The Three Major States of Life

John Quiggin writes from one End of the spectrum, believing there is only doom and gloom ahead. The Problems are most assuredly there, and the Banking community will take the major Hit. Simply put, too much Cash has been loaned with insufficient collateral, and pumping Cash into the system will not provide Profits to the bad loans; let alone simple repayment which will not occur. The many Fat Cows are being rapidly eaten by the Lean Cows as the Bible does state, and is causing Meat prices to go up. There is the Rub, as the cannibalism not only consumes the Fat, but also the Meat. The pretense that Banks can ignore their insolvency by refusing to take Bankruptcy is not only ridiculous, it remains quite expensive for Depositor, Investor, and Taxpayer. We need Recovery, not Cosmetic surgery.

Here may be the opposite End of the spectrum. Mark Perry condemns the utilization of Socialism to provide Personal Services as only a form of Slavery. I would agree with his assessment to greater degree, if he would join me in condemnation of the $700 Billion Bailout Package. There is nothing different between a little old lady and a multi-national Corporation, if they are both looking for a Handout from Taxpayers. The one significant difference may be Cost, the little old lady being satisfied with much less expenditure than is the multi-national Corporation. Look into your Heart, and if the Solution seems to shoot the old lady and pay the Corporation; you probably require Empathy Training. I favor a good solid, "Pax on all your Houses", but would grant preference to the old lady, if only because she is cheaper to keep in the style to which she is accustomed.

I would imitate the little old lady, and beg some charitable organizations to pay for my legal fees, before I filed a Class Action suit for Bankruptcy for the American Taxpayers. I would assert that the current Debt load was too large to be repaid out of current Revenues, and improper Management was increasing the Debt as a tremendous acceleration without a proper program of repayment scheduled. The Problem, here, stands as most law firms would charge a Quarter-Million Dollars simply in Investigatory procedures to determine if there was justifiable grounds in the eyes of the law (basically a Review of large Bankruptcy outcomes, and study of previous Class Action proceedings). Lawyers like to get their House payments completed, before even entering real Billing stride. I remember decades ago when I went with a friend to file for personal bankruptcy for him; the lawyer heard his desire to file for Bankruptcy, pulled a set of Papers from his desk, and asked my friend’s Name, Address, and Social Security Number. The lawyer then put the Papers in an envelope, and delivered the Envelope to a Court Clerk, paying the small fee entailed. It was thirty years ago, and Money was worth a lot more, but the lawyer still billed my friend some $700 for such complicated legal maneuvers. Watch out for the Parasites who pose as hard-working Sheep. lgl