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Elizabeth Warren On Too Big To Fail, Paulson's Generous Taxpayer Gift, And The Death Of The Middle Class

Tyler Durden's picture





 

Harvard professor Elizabeth Warren provides a much needed sober perspective of Bernanke's Doctrine of Mandatory Global Moral Hazard, by discussing just how broken the banking system continues to be. 

"My view is any institution that is Too Big To Fail is one that distorts the economy and ultimately is very costly to all of us."

Most notably, Warren on the intention by Wall Street and by the administration to eradicate the middle class:

"The middle class became a resource to be pulled from - "the turkey at the thanksgiving dinner" - the middle class has gotten shakier and shakier, it has become hollowed out. The middle class makes us who we are. The middle class gives us political stability. It is safe to walk our streets because we have a middle class. And every time we hollow [the middle class] out we take the risk that something of what we know as America begins to die. That's what scares me."

Must watch.

 

h/t Alexis

 


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Thu, 10/15/2009 - 15:15 | Link to Comment Sisyphus
Sisyphus's picture

 

Elizabeth Warren is fighting a losing battle. The sheeple do not care. You want an example. Here it is. This gentleman is unemployed. And instead of being outraged at the bailouts, the economic condition of the country, the massive printing experiment that is going on, and doing something about it; he is more interested in his footbal team. He and other like minded people have raised money for a billboard to show their discontent for the Buffalo Bills football team. And he is being featured in Yahoo as a hero. Try that to raise awareness about the Fed and the wall street and you will: 1) not get enought support and 2) written off as a nut job.

Nice job Mr. Ryan Abshagen. We need more like you in this country. Otherwise, how will the pillage continue without anybody giving a rat's posterior.

Bills fans rent billboard to advertise discontent

http://sports.yahoo.com/nfl/news?slug=ap-bills-fanbillboard&prov=ap&type...

 

Thu, 10/15/2009 - 16:54 | Link to Comment Glen
Glen's picture

The dumbing down of America is working a treat. It's also working exceptionally well here in Australia to.

Thu, 10/15/2009 - 17:37 | Link to Comment Anonymous
Thu, 10/15/2009 - 22:45 | Link to Comment Anonymous
Thu, 10/15/2009 - 15:43 | Link to Comment Jupiter
Jupiter's picture

"And every time we hollow [the middle class] out we take the risk that something of what we know as America begins to die."

Why is that every "mainstream" or "establishment" thinker always qualifies their argument that America is dying with works like "take the risk" and "begins to die".  Other examples (not in this article include) "may result in a prolonged decline of the dollar", "affects the economic stability of future generations", etc.

Let's face it:  America has been in decline since the year 2001, the early part of which we were perhaps at the apex of influence, economic prosperity, personal freedoms, and opportunity for growth.  Unfortunately, 9/11and the administration at that quickly ended this period of relative prosperity.

I wouldn't be surprised to be back in Singapore by next year's end.

Thu, 10/15/2009 - 17:37 | Link to Comment Anonymous
Thu, 10/15/2009 - 22:33 | Link to Comment Anonymous
Thu, 10/15/2009 - 13:34 | Link to Comment BobPaulson
BobPaulson's picture

I'd say she should run for president but I know what would happen to her if she did, so it's great to see her doing what too few have the guts to do.

Thu, 10/15/2009 - 16:06 | Link to Comment Anonymous
Thu, 10/15/2009 - 13:34 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

And you should be scared Elizabeth, be very scared. Because this process started decades ago (some would point to Nixon dumping the Gold standard or even earlier) and it won't stop until there are two classes in the world, the upper class and everyone else.

Thu, 10/15/2009 - 14:13 | Link to Comment chet
chet's picture

I would argue we're already there.  Does the top 0.5 percent really see the middle class and poverty class as two seperate entities?  Does it treat them any differently?

Thu, 10/15/2009 - 14:29 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

No they really don't treat them differently BUT the middle class still controls some wealth. Wealth that (it just so happens) was in the process of being transferred to their children by way of inheritance.

What a great time to intercept it (or greatly diminish it's value) don't you think?

Thu, 10/15/2009 - 13:37 | Link to Comment Cheeky Bastard
Cheeky Bastard's picture

she is the part of the establishment, and i dont rate her high enough; i have met people with only elementary school diploma who were saying and are saying the same things she is. but smart lady and with a lot of balls talking that way about her own.

Thu, 10/15/2009 - 13:58 | Link to Comment just.a.guy
just.a.guy's picture

Is she tenured?  probably so if she's speaking like that.  Tenured professors are not "part of the establishment" -- they have transcended it.

Surely you wouldn't consider someone like Noam Chomsky of MIT as "part of the establishment"?

Thu, 10/15/2009 - 14:11 | Link to Comment Cheeky Bastard
Cheeky Bastard's picture

i have no idea is she tenured or not; but it certainly can not be good for any school where she teaches for her to talk like that. don't get me wrong, i like the people who say fuck you to the very same system that enabled them to be where they are, but i think she is still a part of it, and thinks in the borders of the system which she is a par of. As for Chomsky; he just doesn't give a shit, and does so in the best way possible. 

Thu, 10/15/2009 - 14:34 | Link to Comment Miles Kendig
Miles Kendig's picture

Cheeky - Warren is just Harvard's enfeebled token to counter the effects of Harvard Business School and its alumni. She may have a megaphone bless her, but she will never get the votes or the to the wall backing. Never from the current system that is.

Thu, 10/15/2009 - 14:57 | Link to Comment TumblingDice
TumblingDice's picture

Her voice is just soft enough so that you are desensitized to what she is saying while at the same time you'd rather go to sleep instead of doing anything about it.

Somebody has to say this on a public venue, but I would much prefer if Arnold Schwarzenegger someone like Jack Bauer would yell it at the top of their lungs on a Sunday morning talk show than her.

"IMMA COP YOU IDIOT! NOW STOP STOP GIVING BANKS TAXPAYER MONEY! IT CREATES MORAL HAZARD!"

Max Keiser is the closest we have so far in terms of that. He doesn't pull punches and if he can just get on the Daily Show or something...

Thu, 10/15/2009 - 15:31 | Link to Comment ZerOhead
ZerOhead's picture

Max has substance, presence and delivery.

Love him or hate him you just don't forget him.

Fri, 10/16/2009 - 08:51 | Link to Comment agrotera
agrotera's picture

anyone preferring truth to lies has to love and adore Max Keiser!!!

Thu, 10/15/2009 - 15:30 | Link to Comment Anonymous
Thu, 10/15/2009 - 15:31 | Link to Comment SilverIsKing
SilverIsKing's picture

Agreed.  I've worked with and hired some Harvard and HBS graduates and can't reconcile their performance with their degrees.  They all do have a common attribute and that is the ability to talk a great game.  Some just give off a lot of hot air.

Thu, 10/15/2009 - 18:06 | Link to Comment Anonymous
Thu, 10/15/2009 - 18:07 | Link to Comment Anonymous
Thu, 10/15/2009 - 15:29 | Link to Comment sgt_doom
sgt_doom's picture

No offense, Cheeky, but you are way out of the loop on this.  The corps have, over the preceding thirty years, specifically endowed sooo many chairs --- along with strings on who gets tenured to such professorial positions, that the entire academic system is gamed as well as the markets (just check out the backgrounds of so many of the econ and biz chairs---and seen how many belong to the Bretton Woods Committee [the most anti-worker, anti-union international lobbyist group for the ultra-rich], along with Peterson Institute [formerly Institute for International Economics], and have done stints at various of the "stink" tanks: Brookings, Cato, Heritage, Aspen, etc., etc.).

While I admire Prof. Warren, she is the odd man/woman out, and as for Chomsky and Zinn, you will find there are specific subjects they are completely mainstream on and will never, ever touch (as in JFK's assassination, 9/11, etc.).  No heroes there with those two.  Whenever anyone (like that fellow in Colorado) who touches one of those off-limits subjects, tenure or no, they get canned. 

Just check back to the history of Thorsten Veblen, and other econ geniuses.  Nope, Chomsky a putz!

And as for Harvard, and those other fraudulent Ivy crud, they swarm with Bretton Woods Committee profs teaching globlaization, offshoring, leveraged buyouts and becoming members of the Predator Class, so they can stick it to the Under Class (which are the only two classes they believe to exist).

Thu, 10/15/2009 - 19:31 | Link to Comment Anonymous
Thu, 10/15/2009 - 14:03 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

The powers that be feel that people like Warren have utility in our criminal economic system. Warren gives hope to we-the-people and she helps us to delude ourselves into thinking that maybe they will finally stop the thieving. Or at least that Warren will rally the cops and make them stop. Of course, we all know they really won't stop.

But for the vast unwashed herds of sheeple throwing beer cans at the TV when they hear about the monster GS bonuses, Warren is there speaking truth to power (but being ignored by the powerful because that's the game) and igniting hope that someone will save them from the wolves.

Yes, that's cynical but show me a reality different from what I just described and I'll listen. Good luck.

Thu, 10/15/2009 - 14:13 | Link to Comment SWRichmond
SWRichmond's picture

I believe you are realistic, not cynical.  "Hope for Change" by keeping faith with the system; how many times will Americans fall for it?

Thu, 10/15/2009 - 14:32 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Americans will fall for it right up to the bitter end because the average person doesn't want to give up the American myth and deal with reality.

Why even try to enslave us when we willingly enslave ourselves.

Thu, 10/15/2009 - 15:18 | Link to Comment Cheeky Bastard
Cheeky Bastard's picture

Buffett is a demagogue, a poster boy for the simulacrum called the American Dream. He is everything that is hyper-real, that is pumped with steroids of PR, he is the epitome of the belief that hard work pays of ( hint; it does not, his daddy helped him,and helped him quite a lot ). Buffett is a greedy pig ready to destroy lives, to destroy every single breathing thing just to keep his position. And he does all that wearing a 200 $ suit, with a smile on his face, wrapped in the packaging of a " self-made billionaire " .

Thu, 10/15/2009 - 15:18 | Link to Comment lizzy36
lizzy36's picture

smart boy, that andy.

Fri, 10/16/2009 - 01:36 | Link to Comment calgaryschmooze
calgaryschmooze's picture

Kinda like telling the public that "the terists hate us because of our freedoms", but when in actuality, it's "the terists hate us because we're largely a bunch of assholes to most of the world"?

 

 

Thu, 10/15/2009 - 14:36 | Link to Comment Miles Kendig
Miles Kendig's picture

Until denial meets the hard unforgiving wall called objective circumstances on an individual bases.

Thu, 10/15/2009 - 14:16 | Link to Comment Anonymous
Thu, 10/15/2009 - 15:35 | Link to Comment sgt_doom
sgt_doom's picture

And that is exactly why Elizabeth Warren has absolutely no power in the position she is in (chair of the congressional oversight panel on disbursement of TARP funds), so she can say publicly what she wants, while scumball Barney Franks, forever on their payroll, will then pass a "derivatives regulatory" bill which does absolutely nothing against the most damanging of derivatives and securitization processes.

Thu, 10/15/2009 - 16:17 | Link to Comment Anonymous
Thu, 10/15/2009 - 13:42 | Link to Comment buzzsaw99
Thu, 10/15/2009 - 13:48 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

I was noticing a very subtle change in the tone of the news the past week or so. But yesterday after the 10,000 DOW close (when GS reported) and again today, it was like a light switch was flipped.

Am I the only one seeing this or are others picking this up? I notice that GS and friends are down on the "good" GS earnings. That's a tell in my book.

What say one and all?

Thu, 10/15/2009 - 13:57 | Link to Comment Cheeky Bastard
Cheeky Bastard's picture

washrinse & repeat a la 2008

Thu, 10/15/2009 - 14:53 | Link to Comment buzzsaw99
buzzsaw99's picture

Insiders can begin selling again next month, could be front running by smart money traders. Profit taking is always a good idea when the kids are running the candy store.

Thu, 10/15/2009 - 14:19 | Link to Comment chet
chet's picture

They need to start some sort of panic once the Fed stops buying treasuries.

But sorry SEC, your plan to add transparency and reduce risk in money markets runs counter to the Fed's plan to dump MBS there.  SEC vs. Fed, I wonder who will win that battle?

Thu, 10/15/2009 - 13:53 | Link to Comment jm
jm's picture

She is irrelevant.  Who cares what she says?  Certainly not the people pulling the strings.

This is how politics always works, just easier to see when things are coming apart at the seams.

Please figure out that no gov't ever looked out for anything but itself.  Then teach this to your sons as soon as they can walk.

Thu, 10/15/2009 - 14:06 | Link to Comment Anonymous
Thu, 10/15/2009 - 14:14 | Link to Comment Assetman
Assetman's picture

Your statement is certainly true today, in that EW is obviously irrelevant in the eyes of those currently pulling the strings.

However, if/when the giant Ponzi sceme really unwinds and things get out of hand, people will revolt-- and they will be demanding new, responsible leadership.

In that scenario (of course... debate the plausibility if you will) it will be Elizabth Warren that takes a number at the front of the line.

Thu, 10/15/2009 - 14:46 | Link to Comment jm
jm's picture

I sincerely wish you are right and I am wrong.

Thu, 10/15/2009 - 15:41 | Link to Comment sgt_doom
sgt_doom's picture

But the giant Ponzi scheme has unwound, and now all the news coming out about the details is predominantly fabricated.  The three most important recent details: the BLS study demonstrating how no actual job creation has taken place in the private sector from Jul 1999 to Jul 2009, the ninth consecutive month of rising unemployment in ALL 372 cities monitored by the BLS, and the ninth consecutive month of falling payroll salaries/hours in ALL 372 cities monitored by the BLS.

It is, as intelligent ones have stated previously, not a jobless recovery (since the last Recovery with jobs was back in 1988) but a jobless economy.

Fri, 10/16/2009 - 00:08 | Link to Comment Anonymous
Thu, 10/15/2009 - 14:16 | Link to Comment MinnesotaNice
MinnesotaNice's picture

Actually I believe she is quite relevant and resonates with the middle class... she is a lone voice and when when she speaks she has a strong message that is very different from the talking points that were handed out to all members of the administration, treasury, and federal reserve back in 2008. 

In fact, her message is so strong that no one seems to want to take it on and factually dispute it... no octobox's on CNBC with her involved.  

Additionally the MSM are giving her coverage... and I think over the next 2 years she and her message will become 'the message'.   

Thu, 10/15/2009 - 15:31 | Link to Comment JR
JR's picture

MinnesotaNice, excellent post.  Truth is never irrelevant, and error does not deserve the support I hear.

It has often been said that the primary stumbling block for third world countries to develop into developing countries is their lack of a strong middle class.  They have their rich, usually individuals connected to the rulers and, of course, they have vast numbers of poor.  But the middle class, that would be the backbone of the development of strong institutions for community development, education, improved standards for labor and above all an emphasis on laws protecting the growth of enterprise and the family, is missing.  In America the middle class is not the individuals throwing beer cans at the TV.  Rather, America's middle class was the push westward from the Appalachians to building the strongest society in the history of the world, and it was the foundation for our economic miracle.

Everything Elizabeth Warren said in the video is true and her most critical warnings affect the weakening of America’s middle class; translation, the weakening of America’s community structure, family adhesion and standards for a just and equitable society.  For people to disagree with her warnings on the basis of her rank or credentials is unfounded.

Thu, 10/15/2009 - 15:49 | Link to Comment MinnesotaNice
MinnesotaNice's picture

Your words are so true...

"It has often been said that the primary stumbling block for third world countries to develop into developing countries is their lack of a strong middle class... the middle class, that would be the backbone of the development of strong institutions for community development, education, improved standards for labor and above all an emphasis on laws protecting the growth of enterprise and the family, is missing." 

I agree... very good perspective...

 

Thu, 10/15/2009 - 14:34 | Link to Comment cougar_w
cougar_w's picture

Imagine for a moment that she's not trying to engage the ones pulling the strings, but the rest of us.

She's saying to the middle class; you are doomed.

And she's saying this as one who is not part of the middle class.

The usual attitude is "let them eat cake". So this is different.

Now, one could make the point that she's doing this out of altruism; she really cares.

But it's just as likely she's doing if for selfish reasons; she likes things the way they are.

News flash: Everyone does.

Even the elites like things the way they are. The problem is that when the middle class implodes (as it is) and vanishes (as it shortly will) then the elites are back to an old game they know quite well but that never really panned out for them. It's called "feudalism". The middle class always was the merchant class -- the ones that produce real value -- and without the merchant class the elites don't have much to work with. They steal from each other, inter-marry, quarrel over lineage, and essentially spin their wheels.

Of course they want to save the middle class. Without their host, the parasite is dead.

cougar

Thu, 10/15/2009 - 14:38 | Link to Comment Miles Kendig
Miles Kendig's picture

The facts of life.

Thu, 10/15/2009 - 15:11 | Link to Comment TumblingDice
TumblingDice's picture

ever heard of how the chicken that laid the golden eggs ended up? They may need the middle class now but with the upcoming resource scarcity, they might think of us as a nuisance in the future. I wouldn't be surprised if there was an endgame to this.

Thu, 10/15/2009 - 16:55 | Link to Comment cougar_w
cougar_w's picture

Nuisance... perhaps. Expensive to feed, house and educate.. oh definitely.

They will need someone to plow the fields. They will need cannon fodder for their petty wars. They will need lesser beings as they always needed them, if only to make themselves seem the mightier.

If we in the middle class allow ourselves to be taken back 1200 years, then we are too stupid to survive.

Thu, 10/15/2009 - 17:04 | Link to Comment Miles Kendig
Miles Kendig's picture

Who ever said survival is a right?

Thu, 10/15/2009 - 14:12 | Link to Comment waterdog
waterdog's picture

About people going to jail- I believe that when Madoff turned himself in, his sentence was a sign to all involved in this economic collapse that they would be seeing jail time if convicted of their role. Too many big people lost it all during this past crime spree. This is not the Dot.com theft, or the Enron theft. Little people lost it all during those holdups. Big people do not cry over the loss of a few billion dollars every 20 years. What makes big people mad is when they fall for it, hook-line-and sinker. They are not happy knowing they were conned by thieves, not by intellegent individuals. The big people will get even, once they know for sure the names of everyone involved in taking their money. We will know how sentencing will go over the next three years by the jail time given to the BofA players. One has to wonder how long the big people will allow these thieves to live in prison, before the day comes when the thieves meet their other sentences handed down by a different court.

Thu, 10/15/2009 - 18:46 | Link to Comment Anonymous
Thu, 10/15/2009 - 14:15 | Link to Comment chet
chet's picture

This woman should replace Obama's entire economic team.

Thu, 10/15/2009 - 15:43 | Link to Comment sgt_doom
sgt_doom's picture

Amen to that!

Thu, 10/15/2009 - 14:20 | Link to Comment agrotera
agrotera's picture

Elizabeth Warren is a HERO...she keeps her position with her careful diplomatic, good, lawyerly questions.  I just wonder why she already hasn't been PUSHED OUT...The way that she keeps herself together to document all of this for WE THE PEOPLE is a gift to all of us--

THANK YOU MOST KINDLY ELIZABETH!!!

I am confident she could step out, and take a "separate" and individual stance on the corruption she sees, but i believe, she keeps on keeping on for all of us--that is, she can best serve us by staying exactly where she is and asking the questions for all of us.  In effect, she is documenting the case for OTHERS to take to trial.

I just wish that ALL US citizens could hear her voice, her questions and then the people would insist on changing this system of corruption that we are currently viewing eye to eye.

Thu, 10/15/2009 - 14:37 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Agrotera,

I used to think that people would wake up when they finally learned the truth and make the changes needed to save themselves. I felt it was simply a matter of not knowing.

But after many years offering the "truth" to people and watching the vast majority reject it or flat out deny it, I've come to the sad conclusion that most people find the truth so terrifying they simply won't look.

Only when people have nothing left to lose will people act like they have nothing left to lose and rebel against the criminal economic system. But not before.

 

Thu, 10/15/2009 - 14:51 | Link to Comment faustian bargain
faustian bargain's picture

The conclusion is, they (we) deserve what they've (we've) got coming to them (us). 'Head in the sand' is no more of a strategy than 'hope'.

Thu, 10/15/2009 - 15:47 | Link to Comment sgt_doom
sgt_doom's picture

I respectfully disagree, CD.  The truth we are afraid to come to terms with is that a significant portion, quite probably the majority, of Americans are similary as corrupt as their brethen who have perpetrated said fraud.

Fri, 10/16/2009 - 06:03 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

I understand your thinking. I have a theory about this and I have distilled it down to two sentences.

Locked doors keep the honest people honest. They do little to deter the dishonest people.

We are all dishonest. The question is how far do we take it. The vast majority of people will not take their own dishonesty very far and most will stop at the first sign of resistance, meaning the locked door

The truly criminal sees the initial resistance of the locked door as simply reducing the competition for what's behind the door.

Fri, 10/16/2009 - 09:00 | Link to Comment agrotera
agrotera's picture

You make a great point sgt_doom, but we don't need to let the "gotham city"like crime scenes keep rolling...

Thu, 10/15/2009 - 20:12 | Link to Comment agrotera
agrotera's picture

Hey CD, i am having some of your name (cognitive dissonance) about the idea that what you said is true!!! I have heartache, stomachaches and headaches with the fact that what you say is so, but i am just swimming up stream and still trying to sing the loud song about the crimes!!!

Here's an idea.  Consider the families that own large chunks of Bank of America stock--then consider the law suits that we know about and how they seem focused on Ken Lewis...

OK, now, yesterday or the day before, the news came out that some lawyer(i wrote down his name but don't have it in front of me) is suing the US Government on behalf of a Madoff victim  and when i heard him speak, he said that traditionally people think there is sovereign immunity, but not in the case of a CLEAR failure...so why aren't Bank of America shareholders suing the US govenement for the crime imposed on them?

 

OK, what do you think about someone, or all of us, putting together a suit against our government for allowing the Federal Reserve's interests to be put in front of our country's interests ( in a nutshell) and Paulson and Bernake were agents in the scene we just witnessed with the new corrupt bargain of MER/BAC, and of course TARP and the 23TRILLION in promises and guarantees out...isn't indeed this a crime against the best interests of the US people and as such, we should sue our government...ok, i hope you and others will chime in and maybe we can get a forum going to put together the idea.  I know some will say, "kookoo" but i don't care.

Fri, 10/16/2009 - 06:13 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Agrotera,

Let me think on this for a few days. After I have absorbed your idea, I will find you on this blog and respond.

 

Fri, 10/16/2009 - 08:56 | Link to Comment agrotera
agrotera's picture

Thank you so much CD!...it is a "kookie" idea, but, if it is a real possibility, why not? There have to be at least a few cases out there already, so if someone could find that if there are just too many, it turns into a class action.  Or, we could all try to find someone to file a case for us, and at least that would be the seed cases which could be used for a class action...A large enough case would force the public to jump on board...sure the MSM would find it hard to cover, but I wouldnt give up on them either since apparently some of them are still warm blooded.

Thu, 10/15/2009 - 14:25 | Link to Comment Hammer59
Hammer59's picture

The wealthy are dreaming if they think that there will not be anger, deep resentment and unrestrained violence if the well-armed middleclass becomes financially destroyed. Ditto for any Politician, law enforcement officer, soldier, civil servant. You cant even purchase ammunition right now, due to the unseen recent demand. Yes, the Middle Class has been folded, spindled and mutilated for most of my five decades here---but taking away our livelihoods while destroying what little savings we have worked hard to aquire will result in the ultimate Fight Club. Never corner a frightened man.

Thu, 10/15/2009 - 17:22 | Link to Comment Veteran
Veteran's picture

Fold spindle and mutilate.  Frank Zappa fan?

Thu, 10/15/2009 - 14:30 | Link to Comment Racer
Racer's picture

On Market Watch ..."Elizabeth Warren, chairwoman of the Congressional Oversight Panel, which is a TARP watchdog group, and a gaggle of Pennsylvania groups representing troubled homeowners, are pressing the Treasury Department to consider using some federal TARP funds from the modification program to give government bridge loans to people who have recently lost their jobs. The loans would not accrue interest until their income is restored."

What a complete and utter joke, this is another extension of reward those that get into debt (okay some may have done so in a proper manner and through no fault of their own lost their jobs).

The prudent who save and now get virtually nothing for all that scrimping and hard work and pay off their debts are being asked to pay more to more of society that doesn't.

This will create a problem for years to come, those that are in debt and have no job, for whatever reason will now see that it is better not to work at all  and let the taxpayer foot the bill, like the too big to fail banksters who can feel free to take more risks.

But this creates another problem, it creates a society where there are those that don't work, don't contribute to society, have children who more than likely won't want to work or bother getting much education either. These will then see stealing and other things as a normal way of life and a right. So in effect this will produce generations of very poor and very badly educated children.

The government are enslaving the poor and using the money of the hardworking middle class who were prudent. This then also enslaves them too.

The only ones to benefit are the ones at the top of the pecking order and woe betide any of those underlings who try to scale the ranks!

Thu, 10/15/2009 - 14:28 | Link to Comment Michael
Michael's picture

I Love Elizabeth!

Thu, 10/15/2009 - 14:39 | Link to Comment Racer
Racer's picture

"Prime Minister Gordon Brown will repay £12,415 after an independent audit of all MPs' expenses claims since 2004."

http://news.bbc.co.uk/1/hi/uk_politics/8303312.stm

And has he lost his job? Gone to jail for defrauding the money?

 

Of course not, he is the top dog, and only the underlings suffer in that way

Thu, 10/15/2009 - 14:54 | Link to Comment Assetman
Assetman's picture

Are you kidding me???

Gordon Brown craps at least £12,415 per sitting, and pisses of unbridled excellence.

That's equivalent to a "Get Out of Jail Free" card, in my book.

Thu, 10/15/2009 - 14:44 | Link to Comment Hammer59
Hammer59's picture

Of all the ideas that became the United States, there is a line in the Declaration of Independence that states:  "But when a long train of abuses and usurpitations pursuing invariably the same object envinces a design to reduce them under absolute despotism, it is their right, IT IS THEIR DUTY to throw off such Government and provide new guards for their future security."  I had sincerely hoped that Obama and the Democrats would be quick to address the problems created by eight years of Bush/Cheney's traitorous malfeasence, but nothing has changed. Michael Moore's last film--9/11 drew crowds like no other  movie in my memory.  A placated public who accepts the carnage created by Washington DC and Wall Street, as well as Wal*Mart deserves to have their standards of living dramatically lowered.

Thu, 10/15/2009 - 14:58 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

We get exactly the leadership we deserve.

We deserve it because we do nothing. We swallow whole and unchallenged "abuses and usurpations" on a daily basis. And we look to the idiot box for salvation and guidance when it's only purpose is indoctrination and pacification.

Sorry, gotta go, CSI Beaver Falls is on.

Thu, 10/15/2009 - 14:50 | Link to Comment Anonymous
Thu, 10/15/2009 - 14:50 | Link to Comment Anonymous
Thu, 10/15/2009 - 14:53 | Link to Comment Anonymous
Thu, 10/15/2009 - 16:09 | Link to Comment sgt_doom
sgt_doom's picture

An excellent post, to which nothing can be really added, but I can't help but add several details: 

In this ongoing charade of the "public option" it is interesting to note that the owner of the majority of pharmaceutical companies would be the combo of JPMorgan Chase and the Rockefeller family.  No surprise there.

Alas, when one examines the following equation:

50,000 foundations + 40,000 D.C. lobbyists + 5 media-controlling corporations = engineered consent

(thanks to the poster at Economicpopulist.com whom I stole this from....)

Thu, 10/15/2009 - 14:55 | Link to Comment Anonymous
Thu, 10/15/2009 - 22:54 | Link to Comment Anonymous
Thu, 10/15/2009 - 15:19 | Link to Comment Anonymous
Thu, 10/15/2009 - 17:08 | Link to Comment Miles Kendig
Miles Kendig's picture

More powerful than a tax revolt is a debt payment revolt.  If everyone stopped payment and told the debt servicers to get lost the system would collapse in fairly short order.

The fed can carry the government much longer than it can the whole of society.

Thu, 10/15/2009 - 15:23 | Link to Comment Obnoxio
Obnoxio's picture

The rage is real and has just begun. The banksters have raped and looted the USA and Congress helped them do it. Every individual bankster's picture and deeds will be posted on the web and be remembered for all to see. Their treason to the country will be remembered forever.

Thu, 10/15/2009 - 15:45 | Link to Comment Anonymous
Thu, 10/15/2009 - 15:52 | Link to Comment Anonymous
Thu, 10/15/2009 - 15:58 | Link to Comment Gimp
Gimp's picture

Great interview. Warren speaks the truth about the decline of the middle class. The greedy elitists who want to take care of us proletarians will stop at nothing to shake the last cent out of our pockets. Somebody help me out of the rabbit hole before the Queen of hearts chops of my head!

Thu, 10/15/2009 - 16:32 | Link to Comment Careless Whisper
Careless Whisper's picture

The drill from Washington is getting obvious:

Talk, talk, talk, do nothing.

Talk, talk, talk, do nothing.

Thu, 10/15/2009 - 19:08 | Link to Comment Anonymous
Thu, 10/15/2009 - 23:28 | Link to Comment Anonymous
Thu, 10/15/2009 - 19:37 | Link to Comment Anonymous
Thu, 10/15/2009 - 22:57 | Link to Comment Anonymous
Fri, 10/16/2009 - 00:44 | Link to Comment Anonymous
Fri, 02/25/2011 - 07:23 | Link to Comment george22
george22's picture

"And every time we hollow [the middle class] out we take the risk that something of what we know as America begins to die."

Why is that every "mainstream" or "establishment" thinker always qualifies their argument that America is dying with works like "take the risk" and "begins to die". Other examples (not in this article include) "may result in a prolonged decline of the dollar", "affects the economic stability of future generations", etc.

Let's face it: America has been in decline since the year 2001, the early part of which we were perhaps at the apex of influence, economic prosperity, personal freedoms, and opportunity for growth. Unfortunately, 9/11and the administration at that quickly ended this period of relative prosperity.

I wouldn't be surprised to be back in Singapore by next year's end.
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