Random Thoughts or Lack thereof

A few points:

1: I think it is funny how people are questioning the Fed, and its recent backtracking ad re-organizing of the bailout plan. I guess this air of indecision makes people think that Paulson does not know what he is doing, as it indicates in some way that he is not sure what is driving the financial crisis. Well, let me help you out. The answer is quite simple, in fact it is only one word: DEBT.

So much of the world financial market has been centered around speculation, that being hugely in debt has become somehow normal (60% of GDP for America, 64% of GDP for Germany). The housing crisis was partly brought on by mortgages that were negotiated with the understanding that real estate prices will always go up, leaving many now owing more than their house is actually worth as home values plummet. This tied into very high averages of personal debt, and, thusly, people living from paycheck to paycheck, will make this Depression (yeah, you bet your ass I call it that) very hard, especially for Americans, and the British. Thankfully, extremely high credit card debt are virtually unknown here as most credit cards are issued by banks that only extend credit card credit for one month before it comes out one’s account automatically. That tied in with the extremely developed welfare system will make the transition over the next couple of years a little easier here than in the States. People are still to be seen shopping here, spending money for Christmas, etc., which, according to NBC, is happening much less in the States. This may be a very false sense of security, I know.

I did take some pride in this stage of the storm when the CEO of Deutsche Bank (my bank) went on public record as saying he would be ashamed of his company if it were ever forced to accept public funds to stay afloat (remember AIG?) Anyway, before I go off on another Germany-loving tangent, I will at least acknowledge that this problem is a worldwide one, and when looking at the Dax and the Dow, they practically mirror each other in their gains and losses. Germans are just a lot more fiscally conservative as a whole than Americans, and I hope this will help them in the coming years in some way. This with the fact that we have a more developed, albeit not entirely viable, renewable energy system and public transportation system will mean that even when the times get hard we can at least have power and transportation, but I digress.

2. The Supreme Court decided that blasting high-intensity sonar through the Pacific was absolutely necessary for the security of America, even if it meant killing, maiming and potentially torturing whales. Fuck that. You assholes! I suppose those old tards on the bench haven’t gotten the memo that the Cold War is over. Or, are we expecting those now rag-tag towelheads called Al-Quaeda to procure themselves a nuclear submarine, drive it up to San Francisco Bay and fire one off? Give me a break. It’s time to bring back those tired old 70s “Save the whales” bumper stickers.

3. Gun sales are up 300-400%. Wow! A blackie got elected, so we need to protect the farmstead. Jesus. And you need an automatic rifle for that? Hey, I have no problem with hunting. It’s actually a good way to keep some deer populations from getting out of control. But, pistols and automatic weapons for personal security? That’s just plain stupid. Contribute to the Bradley Center, if you agree!

4. People, including GW himself, are questioning whether or not we bail out the car companies. Well, I understand the sentiment. They got themselves into this whole mess by not being “with the times” and creating more energy-efficient hybrids, electric cars, etc. Instead, they just kept making SUVs and gas-guzzling trucks. In spite of this horrible foresight, though, I would like for you to consider one thing: how is America going to, under the new administration, become the world leader in alternative energy and low energy transportation without the infrastructure of the Big 3? Unfortunately, our future depends on them, so we’ll have to bail them out, too. It’s just that simple.