Citizens Need Proof that the Cozy Big Finance /Government Relationship is Over

It has been 16 months since we posted on the silliness of the media continually placing high net worth New Yorkers in front of cameras to be asked if they thought the country was in a recession. We pointed out that if they had talked to a reasonable distribution of small businessmen around the country it would have been obvious we were in a very painful one.

Since that time not only have the lost jobs and personal financial nightmares increased but we now realize the magnitude of betrayal we have suffered from the financial sector, the government, and our elected officials.

We have the sick feeling of being completely hoodwinked by both our private and public institutions. Most people now realize that in the dealings of these entities there was no concern for the United States or its citizens. The common good was simply not a consideration. This realization has triggered a great wave of discouragement toward the entire American system. This feeling is independent of the politics of the citizen. The vast majority of Republicans, Democrats, Libertarians, and Independents feel that the entire system is owned by the special interests and Washington insiders through their control of the Government.

Go to almost any gathering of what used to be the middle class and you will find that there is universal anger and even hatred toward the following entities:

· The financial institutions that wasted trillions that could have been used productively for our country
· The banks that won’t risk lending to small businesses but want to pay high bonuses to executives.
· The elected government that passed laws that protected these disastrous actions.
· The lobbyists and special interests that influenced and really bought the elected government
· The lying financial rating agencies

The disheartened American is sick of blowhard politicians seeking to gain by the situation. The citizens desperately need to see real evidence that the country will at some time be run for the common good. The strength of these feeling is not fully understood in the Washington and New York power centers. If not fixed the country will face major changes.

The citizens require a strong program that will absolutely guarantee that the psychology and ethics that led to the betrayal is completely disgraced and placed outside the American system forever. It is critical that those in the entities who were responsible for the meltdown are publically identified and punished. There must be significant retribution with large sums recovered for the people who innocently suffered. The public consequences to those that caused the situation must be adequate to prevent any thoughts of ever returning to similar behavior.

If the public were to see these events embedded into prompt institutional action it would demonstrate that the cozy relationship between the perpetuators and congress has ended and patriotic faith in the system might return.

Can this be done with the current elected government on whose watch many of the events occurred?

Both the House and Senate are circulating draft bills that are supposed to re-regulate the financial sectors so that the disasters will not be repeated. If normal history is repeated, however,they will be passed after usual lobbying oftains built in loopholes

In May of 2009 Congress formed the Financial Crisis Inquiry Commission (FCIC). It was given broad authority to determine exactly what happened to create the disaster(s) and to identify any incidents of law breaking they discovery. It has subpoena power. There is even a direction to compare salaries in the financial sector to those of equal responsibility in other sectors. Six members were appointed by Democrats and four by Republicans. The commission is to submit a final report to Congress in December 2010-safely after the 2010 elections.

The commission had its first public appearance on September 17. The introduction of members and their introductory remarks are described here. As would be expected, they are almost entirely insiders. Congress prided itself on the ground rule that only private citizens could be members-no one connected with the government would be on the commission. It turns out that although none have current government positions almost all have had deep earlier government connections. The commission is largely split between former Clinton and Bush appointees, with one former senator. There is no representation from the damaged citizens.

Reasonable results will take a lot of citizen intervention.

Are We in a Recession? Ask Your Local Bartender.

Everyday the info-babes of CNBC ask each of their big shot financial guests a single question. “Are we in a recession?” Some of the big shot financial guests reply “yes” and some reply “no”. Some enter into long academic descriptions of what constitutes a recession. .

One thing of note-all of those guests opining on whether we are in a recession are high net worth individuals. High net worth individuals lack an important sensation that is necessary to detect a recession--- real pain! Not the irritating pain that you feel when your find that your portfolio is down 10%. I am talking real pain-the kind you feel when you do not know what you are going to do. The kind of pain that is accompanied by panic. When large numbers of hard working citizens feel that kind of pain we are in a recession.

If the info-babes and their guests had the capabilities to detect real pain they would learn a lot. The fact is that large numbers of hard working citizens are feeling real pain and we are in a recession.

The most strategically place locations to detect real pain are not on Wall Street. They are in the thousands of neighborhood bars scattered throughout the country. Here are a few reflections from one singe location. They are reported through the eyes and ears of a few local bartenders who are facing rows of empty seats once crowded with workers dropping by for a social hour after work.

Answers to the universal greeting “How is it going?”

“Slow, very slow”
“I have two days of work next week, You got anything for me?”
“We had three customers all day”
“I made all of $45 last night”
“I have not sold a property for three months”.
“I just don’t have work for my crew”

The politics have made a very sharp turn. In a county that went strongly for Bush in 2004 it is now a blowout for Obama. He is saying what everyone believes-that these problems are due to poor management and an administration that is in the bag for the elite. High gasoline prices, war in Iraq, credit crunch, ridiculous executive salaries, and toxic toys from exported jobs, make “tax and spend”, and “cut and run” not very scary.

But these people don’t watch CNBC. They do not realize that this is how the “free market” works. Ask the info-babes.