Getting Serious about Politics

Congress did something sensible last night, when a resolute group of Senators insisted that the automakers work out their own problems or go through bankruptcy; it matters little that the Republicans did it for the wrong reasons–attempted attack on the UAW and retirement pensions. They showed their true heart with the fast track passage of the Pension Remission Act. The trouble here corrodes the viability of the Pensions, allowing Companies to avoid their responsibility under the 2006 Pension Act. This Act, by the way, was enacted to ensure to secure Pension benefits for the Retirees who will need those funds. Congress will eventually realize that they make a huge mistake in increasing the taxes on American labor (allowing Companies to renege on their Pension agreements is also a form of very high Personal Income taxation). Americans are getting tired of Congress taxing Labor and Consumer simply to give bankroll Cash to mismanaged Business.

Bernard Madoff may have established one fact: Hedge funds can only thrive in Boom cycles. Bust cycles make wrapping the Risk too expensive to make a Profit. The urge to cheat becomes huge when Investors expect high Earnings to stay in, and shredding of principle assets is the outcome as long as the books can be hidden. Bust cycles generate intensified draft of assets by Investors, and a lack of new Investors. Madoff was already in trouble in good Times, and crashed and burned because of the Downturn. Selling off assets is too simple and can be camouflaged, and therefore that Day of Reckoning can be delayed even if it makes things worse. Those Salaries and Bonuses of Wall Street are too lucrative to propel the necessary Honesty.

This missive drives an additional Spike into the unholy alliance of Politics and Business in this Country, where slush fund captures for Politicians allow for massive over-billings in Disaster relief. Only in America can natural catastrophe create a feeding frenzy. I talk with ordinary Citizens and they tell me how they can’t understand why Government costs so much. The Rich and Crooked make far more off Natural Events, than the Poor and Destitute ever will. Current American law places minimal Penalties on White Collar Crime. I would almost urge the passage of a Corruption law not outlining Prison Terms never Served (at least in full) or nominal stated financial penalties. The new Law would by Court Judgement detail the IRS to confiscate all financial and fixed assets of the Individual or Company convicted of illegal conquest of Government funds by Percentage formula established by the presiding Judge, within a range of between 25 and 75% of total assets held at time of the commission of the Crime. lgl