Economy, Catastrophes, Bloggers, Hope

My previous post on the exorcism of evil spirits evolved into releasing these thoughts. The past few days news reports tell of a local bank on the verge of bankruptcy. Rumors suggest a different bank which had been presumed to have been rescued by another institution at the beginning of the financial collapse may not be purchased after all. This leaves me wondering what happens to that bank? California Public Employees Retirement System announced extensive losses, but officials hope its broad investments will enable them to weather a long term down turn. Additional news stories speak of California companies and others across the country laying off employees, going out of business and filings for bankruptcy.

Our state of California has been in dire financial straits for years. A previous governor, Gray Davis, had been recalled because he wanted to take some unpopular financial action toward resolving our problems. I was enraged since the recall forced a special election at considerable public expense when our state already had no money to spare. The new governor, Arnold Schwarzenegger, in office for several years now has yet to rectify the deficits but now wants to institute the very financial action he condemned the recalled governor for wanting to take. Neither governors bear all the blame for our state's poor financial status. Our state legislators and residents have certainly contributed to the mess, too.

Do aspects of that scenario sound familiar? Reminds me of a microcosm of our federal government operations. Our government hopes to resolve some financial issues by manipulating our state lottery. Thank heavens we don't have a federal lottery. Maybe we really do and it's what the U.S. Treasury is doing with our 700 billion loan.

Depending on how these issues all work out I may be more adversely affected than by the limited way I have been so far. I expect my story and/or variations is/are already true, or may gradually become more true for many across this country in their own states. Uncertainty reigns supreme for many, not just Wall Street as I listen to the analysts speculate about the market going up and down, with some saying we've hit bottom. They don't know any more about where bottom is now than when they said the bubble would keep expanding.

They chortled over Alan Greenspan's use of language in his periodic vague reports including his pronouncement years ago about financial world issues of "irrational exuberance." His protecting ordinary people during such times and ensuring enforcement of existing financial rules might have helped but were ignored. Am I supposed to feel compensated now because he says words to the effect, "Oops, I made a mistake"? Financial peddlers and advisors to whom so many listen are easily off the hook with similar simple acknowledgments, "Oh, guess I was wrong this time."

I watch with keen interest the actions of the U.S. Treasury Secretary, Henry Paulson, this current administration and legislators. I expect their accountability as to just how much and to whom they are distributing my money in that 700 billion dollar loan. I have a few debts of my own as you might note in earlier posts about major purchases I've had to make this year. So, I don't have a lot of money to line the pockets of those who got us into this mess, or to pad the pockets of any new greedy types.

I listened to the discussion on Charlie Rose's program (Thurs., 11/13)that in the past twenty years the United States has gone from being the largest creditor in the world to the largest debtor in the world. Preparatory to this weekend's Economic Summit, his guest spoke of countries needing to give up certain financial sovereignty to some international monetary organization to provide regulation and govern the world's economy. This interview can be seen at the Charlie Rose Show's website.

Also, since I began writing this the night of 11/13 our local television news has been replete with heart-breaking fire-filled pictures and verbal narrative describing devastating destruction of homes in the Montecito area, an upscale enclave near Santa Barbara, home to many celebrities. Since then additional fires in Southern California have been engulfing more homes in both Los Angeles and Orange Counties. Miraculously, no known lives have been taken. Injuries have been limited to firemen which is not wanted either though none have been reported to be serious. My heart always goes out to those subjected to catastrophe and those hurt trying to help.

Just before sunset tonight as I drove home my eye caught an awesome view in the southwest sky ahead of me. I saw a gigantic large round fiery red sun that appeared exactly like the link. The sun gradually dropped behind gray streaked clouds before sinking out of sight on the horizon. The sight of the sun was an obscenely spectacular sight when I considered the atmospheric conditions responsible for it's coloring. Resident evacuations are continuing as fires threaten thousands of homes in areas a significant distance south and east of where I live, so I'm not remotely in any danger, nor will I be.

Trying to put all these events, circumstances and many more situations in perspective can be overwhelming. Some more directly affect my life than others. We are all connected to these topics in some way as well as to each other. I am reminded to be grateful for what I currently have. I also know I cannot expend emotional energy over what I cannot control, but determining what I can try to change and what not is not always easy. My life issues seem quite trivial when I consider an overall view of all the issues I've mentioned.

I've understood I must find my own way to maintain joy, pleasure and happiness in my daily life. I learned I have choices as to how I perceive and interpret my experiences even during the most difficult of circumstances. Like many people, I personally have relished finding humor in some of the most bleak situations I've encountered in life as a way of remaining in good spirits.

I think many of the bloggers I've encountered have survived life's extreme offerings in much the same way. Perhaps it is this underlying attitude toward living that permeates most of our writing that not only links us, but provides support enabling each of us to view the future with hope.

Financial Meltdown & Trust

Bailout/Rescue Plan Doesn't Seem to be Helping

Is Meaningful Regulation Missing ?

Financial Return On Our Investment Necessary

Is this a bailout of those on Wall St. who created the financial crisis or is it a rescue plan for Main Street America? The answer depends upon personal perspective based on information we each gather, process and interpret to reach an ultimate conclusion independently. The fact there have been so many financial experts offering conflicting views as to what action is best has not clarified the issues. The pundits state the problem, potential solutions, and possible consequences have not been explained well. Even more critical in creating uncertainty among all of us is the experts general agreement the results of implementing this plan are unknown. What is proving to be the case so far is that the plan has not resulted in a desired positive effect on the financial markets in the U.S. and the world.

I've read news reports, and listened to more than a few knowledgeable financial authorities of differing ideological persuasions explain their point of view. I've engaged in thoughtful debate with friends of varying socio-economic status who have been equally anxious to consider all the angles as best we were capable. I am familiar with young people attempting to sustain a new successful several year old business, raise young children, and maintain their home's mortgage. My own family consists of members a next generation older than that couple who are also striving to prepare for their futures. I have personal knowledge of couples entered into their first medicare-elgibilty retirement years whose financial well-being is paramount now that they're no longer in the work force. Especially vulnerable are some other couple friends and singles already in their retirement years whose financial security is most eminent. Will some of the older people need to return to work and might they encounter that unlawful but still covertly practiced age discrimination?

My Representative, Republican David Dreier, coincidentally the night before the second bailout/rescue vote offered me an opportunity to participate in another of his periodic phone conferences. I have yet, however, to be selected to ask questions and speak directly with him. His votes have not often reflected my point of view, but I value hearing his perspective. I sometimes let his office aides know by phone, letter or email my own opinion that I expect him to seriously consider whether contrary to or supportive of his position.

During his exchange with constituents in this phone conference I informally judged 80% to 90% of those who spoke had the same reaction I did of outrage – outrage that we were being asked to underwrite the excesses of Wall Street, the failure of government to regulate the violators of sound business practices and provide carte blanche authority to one government official for dispersing 700 billion dollars. He said he agreed with our concerns, but was convinced there was too much at stake for each of us, our country and the world financial markets, so he "held his nose" and voted for the first bill. Before this conference call I had reached that same conclusion as he had stated when it came to a vote on that bill. My Democratic Senators, Diane Feinstein and Barbara Boxer also voted for the bill.

The other night Warren Buffett appeared on The Charlie Rose Show on PBS-TV making a similar case for a "yes" vote on this revised bill. I do respect Buffett, but I realize he has his own business perspective and agenda though it does seem to be one supportive of Main Street Americans. I did conclude, nevertheless, that everything considered I was not willing to gamble the financial condition of this country against the unknown of what might be our future if this revised bill did not pass. I left a message for Rep. Dreier that I hoped he would vote "yes" on this revised bill, too, as he did. Expectedly my Senators Feinstein and Boxer would again vote their support.

I continue to feel a crisis of trust toward current governing figures but now even far greater than any I've ever felt before in my lifetime toward any other administration. Congressional persons and those occupying the executive branch of our government from both of our major political parties have not only failed to serve the American people well as they pledged to do, but they have betrayed us for too many years.

Whose opinion on how to act do we trust to resolve the financial debacle our country is experiencing? Originally I thought U. S. Treasury Secretary Henry Paulson was that person by default but then I was quite repelled by the original bailout plan he proposed. What a power grab to rival that of what the current executive branch has been doing these past years. The constant admonitions by officials urging fast action to endorse this plan had me questioning whether or not this tactic might just be rushing us to action saying time was of the essence in classic sales closing pressure tactics. I also knew that approach almost always raises a red flag of caution to not get stampeded into what might likely be a questionable investment. Common sense suggested to me that both the original plan and the revised bailout/rescue plan saddling 700 billion dollars of debt risk on to all citizens was tantamount to rape of the American people. Despite all that, right or wrong, I over-rode my hesitations and was willing to accept that revised bailout/rescue plan.

Friday night 10/10/08 I listened to George Soros interviewed extensively on Bill Moyers Journal PBS television program. Soros basically said this rescue plan was already too late to be effective, so I wonder what are we doing? We can't rescind this plan now, but I believe we need to keep up the pressure on our Representatives and Senators to see that items I mentioned in my previous post are adopted in new bills if need be to ensure their implementation. I'm especially concerned that regulations are strengthened, if need be, but definitely strongly enforced in the financial world, including banking. Also, the Securities Exchange Commission purportedly has long fought off regulation to their and our detriment it seems. Specific approval and accountability beyond "oversight" needs to be required for the distribution of my portion of the $700 billion tax dollars and I'm just not sure that will effectively be done.

I want those same 700 billion tax dollars and any new amounts appropriated rewarded with earnings repaid at an interest rate that any such high risk investment would generate. The principle, of course, must also be reimbursed to our U. S. Treasury. Perhaps we should even charge the financial market the same usury rates they've forced us to pay for many years which our state and federal government officials have permitted. All the financial groups who benefit from loans, cash infusions and/or purchases of their bad debts are monetarily, morally and ethically indebted to all U. S. citizens.

The very least the financial markets and banks can do is to dedicate themselves to making our investment in them profitable for all of us.