Everyone was doing it….why not us?

The global economic meltdown is looking to be just starting according to the experts arrayed on “60 Minutes” last night.  “Alt A – so called Liar Loans” and “APR – Double your rate Resets” are scheduled to crank up the number of foreclosed United States, Europe and Asian Commercial and Residential properties through 2009 and 2010!  This of course doesn’t count globally traded  Mortgage backed Securities from the likes of Goldman-Sachs and now Bank of America…..which have been consumed with lots of borrowed money from the Federal TARP funds!  According to the experts on “60 Minutes”….this group of almost three Trillion dollars worth of worthless stuff will supersede the current “Sub-Prime and Credit Default Swap Fiasco”!

In 1976, the banks in Mexico were offering 22 percent, per month on cash deposited in their banks!  People rushed to put their money into these banks and pull their investments out of the United States!  The greedy eyed global investment communities couldn’t wait to withdraw their cash from U.S. banks and wire it directly to Mexico.  If you can imagine people watching their individual bank balances grow weekly from $10,000 dollars in month one to $20,000 in month five – the feeding frenzy was amazing!

Then came reality:  The word was that it was difficult to withdraw your money from Mexican banks!  It could take upwards of four months to get any money out of your account in Mexico.  Then word came:  All foreign assets and cash investments in banks in Mexico had been Nationalized!  Some rich folks lost millions.  Some Investment Banks lost more!  But hey, “Everyone was doing it!”  The Carter years had diminished the value of the American dollar and they created a so-called “Basket of Currencies” system.  The British Pound, The German and Swiss Mark, the French Franc, the Hong Kong Dollar, the Japanese Yen!  Viola!  How about buying into a nice Mutual Fund?

The Mexicans used that cash until their next financial crisis in 1994 when Bill Clinton had to bail them out along with the Malaysians!  The Mexicans took that money invested in Global Investment Banks and within a year or two was able to pay back everyone!  Who paid for that?  But hey, “Everyone was doing it!”  Here comes SIV’s (Structured Investment Vehicles), here comes Sub-Prime Mortgages, here comes Credit Default Swaps, here come Alt-A loans, here come APR – Massive Reset Loans!  Here comes Bailout money for everyone!  Here comes stimulus packages for everyone!

As we face the great Global Economic Meltdown of 2008, we are also facing the Socio-Political and Economic Meltdown of confidence in Government.  The size of this corruption is Global in scope.  It is virtually in every country, with citizens around the globe facing the reality that their politicans have been not only covering up this terrible economic debacle, but have in fact been benefiting personally by doing so!  But hey, “Everyone was do it!”

The time for accountability has come.  From the Bankers that lied and stole by way of inordinate bonuses and brokerage fees to the many politicians that that knew but refused to mention that “the Emperor had no cloths!”

The solutions that are required now….should start with a “clean slate of candidates”.  Those that were supposed to be taking care of us…obviously have been willing co-conspirators in one of the greatest scams of all time!  As Retirement and Pension Plans dwindle to less than half their values…as property values fall to about one third of their prior values….as people lose their jobs, their homes and their life savings – there should be some greater accountability!  That accountable behavior should start with a zero tolerance policy when it comes to Government corruption and wrong doing!  We need to send a strong message that only those with the highest moral character should be employees of the people of the United States!  This is perhaps a moment to time – which we must seize to begin anew!  This is indeed a time when we must seek – “the humble politician”!