta keep the faith, I guess. You're right, though. Just one deviant can pull down the whole system. It's not unlike what is happening in the US right now.
June 4, 2009 1:15 PM | Reply | Permalink
What I do not understand Gregor, is why all of Madoff's relatives and all members of management of these companies and their relatives, not hunted down and their property not confiscated?
You broke it, now you lose every think you have.
June 4, 2009 11:59 AM | Reply | Permalink
It seems to me that no one knows where the money actually went and how much of it is real and how much not. Like George Carlin used to say, "Good news! They lost the money! So, if they lost it then we can find it!"
Another problem is this idea that they can only recover the money that was ill-gotten. I say, BS. I do not need the $100 dollar bill #1868376234765, from someone who took it. I need $100. That someone is not obligated to return that speific bill, s/he is obligated to return $100. If that means they have to sell their second house, so be it.
I totally agree. Anyone inolved with the management of Madoff's enterprise should be equally accpountable. Why are we so stupid to accept that these financial geniuses did not know it was rigged? Maybe there are other games out there of which we are not aware? Maybe Madoff knows who they are and they need to be protected?
June 4, 2009 12:09 PM | Reply | Permalink
A token
of all that’s broken.
No digits for our widgets.
A bonus for all they loan us.
The sum of dumb.
The cost of lost.
A deed for every misdeed,
indeed.
A bill of sale for every tale.
But…
If you think We’re out of power
shattered and kaput
dejected and defeated
take a look at Geithner’s books!
June 4, 2009 3:26 PM | Reply | Permalink
Strato, did you just make that up? Did you lift the first part and add the second? It's very witty. I like it. :-{)>
June 4, 2009 9:58 PM | Reply | Permalink
Thanks G.
I could never make up the crap they've done to our country.
I just synthesize and let go my fingers. Hop on
the metaphor and ride. I think anyone can do it.
June 5, 2009 12:59 PM | Reply | Permalink
Tho some have clearly made it a fine art - such as yourself!
June 5, 2009 5:28 PM | Reply | Permalink