"... On Aug 2, 1:11 pm, Chris Jenkins <[email protected]>
wrote: ..."

> What abyss would that be, Gruff? An abyss of bonuses?

No but the bonuses would go down the abyss too.  I was postulating a
situation where no one did anything.  Every government just sat by and
did nothing to bail the banks and major industries out.  Can you
imagine a cascading of western governments, banks and businesses into
bankruptcy?  I can easily see riots, looting, massive violent
demonstrations, loss of civil rights, martial law and a severe enough
blow to take us decades to climb out of.  Societies might revert to a
law of the street society of the twenties.  Flappers and all.
Religion would have a vast resurgence and there'd be plenty of
repentant sinners eager to do the word of god.   Yeah, we'd definitely
slip back more than a step or two.

>
> <http://www.wsws.org/articles/2009/aug2009/pers-a01.shtml>And it's not like
> that actually solved the problems...

The bonuses are nothing new.  They were exposed earlier this year and
explained away.  I thought the explanation shameful but then what do I
know.   I expected some of the executives that were complicit in the
bubble to step up and pay their due ... but I guess not.  I also
expected the oil companies to step up and bail out their partners in
crime, the auto manufacturers and related industries.  Disappointed
again.

I'm still a believer but I'm also still a realist.  There will be and
in fact are ripoffs at all levels throughout the recovery, just as
there were those who benefited from the fall.  The system isn't at
fault.  People are.  People use the system to work their connivances
and larcenies.  They'd use any system.  But here I'm going to revert
to my old 51/49 defense.  We are moving forward, just at an overall
snails pace because it's a lot of steps forward to recover losses
before we see gains.

So I still have faith in global fiat free-market capitalist
economics.  We just have to learn to protect ourselves from
ourselves.  I think we're getting better at it.  And don't forget,
this is really our first time since the new economy started (1971)
that we've had a big fall and in that span of time we've quadrupled
the wealth of the developed world (and only lost back a fraction of it
to The Big Bubble.)

> http://www.nytimes.com/2009/07/31/business/31aig.html?hp
>
> <http://www.nytimes.com/2009/07/31/business/31aig.html?hp>But hey, at least
> there's...oh, right, bonuses...

The more we dig the more dirt is going to be uncovered.  There's
little doubt of that, but it highlights one of the brighter aspects of
the recovery.  A lot of the dead weight will have been pruned away
making for a sleeker more functional economy.  But over time I expect
it will become once again laden with more dead weight as larceny works
its way with us.

>
> http://blogs.reuters.com/rolfe-winkler/2009/07/30/cuomo-releases-ugly...LINK 
> FAILS
>
> The Fed will make it all better though...

One hopes so anyway.  I have faith in the Fed as well and as long as
Congress doesn't get its hands on it.

> http://www.huffingtonpost.com/2009/07/24/dylan-ratigan-eliot-spitz_n_... LINK 
> FAILS AGAIN
>
> I mean, as long as we know where the money's going. No one would throw
> around Trillions and not keep track of it, right?

Oh, I'll bet a paper and electronic trail could be found.  People
don't do things without leaving a trail no matter how hard they might
try to cover it up.  At some point they have to reclaim their ill
gotten loot and that's when they get snatched, especially since it
appears that a lot of the heretofore safe havens for trillions in
untraceables are disappearing and a lot of that hidden money comes
back into the system.

I've got this theory I'm working on which says that if all taxes
illegally avoided were returned to the system and all the monies lost
to fraud were recovered we could pay for Bush's war, all of Obama's
plans and have spare change left over.

> Sorry, this bailout has been one big scam, front to back, and we've all been
> had.

All I can say is wait and see.  I'm not saying it'll be perfect.
There'll be a lot of scams go on and a lot of just standard government
bureaucratic bullshit which will cost money ... after all the
government is really run by bureaucrats who can delay and obfuscate
with the best of them.  I'd rather deal with a politician than a mid-
level bureaucrat any day.  There is something about government work
that calcifies the thinking centers of the brain.   But overall, the
bail out will be successful.  I'm certain of it.  And in the end the
deficit will more than likely turn out not to be the big bugaboo
everyone seems to think it will be.
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