chrisfriel.ca: Ah, The Invisible Hand
Ah, The Invisible Hand
"Whew, thank God that election is over."
"Election, we had an election?"
"Yeah, where have you been?"
"Right here. Huh. I guess that is why all those talking heads were floating around my television screen."
"How could you not know about the election?"
"Hey, I thought we weren't suppose to have an election until next year. Wasn't that what the guy with the robot eyes promised in the last election I didn't pay any attention to?"
"Well, yes...that is what he promised, he even made it law, but it there was this world economic crisis looming and they knew they had to get an election in before..."
"...before the crisis happened and their chances at a majority were in crisis, right?"
"I guess so yes."
"Now, about this world economic crisis, what is that all about?"
"Where have you been for the last months?"
"Buddy, you know I lost my job at the plant, I've been too busy trying to find a job, keep the lights on and feed my children."
"Oh. Sorry."
"Don't be sorry, it's not your fault. I know no one cares about us, and I know we are on our own. It's funny though, we must be the cutting edge of this world economic crisis you are speaking about, because, people seem scared of me when they learn I'm out of work. It's like a disease they don't want to catch."
"People don't act like that, do they?"
"Are you kidding? When it was just a few thousand of us it didn't really matter to most people because we were just a 'market correction' or something, but when the specter of economic woe creeps up on their doorsteps, well...look out, wear a mask so you don't catch the unemployment."
"That makes me sad."
"Think about how it makes me feel."
"Oh right, sorry."
"No reason to be sorry. Explain the crisis to me."
"Ok, best as I can figure it, during the last bunch of years, there were some guys who figured out that they could package up mortgages like a stock or something, and then sell them around to banks. So, because everyone liked this kind of investment, it seemed secure I guess, they started creating more of these mortgage-rolls by getting more people to take out mortgages."
"Ah, I see, so then they cut the rates, and anyone with job and a smile could get a mortgage on any size house they wanted."
"That's right, and of course they couldn't keep it up, so they started to default and the foreclosures happened."
"And all these secure funds, are now worthless, or parts of them are worthless, and no one is really sure which parts."
"Right, then the largest mortgage companies in the US take the hit and go bankrupt."
"Sending the mortgage, and banking system into crisis."
"Yup, and it's world wide. Every country is having to prop up their banks, because everyone was hot to trot on these funds."
"Is it me or does this sound like the Michael Milken junk bond fiasco of the Reagan era. Remember that, greed is good?"
"Yeah it does, doesn't it. So, a handful of super rich guys, propped up by greedy politicians and banks have now caused the biggest economic crisis since the depression."
"And of course no one is going to go to jail right?"
"It's the free market man, they not only get away with it, they will get away with the gazillions of dollars they milked from the system in salaries, options and bonuses.''
"Ah, the invisible hand."
"Yes the invisible hand."
"That invisible hand picked me up by the scruff of the neck, so the invisible foot could give me a kick to my very real ass."
'I'm so sorry man."
"No reason to be sorry. It's not your fault."
"Election, we had an election?"
"Yeah, where have you been?"
"Right here. Huh. I guess that is why all those talking heads were floating around my television screen."
"How could you not know about the election?"
"Hey, I thought we weren't suppose to have an election until next year. Wasn't that what the guy with the robot eyes promised in the last election I didn't pay any attention to?"
"Well, yes...that is what he promised, he even made it law, but it there was this world economic crisis looming and they knew they had to get an election in before..."
"...before the crisis happened and their chances at a majority were in crisis, right?"
"I guess so yes."
"Now, about this world economic crisis, what is that all about?"
"Where have you been for the last months?"
"Buddy, you know I lost my job at the plant, I've been too busy trying to find a job, keep the lights on and feed my children."
"Oh. Sorry."
"Don't be sorry, it's not your fault. I know no one cares about us, and I know we are on our own. It's funny though, we must be the cutting edge of this world economic crisis you are speaking about, because, people seem scared of me when they learn I'm out of work. It's like a disease they don't want to catch."
"People don't act like that, do they?"
"Are you kidding? When it was just a few thousand of us it didn't really matter to most people because we were just a 'market correction' or something, but when the specter of economic woe creeps up on their doorsteps, well...look out, wear a mask so you don't catch the unemployment."
"That makes me sad."
"Think about how it makes me feel."
"Oh right, sorry."
"No reason to be sorry. Explain the crisis to me."
"Ok, best as I can figure it, during the last bunch of years, there were some guys who figured out that they could package up mortgages like a stock or something, and then sell them around to banks. So, because everyone liked this kind of investment, it seemed secure I guess, they started creating more of these mortgage-rolls by getting more people to take out mortgages."
"Ah, I see, so then they cut the rates, and anyone with job and a smile could get a mortgage on any size house they wanted."
"That's right, and of course they couldn't keep it up, so they started to default and the foreclosures happened."
"And all these secure funds, are now worthless, or parts of them are worthless, and no one is really sure which parts."
"Right, then the largest mortgage companies in the US take the hit and go bankrupt."
"Sending the mortgage, and banking system into crisis."
"Yup, and it's world wide. Every country is having to prop up their banks, because everyone was hot to trot on these funds."
"Is it me or does this sound like the Michael Milken junk bond fiasco of the Reagan era. Remember that, greed is good?"
"Yeah it does, doesn't it. So, a handful of super rich guys, propped up by greedy politicians and banks have now caused the biggest economic crisis since the depression."
"And of course no one is going to go to jail right?"
"It's the free market man, they not only get away with it, they will get away with the gazillions of dollars they milked from the system in salaries, options and bonuses.''
"Ah, the invisible hand."
"Yes the invisible hand."
"That invisible hand picked me up by the scruff of the neck, so the invisible foot could give me a kick to my very real ass."
'I'm so sorry man."
"No reason to be sorry. It's not your fault."

