I don’t know if paying attention is doing any good anymore. I have been looking into the Fed action performed during the crisis that (thanks to Bloomberg) has finally come to partial light in the past week and cant help but wonder if I am not better off just keeping my head down and ignoring the glaring abuses of the powers that be. How come when i go off on a tangent about this stuff with a friend or colleague i get that look of, ‘here he goes again’ and the common reply of, ‘there is nothing you can do about it, just try not to think so much and keep going, it’s all you can do to stay sane.’
but i don’t feel sane anymore. i am not a ‘socialist’, but I can’t help wonder if the trillions of dollars that ‘saved us from financial Armageddon’ couldnt have been put to better use actually writing down notes and debt to levels that would help the economy grow instead of propping up insolvent institutions and letting them use our supposed junk mortgages (that wouldn’t be junk if written down) as collateral to borrow money for virtually nothing then loaning it back to us. it just seems so simple.
but moral hazard is a one way street, and we the people are not going the right way on it. we are getting run over. and i wonder if there is anything we can do, or better yet would be willing to do.
imagine a few million of us making a point by not paying our bills. so many developers and ‘entrepeneurs’ decided to strategically default on various debts for accounting purposes. what if we had a movement of people who threatened to stop paying any bill to a bank or major credit card company, so-called voting with our pocket books. not because we are forced to for financial reasons but because enough of us doing this would literally cripple the corrupt system. do you think people would do it? enough people?
i remember hearing dave marsh fill in for someone on a talk radio show just after the ’08 meltdown when the banks were helping themselves to whatever they needed- he went off on a rant about how all americans should stop paying their mortgage as a protest against the bailouts. i never heard dave marsh talk politics again on that show.
a huge movement, it may already exist. just throw the simplest cog into the wheel. or just threaten it! no more capital transfers in that direction. fuck your credit score, its a leash. turn the one way road the other direction- taking out a few cadillac escalades in the process.
better try not to think too much… just keep plugging along