Punchinello’s Chronicles

March 5, 2009

Wall Street Gets Slammed Again

Filed under: View from the Bottom — Punchinello @ 3:55 pm
Tags: , ,

America is one of the only developed countries that doesn’t offer government healthcare. What’s wrong with doing what all civilized nations do, and helping people stay healthy?

No other nation in the world maintains a military, either. Nobody pays the billions of dollars in anti-terrorism defense, research and development, technology, and the solid hardware of ships, missiles, guns, bombs, planes, communication systems, and so forth.

So what would be a better idea? Should we pay everyone’s health care or should we protect the United States and every other country in the world from the nutcases of radical Islamic terrorism?

Apparently the Obama administration feels that we’ve spent enough on the military, and that the war on terrorism is done. Everyone is just mad now that America is still invading other countries, like Iraq, and we should pull out. If we do that, everyone will feel better and nobody will fight anymore.

With the money we save on cutting back the military, spending less on intelligence services, and de-funding military research, we’ll have plenty to spend on health care for everyone. Today, Obama spoke at the opening meetings for a health-care reform process.

At the same time, the FDIC announced that without additional increases in fees to the nation’s banks, the deposit-insurance fund would be insolvent by the end of the year. In the last quarter of 2008, to prevent runs on banks, the Bush administration and congress upped the ordinary insurance from $100K to $250K.

Citibank, one of the world’s largest banks, is now trading at less the $1, making it pretty much junk. JP Morgan-Chase announced problems, and there’s increasing pressure on Wells Fargo, not to mention other major banks. Surprised?

You shouldn’t be. All these international banks have had serious problems and questionable lending practices for decades. Economists have warned for 25 years that none of these big banks could cover their assets in the event of a significant world economic problem.

We’re told that the stock market and financial markets have lost 10-20% of their value, but each time we hear this, the “since when” date is moved forward. We’re usually told it’s been “since” last month, last quarter, or some other date within a few months.

Obviously, 20% is a bad number, but it’s way better than 50%, the loss in only one year. Okay, but isn’t it important to notice that the markets have lost 25% of their value between the time President Obama was inaugurated, and today? That’s what…6 weeks?

But when you look at the drop in value in only 1 year, it’s now more than half the value. 50% lost value! As a result, ripple-effect problems are showing up. Not-for-profit organizations suddenly are faced with dipping into their principal, rather than annual dividends. With federal laws on the books disallowing that, many of these charities can’t pay their employees.

Home owners are losing the value of their homes, yet still paying on loans for the original value. Government bailouts for anyone who can’t pay their mortgage are increasingly unfair, as those who can pay their debts are told to pay everyone else’s debts too.

Then, in some miraculous fantasy world where some people simply don’t care about fairness, when these income earners decide to double their annual income in order to cover debts, they’re told all that money over $250,000/year will be taken away.

Institutional traders and hedge-fund operators report that waves of investors are calling in with the simple order to liquidate all assets in the stock markets. With the ongoing collapse of the entire financial investment industry, nobody wants to be invested. But we don’t hear how many of those investors are foreign owners pulling money out of the American markets.

Europe’s financial markets also are collapsing. The EURO is losing value every day, and Eastern Europe is in even worse shape. These are the countries that also pay government-funded health care. Will they continue to do so? According to delusional liberals, of course they will.

Mr. Obama tells us that these financial numbers are merely everyday polling data. They go up or down, none of it really being important. It’s all a reflection of how the nation feels about Our Great President, according to him. He feels it has nothing to do with anything other than himself.

And so we continue the glidepath into the mountainside. Just like eBay, an excellent microcosm of what’s happening across society, corporate systems, and the US government.

Keep doing what you’re doing, and you’ll keep getting what you’re getting. That would be a fine bit of advice for our so-called “leaders.” If only they had the slightest interest in the national security, stability, and financial health of the nation.


Leave a Comment »

No comments yet.

RSS feed for comments on this post. TrackBack URI

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

Blog at WordPress.com.

%d bloggers like this: