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Above is a really awesome clip from last nights episode of The Daily Show. I watched the full thing and it was off how you could actually almost here a pin drop. Most of the laughter seemed dubbed in and the crowd didn't seem to enjoy themselves. The jokes were the same, and John Stewart took some swipes at the current administration, as well as leveling it off with the same about the GOP, and rightfully show. I couldn't help but wonder, "Wow, why is it so quiet?"

Then I found out: One of Bush's former Economic Advisers was the guest. This was going to be ugly.

Lawrence Lindsey came on the show, already sitting at the desk when they came back for the interview, and he actually had a ton of great points and, yes, agreed with John Stewart on the idea of giving the money from the bailout straight to the consumers to pay off their debt. Lawrence basically said that with this bailout that good and honest behavior was needed on both sides of the table, with the banks agreeing to lower interest rates and borrowers actually paying it back. John seemed to go for a "gotcha" moment that never came, and really, it was just a great interview.

The Second Great American Depression

Back in November of 2007, I contemplated writing a book based on my life after the election and the state of America as well. The title was to be called "The Second Great American Depression", based on both how I felt emotionally and the great economic downturn that I saw coming.

On Monday, September 29th, that title may have come true.

For the past year, whenever American's saw massive job loss, rising prices for the essentials, and an overall economic situation that wasn't just a simple downturn but, in fact, a very dramatic change, I started chanting "Second Great Depression". In turn, I was told I was an idiot who didn't understand the factors of the original Great Depression.

They were wrong, I do, and your either closed-minded or naive not to see ANY parallels right now.

What were these factors? The specific economic events that took place during the Great Depression have been studied thoroughly: a deflation in asset and commodity prices, dramatic drops in demand and credit, and disruption of trade, ultimately resulting in widespread poverty and unemployment. - Source: Wiki

In turn, most economists can't agree what, really, the relation was to each other and the main cause. So for that reason alone it's foolish to say that because of lack of direct parallels that this couldn't be another Great Depression, or at least the start of one.

So before we go into what, exactly, is causing people to think there is a problem now, let's look at each factor and see the parallel:

A Deflation in Asset and Commodity Prices

Right now, we're seeing a deflation in assets. The faltering housing market and the drop of the price of gas are testament to that. The fact that people owe more on their homes than they're worth is the clearest indicator of that. The dramatic drops in the price of stocks is another indicator, not to mention that, yes, the price of oil is dropping.

Meanwhile, commodities such as food are on the rise due to inflation and many people are finding it harder and harder to buy food. While the cost of food may have dropped during the Great Depression, so did the ability to buy it. Although, at the time of this posting, the cost of food IS dropping. A lot. Well, in England.

We're seeing a close parallel here. During the Great Depression, millions lost their homes. In turn, we're seeing the highest rate of foreclosures since the Great Depression. We're seeing millions lose their retirement savings because of this stock market crisis.

Dramatic Drop in Demand and Credit

We've seen the former happen for nearly a year and now we're seeing the later. Demand for goods has dropped steadily for over a year now, which in turn has led to a rather dramatic drop overall in a short amount of time. Demand for toys have dropped, so has the demand for cars. In fact, the demand for new cars is about the lowest in years, with 700 dealerships possibly about to go out of business.

At the same time, we're seeing Credit Card companies lower credit limits. Banks are unable to borrow money from each other, which is why so many banks are going under.

Disruption in trade, resulting in unemployment

Right now, we're not seeing that. We're seeing a rise in unemployment, the highest in 5 years. The current unemployment rate is 6.1%

I kept the overall points brief since, in essence, they ignore a lot of things that happened during the depression. We still have a lot of things worth mentioning since there is a lot going on.


First, let's discuss the money in the banks. During the Great Depression, there were runs on the banks. This was because, at the time, accounts did not have an FDIC guarantee like there is today. But today, economists are worried about runs on the banks in America because they think most American's are worried that their money won't be there. The reality is that, while loans are insured fro now up to $250,000, it doesn't mean that the banks can't freeze their assets and, in turn, make it next to impossible to get your money out of the bank. One possibility is that there could be a freeze on ATM withdraws, another fear is that credit card companies could freeze their credit and cut everyone off.

The safety of our money isn't 100%, and everyone knows that. It's safe to say that most comments about "Bank runs" don't mention the possibility of a freeze so not to promote fear and bank runs because of it. At the same time, the FDIC can, and has, run out of money.

We're not seeing breadlines, we're not seeing Hooverville's, and we're not seeing an unemployment rate of 25%. But we are seeing people lose their homes at a record pace, we are seeing the value of money worldwide plummet, we are seeing a rising unemployment race. We are seeing our stocks tumble dramatically; they're the lowest in in 5 years, and most importantly, the Dow Jones Industrial has PLUNGED over 5000 points in the last year alone!

Are we about to see the Second Great American Depression? Maybe. The first Great Depression was actually The Long Depression (1873–1896), but was later renamed the Long Depression after the Great Depression of the 1930's happened. It's possible that we are going to go into a long-term economic crisis, and this is going to last about 4 months. The election is going to make things better for a little bit, but I doubt that after whoever gets elected take office that things are going to get better. We're facing the edge of a cliff, and we need someone to lead us away from it.

The Second Great American Depression? Not yet.

The $850 Billion Bailout: What it Really Means

There's nothing worst than having to deal with the reality of the day: The US Economy is pure crap.

I've been posting and blogging about this topic for over a year, right after the end of my political run. The situation in America is simply abysmal and to quote Slayer, "I hate this shit economy/It might as well be sodomy!"

On September 29th after the original Bailout plan failed and the Dow Jones dropped 777 points, I ran around saying, "Well, the Second Great Depression is here." And, understandably... a lot of people said I was over-reacting. To a degree, they're right. to a degree, they're wrong. A critic of mine on a message board I go to a lot, someone who hasn't always been nice to me has been, at times, incredibly mean, actually defended me. He said, "You forgot to add a word: YET."

He had spoken to a bankruptcy judge that day and asked him what was going on, and the judge said that things are, in so many words and a gross oversimplification, fucked. He said that if something wasn't passed by Friday we would see the entire credit market freeze and you and I, in turn, would not be able to get money from our banks because everything would be frozen. In essence, THIS was the crisis America and, in turn, the world would face if something didn't happen fast.

So, on Tuesday when I saw that the Dow Jones had risen 400+ points and recovered over half of what it lost the day before... well, I realized the bailout was BULLSHIT!

Here's the situation: You have a spoiled child (Wall Street) who basically went out, got a toy, and played with it. After a while, the kid breaks the toy. The kid, realizing it wants a new toy to replace it, goes to it's parents and asks for a new toy. The parents say. "No, you broke your toy, so no new toy for you." The kid, angry, then throws a temper tantrum and starts breaking things. Finally, the parents, pissed about it say, "OK! OK! WE'LL THINK ABOUT IT! Now shut the hell up so we can make a decision!"

You can guess where I'm going with this. Stock Market Investors and Day Traders realized that, no matter what they did, the U.S. Government was going to come out and just do the bailout because, if they didn't, everyone would suffer... or, at the very least, they could make it look and feel like that was the case. Last Thursday, the U.S. Senate passed the Bailout Bill, and congress was now faced with a document that went from3 simple pages that they rejected to an over 300+ page behemoth that no one most likely read and was marked "URGENT! SIGN OR WE ALL DIE IN A SHITTY GLOBAL ECONOMY!"

Guess what happened?

So the U.S. Congress passed the bill, although about 90% of the people who voted on it, from their own testimony, did it holding their noses. An added $150 Billion was added to the bill for pork projects including $2 Million for Bow and Arrows for kids and money for, get this RACE TRACKS! Awesome, wasted cash!

On top of all of this, Wall Street banks, firms, etc, we're looking to get as much debt as possible to fall under this bailout, so we get that, too.

And today, the Dow closed below 10,000 for the first time since 2004, stock markets around the wall fell an AVERAGE OF 5-7%, governments are bailing out their banks, and the U.S. Government may have to bailout it's own states.

A Second Great Depression? Is it possible?

Tomorrow, I'll go into dept about this and deal with the taboo's associated with mentioning this.

We Need Another FDR!

If FDR was alive today, I'm sure he'd be glad to run for a 4th term, and if his mental state held up well, I'd sure as hell vote for him!

Franklin Delanore Roosevelt did something that needed to be done; Get America Smart!

This is a gross oversimplification, but FDR created "The New Deal", an agreement that stated that the government needed to help the citizens of this Republic when they needed it, and cut back spending as well. His plans helped America get out of the Great Depression and made us, by the 1950's, an economic powerhouse.

Right now, we need him.

I don't want to hear another politican talk about Tax Cuts. Fuck it. I don't need them anymore. A tax cut would kick ass, but right now, we're fucked. We are so fiscally fucked this isn't an economy, it's sodmoy on a daily basis! This is, without a doubt, the WORST economic situation since The Great Depression and we're looking at the possibility of a sequal right now dead in the face.

In fact, shut about which politican said what. Right now, let's look at the RAW FACTS:

John McCain has suspended his campaign to go back to Washington to deal with this crap.

Barack Obama has said he wants to continue with the debate Friday.

You know what sucks? The first thing we all think is one of the two; McCain is actually putting his money where his mouth is, or that the fact that he said he's not good at the economy is REALLY bitting him in the ass. Frankly, I think it's both. I think McCain just saw that this economic disaster is worst than he imagined. I think Obama is seazing the moment to boost himself up and, in turn, make McCain look bad.

Me? I don't fucking care!

I don't care WHO says it, but the first person to say, "Look, I know I said I wanted to cut taxes. But because our economy needs all the help it can get and we have to help so many folks, we can't do it. Sorry, folks, no tax cuts." First person to say it get's my vote, PERIOD! It shows one simple thing; they understand that you can't cut back spending anymore and you can't get something from nothing. 

Extra credit? "Not only am I NOT going to cut your taxes, but I am creating an incentive to have the U.S. People buy Bonds. This helps them, their neighbors, etc... then, down the line, they get the money back with interest!" I love universal health care, America needs something close to it, but right now... We can't afford it. Say that, you got my vote.

The first one of these two to say that, to say "I know I promised you the stars and the moon, but right now, we need to get back on our feet first. When we do that, I'll give it to you. But right now, we've got to handle this. If you vote for me, I'll do just that."

Obama, McCain... I honestly hope one of you just say this. We need another FDR.

The US Economy: This picture says it all.

Actually, the full thing is here:

http://www.sinfest.net/archive_page.php?comicID=2938

What if the US Government Gave US The $700 Billion Bailout?

$700 Billion.

That's how much money the White House wants to give failing insurance companies and investment banks to save their businesses. $700 Billion dollars. That's the single largest government bailout in US History, and the question being raised is who's going to pay and if it will help us in the long run.

To that end, since we already know we, the US Public, are going to have to pay for this... why not just give us the money?

Yes, yes, I know; we got a check not too long ago. And, you know, $300 - $500 isn't bad. It's enough to... well, fill your gas tank, pay a bill. Maybe. Not enough for even ONE mortgage payment, that's for sure. And we all know that a large part of why this economy is so bad is because, you guessed it, a lot of loan defaults.

So how about the US Public get's $700 Billion dollars. How? How would that happen?

Well, first off, let's do the simplest part; divide it EQUALLY over the entire population. So, at about 305,000,000 people, that means we all get... $2300. Who's included in that? EVERYONE. Men, women, kids, grandparents, government workers, prisoners, homeless people, the rich... EVERYONE who lives in the US.

So the next thing we do is eliminate anyone under 18. That's roughly 80,000,000 people. SWEET! That makes it 225,000,000 people! People in prison are next! That's 2.2 million people, so BAM! They're gone, they're in jail. We're now down to 222,800,000 million.

Now, let's just say that the government deserves a bonus this year. OK, now that your done laughing, let's instead of giving the folk in the higher echelons of government the money, we give it to the people who are barely making enough cash to feed their kids, let alone themselves. Seriously, people who work in Social Security aren't exactly happy folks.

Getting the number of people who work in the higher-echelons isn't easy, NOT EVEN CLOSE! There's 100 Senators, 440 people in the House of Representatives, 50 Governors! Hell, the federal government is compromised of 4 MILLION people! That means going in and trying to find who's the working slobs are and who's in the FBI and CIA. Then you have all those LOCAL governments! UH!

OK, so, for the sake of argument, we're going to say 4 Million people in this country are making lots of money a year by being a "public servant" by being President, Mayor, Governor, City council, State Rep, etc...

We're now down to 218,000,000 people.

So, let's not forget the rich! OH YES! The filthy rich folks! The TOP 1% of America who own 32% of America! So that top 1% is 3.2 million people since we're going from that top number of 305,000,000. Now, we can go on and on about where the cut-off should be for what's "rich". That's where it gets hairy. We'll just cut it off at the Top 1%. Why? Because 68% of the US population makes less than $50,000... You know what? Screw it. We're going to make sure that the top 15.73 percent, those making a wonderful $100,000+ don't get this money.

So that's 47,976,500 from the TOP number of 305,000,000. That's 170,023,500 people!

That's a pretty good number! Hell, we've nearly shaved off 135,000,000 people who can't use the cash! We're now dealing with US, the people who NEED this money the most! US, the people who can't pay their bills, afford decent health care, and the people who owe these banks the most cash.

And we just got a check for $700 Billion dollars.

That means we get... $4117.07 each. OK, round that down to $4100. That extra $17.07 per-person can go to back to the government. How much is that? $2,902,301,145! HOLY CRAP! I just found a way to save the government nearly $3 BILLION dollars!

$4100. WOW! Crap, if I had that kinda cash, I'd pay off as many bills as possible! No, it isn't a butt load of cash, but it's nothing to sneeze at. Some people don't even make that much in two months! $4100... for me, that's a few mortgage payments, all my utility bills, and any other debts I may have. Not enough to cover all of it, mind you, but a nice bit.

Now, can we honestly say that giving these massive houses this money could be better? If we're the ones who owe the money to them, if WE'RE the one's that are causing them to lose money... shouldn't we be the ones to pay it back? The government isn't going to wipe OUR debt away, is it? No, we're still stuck with those bills! But for the over 170,000,000 Americans who NEED it, the people who may not have even needed to pay taxes in their lives because they NEVER made enough cash... THEY get the money, too. We ALL do!

Me? I think this is a better idea than anything else we've got right now. We're the ones suffering the most and we're the ones with the debt. I don't see our parents more than happy to cut us a check to pay off all our bills; they need help themselves.

So start writing everyone you can about this, spread this idea like wildfire, and start getting the ears of your local government! I did all the crap work, you just need to send it out there!


REFERENCES (Because for something like this, you need them!):
Population total is an estimate based on the US Census Data.
Number of people under age 18 based on rounding down the numbers. Combined with an estimate of total population, my ballpark is pretty good. Data is here at the US Census.
The number of people who work for the US Government came from Wikipedia, but considering that the overall number is next to impossible for me to get, 4 Million is either a gross over-estimate or under-estimate. We're going to go with it since, when you account for the local governments, it does look like a lot.
The number of people in prison is based on a 2006 number. It most likely is higher.
The number of people making more than $100k a year is from Wikipedia, but those numbers are based on a TON of research.
That awesome cartoon is by Stuart Carlson. That guy rocks!

How to Clean Up your Economic Situation... Kind Of.

This isn't meant to be perfect, but just because I'm in a bit of a bind myself, I thought I would just offer folks some ideas on how to cut back on expenses and save some cash while still being able to enjoy life. It's the time of year when, after your done all your holiday shopping, your realize that you spent a bit too much on everyone and not yourself. Because of it, you could be seeing some really big credit card bills, or may face some big bills.

If so, or if you want to make sure your not in that situation, here are some suggestions:

1. Check your bills! It may seem simple or common sense, but double-check the charges on your bills! I did recently and found 2 odd things. I looked them up on-line and, sure enough, they were scams.

2. Be careful of scammers! If you went to an FYE or Suncoast recently and signed up for a "free magazine" offer, make sure you cancel them once your done with them, even if it's a debit card! I thought it would just cancel itself but it didn't. The bill will come up as TWX*MAGAZINE. Call them and cancel them if you already have them. Also, look out for FreeCreditReport.com! they charge $13 a month to see your credit score, and it's a good idea to look for another service instead.

3. Buy used and sell things you don't want. This is a good rule to follow when buying older CD's and DVD's. If there is something you've wanted for a while, see if you can get it used instead. You can save a good amount of money on it, sometimes at least half or more instead of buying it new. Sell those old CD's or movies you don't watch anymore as well.

4. Sign up for any budget services. If your electrical or gas company has a low-income plan, see if you can sign up for it.

5. Conserve Energy. Not only do you help the planet, but you help your wallet and bottom line by doing this! Turn off lights and electronic devices when your not in the room or using them, try to keep the heat down low and wear warmer clothes indoors, and open the curtains during the winter to keep the house warm.

Happy holidays!

Another Economy Post

"I HATE THIS SHIT ECONOMY, IT MIGHT AS WELL BE SODOMY!"

- "Consfearacy" by Slayer

Let's just get right to it: The economy is pure shit. This holiday season, we are seeing more and more people spend less and less because... well, who can afford to have fun this year other than rich people? For some people it's gas prices, for other rising prices for electricity and home heating. So, yeah, everyone has a problem with gas these days (heh heh...) and we can point it directly at the CEO's who are taking home hundreds of millions every year!

Not only that, but its even harder to not want to spend cash since all the stores are just slashing their prices right now! Hell, Border's has a coupon for 40% ALL DVD Box Sets! I'm not making that up! You know their not having a good year with something like that!

Frankly, no one really has money for anything.

On the flip-side, you have a bunch of people saying our economy is just fine! They point to the fact that while the American Dollar is loosing value, it means that exporting goods is going up, which means we're going to see our value go up as more money is pumped into our economy. Normally, this form of Trickle-down economics work well, but with more and more companies exporting jobs overseas, we are becoming a nation of givers as we are now being sucked dry.

On the plus side, how many times do you see a Slayer fan use the word "shit" and discuss the value of the American Dollar in the same article? Huh?! Sweet....