Scope Of The Crisis, The Causes, And The Solution
Protest opposing militarization of
By Austin Murphy
The bailout of corporate America that began with the Federal Reserve pumping money into the financial sector in the summer of 2007 has been continuing, with trillions of dollars utilized to subsidize the irresponsible and incompetent bankers already. The recent publicized $700 billion “rescue” isn’t even the most recent drop in the huge bucket. Just this week, the U.S. government has now expanded the scope of its bailout to all large corporations that received $900 billion in loans with no questions asked.
How much longer will taxpayers agree to subsidize their incompetent employers? If corporate America has failed and is now bankrupt, isn’t it only fair to have the bailed-out companies taken over by the rescuing government and then run for the benefit of the employees and the people in general?
As proposed by Green Party candidate Cynthia McKinney, the mortgage problem and the resulting real estate crash could easily and legally be solved with a temporary moratorium on foreclosures. The moratorium would put an end to the excess supply of real estate on the market and thereby reduce future defaults. Even with a moratorium, unnecessary mortgage defaults could be avoided by allowing lenders to receive a portion of the future appreciation of the homes if full payments weren’t made.
However, the real estate problem is just the tip of the iceberg. There’s $62 trillion in gambling contracts that make bets on corporate bankruptcies but are called credit default swaps to avoid government regulation. The rocket scientists who designed and traded these instruments have no idea what they have created, and their statistical models used to price and manage the risk of the bets are absurd at best. These mathematical wizards with no understanding of the real world are natural products of the most elite U.S. business schools.
The cause of the failure of corporate America can be attributed to poor education. Most of the leaders of the financial institutions and many of the other large corporations are graduates of elite business schools where they are taught to exploit other humans, who are reduced to mere statistics or machines in the system. These business leaders have no grasp of reality, and their computer programs that are based on advanced mathematics and statistics are grounded in unrealistic assumptions which create a disastrous foundation for their policies. Monkeys could run business better. The great rocket scientists of Wall Street need to be re-educated in the superior power of the human brain and human nature, if for no other reason than to enable them to re-find their humanity.
PHOTO /WENDY BARRANCO
PRESIDENT IVAW - LOS ANGELES
One hour before the final presidential debate of the 2008 campaign, 14 members of Iraq Veterans Against the War (IVAW) marched in formation to Hofstra University to present questions for the candidates. IVAW had requested permission from debate moderator Bob Schieffer to ask their questions during the debate but got no response.
The contingent of veterans in dress uniforms and combat uniforms attempted to enter the building where the debate was to be held in order to ask their questions, but were turned back by police. The IVAW members at the front of the formation were immediately arrested, and others were pushed back into the crowd by police on horseback. Several members were injured, including former Army Sergeant Nick Morgan, who suffered a broken cheekbone when he was trampled by police horses before being arrested.
“Neither of the candidates have shown real support for soldiers and veterans. We came here to try and get serious questions answered, questions that we as veterans of the Iraq war, have a right to ask, but instead we were arrested. We will continue to ask these questions no matter who is elected. We believe that the time has come to end this war and bring our troops home, and we will be pushing for that no matter what happens in this election.” said Jason Lemieux , a former Sergeant in the US Marine Corps and member of IVAW who served three tours in Iraq.
A total of 10 veterans were arrested during the action, including Matthis Chiroux, Kristopher Goldsmith, Adam Kokesh, Mike Spinato, Geoff Millard, Marlisa Grogan, Nathan Peld, Nick Morgan, James Gilligan and Jose Vasquez.
New DVD of interviews with Nelson Peery, author Black Radical: The Education of an American Revolutionary.
The segments include:
* Introduction to Black Radical
* The Cleveland Period
* The New York Period
* The Lynching of John Jones
Please send $10 for the DVD to:
Speakers for a New America
PO Box 3524
Chicago, Il 60654-3524
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