Saturday, February 20, 2010

Wealth Disparities Approach the Levels of the 1920's

This graph was an eye opener for me(not that I should be surprised):


My Take:

What a time to be an oligarch! All I wanted to do was vomit when I saw this chart.

Folks, there is no way we can have economic prosperity in this country when the top 1% has all of the money. The middle class is basically being destroyed right now in front of our very eyes. Consumption economies die when the consumers have no money to consume!

I am starting to see signs of growing signs desperation and anger as the wealth of this nation continues to get transferred to the elite of yhis country.

Middle class Americans are starting to "lose it "as a result. This weeks airplane event in Austin Texas was a disturbing developement IMO. I must admit that I really am not surprised. The government shouldn't be either.

Things are only going to get worse in the violence department as the taxpayers continue to get violated and more desperate as a result of this economic cataststrophe. The news media tried to downplay the actions in Austin but I don't think it worked.

It appears that Washington was both surprised and concerned about what took place in Texas.

I can't help but ask why? Should the government really be surpised that an American flew a plane into an IRS building in a fit of rage as we all get repeatedly fleeced by the political and financial elites of this country?

Let me preface all of this by saying violence is not the answer here. However, why shouldn't every American be infuriated by what has ocurred since this crisis began?

All the government has done is bail out Wall St continuosly since 2008. My guess is the disparity of wealth in this chart would look even worse if it included 2009.
Main St. has basically been ignored throughout this crisis minus a few housing programs to help lower mortgage payments. This of course didn't work because these homeowners couldn't afford the house in the first place.

The fact that Main St. has been ignored is what has infuriated everyday Americans.
They are now recognizing the fact that they have been completely ignored by the governemnt.
They are now facing the fact that all of the steps that have been taken by the government to help fix this crisis has involved throwing more and more money to the financial elites of this country. I mean christ, the examples are endless: TARP, AIG, Bank of America, Citi, Freddie, Fannie....Need I say more?

The sheeple are now also finally realizing that the money is not trickling down to them like Washington had promised when they explained why they threw billions to the banks. Main St.only seen things get worse while Wall st has prospered and they are angry.

Lets face it: J6P has seen no benefit to the FED's actions since this all started in 2007. For the most part they have gotten screwed as they have watched the yields on their CD's drop to 0%. Perhaps some that have money can now borrow at lower rates but who wants to borrow when you don't have a job?

Let's not forget that the sheeple/middle class were also victimized by Wall St. as they were gamed into buying homes they couldn't afford. When this fantasy came crashing down they were again violated as they saw their 401k's get cut in half.

The people of this country can only take so much before they start going postal!

The Wall St Journal has an article out today around the increasing threats of violence against against the IRS:

"WASHINGTON—The federal agency charged with ensuring the safety of IRS employees said it has seen an uptick in the past several years in threats against agency personnel.

In the past four years, there appears to have been a "steady, upward trend" in the number of threats against IRS employees, said an official with the Treasury Department's Inspector General for Tax Administration. That assessment, offered in response to an inquiry from Dow Jones Newswires, is based on preliminary data, the official cautioned."
Quick Take:

After all of this abuse, I believe that we are all starting to feel like that pledge in the movie Animal House who says "thank you sir may I have another" after getting repeatedly paddled by his brothers.

American's are slowly beginning to realize: If you are not part of the 1% club in this country you are nothing but a victimized pawn as the elite continue to line their pockets with our nations income.

The average American now finds themselves struggling to survive as the economy continues to plunge. Nothing has gotten any better despite what the media pundits tell you. Jobs continue to evaporate and foreclosures continue to soar as the the middle class in this country continue to get pummeled.

Meanwhile, Wall St is busy counting their near record year end bonuses after making billions gambling the taxpayers money in 2009 as the sheeple find themselves on the brink of collapse.

Folks, the citizens of this country are slowly reaching their breaking point. When Ted Kennedy's Democratic senate seat goes to a Republican you know the people have had it. Teddy is now probably rolling over in his grave after seeing a guy from the right take over his office.

The Bottom Line

We are now three years into this crisis and nothing the government has tried has worked. The market may have recovered(for now) but THE PEOPLE haven't . How much pain do these dopes in Washington think we can take before we start rising up and begin hanging bankers from the lamp posts?

These idiots need to remember that EVERYONE has a maximum threshold of pain. If there was no such thing then you wouldn't see a MMA fighter "tap out" in the UFC. This country is just about there.

The plane crash in Texas should be taken as a shot across the bow in Washington. I am getting really concerned that you are going to see severe social issues in this nation if we continue down the same path in the very near future.

I would hate to see this because violence is not the answer folks. We need solutions and fast. I don't have all the answers but I know where we can start.

We can start by putting an end to the bailouts of the financial elite. Washington needs to start listening to Main St instead of the top 1%'ers on Wall St. If this creates an economic crisis so be it. At least it will keep this country solvent.

The government needs to realize that SELLING $118 BILLION IN T-BILLS LIKE WE HAVE PLANNED NEXT WEEK IS NOT THE ANSWER! This simply cannot be maintained over a long period of time. Ponzi schemes never work and they don't solve financial crisis. They end in tears.

Washington needs to wake the hell up because we are headed straight off a cliff. Take one more look at the chart above and look what happened the last time the disparity in wealth in this country got this high.

Can you say Great Depression? Remember, the only way an economy can thrive is when the majority of people involved in it are prospering. We are about to drive off the same cliff that we did in the 1920's as the middle class is turned into a group of SERFS. Be prepared.

I need to end it here because I feel my blood pressure rising.

Disclosure: No new holdings at the time of this publication.

5 comments:

beebsblog said...

The people are fed up. I believe there may be a big shakeup in the elections this year.

Jeff said...

Beebs

I agree

I hope that's all that will happen. If the people rise up out of anger things could get pretty scary out there.

getyourselfconnected said...

"Lets face it: J6P has seen no benefit to the FED's actions since this all started in 2007. For the most part they have gotten screwed as they have watched the yields on their CD's drop to 0%. Perhaps some that have money can now borrow at lower rates but who wants to borrow when you don't have a job?"

Sum things up about perfect.

Anonymous said...

I feel your anguish, it is absolutely disgusting what we are witnessing with the banks. The government has done all this work to stabalize the banking system and all it really has done is lined the pockets of the upper management. Yes, maybe the gov. is making some profit on the bank bailout but is it really? If the banks are not lending and simply making huge profits on investing the funds on zero percent spread and make to believe accounting, not sure if the residual impact is not costing the government more in other bailouts that would not be necessary. It really is a huge joke when you follow the trail. There are so many disgusting things occuring right now, it is almost as if what once was right is now wrong, it's OK to walk away. The biggest problem with society is everyone is really only concerned with themselves so things have to get even worse before there will be a real public outcry to move change.

jeff said...

Anon

I couldn't agree with you more.

Well said!