Category Archives: Economy

What’s up (or down) with the economy?

Congress Beats War Drum, Time to Play Another Tune

I was able to watch most of Ken Burn’s documentary on PBS about “The Roosevelts”.  All four of Teddy Roosevelt’s sons volunteered for WWI. His youngest son, Quentin died in the war. Also, Franklin D. Roosevelt’s four sons served overseas on WWII.

Since the mid-1960s, the percentage of veterans in Congress has fallen from the 60-70% range to less than 25%.  Today there are a few younger members of Congress who served in Iraq or Afghanistan.  But most in Congress beat the War Drums to send other people’s children to war.

As awful as the beheading of the two U.S. journalists by ISIS is, let’s not forget that there have been similar murders in Mexico by drug gangs in the past decade.  Beginning over 20 years ago, there have been a handful of beheading cases in Detroit, mostly drug gang related. The main difference is that these cases were discovered after the fact, and were not broadcast on Twitter.  They occurred in North America, and not “over there” in the Middle East.

While “something” should be done regarding ISIS, war alone is not the answer. The more the world’s nations can work together, and make ISIS into a pariah, that is despised by most other Muslims in the world, only then things might improve. While the 2003 War in Iraq certainly was not helpful to this situation, it is not solely the problem or fault of the U.S.

Remember, 18 of 19 terrorists on 9/11 were from Saudi Arabia. Yet Bush/Cheney, friends of the Saudis, instead invaded Iraq.

The best that the Saudis can do, apparently so far, is provide training space for “moderate” rebels of Syria. Well, we can probably count the number of “moderates” in Congress on two hands.  So what makes us think we can actually find sufficient numbers of rebels from Syria, whom we could actually trust?

Saudi Arabia has the world’s 4th largest military. Why aren’t they offering to fly over “The Lavant” and attack ISIS?  Is it because they are both Sunni? Saudi Arabia, a very wealthy oil state, should at least pony up for the jet fuel for the war planes of the U.S. and other nations.

Unless Middle Eastern nations put forth significant effort towards diplomatic, humanitarian and military assistance, then we have no business getting embroiled in another “murky” situation in Iraq and Syria.  If neighboring countries in that region don’t offer sufficient help, then we should tighten our security, and begin to address the many domestic issues that already threaten us at home.

Advertisements

Detroit’s Slow-Motion Crash, America’s Race Against Time

When I heard the news Friday, July 19, that the City of Detroit is declaring bankruptcy, I was saddened, but not at all surprised.  Detroit has been under the jurisdiction of Emergency Manager Kevyn Orr, appointed by Republican Governor Rick Snyder, for four months.  Elected Mayor Dave Bing (and former Pistons basketball player), is effectively out of power, but he has been cooperating with Kevyn Orr during this transition.

Later the same day, President Obama made some heartfelt and personal remarks on race relations in America, in the wake of the George Zimmerman trial over the death of Trayvon Martin.  I see a connection of President Obama’s remarks to the racial history of metro Detroit, and how racial tensions were one of the contributing factors to Detroit’s decline over the decades.  Metro Detroit is one of the most segregated regions in America, north of Mississippi.  In some ways, metro Detroit is a Southern City trapped inside of a Northern State.

The City of Detroit could be compared to a slow-motion car crash, decades in the making.  Imagine a circa 1940 or 1950 Chevy cruising down Woodward Avenue, morphing into other vehicle models over time, up through a 2013 Chevy Volt (one of the few vehicles still manufactured in the City of Detroit), just before hitting a financial brick wall.  When watching those slow-motion crash test videos, you know what the outcome will be, but not exactly when the moment of impact will occur.

Although I moved away from metro Detroit in 1986, I grew up there and still have many family members living there, most of who work in the auto industry, or have since retired.  I travel to Detroit once or twice a year to visit my family.  At a young age, I was able to sense the racial and economic trajectory of metro Detroit.  I decided that I would eventually leave the area when I grew up.  I later moved to the Lansing area, before moving to Vermont.

I will try to describe Detroit’s slow-motion car crash in a nutshell.  Given the state of today’s U.S. economy, unemployment, declining middle class and racial tensions, I think there are lessons to be learned from Detroit’s situation.  Detroit has been the favorite punching bag of the news media and people in other states for many years.  But I see signs of what happened in Detoit decades ago in other parts of the country in recent times, even in Rutland County, Vermont where I have lived for 18 years.

Continue reading

It’s The Honesty Problem, Stupid!

Last Tuesday evening I watched the PBS Frontline documentary called “The Untouchables”.  According to the Frontline website, this film “examines why no Wall Street execs have been prosecuted for the financial crisis”.  I encourage citizens to view this documentary (about 54 minutes), which can be seen online.

Lanny Breuer, who is head of the DOJ Criminal Division, was interviewed by Frontline correspondent Martin Smith.  Sadly, while a large amount of evidence was collected, the prosecutions did not go forward, because according to Breuer, it is difficult to “prove” criminal intent in these types of federal cases.

Martin Smith also interviewed people who had worked as “due diligence underwriters”, who explained how they would get a laugh out of mortgage applications where the incomes claimed by the applicants seemed way out of line for their profession.  For example, this “Fraud-bomb” quote:

“… it wasn’t uncommon to see school teachers claiming salaries of $12,000 a month on their mortgage applications, or electricians moving from $500 a month in rent to homes worth $650,000.  The only problem — their supervisors didn’t seem to want to hear about it.”

“Fraud in the due diligence world, fraud was the F-word or the F-bomb,” said Tom Leonard. “You didn’t use that word”.

I won’t comment too much more about this documentary, since you can view it yourself.  To me, this documentary points out that America doesn’t just have a spending problem or a revenue problem (tax system), or a debt problem.  As a nation, we have an HONESTY problem.

Continue reading