Wall Street and Washington are cramming down the Middle Class. Unregulated banks are conspiring with real estate brokers and appraisers to drop the housing market, thereby destroying a major component of the life's savings of many Americans - their home. The 1% wants this process to continue, because once they cram down the Middle Class, they have what amounts to a "reset" of the economy at a much lower level, and they can ride it up again, much as they rode it up over the last half of the Twentieth Century.
There's a serious problem with government allowing banks to do this, and there is a simple solution. The problem is that we were called upon to "bail them out," on short notice with very little debate, and now we're being called upon to allow this reset of the economy, which is crushing the savings of the Middle Class by destroying our home values and forcing about 10 million families into foreclosures - many of which are being fraudulently pursued.
Our home was recently "appraised" at 41.5% of the value it was "appraised" for in 2004. That is ridiculous! Nothing changed about the value of our home over the intervening time, except that appraisers know that bankers want the real estate market "reset" at this lower pricing level. Real estate brokers are playing along, because they need income.
The solution is quite simple. We need to reset the value of all of the mortgages on the books of the banks. In our case, if our house is to be valued at 41.5% of its previous value, then let our mortgage also be reset at 41.5% of its previous value. If this were done across the board, it would have no impact on the real financial health of any of the banks, but it would be much fairer for the Middle Class. This proposal would amount to a bookkeeping entry that would not hurt the banks the Middle Class saved from collapse. Since all banks would be required to comply, this proposal would save some of the equity that has evaporated from the Middle Class, without causing a further financial crisis.
The Middle Class was required to save the banks from collapse with no warning, and after a bare minimum of debate. President Bush and Treasury Secretary Paulson simply told Congress it had to be done or else. Now the Middle Class is being crushed by the consequences. How is that fair? The way things stand right now, we've bailed out the banks, and now the government is allowing them to pick our pockets and reset the economy so they can do it again over the next 20 or 30 years.
This suggestion would save millions of homes from foreclosure, put money back into the retirement savings of the Middle Class, and give us confidence in our government processes once again. I can hear the responses to this on Wall Street now! But this is the only fair response to a truly unfair set of circumstances that Wall Street created.
If conservative pundits want to know why Middle Class Americans are in the streets in outrage, this is why! We saved the banks; they continued to pay themselves huge bonuses with our money, while their companies were insolvent; and now they want to destroy our life's savings so they can do it again. We need a bailout too! A solution like this is the only fair thing to do. We are the 99% and we want government to look out for us the way it looked out for Wall Street!
Skip Conover is an International Executive, Author, and Artist. Learn how he marketers, artists and politicians use your subconscious mind to manipulate your decisions at the Archetype in Action Organization.
It has been declared openly and with conviction to the whole world that Iran is a hater of Israel and has intentions to destroy her. In 2005, Ahmadinejad, president of Iran, addressed the United Nations and blustered that the "occupying regime (referring to Israel) must be wiped off the map." He declared that the "disgraceful stain" (Israel again) must be eliminated. (1)
On September 23, 2008 Ahmadinejad (2) again addressed the General Assembly of the United Nations and declared Zionists to be murderers and criminals. He would later predict to the L.A. Times that the state of Israel is like an airplane experiencing engine trouble and plunging to destruction. "This will benefit everyone," he said. In subsequent statements he has referred to Israel as a "germ of corruption (that) will be wiped off," (3) as a "cancer that spreads through the body", (4) and as a "kidney transplanted in a body that rejected it." (5)
In addition to the inflammatory verbiage, The United Nations' International Atomic Energy Agency has validated that Iran is attempting to make an atomic bomb to be fitted onto a missile capable of reaching Israel. Should Ahmadinijad succeed in developing such a weapon, would he use it? The question is not whether he would use it, the question is why are there so many nations critical of Israel defending herself? Why is there such a clamoring for a nation the size of New Jersey to continue to give more and more of her territory to their neighboring Arabs who own massive amounts of land? Why are western nations scowling at Israel for contemplating taking out Iran's nuclear facilities when they all know that one nuclear hit on Jerusalem or Tel Aviv would pretty much mean annihilation.
The late Yasser Arafat once stated on Palestinian radio, "We will make the lives of the infidels hell - millions of martyrs marching on Jerusalem." Who can explain such vehement hatred against a fledgling country? Who in their right mind would deny Israel's right to defend themselves against such evil? Why do so many nations struggle to choose sides on this issue? Is the vast amount of oil provided by the Arab countries so alluring that we lose our sense of true justice? Who in their right mind would support a country or terrorist group who would sacrifice their own children to satisfy their hatred? Former Prime Minister Golda Meir said, ""There won't be peace in the Middle East until Yasser Arafat learns to love Palestinian children more than he hates the Jews."
Why is there so much apathy toward the only democratic country in the Middle East struggling to maintain her very existence? It is obvious by now that President Obama is no lover of Israel. At the G-20 summit earlier this year he and President Sarkozy of France didn't know they were being picked up on an open mic. "I cannot bear Netanyahu, he's a liar." Sarkozy said. Obama replied, "You're fed up, but I have to deal with him every day."
And so, how is it that Obama 'deals' with Netanyahu? Before answering that question please keep in mind that Obama has access to reams of sensitive and secret information that the rest of us are not privy to. He knows better than any the evil intent of Israel's enemies. And yet, he expects Israel to surrender itself more and more to the people who are planning their destruction. It seems Israel is the one always expected to make concessions. Obama and his ilk are making the same mistake British Prime Minister Chamberlain made with Hitler prior to WWII. He is following a policy of appeasement that can only end in chaotic destruction. As Winston Churchill once said, "An appeaser is one who feeds a crocodile - hoping it will eat him last."
What a mystery! Is Obama so much of an empty suit that he fails to understand the history of these countries of the Middle East? Does he not appreciate the miracle of Israel's existence? Does not the sole democratic nation in the region deserve our full support? Instead, Obama seems to sympathize with third world countries run by malevolent and brutal dictators. Why is Obama willing to threaten Israel's right to exist as a state in order to promote the Palestinian hankering for a state? Does Obama not have a sense of how many Americans, both Jewish and Christian, he alienates because of his apathy toward Israel and his support of Israel's genocidal enemies?
Oh that the haters of Israel would contemplate the sound of God's voice found in Genesis 12:3 "I will bless those who bless you (Israel), and whoever curses you (Israel) I will curse; and all peoples on earth will be blessed through you (Israel)." (6)
Kevin Probst lives in Columbus, Georgia. He is a teacher of History and Apologetics at a private high school. He submits articles pertaining to theology, apologetics, Christian living and American culture. If you have an interest in those ideas please visit his website at: http://www.kpprobst.blogspot.com/ and offer your opinions or join the conversation.
In his book, Fast Facts on the Middle East Conflict, author, Randal Price, gives an interesting anecdote that sums up the crisis in the Middle East. 'A scorpion, who wanted to cross the Nile, did so by sitting on the back of a crocodile. In the middle of the river, the scorpion stings the crocodile and both of them drown to death. When the crocodile asks the scorpion about the reason behind the sting, the scorpion merely said..."there is none! This is the Middle East"
This story sums up the Middle East crisis beautifully. Both the Arabs and the Jews have been at war with each other for about three centuries now, with each side, trying to discredit the other. Until now, the west wasn't really concerned with the conflict (although it did play its part in aggravating the problem), but 9/11 did change things. Governments around the world did realize that it was important for them to bring about an amicable solution to the conflict, in order to maintain world peace. But what exactly is the crisis in the Middle East?
Conflict between the Arabs and Jews has its roots in the Roman conquest of ancient Jewish Kingdoms of Israel and Judea. They banished the Jews living there, and sold a vast majority of them as slaves. The kingdom was then named Palestine. With the Arabs conquering Palestine, the remaining Jews took to Arab culture and the Muslim religion. Though there still existed Jews and Christians. This situation continued until and after Palestine became a part of the Ottoman Empire. Around late 19th century, began the Zionist movement, that called for Jews around the world to come together to reclaim the lost land of Israel. Consequently, thousands of Jews from as far as East Europe and Yemen came to Israel to reclaim lost land and strengthen religious and cultural ties, with the country of their origin.
After the end of the First World War, the Ottoman Empire was overthrown and taken over by the British, who promised a 'nation exclusively for the Jews'. This was severely opposed by the Arabs who forced the British to restrict access to the Jews. The problem assumed gargantuan proportions after the Second World War, thousands of displaced Jews has nowhere to go. Caught in a quagmire, the British gave mandate to the United Nations, to come to a conclusion about the crisis. The UN then adopted a proposal for the partition of Palestine. Naturally, while the Jews accepted it, the Arabs rejected it. When this armistice agreement was proposed, West Bank and Jerusalem were under control of Jordan and the Gaza Strip was under control of Syria. Thousands of Palestine Arabs who were forced out of Israel by the Zionists settled here. In June 1967, Israel fought with Syria, Jordan and Iraq (they had formed an alliance against Israel) to conquer West Bank, Gaza Strip and the Sinai Dessert. Growing nationalism in Israel supported settlements in these areas. What started as an attempt to reclaim Palestine by the Arab Muslims soon became a fight to liberate these settlement areas. Meanwhile the Arab Palestine Muslims began their claim for a separate state. There were several organizations that supported this cause. While some organizations believed in peace, and under the patronage of the UN, some like the Hamas, assumed militant proportions.
Israeli occupation in the West Bank and Gaza has been continually growing, although in 2005, Israel agreed to withdraw from the Gaza Strip.
Both, the Arab Palestine Muslims and the Israeli Jews have been fighting over a land that both claim ownership on and rightfully so. This is in short, the Middle East Crisis; very much resembling the story mentioned earlier.
Mohammad Goldstein, the author of this article is a prolific writer, who has authored several ebooks including 'The Plot to Overthrow', where he discusses about the Arab-Israeli conflict in Chapter 3 of the book.
We have survived the Great Depression, World Wars, and the Dust Bowl, Civil Rights, the Cold War, Terrorist attacks, the assassinations of Civil Leaders, Presidents, and the struggle of Labor.
Out of these struggles came the Industrial Revolution, improved living and labor standards and a new dawn of technology and applications that has modernized our way of life. We have in fact crossed over to the information age, the age where technology matters. In the past, Americans built and exported the technologies to be used to help other countries and societies to improve there own way of life. Political structure had little to do with the American Market. Our politics as well as our corporations have shifted from moral profit making to political pandering and insidious greed.
Corporate fairness in trade, practice, pricing, safety in products and social responsibility has been thrown out faster than yesterday's IPhone TM. One must admit that technology is moving much faster these days with improvements to our devices so quickly that by the time we obtain one device, within a short amount of time, another will either take its place or be improved one way or another. Usually this is also achieved by the same company who produced the now legacy model.
Best Buy one of nations top retailers, in response to this issue had put in a program to buy back the old or defunct model, which will discount the newer model. The result of this has not supported the company as it lost over seven percent of its stock value. To be fair our current economic conditions is a contributing factor.
Our financial crisis was not due to any one particular sector failure. This great recession which was powered by corporate, personal, and political greed and pandering in many areas was the primary cause. It isn't a republican or democratic thing; it is a power and greed thing.
Let us start with Wall Street, which is finally being confronted. The opportunity to buy a home was increased by loosening regulations on the consumer. This in itself is not a bad thing. What took place was not just loosening regulations but wholesale deceit on those who were the most vulnerable, the middle class. Mortgage companies were not only reducing the capital requirements but issuing sub-prime mortgages on riskier customers. Wall Street was well aware of this fact, but instead of fixing this problem, they decided to take full advantage of it.
Wall Street Hedge Fund Managers and Brokers decided to develop a new financial instrument called "Mortgage Backed Securities." These packages were sold all over the world at a premium. The second step was to hedge against these securities, you may ask why you would hedge on something that is supposed to be secure. These managers knew that what they were peddling was just junk, and also realized that there was an opportunity to make some real money when they fail. The next action was to short the securities, in other words to bet that they will fail. Of course this was done in a low key fashion so as not to raise suspicion or mistrust. Here is where it gets really good, not only were they right and the market crashed on these securities, they were paid through the shorts they placed in the exchanges, but they also received the insurance payments when these mortgages went bad. A primary Insurer, AIG went bankrupt, covering these securities and the American taxpayer had to come in and save AIG from complete failure. Freddie Mac and Fannie May also ended up paying for this failure, which I may add were government guaranteed insurers of a major amount of these mortgages that were now "securities."
These white collar thieves, made money on selling a poor product (due to deregulation), investing in its failure and getting additional money for this through insurance payments (private and government guaranteed). Let us not forget, that the mortgage companies and their brokers made billions of dollars in these high risk loans from deceit.
The second prongs of this deception, on the American consumer, were banks and credit card companies. The banks having lowered there standard of practice due to deregulation increased there level of leverage against these secured loans, in some instances they were leveraged forty times more over the liquidated value of these loans. In other words they had less cash on hand to carry the loans if they went bad. This led to bank failures and the American Taxpayer again to rescue to prop them up or liquidate them altogether.
When I was taking accounting courses, I learned about usury. Usury is when someone is charging astronomical amount of interest on a loan. Credit card companies such as Visa and Master Card were using this "Prosperity" in the booming mortgage market to entice consumers to obtain larger lines of credit and multiple amounts of credit cards. When I bought my house, I would receive at least two to three offers from various credit card institutions a day. The enticement was a low interest and high credit line. I remember offers of zero percent for a limited time and then twelve or fourteen percent after the time expires. If you looked at the fine print, there is a section that states that they can at any time raise you interest rate. If you are late, even if you have been a model payer for over five years, they can raise your interest rate to thirty-three percent. If I went and made these same loans, I would be taken to court and charged with loan sharking and usury.
The credit card companies with all there promotions and enticements ended up encouraging the American Taxpayer to spend well beyond its means and they were successful. During this period of time, credit card holders increased there spending into trillions of dollars and became indebted to the credit card companies so deeply, that it would take almost decades to pay back in full what was borrowed. I do believe in the individuals' responsibility but what occurred simultaneously was going literally unnoticed.
The next step was the trade agreements with other countries. Corporate America founded a new way to make even more profits. It was realized that by moving certain operations, factories and services overseas, one can avoid high cost in insurance, taxation and wages in developing nations. Corporate America would then save money by paying low wages (as little as a few dollars a day), save on workers compensation insurance by paying little to nothing for a worker being injured on the job, lower overhead cost due to less or no regulation on labor standards (such as air conditioning or coffee breaks), pay lower or no local taxes, which translates to higher profit margins from cheaper parts, services and labor.
This shift in manufacturing and services were being taken from the American Heartland and sent overseas. These actions then reduced and eliminated millions of jobs that for decades were provided for and by the American worker. In turn, this shift eliminated many jobs from America and lowered the tax base for funding our own government.
To add insult onto injury, Corporate CEOs were and are taking advantage of this shift. The increase of profit has led to an increase in corporate greed. CEOs who received a good salary now have a great salary. Decades ago, a CEO making a few million dollars in salary wasn't a big deal. Yet at this time, CEOs are making multi-million dollar salaries with stock options and other fringe benefits. It is interesting on two levels, one being that due to contractual agreements in this day and age, a CEO or Executive Manager can ruin a company and walk off with multi-million dollar settlements (golden parachutes). The other is that Stockholders' seem to validate this behavior. The idea of corporate entitlement without responsibility is something I thought I would never see. In any business one would want to see fair compensation for the head of the business itself. The other level of interest is what I had learned about business, you want to re-invest in the business for expansion and growth. Today, to expand a business what I see is layoff the workers, cut costs, or acquire a competitor and continue to raise the salaries to those at the top.
This is not to say that all corporations act this way, some companies have standards and would do as much as possible to keep their labor force working. Some corporate executives would lower there own wages to save jobs.
Examples of this, is unbelievable, a technology leader after posting record profits, announces that they will now layoff ten of thousands of workers. You may ask "why?" Yet, all one can figure out is this, they are laying off workers to increase profits margins. Since those at the top do not want to give up one cent of salary or bonus, and know that the following quarter shows less sales or demand, they will get rid of the people that helped them post their record making profits. Talk about throwing the baby out with the bath water. This by the way is the rule not the exception. One would have to be able to out sell and innovate there competition, yet if you do not re-invest in your own company and just out for the money, why would you care about those who got you to that point. This behavior is lost among stockholders since all they want is to know that they will get there dividend or raise stock values, they don't really concentrate on long term future planning.
The government has a duty to ensure our Health, Safety and Welfare. Have you ever noticed that when a treaty or some such agreement with foreign countries are made, it is hardly ever published or disseminated? It was just a few months ago that I learned about the Camp David Accords which drafted the peace between Israel and Egypt. Israel won that war and Egypt lost. The truth is that America lost; to keep the peace forever more the American Taxpayer pays around 1.3 billion dollars a year to Israel and Egypt each. This is to keep these countries from fighting each other. In order to keep this funding by our government going, it is argued that it is within our interest that this peace last.
Our foreign policy seems to be formed on the greatest pandering to special interest and the least to actual security. We have become the world's police officers. I thought that it was up to the United Nations to figure out how to implement actions to secure peace in the world. Corporate greed and corruption is so high that getting around even sanctions is easy. It is also very disquieting that corruption is found even in the United Nations personnel who are suppose to be executing and implementing plans that are for the greater good. Remember Saddam Hussein was getting money and products funneled from UN personnel while under sanctions.
Afghanistan and Iraq both are getting billions in aid from the American Taxpayer. Iraq was a real debacle. Yet we won that war, but the spoils belong to Iraq, I don't understand why we spent billions destroying its dictator and somehow we are responsible for rebuilding the same nation, especially when they were never a threat to our security and still not a threat. The fact is that by intervening on false premises, we made things worse not better. We went to Afghanistan to defeat the terrorist, which we have done, yet we created more dangers by staying there. If we just took out the bad guys and minded our own business, we would have more security and less cost.
Due to so much meddling and perceived security problems we are now paying Pakistan to take our billions of dollars in foreign aid to attack us with there terrorist and help them fortify there position against India. All this time, we should have been increasing our own security at home and strategically taking out those who threaten us.
These are the billions of dollars that is being spent on having countries not fight each other, also to kills us or attempt to curtail there own extremist from attacking us. These policies have not made us safer or more secure. These policies are bankrupting the American dream. Not to mention that most of the money spent did not go to the people it was intended to help. Most of this money is going to the personal accounts of those in charge. In matter of fact, in Iraq and Afghanistan, most of the money went to the politicians, contractors and their entourage. The other side of the coin is that a certain amount of the money given isn't even accounted for.
Sometimes I wonder who's minding the store. Private Sector is disenfranchising the American Taxpayer and the Government is not doing its job. The private sector has technically succeeded from the union, giving way to corruption and greed. Politicians are vying for position to the right and the left. Our corporations are suppose to be for and by the people as well as our government. Yet lines are being drawn in such a way that there is a possibility that this government for and by the people is headed to an explosion. Most Americans are reasonable and can use common sense to resolve problems.
At a time when we should be increasing our investment in America and the idea of America, there are those who suggest that corporate profits and an unregulated free market system would be a better solution. It isn't enough, that we are falling behind in education, there are those who are trying to privatize it for profits. Which at the same time are removing the opportunity for those who can not afford it and sending us further behind in resources for the future. It isn't enough that we need more financial oversight, while there are those who are motivated by greed and corruption to decide what is fair or not. It isn't enough that we have the strongest military on the planet, yet there are those who want to increase this ability at the expense of our social programs. It isn't enough that we have a working social security program; there are those who seek to privatize it at the peril of each American. It isn't enough that we for the first time in American history have a health care plan to cover most Americans, while there are those who believe it is better to allow our fellow citizens to die or go bankrupt due to health issues not of there choosing.
This is not just about stealing money from the middle class, those who are in poverty, and those who have now been abandoned and there future held in jeopardy, it is about stealing the American way of life and inevitably its soul. I am saddened, I am angry and I hurt for the promise that is America, it is the country which on entry has in its very foundations "Give me your tired, your poor, your huddled masses yearning to breathe free, The wretched refuse of your teeming shore, Send these, the homeless, tempest-tossed to me, I lift my lamp beside the golden door!"
It is truly the promise that is America, that all can come and that they will be taken care of. It is "We" the people that will provide for the Health, Safety and Welfare of every citizen, not just those who are privileged.
Our true democracy lies within our ability to educate, provide opportunities for employment or entrepreneurialism, and to secure our republic by taking care of the health, security and welfare of all our citizens.
President Obama said today his top priority is to extend the George W. Bush tax cuts for middle class Americans, and he will talk with Republicans next week about what to do with the tax rates for wealthier Americans.
"I continue to believe that extending permanently the upper-income tax cuts would be a mistake and that we can't afford it," Obama told reporters at the G-20 summit in Seoul, South Korea. "And my hope is, is that somewhere in between there we can find some sort of solution."
He added: "I'm not going to negotiate here in Seoul. My job is to negotiate back in Washington with Republican and Democratic leaders."
The tax cuts expire at the end of the year, and are the top priority of the lame duck Congress that meets next week.
Obama said the Bush tax cuts should lapse for individuals who make more than $200,000 a year and couples who make more than $250,000.
Republicans, including incoming House Speaker John Boehner, R-Ohio, say no one's taxes should be increased in a bad economy, and that many wealthy people also create jobs.
Obama and aides have said they oppose a "permanent" extension of tax cuts for the wealthy, suggesting he may be open to a temporary extension.
That possibility has angered some of Obama's liberal supporters.
"The White House and congressional leaders need to say we are scheduling one vote, one vote only, and that vote is on renewing the middle class tax cuts," said Adam Green, co-founder, Progressive Change Campaign Committee. "And if Republicans want to oppose tax cuts for 98% of Americans, we dare them to and will pummel them politically if they do. That's how you fight and put Republicans on defense."
In Seoul, Obama said his top goal is "to make sure that taxes don't go up for middle-class families" next year, "not only because they need relief after having gone through a horrendous recession, but also because it would be bad for the economy."
Obama also said tax cut extensions for the wealthy would exacerbate the nation's budget deficit problems:
I also believe that it would be fiscally irresponsible for us to permanently extend the high-income tax cuts. I think that would be a mistake, particularly when we've got our Republican friends saying that their number-one priority is making sure that we deal with our debt and our deficit.
So there may be a whole host of ways to compromise around those issues. I'm not going to negotiate here in Seoul on those issues. But I've made very clear what my priorities are.
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