I read more nonsense in the papers or watch on the news every day and it's making me mental. For the umpteenth time in the last few months some idiot newspaper or newshead keeps telling me the revival of the Glass Steagall Act wouldn't have stopped firms like Bear Sterns and Lehman Brothers from collapsing, which is so far from wrong I don't even know where to begin. It's like arguing that the sky is orange. These companies collapsed because they acted as both investment banks and private banking, not to mention credit default swaps and bad real estate deals which they used like a shell game to get around falling profits, or the exact definition of what Glass Steagall was passed to prevent in the first place. And who exactly are these top economists that these news sources keep referencing, anonymously of course, who keep saying this crap because either they don't exist or they are REALLY bad at their job? This is the state of economics in today's world: reality does not exist for these people and will continue to say the sky is orange even when we can all see it isn't.
Today's bloodbath continues, and I would like to point out that if you go back just a few short articles ago, I predicted this would happen today when China's big sell off was set to return with a vengeance. As of 3:15 EST, the Dow is down roughly 375 points. If it goes below 16,000 at any point soon, that may indicate a time to sell everything you have as panic selling is going to commence soon after. As I also said some months ago, this was going to be a volatile time as everything we have done wrong these past few decades is coming back to haunt us. Trickle down economics does NOT work. Yet we keep trying it. Austerity does NOT work, but again that is all we hear from Republicans and Europe, and evidence shows it is a losing proposition. If anyone can name a place where this economic theory works let me know because I sure haven't seen it.
Christmas was awful this year because we are being worked harder and harder for less and less money. Retail plummeted so bad companies like Macy's are closing hundreds of stores and laying off thousands. And that is just one of many. I know people with Masters and PHD's that are no so much having a tough time finding work, as finding work that actually pays anything. My friend with a PHD in chemical engineering is finding lots of jobs. Unfortunately, most of them pay one third what he used to make and demand things like insanely long hours and crappy benefits. I don't blame him for not wanting to work for $30,000 a year. And that is the new norm where salaries are decreasing at an astronomical pace. People who get laid off rarely find work that pays anything close to what they had and are either forced to accept crap pay or stay out of work for a long time. Not one person I know who has lost their job over the last five years has found a better one. Not one no matter the field. We are getting screwed over and both parties are to blame.
Because we did nothing to fix the last mess, we are fucked now. You can blame Obama. You can certainly blame the Republicans. Mostly you can blame the American public too stupid to know when they are being lies to and are only too happy to stare blankly at their Iphones until their brains leak out their ears. The world is coming down around us and no one seem to care.
Most of the world is in a recession and some places like Venezuela, Greece and Spain, are all in severe Depressions. That horror may be coming here soon as a lot of people are starting to see the writing on the wall and are beginning to panic. Everything we saw before 2008 is coming back again, only worse. Commodities are dropping as no one is building or buying single family homes anymore, gold and other precious metals are being manipulated to keep their worth down and the Dry Baltic Index hit record lows again this week.
Things like employing people with a livable wage and debt forgiveness for the individual would have been a good start, but we did none of that. Iceland did and their economy is thriving. We, on the other hand, followed Europe in giving money to lots of banks and rich people who proceeded to do absolutely nothing with. Nine trillion dollars went missing in that theft of wealth and you can bet money it went into rich people's pockets. We are being stolen from on a scale unheard of human history and the world is too fractured and moronic to care.
Time may be up soon, which could throw the next election out the window and then get ready to say hello President Trump. God help us all.