Tuesday, June 8, 2010, AM | 2 Comments
We all know and realize that in the current worst recession since the more comparable Worst Depression in American history, there are certain industries that have flourished more than others. One of the more successful is the blaming industry. No matter how much experts have analyzed the causes for the current lousy economy, the result is still vague and mixed but blaming has been on the rise.
Whether the reasons make sense or not, many tongues have been spitting the words in a rapid fashion, not to solve the current crisis but to blame others. That may be one reason we are still in this deep shit and some folks [in millions] have stopped worrying about tomorrow. They have given up and the worst one can do is to give up. The recession has created a group known in economics as the POD Group.
I am going to use some terms that are specific to finance. So open up your Wikipedia and search for their meaning and why the terms exist in economics as well. Each tongue when talks believe as if what they are saying is divine and they have a grip on the economy. Each one of them is correct but the other is completely wrong. If you ask them to solve the problems of the POD Group, they start talking in tongues.
Some of the more understandable and not so understandable talk in tongues are as follows:
- Some experts blame the use of financial instruments called derivatives.
- Others have blamed a lack of SEC and other “responsible” government agencies oversight over the financial markets.
- A few experts even blame the whole capitalist economy.
- The Congress better known as the Roman Senate [aloof, detached, closed-door hearings] is blamed for encouraging banks to give mortgages to everyone who wanted to buy a home, regardless of the buyers’ ability to pay back their loans. But all Congress(wo)men had specific instructions to financial institutions in their own constituency. They were worried about reelecting themselves.
- Many tongues blamed the uncontrolled spending by the government.
- Some blame the American consumer [of all the nerve!] for compiling an obscene amount of credit card debt over the previous era of good times.
Absence of accountability
One day all the blaming would be done with. Maybe someone speaking in tongues would declare the Great Recession as divine but one thing everyone would agree on. Folks in the accountability department failed and failed miserably. If you have watched the Senate hearings on Goldman Sachs, you would know that Senators had looked the other way as government financial institutions like Fannie Mae were collapsing. But they grilled Goldman Sachs executives who in turn said they did nothing wrong. Case closed.
The lack of accountability on both sides was astonishing, not to the American people but to the senators and the executives. Nothing surprises the American people. They don’t give f****** shit what goes on. If they did, the have-nots among us – in the still great nation of ours – would not be in such a miserable situation.
Read what Warren Buffet wrote…
“In my view, a board of directors of a huge financial institution is derelict [that means abandoned especially by the owner/CEO] if it does not insist that its CEO bear full responsibility for risk control. If he is incapable of handling the job, he should look for other employment [But if he leaves, who is gonna collect all those bonuses.] And if he fails at it – with the government thereupon required to step in with funds or guarantees – the financial consequences for him and his board should be severe.”
The recent government bailouts – because the companies were too big to let them fail – are obvious examples of those institutions who keep avoiding responsibility of their actions.
In a Nutshell
The f****** problem in this whole quagmire is that some CEO who ran his company into the ground, exits with a gold parachute, and then gets hired by another company to repeat implementing the already failed strategy. “And what do you got to say about that. That’s the Bronx talk.”
The only way the economists, the senators, congressmen and businessmen can solve the problem is that everyone should stop speaking in tongues so that the American people will one day understand what the shit is going on in their financial life.Facebook.com/doable.finance