Let’s Call It What It Is - It’s Reagan’s Fault!

The government, both state and federal, is on a feeding frenzy to save the banks, the real reason is that the banks are the feeding ground for our politicians, in fact any office seeker is beholden to the banks for their financial support. As such there will never be any meaningful control over these institutions.

There are now 140 fewer banks then there was last year, and the too big to fail have gotten even larger, and now have much less competition, as such those too big to fail institutions profits have soared.

Real reform in America will not occur, the system has already transitioned and the constitution has been rendered a nullity. What does this mean for the masses of the population?

We have Geitner’s Bankers view: “Geithner’s “Claim” -the Economy is Rebounding!” "Right now we're focused on getting growth back on track," says Geithner. "And we're not at the point yet where we have to decide exactly what it's going to take."

Ok, so, the economy is rebounding, says Geitner, the government is focused on getting growth back on track, but hasn’t the slightest idea how to do just that!

Leaving the rhetorical question, with most American jobs outsourced, will the economy ever rebound?

It’s time we got real!

People are still losing jobs and at an alarming rate, while those in government are focused on helping the banks, that same irresponsible element that is still doing the same thing that got them in trouble in the first instance. The Banks are still bundling loans and creating derivatives (CDS’S). Although it is at a much lower pace as they are making fewer loans.

Perhaps the process of thinking for the executives of these major banks may be demented, as it appears that they simply don’t care. So far when they fail the government has forced us to come to their rescue, and as the government believes these banks are too big to fail the bankers “know” they won’t be allowed to fail!

So it’s business as usual on Wall Street.

This unemployment cycle had to occur and it was expected by Greenspan, Geitner and Bernanke. The housing bubble was an artificial bubble created by the Bush administration to help take us out of the recession we had entered in 2000. We were already into a recession when the incident of 9/11 occurred, we never came out of that recession until the banks loosened credit and had us take the equity out of our homes. It wasn’t jobs or income that marshaled the economy; it was the easy access to our home equity.

The Banks didn’t care that the housing market was a bubble and the numbers weren’t realistic, or that the consumers would be able long term to cover their mortgages, as they made a lot of money creating these loans and inflating the economy, which caused the housing bubble in the first place. They also created these insurance derivatives to protect themselves when the bubble collapsed, as they knew it would.

The US economy has been in a sad state since the Reagan Bush administration, Reagan was a puppet of the banks, and as the banks controlled Reagan they also controlled each of the fortune 500 companies, they sought more profits. Reagan gave them what they wanted by promoting American businesses to relocate off shore and with them American jobs, and an abundance of cheap labor. It was Reagan that transitioned this economy to a service economy! Reagan the idol of the Republican Party elite was himself a puppet of the Banking interests. Reagan is the culprit that has caused the waste of American jobs.

Now we are simply reaping what Reagan and Bush had sown, followed by Clinton and Nafta and Gatt. Each taking American jobs further disrupting our economy.

The unemployed, those who have filed claims for assistance during 2009 number in excess of 24,003,936. More than 24 million American workers displaced in 2009 Alone. The government acknowledges that 35.6% or 8,545,40 people are hard core unemployed, this does not take into account however (i) those whose benefits have expired and they are simply out of luck, or (ii) those that have accepted part time work as better than nothing, or (iii) those who have taken a cut in pay to work in a less desirable industry.

The jobless rate has now been acknowledged at 10.2 percent of the workforce however this number is very misleading, when we take into account those on aid, on Social Security, those no longer collecting unemployment benefits, and the unemployed we have a tremendous difference, there appears to be more people collecting benefits than there are actually working.

The unemployment rate doesn't include people without jobs who have stopped looking, or those who have settled for part-time jobs. Counting those people, the unemployment rate would be 17.5 percent or higher, the highest since at least 1994, and the worst record for Americans since Ronald Reagan was in office. An alternative gauge of unemployment, which includes discouraged workers and those forced to work part-time, actually rose to 17.5%, the highest on record dating to 1994.

The underemployed - Total hours worked in the economy fell 0.2%. The average workweek was steady at a record-low 33 hours meaning that of those who were employed were working fewer hours and making less money!

Very simply and plainly, high unemployment is going to be around for some time to come ... there is little reason for businesses to hire and we can expect this holiday season to be the worst on record!

There is no need to highlight the terrible predicament the American economy has been placed in by the banks, big business and inadequate administrations. The bank control of Ronald Reagan and the following administrations bear evidence to the tragic state our economy now finds itself.

The Banks because of their greed, and big business seeking to make larger profits for their investors, have disrupted the American economy. Only the reversal of this plan to equalize the citizens of the world and to bring back American jobs will make any meaningful difference. But this will never happen our system of governance has fully transitioned to a corporate form of governance.

Consumer products manufactured overseas means jobs are overseas. We still have access to any product we want because they’re imported, whether or not we’ll be able to afford them is another question and one that will depend on whether we have an income or job. It may also depend on our relationship with those in power!

Eventually there isn't going to be enough income spread among enough of the population to continue the economy even at this reduced standard. The cycle of more productivity from fewer workers will ultimately hit a floor and then unemployment would crash even further.

We need to end the crony capitalism that still thrives under Obama, no more bailouts, no more bonuses, no more mega-players like Goldman Sachs, no more off-shoring American jobs and manufacturing. We need jobs now! And we need a plan that does not contain the banking interest above our own!