swampslogger

My Photo
Name:
Location: Liverpoool, NY, United States

My interests have changed as time passes. Used to be very active physically. Now, not so much. Still enjoy reading about hiking and canoeing. Was an activist locally, now an observer. It is a pain to get older but it's better than the alternative

Tuesday, January 20, 2009

What is most effective?

There is abundant discussion or opining about what President Obama should or shouldn’t do, what he will or will not be able to do. At this point in time, prior to his inauguration, Obama, in my opinion, made many important positive moves. His appointments strike me as intelligent. How the mix works remains to be seen.

What is lacking in most of the discussion is our relationship with (not to) Iran. The neo-con’s, plus Bush and Cheney’s ham-fisted attempt at the democratization of Iraq has helped establish Iran as the dominant player in the Middle East. It is imperative that now the U.S. and Europe recognize this and handle it accordingly. To do that requires recognition of Iran’s interests. Focusing on the singular issue of a nuclear program and asserting that it poses dire consequences for the world is not productive nor in our best interest. Iran will use its resources to promote its perceived best interest as best it can. This is manifest in its support of proxies Hezhbolla and Hamas. While Iran’s influence grows our position weakens

The central crisis point in the Middle East is the Israeli / Palestinian struggle. Israel is currently attempting to stop rocket attacks by Hamas from Gaza. Obviously, Hamas cannot manufacture rockets. It gets them from Iranian sources. The borders are porous and it appears impossible to stop the flow of arms into Gaza, or Lebanon for that matter.

The point is that it is in now imperative that Iran be negotiated with if any progress is to be made. To do that high-level talks must be initiated with no preconditions or prejudicial statements or positions taken. Pure and simple open discussion has to be engaged in where Iran can put its grievances on the table. Perhaps I’m naïve to think that this can be achieved. Nonetheless my experience has been that allowing one’s opposite to state their case openly is the best way to establish what the problems are and what needs to be done to solve them.

To date blunt militaristic measures have proven to be not only ineffective they definitely exacerbate the problems. Six horrible years in Iraq are obvious examples of how not to function. Poor understanding of the situation leads to poor decisions. Our foreign policy decisions have been based on immoral motives for decades. That has been a fatal flaw. Communism is no longer the bogeyman. Today’s super capitalism is our greatest threat. Our government has become captive to the corporate overlords. Our legislators have become beholden to corporate largess via campaign contributions. Those contributions have actually been corporate investments that have paid off more handsomely than Madoff’s clients were misled to believe.










Our current economic crisis is a crisis of morality. Over several generations our countries moral fabric has been weakened by individual’s self interest at the expense of moral integrity. The very success that has lead to our general affluence has undermined the national character. The incessant pursuit of capital gain has lead to successive crises such as the Savings and Loan scandal, the dotcom bubble and the housing bubble that brought about the current cataclysmic financial meltdown. The much adulated financial guru, Alan Greenspan, presided over the latest fiasco and had to confess that he was surprised to learn that his expectation of enlightened self-interest would prevent the financial wunderkind from fouling their own nest.

Now amid the chaos and rubble of our, and much of the world’s, economic collapse we greet our new president. The corporate grip on our government may or may not have been weakened. Frankly I am afraid it would be dangerous for Obama to attempt too stringent a revision of current policies. Hopefully he will lessen the influence lobbyists have on writing the bills that are purportedly in the common interest. The pharmaceutical bill was written by lobbyists and included the prohibition of government discounts. It definitely should be amended removing that clause. Likewise people should be able to purchase foreign drugs; the FDA isn’t doing too good a job of checking domestic products.

Market meltdown

The Cape Cod Times editorial on the “market meltdown” with the subheading “ big business can’t be trusted to police itself” is right on the money.

I am saddened, ashamed, and disgusted at the plight the financial community and our government has visited upon the country. Saddened at the losses, not of the big money hedge funds and other greed driven financial entities, but of the small investors who trusted the system to protect them.

I am ashamed of our government watchdogs that saw the whole catastrophe brewing and not only did nothing but rather cheered on the excesses. Conservative ideology diligently dismantled the regulatory mechanisms put in place after the previous depression, led by Phil Gramm and John McCain.

I am disgusted that the institutions such as Moody’s and Standard & Poor’s and Fitch were either complicit in giving AAA and AA ratings to financial bundles that were of such high risk that today no one is able to backtrack the transactions to their source. Or they are guilty of malpractice in not doing the diligent risk evaluation they are paid to do.

There are sufficient grounds for a criminal investigation into the malfeasance of those involved. I fear however that the bailout package will be “sheltered from court review” as reported in the Cape Cod Times.

Now that the horse is out of the barn and the barn has burned down an excellent book that describes the history of this meltdown is “Bad Money” by Kevin Phillips.

Phillips details how searchers for profits had to scramble after the technology bust in 2001. They recognized that the burgeoning housing market contained the greatest asset source. Led by the federal government’s penchant for debt, in the midst of a costly war, handing out a multibillion dollar tax break to the already wealthy, the money grubbers utilized the removal of banking safeguards to devise “financial innovations” that were based on subprime mortgages. Very high risk investments that were resold in packages that were again resold all over the world. The profitability of debt was so great that the instinct of greed in the financial world created the, now famous, housing bubble.

It did not happen all at once and people like Alan Greenspan recognized what was happening years ago. Being happy to see so much wealth created, for a select group, he did nothing to sound the alarm. If/when the bubble collapsed the government would bail them out. That has been the history of “boom and bust” for decades.

Privatize the profits and socialize the debt. That is the legacy of this Bush conservative government?