The old saying goes that the definition of insanity is “doing the same thing again and again expecting different results.” There is talk now of more money needed to keep the big banks afloat. It has become apparent that Bank of America “needs” billions of dollars more (roughly $34 billion, with a B). If it didn’t work the first time, why should it now?
The total number is believe the be around $450 million in bonuses, given (for incredibly poor behavior) as “retention bonuses.” Seems to me their employees are not going to find jobs elsewhere, so a retention bonus is superfluous at best and deceptive at worst. That is nearly half a billion in taxpayer money given to greedy CEOs already worth more than the average American will make in their lifetime.
Here are a few new blogs I’ve found that I want to make aware to you. These blogs all deal in roughly the same area: steady state, or sustainable, economics. They show the growing undercurrent of desire for a sustainable economic that is rushing towards the surface.
Shift Happens – From the mission statement: “‘Shift Happens’ will inspire readers by informing them on current economic and political trends by informing the readers on the paradigm shift towards a more sustainable future.”
Gaian Economics – Writing to empower you to become part of the economic discussion, because “All other green campaigns become futile without tackling the economic system and its ideological defenders. “
The U.S. Federal Reserve is our nation’s bank, created at the beginning of the last century (big thanks to President Wilson) to centralize our banking system and stabilize our currency. It is quasi-public, having both private corporations and public agencies with controlling interest.
“The Fed,” as they call it on the street, controls our money, interest rates, “supervises” banking institutions, and has other means to inflict chaos into our economy. Despite being a blend of private and public the Fed keeps its business behind locked doors. It is hard for a government by the people, for the people to have a functioning banking system if they have no control or oversight of it. We should do something about it!
AIG paid more than 20 times the average US yearly income to executives in bonuses.
We own a substantial amount of companies that were on the brink of going under not to long ago. Now they are trying to defend what they call “retaining” bonuses: extra money to keep on executives. These are not the average “good-job, here’s a grand” bonuses that most professionals might be accustom. These are more than $1,000,000 bonuses. That is 20 times the average yearly income in the US – in a yearly bonus! 52 people who received these payouts are no longer with the company.
The financial crisis is largely attributed to the collapse of the housing market and reckless leveraging of bad securities. Recently Jon Stewart began a campaign on The Daily Show to expose the effects of our corporate-owned media’s influence on this crisis, namely CNN (no link to them for a reason).
Our media should be a protected, locally-sourced, community-driven industry. It should not be corporate owned, money-driven. Radio and TV were once a community service, now they are a community annoyance.
“We have created a system for growth that depended on our building more and more stores to sell more and more stuff made in more and more factories in China, powered by more and more coal that would cause more and more climate change but earn China more and more dollars to buy more and more U.S. T-bills so America would have more and more money to build more and more stores and sell more and more stuff that would employ more and more Chinese …
We may see a short upswing, perhaps even a temporary rebound, but it is likely to be years from now. We have yet to really see the impact of 3.6 million lost jobs until each one of those people run out of unemployment benefits – that’s when the proverbial shit will hit the fan.
However, this stimulus package is no better than using a bucket on a barn fire – any relief will be an illusion and not a fix to the real problem. The system doesn’t work, so the stimulus will not work. Consider the following…
When Franklin Roosevelt initiated the first “New Deal” he pushed through reforms in the banking laws. Today we are faced with one of the most dire financial crises since the depression. Why? Because our system is broken. Most of us know this, but many feel as though it is still the only or best option we have for an socioeconomic model.