Tutor Skyped me last night at 3 am. Apropos of whatever was on his mind, he said, "Social Enterprises now have as many bottom lines as there were once gods on Mt Olympus. It takes only two to make tragedy, and three for farce. Soon Ovid's Metamorphoses will be taught in business school. They call it 'story telling.' The best stories drive metrics. If only they might read The Bacchae. Reason rules the polis and the great god Dionysus calls for Hillary's head." Tutor may be drinking again. I worry about him sometimes. "If this is what a lifetime of reading gets you, Tutor," I said, "we are better off ignorant." He said, "You are in good company." Then he hung up.
Bush on corporate socialism:
"This is an essential short-term measure to ensure the viability of America's banking system," he said. "This is not intended to take over the free market, but to preserve it."
I just hope the Chinese approve of what our President is doing with their money.
Now, with stocks selling at bargain prices, might a good time to dust off Cato's Social Security Privatization Plan. Words like "Freedom" "Private" and "Choice" enhance the fundamental truth that in the stocks working people can participate in the high returns associated with an unregulated winner take all market. It is only fair that workers participate, in a small way, in what enriches the owners. Rather than a bailout, or along with a bailout, why not plow payroll taxes into the market? We have nowhere to go at this point but up.
Back in 2000, when Hank Paulson was CEO of Goldman Sachs, he testified in front of the Security and Exchange Commission. Among other things, he lobbied the SEC to enact a "change to self-regulation" for Wall Street.
Goldman Sachs is considered one of the most philanthropic firms on Wall Street. At the top, business, philanthropy, and governance seem to fuse. Paulson himself is a notable business leader, regulator, and giver. The fate of our markets, country, and species are in the hands of a few very capable people who just need $700 billion, more or less, to balance their books. For now what we need to get the bailout passed is $100 billion in tax breaks. This will stimulate the economy and help us service the debt. If that does not work, we can borrow more money and have more tax breaks. When things collapse those with money will buy things cheap from those they govern. That is how the free market works.
Dennis Kucinich interviewed on the bailout by Amy Goodman:
I said we’re the Congress of the United States; we’re not the board of Goldman Sachs. Goldman Sachs is struggling to survive. And, you know, their former chief is now the head of the US Treasury. He’s in a position to be able to direct assets in a way that would help enhance his own financial standing. I mean, that’s a clear conflict of interest. And, you know, that’s something that needs to be said. You know, why are we permitting the person who has essentially been in a position where he’s managed assets that—you know, many of which are now in trouble, and he can come back and help clear the books for a lot of his friends? This is wrong. It’s fundamentally wrong. And, you know, it’s one of the things that adds a degree of stench to this.
And to the larger points, Kucinich says:
It seems to me there’s a possibility that this crisis has a little bit of manufacture to it. And that really concerns me, because we haven’t had enough time to look at this in an in-depth way, to analyze the impact of it on the economy, to see if it’s going to do anything about a recession that we’re obviously headed into, to see if it’s going to handle the underlying concerns on Wall Street about the speculation and a lack of regulation. The bill doesn’t, by the way, address anything about the speculation, anything about the lack of regulation. The SEC has failed. The Fed has failed. And we’re essentially telling all the same actors, “Go for it. You know, here’s another opportunity,” except this time it’s with taxpayers’ money.
Lovely to hear the sound of these voices: reality amidst all the spin. Friends talking to friends about the "kabuki theater" of government oversight as tax payer money is funneled to those who need it and those who may not, the weak and the strong, all the piggies with their snouts in the trough.
Taxpayer losses: "golly, let's just pray to Jesus and hope he'll make sure that in a few years our country won't be bankrupt."
Sounds like DC to Wall Street, the people who really run things, laughing at the rubes whose money they plan to shall we say "reposition." What do we call it? How about, "Rescue Plan"? O yes, Rescue Plan.
As Eric Reguly notes at Globe and Mail, CEOs of US financial firms have had every incentive to drive up their company's stock price by taking risky, highly leveraged bets, knowing that their personal upside was rapidly rising stock options and their downside was a very rich severance package.
Lehman Brothers had built up a $2.5-billion bonus pool before it went bankrupt two weeks ago. Lehman CEO Richard Fuld took home $22-million last year in salary, bonus and options. Stan O'Neil left the CEO's office of Merrill Lynch in 2007 with a goodbye package valued at $161-million. In the same year, Merrill lost $8-billion and was rescued earlier this month by Bank of America. Martin Sullivan left AIG with $14-million in his pocket not long before the U.S. government propped up the insurance giant with an $85-billion loan. In 2006, the year before Bear Stearns went under, CEO James Cayne made $33.6-million.
Stewardship is the belief that whether you win or lose personally you have a moral responsibility to do what is right for the resources, whether a family, a company or a country, entrusted to your care. What has always bothered me most of about the incursion of winner take all attitudes into the public sector and the governmental sector, and even into business, is that we have lost the culture of stewardship. We honor Trump's Apprentice, and the finaglers who make their gain from a larger loss. In a culture of stewardship, or of honor, the figures above would refuse to take their severance benefits. They would consider the money dishonorably earned and repudiate it. Unfit to lead? No, now these figures begin, we can only hope, their journey from success to significance through philanthropy and atonement, if The Happy Tutor gets through to them.
Why are some like CEOs of failed banks paid so much, and some like adjunct college professors paid so little? The answers are found here, in laissez faire bingo.
Sold To US Tax Payers for $700 Billion: Banks Bad Assets, by Martin Crutsinger:
The ultimate goal of the plan remains the same: buy bad mortgage-related bets from weakened financial companies so they can raise fresh capital and resume normal lending operations to businesses, municipalities and consumers.
Excuse me, "resume normal lending?" What was the kind of lending that created this fiasco? Normal? Abnormal? Aberrant? Criminal? Who is being rescued here? The regulators who looked the other way? The head of a subprime lender whose personal fortune is estimated at $1.5 billion, who donated $1 million to Bush and became Ambassador to the Netherlands? What exactly is normal in these circles? What will be resumed? Who is responsible for the rule of law, when the the people at the top are so self-serving? I ask with all due respect, eying the Heat Ray and wishing that resuming normal operations included restoring our Constitution and my rights formerly under law. But, I guess, the people in charge know what is best for us.
‘This was in my prayers: a measure of field not so
big, where I might have a garden, and right next to
the house a spring that always flows. Up above a small
stand of trees. The gods have provided more amply
and even better. It’s fine, and I won’t ask for anything
more, Son of Maia, except that you might make these
gifts really mine.’ - Horace
Dave Pollard and C.A. Fitts on the financial crisis, which is clearly a moral and political crisis. Bankruptcy spreads from domain to domain. Both Dave and Catherine would counsel us, as I counseled my daughter today, to invest in real wealth, in living things, and in our commonwealth of gifts and giftedness, in a more financially intimate world dealing face to face with those we know and trust. Invest, told my daughter, in living things, friendship, community, in practical skills, and what you carry between your ears. To be fair, Catherine would also tell us to invest in or start local businesses that provide needed goods and services without stripping the ecological or community wealth: financial permaculture. We should all now see that the economic and political system will be gamed and bubbled by insiders to their advantage until the Chinese will no longer take our debt, even at gunpoint. Then we endure the "structural adjustments" that we have imposed so imperiously on third world nations. Whether this matters to those whose assets are offshore and whose loyalities are to those like themselves, above it all, I don't know. We are just another country to be fleeced. "Tend your own garden," ancient advice from the wise in earlier empires on the verge of collapse.