Showing posts with label bailout. Show all posts
Showing posts with label bailout. Show all posts

Friday, January 2, 2009

The Jobs Americans Don't Want To Do

How to Lose Your Soul by Not Using Your Hands

It was 8:45 AM, March of 2008. I was slumped into a convention chair on the holo-deck of the Washington DC Hilton, listening to a slight, scholarly lady talk about immigration policy. The morning's latte was dancing a slow waltz in my head with the ghosts of the previous evening's martinis. All around me dellow felegates from the National League of Cities' annual descent upon the nation's capitol sipped coffee or dozed under ten gallon hats as the lady, Tamar Jacoby, argued that Joe Farmer needs access to cheap foreign labor, i.e. illegal aliens.

Then she said something that pulled me up in my seat. Little alarms were going off in my brain, so I looked down on my notebook to see what righty had written. Ms. Jacoby had said:
"A large percentage of them work in dirty, demeaning, low paid jobs that native born Americans no longer want to do: busboys, chambermaids, farmhands, nurses' aides, sweatshop workers, on the assembly line, in meat packing plants."

I shook the martini ghosts out of my head and listened. She described an America that is older and more educated, and not willing to do "unskilled work". I look down on my own rough and misshapen hands. Hmmmm.

She goes on to make the case that the American of tomorrow will be heady and shiny, graduating with honors along with his friends and classmates, festooned all over with gold stars and blue ribbons, comparing their trophies for participation at the mall where they consume the proper products in languidly prowling packs, waiting for the day when they will be placed in a skilled, non demeaning positions of oblique responsibility. Obviously these uber-Americans will need unskilled, uneducated foreigners to clear the plates, harvest the corndogs and empty the chamberpots.

At first I thought I' was just offended by the idea of an underclass, a shadow segment of our society with a hungry belly that the rest of us rule because of their need to fill it.
But there's something more. We are also hurt by our own aversion to simple physical work.
This didn't really strike home to me until the recent "financial crisis" began to unwind. For years my wife has been asking me what it is Americans do, exactly. Most of us (If WalMart wages aren't sucking you into the underclass) seem to make a living providing services to other Americans. Chefs, CPAs and surgeons all charge each other enough to make a sweet living. "But if so few of us actually make anything," my wife asked "where does all the money come from?"
"I don't know." I replied "Maybe its the savings from all the illegal beef butchers and diaper changers."

It turns out some of our most skilled and educated financiers conspired to build a house of mirrors that crashed under the weight of its own reflections. What they did to the entire world should be criminal, but instead we have chosen to open our forgiving arms and wallets to these prodigals.

But the original prodigal son was contrite. Ours have flown back to Daddy unrepentant, in sleek private jets, sheepishly grinning fops with silk hankies who need a new stake after foolishly gambling away their ready cash. Of course Daddy is broke too, so the sharecoppers in the valley will have to pony up Junior's bailout because, after all, if he can't generously spread his money around how shall the little people survive?

Well I have news for the dandies of high finance. You are the little people. I know working people here in Kodiak who came from Mexico and Guatemala and the Phillipines who work their whole lives gutting fish and sorting mail who have more honor and nobility than a thousand bailout sucking CEOs. Their character is the true bedrock of our society, and it is built from dirty hands and sore backs.

And isn't true value created by the one who catches the fish, builds the car and invests in the factory? That's real capitalism. You work to make or do something and are paid a purchase price or wage. Then you take that money and risk it to make more. The emerging pseudo capitalism in which morbidly obese corporations are "too big to let them fail" neatly combines the worst aspects of Marxism and fascism. Corpogovernment will preserve our failing businesses like Lenin's waxy corpse for the good of the people. But what should we expect from a culture that no longer values the contributions of those who actually do something? Somehow we got it backwards. We seem to believe that money makes people and that character comes from strength.

You know it is ever true that the best of us, he kindest, those with real patience and generosity seem invariably to be those who have known real hardship and adversity. If you ask me every kid in America should have to work in the sweatshop before he gets his Gap t shirt. And every financial executive who gets a bailout should carry chamberpots for lettuce pickers.


Tuesday, October 28, 2008

Good News! The Rest of the World is Even More Screwed Up Than Us!

Dollar Steers World Economy into Telephone Pole--
But Is Only One Wearing Seat Belt
Don't start converting to euros yet.
In an ironic twist to the global financial crisis it looks like the the good old greenback is back on top. We got the world hooked on bindles of high risk head rush real estate derivatives. But now that the inevitable telephone pole of reality has jumped in front of the car we have our financial Betty Ford Clinics already built. The rest of the world does not.
We've been there before. FDR and friends had to nurse the financial system back after it had gotten way too high and crashed hard in 1929. The first couple of tough love years that followed saw a third of Americans lose the money in their bank accounts and a 25% unemployment rate. Like today's Europe and Asia they had no net. The FDIC and other "socialist" institutions FDR built to dry out a wasted economy are still in place, thankfully. But the rules that hold the European Union together specifically restrict the kind of emergency "injections" we are giving our junkie banks right now. Their Ad Hoc solutions directly challenge the system which is the basis of their currency. And Asian markets are still learning how to drive the capitalism car out of a ditch. Once again everyone wants dollars.
So we are saved by our own schizophrenia. We tossed out all the rules so we could snort up all the subprime mortgages we wanted, but we never moved out of Mom's house, so she can clean us up and put us back on our feet now that we smashed up the family car. But where does that leave us? Do we go right back on a bender as soon as our strength returns, or stay safe in Mommy's arms?
Greenspan the freemarketeer is humbled now. It turns out you do need some rules after all. And Galbraith the "socialist" is correct to point out that our system of "wealth distribution" is the net that will save us from 1930 happening all over again. But let's hope the bailout doesn't turn us into a lockdown economy, with federal intervention at every step. And let's hope we learned, along with Greenie, that even a free market needs some rules.

http://www.pbs.org/moyers/journal/10242008/transcript2.html
http://www.nytimes.com/2008/10/24/business/economy/24panel.html?_r=1&hp&oref=slogin
http://www.nytimes.com/2008/10/05/business/worldbusiness/05euro.html
http://www.bloomberg.com/apps/news?pid=20601087&sid=aF6npULt3NT8&refer=home

Friday, October 10, 2008

Flip This Economy

I can tell you the first person who knew in his guts that something in this economy was terribly, terribly wrong.
He was slumped over the wheel on I-80, stuck in a gridlock, halfway into the two hour daily lemming run into the city.
All around him, far as the eye could see, were people just like him. Blinking in traffic next to empty latte cups, idling away gas they couldn't afford to get to jobs they might lose, vainly trying to keep up with expanding mortgages on houses a hundred miles away from where they work. All because every single converted clothes closet in the city was going for a million bucks.
As he sat there looking over at the shadow faced driver in the lane next door, nodding, like himself, to the "Dink and Dork in the Morning Show", he must have thought:
"This can't be right. How much can one crappy apartment in San Francisco really be worth?"
Somehow, in between the "Flip This House" type TV shows and the late night no money down infomercials, we were convinced that selling real estate back and forth to each other at exponentially increasing prices qualifies as an industry. The entire ponzi scheme is based on the idea that someone even stupider than you will come along with a bigger wheelbarrow full of money and cash you out. That guy then paints the porch and waits for a bigger idiot, perhaps someone in a clown suit driving up the driveway in a shiny dumptruck full of money.
Yes, it was glorious. A balloon payment, fee encrusted, high interest, high profit gold rush--all paid for by the next guy. But if all those real estate players had no jobs, no credit ratings and no cash, then where exactly did all the money come from?
Enter woolen skinned men in tall glassy cubicles. Specifically AIG, the investment wizards to whom the US taxpayers are now handing our wallets. Only recently they liked to brag that they invented the investment vehicle by which both their fantastically wealthy clients and the banks where we all put our money made unbelievable profits on the real estate idiot chain. All you had to do is bundle up the "risky" high interest home loans (often mixed with safer stuff like your municipal bonds for schools and sewers). Then you just keep pouring money on them, kind of like gasoline on a nice toasty fire. Just put enough loose money into the hands of clowns pulling dumptrucks into the driveways of recently remodeled McMansions and the whole system works wonderfully. The money you dump onto the idiot chain comes flowing back to your investors from the unbelievably high interest rates on the loans. Meanwhile fees and consultation services and sales commissions can keep a company like AIG in the spas six months out of the year- good spas too, where young girls whip you with eucalyptus branches while they recite lines from "The Art of War".
Yes the whole system works beautifully until that last clown never comes up the driveway. You don't want to be the last idiot in the idiot chain.
Like every pyramid scheme it finally collapsed under its own weight.
If there's anything to be proud of in all this it is that we apparently suckered the entire planet in. Yep, its the biggest scam of all time.