We are living in a state of selective amnesia or fearful denial?
"The easy credit which created the subprime crisis in mortgage lending has now spread to the hedge fund industry. The troubles at Bear Stearns prove that Secretary of the Treasury Henry Paulson's assurance that the problem is 'contained' is pure baloney. The contagion is swiftly moving through the entire system taking down homeowners, mortgage lenders, banks, rating agencies, and hedge funds. We are just at the beginning of a system-wide breakdown." . . .
"To a large extent, the housing bubble has concealed the systematic destruction of America's industrial and manufacturing base. Low interest rates have lulled the public to sleep while the rise in housing prices has created the millions of high paying jobs have been outsourced. The rise in housing prices has created the illusion of prosperity but, in truth, we are only selling houses to each other and are not making anything that the rest of the world wants. The $11 trillion dollars that was pumped into the real estate market is probably the greatest waste of capital investment in the nations history. It hasn't produced a single asset that will add to our collective wealth or industrial competitiveness." . . .
"The Federal Reserve produces all the fact and figure related to the housing industry. They knew that trillions of dollars were being diverted into a speculative bubble, but they did NOTHING to stop it. Now the effects of their 'cheap money' policies have spread to the hedge fund industry where hundreds of billions of dollars in pensions and savings are in jeopardy."
It is advised that citizens (those involved in loans - investments - etc, in local communities), come into the 21st century and get a grasp of the serious implications:
Another Great Depression? The Fed's Role in the Bear Stearns Hedge Funds Meltdown. By Mike Whitney. Global research.org. July 1, 2007
Corporate water barons are having a field day in communities (states) begging for business, any business, in this day of outsourcing, echoing mills, and rusted plants with box stores filling the void! Local folks are out maneuvered, in the jabberwocky language of global takings. Ripe for the taking! Too late, the people find themselves sold down the river (literally), with none the wiser as to the language of trade agreements etc, that have stolen their rights! Not even their elected officials whom they naively think are informed on such matters of importance are aware.
The morning broke. There was a momentary blip in the air as broadcasters spoke of the pending United Auto Workers potential strike. Was the short and sweet General Motors walkout the topic of discussion, or perhaps, the work stoppage at Chrysler was the focus. No matter; neither was of interest to Jack, a corporate executive. He received word from his accountant hours earlier; health care costs are too high. We must cut benefits. Perhaps it would be better if we eliminate a large portion of the workforce. Certainly, that would save us much money. The company must consider the stockholders. Individual buyers and brokers look at earnings and expenses.
It was a lovely June morning. I was watching Cable News Network when Wall Street Correspondent Susan Lisovicz appeared and reiterated her summary of two economic indicators. One report was astounding and not good. The other optimistic, or not, depending on your point of view or how deeply you probed. The two were connected in my mind. Foreclosures were up, way up. Consumer spending was as well, slightly in contrast to an earlier slump. Three [3] billion dollars worth of wares are nonchalantly walking out the doors of the nation's largest retailer, Wal-Mart. However, this was not mentioned in the morning broadcast. What does it all mean?
Many deem the school system is broken. Improvement will come when elementary, middle, and high schools operate as businesses do. Educational institutions need a plan. Districts must select the best teachers and require these mentors to shape their students. Standardized curriculums sensitive to the calendar and standardized test, policymakers posit, will serve our children well. Principals and parents, all but students speak in harmony. These experts in education speak in unison. Today, philanthropists concur. Corporate Chief Executives also sing in chorus. Adults concerned with accurate calculations and "matters of consequence" adopt the stance, "It is just that simple."
"There is a problem." However, Americans do not agree what the problem is. Sexism, racism, homophobia, violence, or the words we use to promote such social ills. For weeks, language has been in the news, on the blogs, in the airwaves, and in music-industry executives meeting rooms. Free speech is the topic in question, as is the power of words. As children, we learned that "Sticks and stones may break our bones; but names will never hurt me." In fact, the opposite is true. Words and the inferences can cause greater, and more last injuries than twigs or rocks might. The body heals far better than the heart does.
Will workers be given the choice the law provides? Might they act on a right that has was enforced seventy years ago? Will we as a nation continue to allow employers to deny citizens their Constitutional right to speak? Can we stand by while laborers are arbitrarily punished for asserting their rights?
Can we in good conscious continue to allow employers to eliminate pensions and other benefits? Must workers accept reduced wages, longer hours, and less consideration without discussion? Will grown men and women be dismissed from their place of employ if they try to increase security in the workplace? Will we as a nation permit employers to seek retribution, religiously, if an employee tries to organize? We have. Hundreds of thousands of workers were punished for attempting to unionize. Today, we must ask, ''Why does an adult man cry when he speaks of his job.' Representative George Miller tells us.
The Federal Communications Commission authorizes the buyout of BellSouth. AT&T Corporation will purchase the fledgling company for $86 billion dollars. Which aspect of this story is more significant? The famous or infamous Ma Bell, depending on your point of view, may be returning or Net Neutrality is safe for another two years.
In March 2006, American Telephone and Telegraph offered to buy BellSouth for $67 billion. At the time, there was much concern. Should the two tie the knot, it would appear to reverse a decision made twenty-two years earlier, the breakup of the Ma Bell monopoly.
My reaction; I am not surprised. Years ago I was dating a man, a marvelous specimen of a person. He was bright, personable, loving, and truly amazing. I suspect he still is. Tom was the Vice President of a small; yet successful business. Millions of dollars passed through this company's hands perhaps daily, maybe it was monthly. I know not for sure. I am not much of a marketing person. My mind travels elsewhere. Nevertheless, I marveled at how the money flowed, what is was spent on, and what services were provided. Perhaps you would have as well.
The telephone rang. I am home from a trip and was deep in reverie. Having just visited many, I was thinking of friends, family, and those I love. My excursion had nothing to do with the month of merriment. Religious rituals were not part of my journey. At times, I forget it is the holiday season, a time of greater stress for many. My family stopped celebrating almost two decades ago.
The commercialism, the quest to be the greatest shopper, the obligations, the desire to connect to those that you really rather not be with, it all seemed too much. Perchance it was too confusing. After much reflection, or in a moment, it was declared we would no longer rejoice as others do. My family chose and continues to choose to honor humanity. We do this each and every day. Thus, gaiety and glee are no longer observed in a month or during a season in my world. These are daily doings depending. They are not forced or reserved. High spirits and happiness happen when and as they do.
However, I observe, for those that are filled with holiday hoopla, many are on edge. Personally and professionally, people are stressed. Businesses personify the feelings of individuals.
Days ago, it called to me from the next room. What had been white noise was now blaring. I could not believe my ears. However, I just sat there. I did not jump from my chair and go to the next room so that I might see and hear the disturbance. I was in a state of shock. I rarely watch the television; I listen to it. I do not have the tube in the room where I work. Nevertheless, this anti-union commercial caught my attention.
The set was turned to Cable News Network. This seemed contrary to what I would expect; nevertheless, I heard it. At the time, I dismissed this intrusion as an event, one in isolation. Then this morning, while preparing breakfast, and in a room with a view of the small screen it played again.
My thoughts were many. Why was this maligning message being presented? Who was responsible for this slander? Moreover, how much did this production cost? Forget the money spent to fabricate this ditty; airtime is extremely expensive! Apparently, union busting is no longer a tasteless practice; it is a respected art. This frightens me. Philosophically and politically, I honor, the words proclaimed in Aesop's Fables, The Bundle of Sticks,"Union gives strength."
Will September 11, 2006 live in infamy, as did September 11, 2001? Will former Enron employees feel redeemed once the sentences are delivered? Today, May 24, 2006, the verdict is in. Kenneth L. Lay and Jeffrey K. Skilling are guilty, Ken Lay on all counts, Skilling on some. Still to be determined, the sentence. what will their terms be?
I cannot judge, do not have a law degree, a circuit bench, or a judicial post. I am only human and thus offer a human perspective. I am sharing the thoughts and circumstances of three former Enron employees. These narratives were recounted to Steve Hargreaves, staff writer for CNNMoney.com, on January 30, 2006.
I ask that you read these stories, put yourself in the place of these men, read an interview with Former Enron Chief Executive Officer Kenneth Lay. Listen to a speech of his. The Chief will speak of his innocence. Then, you decide; if you had the power to deter, diminish, and eliminate corporate crime, what would you do. What sentence would you deliver?
After the snippets were shown, Mr. Lehrer announce the beloved man had passed at the age of seventy-three. My first thought was "No." My second was, "How young he was!" Then I wondered "Why?" I recalled when his father met his maker and reflected on how close the two were. I knew this because I began watching Wall Street Week in 1970, the year it first aired. I continued to view this program until it ended in 2002.
I watched when I had no money to speak of or invest, and no connection to the study of economics. I was a regular viewer even though, for years, the idea of understanding finances literally brought me to tears. Nevertheless, I loved this show. I rarely, if ever missed it.
For years, we have heard General Motor's executives complain of costs. They say the cost of doing business in America is too high. According to corporate administrators, American laborers insist that employers cover health care expenses. Companies must honor pensions awarded in the past, and then there are those wages, oh, those wages. The management has cried out; they cannot continue do business under these circumstances and still make a profit. General Motor's bosses plead for understanding and ask their workers to sacrifice their wages and benefits. Even when the laborers comply, it is never enough.
Chief executives at General Motors, and in other American companies, ultimately take control. They cut and cut; overhead must go. Production and producers be damned, the bottom line lies with the shareholders. To boost the numbers corporations have reduced the workforce. They have decreased the dollars paid out for health care. They have eliminated many sick days and are unwilling to provide benefits for families. Now, they are "Offering [a] Buyout Deal to More Than 125,000 Workers." Though not all news reports mention this, if the employees accept the deal they must forego once expected health benefits.
The New York Times article, G.M. to Offer Buyout Deal to More Than 125,000 Workers, seems to paint a rosier scenario than some other media sources. They quote Robert Betts, president of the U.A.W. local at the Delphi plant in Coopersville, Michichan, as saying "the offers were attractive." Mr. Betts claims, "If someone is going to give you $35,000 to take your pension, that's good," He continued. "I think a whole lot of people are going to hit the road over this."
"Wonderful" said stockholders; shares of G.M. rose shortly after the news was released. Is the action good; or is it only one more blunder in a longstanding series of shortsighted solutions?
The public notice is free and that works well for me. I received an email almost instantly. A man named Luis Spencer wants more information. He requests photographs. He inquires of the condition, and what is my bottom-line price? We mail back and forth. I share all the details and Luis declares his interest. He will pay my price. He states that an associate of his will arrange for the shipping, he is writing from England.
Luis Spencer assures me he will pay with a certified check.
Today, on Tuesday, July 19, 2005, Hewlett Packard did as expected; they announced that they would distribute 14,500 pink slips. The company will reduce one-tenth of its worldwide work force over the next 18 months. HP claims this restructuring plan will result in a $1.9 billion annual savings. Shareholders applaud the decision; employees do not.
Many recall the old adage, "As GM goes, so goes the nation" and General Motors is going, going, and some fear it may soon be gone! General Motors has a habit of cutting costs, jobs, and benefits. Throughout their history this strategy has proven to be ineffective and yet, only weeks ago, they announced that they would continue to do as they have done.
The day breaks, and so too does the news; United Airlines is close to bankruptcy. In an attempt to survive, this private company turns to a federal government agency for assistance. United is asking Pension Benefit Guarantee Corporation to fund its retirement program. This once strong corporation is failing; their future looks grim. This seems to be the start of a trend for big businesses today. Others recently announced their struggles. Corporations that led the country are grappling for business. What we once relied upon, trusted to be true, is no longer. Investing in private industry is not the certain path that many profess it to be. The tide is turning and who among us can accurately predict the future?
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